IFC’s appraisal considered the environmental and social management planning process and documentation for the Project and gaps, if any, between these and IFC’s requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and (if applicable) in an agreed Environmental and Social Action Plan (ESAP). Through implementation of these measures, the Project is expected to be designed and operated in accordance with Performance Standards objectives.
PS 1 - Assessment and Management of Environmental and Social Risks and Impacts
Environmental and Social Assessment and Management System
An ESIA has been prepared for the project in accordance with applicable national requirements and lender standards. The ESIA includes the framework for an environmental and social management system (ESMS) covering both the construction and operational phases. As outlined in ESAP #1, the company will develop and implement a project-specific ESMS proportionate for the scale and complexity of the project, in accordance with IFC PS1, WBG EHS General and Thermal Power Plant Guidelines, and applicable national laws and regulations, addressing both construction and operation.
The ESMS will include, at a minimum: (i) an overarching E&S policy defining the company’s E&S objectives in line with IFC PSs; (ii) anti-harassment policy; (iii) child protection policy; (iv) a commitments register which will include a list of all E&S commitments made by the sponsors in the ESIA documentation and stipulated in permits issued by the Government of Jordan and other authorities; (v) a permits register identifying all required licenses, consents and permits under applicable laws and regulations; (vi) defined E&S roles, responsibilities, resources and reporting lines; (vii) E&S training plan; (viii) monitoring, reporting and corrective action requirements; (ix) contractor management plan; (x) stakeholder engagement plan and grievance management policy and procedure; and (xi) framework E&S management plans for construction and operation.
As part of the detailed design process, the company will prepare a project environmental design criteria (EDC) document (ESAP#2), applicable to the CCGT plant. The EDC will define the quantitative (numeric) and qualitative standards to be applied by the EPC contractor or other vendors in the design of all plant components, including (as applicable) air emissions limits, wastewater discharge criteria, noise limits, and secondary containment requirements. The EDC will also specify the environmental standards and requirements with which the company must comply during construction and operation. Adopted standards will be based on the most stringent of applicable national requirements, PS and the WBG EHS Guidelines.
To manage and minimize the construction related E&S impacts, the company will require the EPC contractor to develop and implement a construction environmental and social management system (C-ESMS), inclusive of policy statements, management and monitoring measures and aspect-specific management plans applicable to the EPC activities and tailored to the construction methodology, engineering design and commissioning phase of the project (ESAP #3). The structure and content of the EPC contractor’s C-ESMS will be fully aligned with the sponsor’s ESMS.
The company will operate the plant after construction and commissioning. Therefore, as per ESAP #4, before commissioning, the company will develop and implement Operations Environmental and Social Management Plans (O-ESMPs) consistent with the project ESMS, ESIA, PS, WBG EHS Guidelines and national requirements. The content of the O-ESMPs will reflect final equipment details, plant processes and operational schedule.
The company will identify and assess E&S risks and impacts associated with the project’s Associated Facilities (including those owned/operated by NEPCO). Where the company has leverage, it will require, through contractual arrangements and/or other mechanisms, that the Associated Facilities are designed, constructed, and operated in a manner consistent with the PS. Where the company does not have control, it will use and document its leverage to promote alignment with the PS, including engagement with the owners/operators, information sharing, agreed action plans, and monitoring. If alignment cannot be achieved, the company will implement additional mitigation measures within its control and consider feasible alternatives consistent with the PS.
Identification of Risks and Impacts
The ESIA was submitted to the Ministry of Environment for approval in July 2026, with all relevant environmental and social permits and authorizations to be obtained prior to construction and operation. The ESIA incorporates a climate vulnerability and risk assessment (CVRA), which evaluated the project's exposure to climate-related hazards such as drought, extreme temperatures, flash flooding, dust storms, wildfires, and water scarcity. To reduce water dependency, project design includes air-cooled condenser technology and a zero liquid discharge system. To further strengthen climate resilience, the company will integrate relevant climate scenarios into its emergency preparedness and response plans and water management plans across both construction and operation phases (ESAP #3 and #4).
