The funds will used to implement a landfill-gas (LFG) recovery system featuring gas-collection technology, to generate electricity.
The technology will help Amman reduce CO2 emissions by limiting its dependency on grid-connected plants which use heavy fuel oil.
Through its Green Energy Special Fund (GESF), the EBRD is co-financing the loan with $5m.
EBRD president Suma Chakrabarti said: "This project provides a unique opportunity to promote sector reform.
"We aim to strengthen the operational, financial and environmental performance of municipal solid waste management in Amman."
Using the funds, the city of Amman will be able to launch a new solid waste company, and establish a public service contract between the city and the newly created company.
The European Union supported a feasibility study and environmental and social due diligence, while the Austria Government will provide resources to develop and implement the project.
