The European Investment Bank (EIB) has signed two loan agreements worth $126 million for financing two projects in the water and energy sectors in Jordan to support sustainable economic and social development in the country.
The two agreements were signed at a ceremony hosted by the Ministry of Planning and International Cooperation in Amman.
The first project, Wadi Al-Arab Water System II, will support a high priority water supply infrastructure investment. The project will improve drinking water availability for the growing population in the Northern Governorates, which has been significantly increased by the large number of Syrian refugees in the area. The project is in line with Jordan’s National Water Strategy and the EIB’s External Lending Mandate.
The project is co-financed by the EIB (lead financial institution), Agence Française de Développement and the EU Neighbourhood Investment Facility (NIF). The EIB’s loan of $54 million (JOD 38 million) for the project will help to treat and convey 30 million m3/year of fresh water from the King Abdullah Canal (KAC) in the Northern Jordan valley to the Zabda Reservoir which serves the Northern Governorate of Irbid, the second largest of Jordan’s 12 Governorates in terms of population and located 80 km north of Amman. The loan will be used to build the following infrastructure:
- a raw water intake from the KAC
- a new water treatment plant
- pumping stations
- a 25.6 km transmission pipeline to convey the treated water from the water treatment plant to the Zabda Reservoir.
The project is scheduled to be implemented over the period 2015-2018.
In addition, the EIB is providing a loan of USD 72 million (JOD 51 million) to NEPCO. The EIB’s loan will finance the NEPCO Green Corridor project, which is an essential part of Jordan’s renewable energy development programme.
The project will strengthen the country’s high-voltage electricity transmission backbone, enabling new facilities generating large amounts of renewable energy to be connected to the network, and electricity to be transmitted from the central/southern desert areas to Amman, where generation is fossil-fuel based.
“Reinforcing economic and social infrastructure is the basis for achieving economic development and boosting prosperity, and I am very pleased that the EIB can support Jordan’s efforts to achieve this goal,” said EIB Vice-President Mr Dario Scannapieco, “So far, Jordan has achieved impressive results in improving the quality of infrastructure in the energy and water sectors and these gains need be sustained.”
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