Organizational Capacity and Competency
Under ESAP #5, the company, currently supported by the sponsor's E&S team, will establish a dedicated organizational structure with qualified HSES personnel across the project lifecycle, appointing an E&S Manager and HSES Manager (with overall responsibility for E&S and OHS during construction), supported by an HR Manager and community liaison officer (CLO), to oversee the EPC contractor's and subcontractors' compliance with E&S requirements. During construction, day-to-day HSES management will be contractually delegated to the EPC contractor (ESAP #6), who must deploy suitably qualified staff, including its own HSES Manager, HSES Supervisor, HSES inspectors (scaled to the workforce), an HR Manager, and a CLO to implement the Construction ESMS (C-ESMS), and supervise workers and subcontractors; the operational-phase HSES structure will be finalized before commissioning and documented in the company's final ESMS (ESAP #1).
Emergency Preparedness and Response
Construction and operational emergency preparedness and response plans (EPRPs) will be developed and implemented as part of the project ESMS (ESAP#3 and 4). The EPRPs will address potential emergency situations relevant to project activities, including fires, explosions, hazardous material releases, transportation incidents, natural hazards, climate-related events, security incidents, and communicable disease outbreaks.
Monitoring and Review
The company and EPC contractor will implement E&S monitoring programs during construction and operation to verify compliance with legal requirements, lender standards, and project commitments. Monitoring requirements covering parameters, responsibilities, methodologies, frequencies, reporting, and performance criteria will be defined in the C-ESMS and operational ESMS documentation. The LESA will monitor the project and report to lenders through quarterly construction reports, a commissioning report, bi-annual operational reports in the initial years, and annual reports thereafter. The company will promptly notify lenders of significant E&S, health, and safety incidents, including fatalities, serious injuries, major environmental events, community incidents, and material GBV/SEAH allegations followed by investigations and appropriate corrective and preventive actions.
Supply Chain
The company will implement a risk-based approach to supply chain management consistent with PS 2 requirements, and include references to address child labor, forced labor, and significant safety issues in its Supplier Code of Conduct which will be developed by the company.
PS 2 – Labor and Working Conditions
Human Resources Policies and Procedures
The HR management system of Ethihad WE includes, but is not restricted to, a code of ethics, code of conduct, conflict of interest policy, confidentiality policy, whistleblowing policy, fraud and bribery prevention policy, intellectual property management policy, supply chain policy, as well as an employees’ handbook that provides a comprehensive guide to company requirements. The company will develop an HR Policy and code of conduct compliant with IFC PS2, addressing freedom of association, non-discrimination, worker welfare, occupational health and safety, harassment, gender-based violence and harassment (GBVH), while guaranteeing confidentiality, non-retaliation, and a survivor-centered approach (ESAP #7). This policy will be applicable to all direct, contracted, and third-party workers, and will be enforced through contractual clauses cascaded from contractors to sub-contractors, translated into languages workers understand, and shared at induction. The company will also develop an employee’s handbook covering compensation, leave, benefits, dismissal, and employer/employee responsibilities. The company and EPC contractor will each appoint a qualified HR Manager experienced in international labor standards and local regulations to oversee implementation of HR policies and the worker grievance mechanism.
Working Conditions, Management of Worker Relationship and Terms of Employment
The workforce is expected to peak at around 1,500 workers during the 20-month construction period, comprising skilled personnel (engineers, technicians, surveyors, etc.) alongside semi-skilled and unskilled workers, mostly recruited from Jordan and neighboring countries. During operations, the workforce is expected to comprise approximately 60 employees. The company will require that all employees, including contractor and sub-contractor employees are provided with a written contract of employment prior to commencing work which outlines their employment terms and benefits. The project’s HR policy and worker code of conduct (ESAP#7) will apply to the company’s workforce and contractors, and will support compliance with minimum age requirements and protections for young workers.
Workers Grievance Mechanism
The company will establish a grievance mechanism, consistent with IFC PSs, accessible to all direct, contracted, and third-party workers. The mechanism will allow anonymous reporting, provide multiple channels for submitting complaints, and include a separate expedited process for sensitive cases such as discrimination, and GBV/SEAH (ESAP#8). An adequately trained grievance officer and an inquiry committee will be appointed to manage and investigate grievances requiring escalation. The company will also provide regular training to all workers on the code of conduct, HR policies, and grievance mechanism procedures, with specialized training for managers, HR personnel, and inquiry committee members on grievance handling and investigation.
