ENVIRONMENTAL AND SOCIAL INFORMATION
Applicable Policy and Categorization. The Project will be co-financed with the European Bank for Reconstruction and Development (EBRD), and the Project’s environmental and social (ES) risks and impacts are being assessed in accordance with the EBRD’s Environmental and Social Policy (EBRD’s ESP) and related Performance Requirements (PRs). To provide for a harmonized approach to addressing the ES risks and impacts of the Project, and as permitted under AIIB’s Environmental and Social Framework (ESF), EBRD’s ESP and PRs will apply to the Project in lieu of AIIB’s ESF. AIIB has reviewed the EBRD’s ESP and PRs and is satisfied that: (i) they are consistent with AIIB’s Articles of Agreement and materially consistent with the provisions of AIIB’s ESF, including AIIB’s Environmental and Social Exclusion List (ESEL), and the relevant ES Standards (ESS), and (ii) the monitoring procedures that are in place are appropriate for the Project. EBRD has categorized the Project as Category A, which is equivalent to Category A if AIIB’s ESF were applicable. This categorization is justified by the significant temporary and permanent land requirements, potential sensitivity of the marine environment, proximity to internationally recognized world heritage sites, the very large geographic scale of the Project, and the large number and complexity of component parts that could result in a broad range of significant ES impacts.
Environmental and Social Instruments. The primary ES preparation stage instrument for the Project is an Environmental and Social Impact Assessment (ESIA). The primary ES implementation stage instruments for the Project are an Environmental and Social Management Plan (ESMP), Resettlement Policy Framework (RPF), and a Stakeholder Engagement Plan (SEP). These primary implementation stage instruments will be expanded to include a suite of additional granular risk-specific instruments including construction and operations phase management plans and procedures, to capture mitigations identified in the ESIA. An Environmental and Social Action Plan (ESAP) has also been agreed and commits the Client to a series of additional timebound actions to deliver ongoing compliance with the applicable ES Policy.
Environmental Aspects. Key potential environmental risks include potential damage to corals during the installation of the intake and outfall pipelines; risk to marine species and habitats from brine discharge and water intakes during operations, and sediment releases during construction dredging and backfilling; potential release of pollutants into the marine environment during intake and outfall pipe cleaning, hydrostatic testing, and from disturbance of contaminated sediments; risk to birds from the introduction of overhead transmission lines; loss of terrestrial habitats from temporary and permanent land take; noise and air quality issues during construction and from operation of the desalination plant and pumping stations; energy consumption from the desalination plant and pumping stations; resource use during construction; management of hazardous and non-hazardous wastes; and ground contamination from the transport, storage, use and disposal of hazardous materials during all project phases. In addition, the alignment of the water conveyance pipeline is in proximity to the northern part of Wadi Rum Protected Area and World Heritage Site (WHS). These risks have been assessed in the ESIA and where necessary to avoid significant impacts, changes to the design have been made. Mitigations will be delivered through the implementation phase ES instruments and delivery of ESAP actions.
Social Aspects. The Project will require land acquisition, leading to the displacement of project-affected people, resulting in the potential loss of residential buildings/structures, agricultural land, and livelihoods. Local businesses and agricultural activities could be disrupted during the construction and operational phases, affecting the livelihood of affected people. Construction activities pose health and safety risks to nearby communities, including increased traffic, noise, dust, and potential accidents. The Project may impact access to natural resources, such as water and grazing land, which are vital for the livelihoods of local communities. Vulnerable groups, such as the elderly, women, and children, may face increased risks and challenges during displacement and resettlement. Addressing these social aspects requires comprehensive planning, effective stakeholder engagement, and robust resettlement and livelihood restoration measures to mitigate negative impacts and support affected communities. Impacts on local fishing communities, touristic zone and marine park zone of Gulf of Aqaba are also possible from the brine outfall and construction-phase sediment generation. All identified adverse risks have been assessed in the ESIA and have been avoided where necessary through design. Mitigations will be delivered through the implementation phase ES instruments including the RPF. The RPF covers all Project components and activities, including: (i) permanent land acquisition, (ii) temporary land needs and disturbances during the construction, and (iii) the PV and its transmission line. Resettlement Action Plan(s) will subsequently be prepared.
Gender and Indigenous People Aspects. The Project has assessed economic displacement, and social inclusion impacts on women, and is committed to developing compensation and support measures tailored to their needs. It will also implement safety measures to protect against gender-based violence and harassment. Employment opportunities will be made accessible to women, with capacity-building programs to enhance their skills and employability. By integrating these gender aspects, the Project aims to promote gender equality, empower women, and ensure that the benefits are shared equitably among all community members. Whilst there are small settlements with semi-nomadic and resident Bedouins of the Howeitat Tribe settled in the Wadi Rum area, analysis carried out by EBRD concluded that no ethnic groups possessed all four characteristics of indigenous peoples, as defined in EBRD’s PR on Indigenous Peoples. As a result the Project does not trigger the EBRD standards related to Indigenous Peoples.
Occupational Health and Safety (OHS), Labor and Employment Conditions. This is a complex industrial project with marine components. OHS risks in construction, maintenance and operations are being considered in Project design. It is intended that hazards are identified and avoided early to the extent possible. Residual hazards and risks that cannot be designed out will be addressed through appropriate robust OHS management plans, procedures and management tools for all Project phases, contractors and activities. The Project will prioritize labor, and employment conditions together with OHS to ensure the well-being of workers and compliance with international standards. Labor conditions will align with national and international regulations, ensuring fair wages, working hours, and non-discriminatory practices. The Project will establish grievance mechanisms for workers to report concerns and ensure timely resolution.
Stakeholder Engagement and Information Disclosure. The Project has developed and will implement a comprehensive SEP covering stakeholder engagement, consultation, and information disclosure. The SEP identifies relevant stakeholders and will be implemented to deliver transparent and inclusive communication with affected communities, local authorities, and other relevant stakeholders throughout the project lifecycle. Regular consultations will be conducted to gather feedback, address concerns, and incorporate stakeholder inputs into project design and implementation. Special attention will be given to vulnerable groups to ensure their voices are heard and their needs are addressed. EBRD has disclosed relevant ES documentation at the following location: Aqaba Amman Water Desalination and Conveyance Project (AAWDCP) EBRD
Project Grievance Redress Mechanism (GRM). The Project SEP includes a Project GRM to ensure that any concerns or complaints from stakeholders are promptly addressed. The GRM provides an accessible and transparent process for individuals and communities to submit grievances related to the Project. The mechanism also outlines clear procedures for the receipt, acknowledgment, assessment, and resolution of grievances, with defined timelines to ensure timely responses. An assigned staff will manage the GRM, ensuring that grievances are handled impartially and effectively. In addition, regular monitoring and reporting on grievance resolution will be conducted to maintain transparency and accountability. The information of established GRM as well as EBRD’s IAM will be timely disclosed in an appropriate manner.
Monitoring and Reporting Arrangement. The Project will implement a robust monitoring and reporting system, with quarterly reports during construction, semi-annual reports for the first two years of operation, and annual reports thereafter based on agreed format. An Independent ES Advisor (IESA) or qualified third-party agency will be engaged to conduct periodic audits and support the Client in monitoring and reporting activities. This approach ensures objective oversight, timely identification and resolution of issues, and full compliance with lender requirements. AIIB and EBRD will conduct regular supervision missions to monitor ES performance and ensure effective implementation of the ES instruments. All monitoring results will be shared with lenders and disclosed publicly in accordance with project commitments.
