The European Bank for Reconstruction and Development (EBRD) has loaned the Greater Amman Municipality (GAM) $13 million to fund the construction of a landfill-gas recovery system which converts municipal waste into energy.

The project, which is the first of its kind in Jordan, is expected to be operational by the first half of next year and will generate approximately 29,000 MWh of electricity.

The system will work by processing and treating the gas emitted from decomposing garbage to produce the electricity, which will then be delivered to the national grid, replacing electricity produced by grid-connected power plants that previously used heavy fuel oil.

The EBRD expects this will reduce greenhouse gas emissions in Jordan by nearly 155,000 tones of CO2-equivalent annually, as well as helping to manage solid waste.

The project will be implemented through the establishment of a new solid waste company, owned by the city of Amman, and by introducing a public service contract between the city and the newly created company.

EBRD President Suma Chakrabarti hopes the project will benefit the environment in Jordan and aid in waste management. “We aim to strengthen the operational, financial, and environmental performance of municipal solid waste management in Amman,” he said, adding that the project provides a unique opportunity to promote sector reform.

Since it began operating on Jordan in 2012, the EBRD has pumped close to $300 million into several SME, energy, and municipal development projects.