Contractor management
The company will implement a contractor management framework through its ESMS to ensure that the EPC contractor and all subcontractors comply with applicable legal requirements, IFC Performance Standards, WBG EHS Guidelines, the ESIA, and company E&S policies (ESAP#1). The company will require the EPC contractor to develop and implement a sub-contractor management plan (ESAP#9) to manage the environmental, health, safety, and social (EHSS) performance of subcontractors and other third parties during construction, also considering aspects in the IFC Good Practice Note: Managing Contractors’ Environmental and Social Performance. Compliance will be monitored through regular oversight under the Construction ESMS. The company will include legally binding obligations in the EPC contract requiring the EPC contractor to comply with: (i) applicable national laws, regulations, permits and standards; (ii) lender requirements, including IFC Performance Standards and World Bank Group (WBG) Environment, Health and Safety Guidelines, as well as company ESMS and HR policies, C-ESMS, and project ESIA (ESAP#10). In addition, the company will commission an independent third-party audit of labor and working conditions, including contractor-provided worker accommodation, to assess compliance with IFC PSs, as well as alignment with IFC/EBRD good practice requirements, and adherence to international life and fire safety standards, and health, safety, and gender considerations (ESAP#11).
Workers’ Accommodation
Construction workers will be housed in onsite accommodation or rented facilities in nearby towns. The EPC contractor will develop and implement a worker accommodation management plan (ESAP#3) that also considers aspects in the IFC/EBRD Workers’ Accommodation Guidelines. The company will ensure that the EPC contractor and subcontractors comply with the plan and provide adequate welfare and dining facilities for workers at the project site. In accordance with ESAP#12, the company will undertake a pre-occupancy audit of all project-provided accommodation facilities to verify compliance with lender requirements and internationally recognized life and fire safety standards, with any material non-compliances rectified prior to occupancy.
Occupational Health and Safety (OHS)
Workers may be exposed to a range of occupational health and safety risks during construction and operation, including physical, chemical, and biological hazards. To manage these risks, the EPC contractor will develop and implement an occupational health and safety (OHS) Management Plan as part of the Construction ESMS (ESAP#3), supported by procedures covering workforce training, emergency preparedness and response, incident reporting and investigation, inspections and audits, permit-to-work systems, and high-risk activities such as work at height, confined space entry, and electrical work. The EPC contractor will also report OHS performance indicators and accident statistics to the company on a regular basis. For the operational phase, the company will implement an OHS management plan (ESAP#4) based on key operational risks, including measures to eliminate or reduce hazards, provide appropriate protective equipment, train workers, document and investigate incidents, and maintain emergency prevention, preparedness, and response arrangements.
PS 3 – Resource Efficiency and Pollution Prevention
Greenhouse Gas Emissions
Over the 27-year project life, total GHG emissions are estimated at 65,624.1 KtCO2e. Combined-cycle mode operations account for 95.8% (62,899.9 KtCO2e), simple-cycle operations for 4.1% (2,677.8 KtCO2e), and construction for 0.1% (46.4 KtCO2e), of total Project emissions. GHG emissions will be quantified and reported annually to lenders as part of the Annual Monitoring Report (AMR).
Water Consumption
A Water Supply Agreement has been executed between the sponsor, the Water Authority of Jordan (WAJ), and Yarmouk Water Company (YWC) to meet the project's water requirements. Construction-phase water demand is expected to be limited, while operational water consumption is estimated at approximately 600 m³/day over the 25-year project life. Water will be supplied through a dedicated 4.5 km pipeline connecting the site to an existing pumping station in Umm Al Lulu village and located within the right-of-way of an existing road. The ESIA concluded that the proposed water supply arrangements are not expected to adversely affect water availability for local communities or other existing users. Future regional water availability is expected to be supported by the Aqaba-Amman Water Desalination and Conveyance Project. To promote efficient water use and resource management, the company will develop and implement Water Management Plans for both the construction and operational phases (ESAP #3 and ESAP #4).
