Jordan’s Water Authority revenues rose 24 percent since the LEMA company was contracted in 1999 to manage the distribution network in Greater Amman. Water distribution revenues totaled 28.5 million Jordanian dinars ($40 million) in 1999, rising to JD30 million two years later, reported Al-Sharq Al-Awsat .
LEMA, a partnership between France's Lyonnaise Des Eaux and Jordan's Montgomery Arabtech Jardaneh, was commissioned with managing Amman’s water sector as part of the national authority’s efforts to revamp the district’s ailing network. The company charges $2.2 million in annual fees plus five percent of any profit in excess of anticipated annual profits. LEMA’s contract expires in 2003.
The French-Jordanian joint venture handles the Zai Water Treatment Plant, which is responsible for supplying 40 percent of the capital's water needs. In addition, it operates 100 water wells, a 4,500-kilometer long water network, 1,500 kilometers of sewers, two wastewater treatment plants and 270,000 consumers.
LEMA’s major difficulty in its operation is the problem of water theft and illegal water use. The company also encounters constant water leakage, a low bill collection rate and inefficient personnel.
According to official figures, Amman's worn-out water networks were leaking 55 percent of the water pumped, costing the country around JD15 million a year. Since LEMA took over, lost water have now been reduced to 49 percent. The company also introduced a modern and more efficient customer service center.
In a bid to enhance its payment system, LEMA recently signed an agreement with the Housing Bank, according to which customers can now pay their bills in any of the bank's 42 branches, as well as in the LEMA’s new Ras Al-Ain center, instead of only paying at the company's headquarters in Jabal Al-Hussain.
Jordan’s water authorities are now looking at a $250 million project, to be executed through 15 tenders, for the complete rehabilitation of Greater Amman’s water distribution and wastewater infrastructure. Twenty percent of this grand project’s financing will be supplied by the treasury, while the remaining 80 percent through international soft loans and grants.
An agreement regarding the first three phases of the scheme has recently been signed between the Water Ministry and the Concord Construction Company, a local contractor.
The rehabilitation projects include a JD 72-million overhaul of the networks in Quweismeh, the Ring Road, and Abu Alanda and will be completed in 730 days. The second component regards the rehabilitation of the network and wells in Ruseifeh, Jabal Al-Taj and Ras Al-Ain. It is expected to take 900 days to complete. The third component includes establishing two pumping stations in Hashemi and Nweijees as well as the refurbishment of the water pipes. This phase will cost around JD8 million and will also take 900 days to complete, according to Jordan Times.
Once the physical restructuring of the water network in Greater Amman is completed, the Water Ministry plans to abandon the water-rationing program it adopted through LEMA for Greater Amman. Amman, home to 1.8 million citizens, consumes 45 percent of the country's 300 million cubic meters of domestic water supplies. — (Mena Report)
© 2001 Mena Report (www.menareport.com)
