The financing deals, which are intended to support sustainable economic and social development in the country, have been signed by EIB with Yarmouk Water Company and National Electric Power Company (NEPCO).
Under the terms of the deal signed with Yarmouk Water Company, EBI’s $54m loan will be used for the Wadi Al-Arab Water System II project, which is aimed at supporting a high priority water supply infrastructure investment.
Additionally, EIB granted $72m loan to NEPCO to fund the Green Corridor project, which is considered to be an essential part of the country’s renewable energy development program.
In particular, the financing will be used to build a new electricity substation in New Ma’an located north of the city of Ma’an, construct new transmission lines, and modify existing substations to accommodate these new lines.
The project is planned to be carried out between 2015 and 2018.
Designed to strengthen the country’s high-voltage electricity transmission backbone, the project is expected to allow new facilities generating large amounts of renewable energy to be connected to the network.
Co-financed by the EIB, Agence Française de Développement and the EU Neighbourhood Investment Facility, the project also enables power transmission from the central/southern desert areas to Amman while reducing carbon dioxide emissions
EIB vice-president Dario Scannapieco said: "Our aim is to help Jordan improve its socio-economic infrastructure.
"By securing the supply of energy, the NEPCO Green Corridor project will contribute to economic development and poverty reduction through continuous access to essential power supplies in Jordan.
"The project is highly complementary to ongoing investments in renewable energy, as the ability to bring renewable energy to market depends on adequate transmission infrastructure."
Jordan aims to generate 10% of its total power from renewable sources by 2020.
Image: EIB signs deals financing to support water and energy projects in Jordan. Photo: courtesy of The European Investment Bank.