Air Emissions
Construction activities, including site preparation, excavation, trenching, and earthworks, are expected to generate temporary dust emissions, which will be managed through mitigation measures identified in the ESIA and implemented via an air quality management plan under the Construction ESMS (ESAP #3). During operations, the principal air emissions will consist of NOx and CO from natural gas combustion. Air dispersion modelling undertaken as part of the ESIA indicates compliance with applicable ambient air quality standards for NO2, CO, SO2, and PM10 under all assessed operating scenarios, including infrequent emergency operation on diesel fuel, assuming a sulfur content of no more than 0.5%. Operational air quality impacts will be managed through an air quality management plan incorporated into the Operational ESMPs (ESAP #4). To verify ongoing compliance with national requirements, the WBG EHS Guidelines for Thermal Power Plants, and project-specific environmental design criteria, continuous emissions monitoring systems will be installed on all emission stacks (ESAP #13). Ambient air quality monitoring will also be conducted during both construction and operations to assess the effectiveness of mitigation measures and confirm compliance with applicable standards.
Noise
The closest receptors to the project site comprise residences to the southwest, northwest and north (at approximately 500 m, 715 m and 525 m from the project site boundary, respectively). Construction activities are expected to result in temporary, localized increases in noise levels, particularly during site preparation, excavation, and earthworks, with impacts reducing as construction progresses. Operational noise modelling undertaken as part of the ESIA predicts noise levels of 52.2-54.5 dB(A) during daytime and 52.9-53.9 dB(A) at night at the nearest receptors, indicating potential nighttime exceedances of Jordanian regulations and the WBG EHS Guideline nighttime criterion of 45 dB(A). The company will implement noise mitigation measures identified in the ESIA during both construction and operations, maintain a project grievance mechanism for community concerns, and undertake operational noise monitoring. Where monitoring identifies exceedances of applicable standards or significant impacts, additional mitigation measures will be implemented to achieve compliance with Jordanian requirements and the WBG EHS Guidelines for Thermal Power Plants.
Wastewater Management
The project has been designed to achieve zero liquid discharge (ZLD), with operational wastewater collected, treated, and reused within plant processes where feasible, and residual wastewater disposed of through evaporation in a dedicated evaporation pond. A wastewater treatment plant will be installed to treat sanitary and other non-process wastewater streams in accordance with applicable national and lender requirements. Process wastewater and oily drainage will be treated through an oil-water separation system prior to discharge to the evaporation pond, which will be constructed with an impermeable engineered liner to protect groundwater resources. Sludge generated from wastewater treatment processes and the evaporation pond will be transported to the licensed Al Ekaider Landfill for final disposal. Wastewater and sludge management will be implemented in accordance with the project's operational environmental management framework.
Waste and Hazardous Materials Management
The project will generate both hazardous and non-hazardous waste during construction and operations. Hazardous materials, including fuels, lubricants, chemicals, used oils, spent filters, and other contaminated materials, will be stored, handled, and disposed of in accordance with applicable national requirements, the WBG EHS Guidelines, and international good industry practice to prevent spills and releases. Non-hazardous waste will include domestic, food, packaging, and construction-related waste. The company will develop and implement waste management plans for the construction and operational phases (ESAP #3 and ESAP #4), applying the waste hierarchy of avoidance, reduction, reuse, recycling, recovery, and disposal. Non-hazardous waste will be disposed of at the licensed Al Ekaider Landfill, while hazardous waste will be transferred to the Swaqa Hazardous Waste Treatment Facility for treatment and final disposal.
PS 4 – Community Health, Safety and Security
Community Health and Safety
The project is located on state-owned land allocated through a Prime Ministerial decision and situated within the Khanasri Grazing Reserve, a Ministry of Agriculture-managed research and development area. Access to the reserve is controlled through perimeter fencing, and entry is restricted, including for local communities and livestock grazers. National regulations require natural gas-fired thermal power plants to be located at least 500 meters from the nearest residence, populated area, or sensitive receptor.
Project-affected communities comprise eight settlements located within the ESIA-defined 5 km area of influence, with the nearest residential receptor approximately 760 m from the project site. Construction activities may give rise to community health, safety, and nuisance impacts, including risks associated with excavation works, heavy equipment operation, traffic, dust, noise, chemical storage, workforce influx, and temporary land access restrictions related to associated facilities. Conversely, the project is expected to generate positive socioeconomic benefits through local employment, contractor engagement, and procurement opportunities.
