The investment from EIB will support water supply facilities across several governorates in Jordan
The European Investment Bank (EIB) has agreed to provide a framework loan of €260m to the government of Jordan, to support priority water projects in the country.
The investment is expected to significantly contribute to the optimisation of production, transmission and distribution of water in Jordan.
The investment aims to support the Government of Jordan’s objectives outlined in the framework of the National Water Strategy 2016-2025.
The funds from EIB will be used in the construction, upgrade and improvement of many water supply facilities across several governorates in the country.
The implementation of the projects is expected to result in improving water supply resiliency and help in adapting to climate change, while creating jobs during the construction and operational phases of the facilities.
European Investment Bank vice president Dario Scannapieco said: “As the Bank of the European Union, we give high priority to climate action projects. We are pleased to reinforce our support to the water sector in Jordan.
“This framework loan will support the construction, upgrade and improvement of numerous water facilities across Jordan. These projects are much needed to improve people’s access to water over the coming years.”
Technical assistance grant of €3m will support feasibility studies
In addition to financial institution’s funding, the Economic Resilience Initiative Technical Assistance will provide a grant of €3m in technical assistance to support the preparatory and feasibility studies and allocation of sub-projects under the programme.
The Economic Resilience Initiative is part of the EU’s response to the challenges faced by the Southern Neighbourhood and Western Balkans.
Nasser Shraideh, Planning and International Cooperation Minister said: The aim of the agreement is to secure financing for Jordan on favourable terms for the next six years (with an exceptional long repayment period of up to thirty years).
“The funding will be allocated to priority Jordanian water projects to support the objectives under the National Water Strategy 2016-2025, by working to build, modernize and improve various water supply facilities in governorates across Jordan.”