To manage community risks and impacts, the company will implement mitigation measures identified in the ESIA through construction and operational management plans, including traffic, waste, emergency preparedness, as well as community health and safety. The project will also implement a process safety and major accident hazard management framework, including hazard identification and risk assessments (e.g., HAZID and HAZOP studies), fire and life safety measures, secondary containment systems, emergency shutdown systems, and operational integrity management for gas, fuel, chemical, and steam handling systems. In accordance with ESAP#14, the company will undertake a quantitative risk assessment (QRA) addressing potential emergency scenarios, including gas releases, fires, explosions, and thermal radiation impacts, with the findings integrated into project design and emergency preparedness and response arrangements, as appropriate.
Security Personnel
Project security during construction and operations will be provided by qualified private security contractors and supported by measures such as perimeter fencing, CCTV surveillance, controlled access procedures, vehicle authorization systems, and worker identification controls. To manage security-related risks, the company will undertake Security Risk Assessments and develop security management plans for both the construction and operational phases as part of the construction and operational ESMSs (ESAP#3 and ESAP#4), incorporate aspects of IFC’s Good Practice Handbook on the Use of Security Forces: Assessing and Managing Risks and Impacts. Security personnel will receive training on applicable codes of conduct, the appropriate use of force, human rights principles, and the prevention of GBVH.
PS 5 – Land Acquisition and Involuntary Resettlement
No physical or economic displacement is anticipated for the project site, substation, or temporary laydown area. The Ministry of Agriculture has issued a letter of no objection for the land allocation. A portion of the site currently occupied by a military shooting range will be relocated and remediated prior to construction.
Associated Facilities (AFs) include a 6.8 km overhead transmission line (OHTL), a gas pipeline tie-in, and a water supply pipeline. The OHTL and gas pipeline cross privately owned land parcels and are expected to result in temporary economic displacement during construction and the establishment of easements. The water supply pipeline is expected to utilize existing infrastructure corridors. Surveys undertaken for the ESIA identified limited land use features within the OHTL corridor, including water wells and a seasonally used nomadic Bedouin grazing area. Potential impacts have been reduced through route optimization, including avoidance of a nearby poultry farm. Any land acquisition or resettlement undertaken for the AFs will be the responsibility of the relevant government departments, which are the owners of these facilities
A Land Acquisition Framework (LAF) has been prepared as part of the ESIA process to establish principles for land access, easements, economic displacement, and livelihood restoration across the project and Associated Facilities. The company will prepare a Livelihood Restoration Plan (LRP) addressing land acquisition and economic displacement for AFs, including the company's role in government-managed resettlement (ESAP #15a). In addition, the Company will actively use and document its available leverage to support timely and effective implementation of the LRP and to achieve outcomes consistent with the objectives and requirements of IFC Performance Standard 5.
PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources
The project is located within the Syrian xeric grasslands and shrublands ecoregion and is situated entirely within Modified Habitat, comprising degraded batha and grassland steppe, a shallow wadi, agricultural land, and barren areas. The project and its AFs, including the OHTL and water supply pipeline, do not overlap with any legally protected or internationally recognized areas. . Biodiversity surveys undertaken as part of the ESIA identified several priority biodiversity values, including the Egyptian vulture, saker falcon, steppe eagle, eastern imperial eagle, common tortoise, and other avian species. The assessment concluded that the project is not located within Critical Habitat for any identified priority biodiversity values; however, IFC Natural Habitat No Net Loss (NNL) requirements apply to these species.
To manage biodiversity risks, the company will develop and implement a construction-phase biodiversity management plan, incorporating measures to avoid, minimize, and mitigate impacts on biodiversity. The construction-phase BMP will incorporate the requirements for pre-construction surveys aimed at defining a translocation procedure for the Common Tortoise and other reptile and bird species that may be subject to the construction-phase impacts (ESAP #16). The company will appoint biodiversity specialists, who will be responsible for conducting the surveys, as well as developing, implementing and reporting of biodiversity mitigation activities relating to the Project.
To address potential impacts on avifauna associated with the OHTL, additional baseline bird surveys may be undertaken on the final OHTL alignment if required, and the company will use best efforts to promote incorporation of bird-safe design measures, including bird flight diverters and insulation, along the transmission line. During operations, a post-construction fatality monitoring (PCFM) program will be developed and implemented to monitor bird activity and fatalities, assess the effectiveness of mitigation measures, and inform adaptive management actions. The PCFM program will be implemented for a minimum of two years, with semi-annual reporting and periodic strategic reviews, the duration of which may be extended depending on monitoring results (ESAP #17, 18 and 19).