EIB provides EUR 200m loan for Jordan’s largest water investment project

The European Investment Bank (EIB) will provide EUR 200 million loan for the Government of Jordan’s contribution to the Aqaba Amman Water Desalination and Conveyance Project (AAWDCP), the first confirmed financing for Jordan’s largest ever water investment project.

This financing for the climate adaptation scheme will contribute to providing part of the government of Jordan contribution to the project amounting to (250 million Jordanian dinars (US$ 352 million) to the Aqaba Amman Water Desalination and Conveyance Project (AAWDCP) that will supply an additional 300 million cubic meters of water each year after desalination and transferring it from Aqaba to Jordanian capital Amman and the rest of provinces.

This follows the EIB’s commitment to support the project announced during the pledging conference held in March, 2022.

The first confirmed financing for the Aqaba Amman Water Desalination and Conveyance Project project was formally announced earlier today in Amman by H.E. Zeina Toukan, Minister of Planning and International Cooperation, H.E. Mohammad Al-Najjar, Minister of Water and Irrigation on behalf of the Jordanian government, and Gelsomina Vigliotti, Vice President of the European Investment Bank, in the presence of Maria Hadjitheodosiou, European Union Ambassador to the Hashemite Kingdom of Jordan.

At the signature ceremony in Amman, Zeina Toukan, Minister of Planning and International Cooperation of the Hashemite Kingdom of Jordan thanked the EIB for cooperation to support the Aqaba Amman Water Desalination and Conveyance Project and highlighted the importance that the Jordanian government attaches to the project. The scheme is a top priority on the government's agenda, and key to enhancing water security and achieving comprehensive economic development.

The Minister further emphasised the importance of the overall EIB’s financing in enhancing water security and achieving comprehensive economic development, as well as the importance of the bank providing concessional financing to the winning developer to implement the project and according to its time frame.

The Minister stressed the importance and history of the relationship with the EIB as one of Jordan's development partners and said that the bank worked to provide financing through loans and technical and investment grants to support projects in key priority sectors such as education, water, sanitation, transportation, energy, private sector development, and infrastructure. Besides, the preparation of technical studies and economic feasibility of projects in many of these important sectors.

“Investing in water is investing in the future and the visionary Aqaba Amman Water Desalination and Conveyance Project will enable Jordan to adapt to a changing climate while ensuring environmental sustainability by harnessing renewable energy for the project. The latest EIB support for water investment in the Middle East confirmed in Amman today will help to address the challenges of increasingly scarce water resources and a growing population in Jordan. As the world’s largest international financier for water investment and the EU Climate Bank, the EIB has unique global technical and financial experience and Jordan is a key partner for the EIB’s global water engagement and commitment to supporting climate change adaptation globally. The excellent cooperation between Jordanian, EIB and international partners is enabling large scale financing to be mobilised to back transformational water investment across Jordan and secure access to clean water for thousands of people. It is a pleasure to be back in Amman alongside Jordanian and Team Europe partners to confirm the EIB’s support for the AAWDCP scheme.” said Gelsomina Vigliotti, Vice President of the European Investment Bank.

“I welcome the signing of the first financing for the Aqaba-Amman Water Desalination and Conveyance Project by the European Investment Bank, that is backed by a European Union guarantee.  This is a concrete example of the Team Europe on-going support for enhancing water security in Jordan and addressing the impact of climate change in the region. We stand ready to further engage in supporting adaptation actions that would promote climate-responsive development in Jordan,” said H.E. Maria Hadjitheodosiou, the European Union Ambassador to Jordan.

The new EIB financing is guaranteed by the European Union through the Neighbourhood, Development and International Cooperation instrument. Alongside the EUR 200 million sovereign loan formally announced today, the EIB is currently finalising due diligence for additional financing to the AAWDC project on a project finance basis.

Previously, the EIB  provided funding and advisory support for the project’s Environmental and Social Impact Assessment (ESIA) as to ensure compliance with international best practices.

The European Investment Bank is the world’s largest international public bank and a leading global financier for water investment. The EIB’s new support for the Aqaba Amman Water Desalination and Conveyance Project represents one of the EIB’s largest ever financing for water investment in the Middle East.

Backing water investment across Jordan

Including the new Aqaba-Amman financing confirmed today, the European Investment Bank has provided EUR 970 million for water investment in Jordan over the last 38 years.

This includes backing investment to improve water security in the Jordan valley, providing financing and technical support for several major water projects in the country, including the South North “Disi” Conveyor and Wadi al Arab schemes, and backing improved water sanitation investment in Amman.

Jordan a key partner for the world’s largest water financier

Over the last decade the EIB has provided 32 billion for long-term water investment around the world.

The European Investment Bank is the world’s largest international public bank, owned directly by the 27 European Union member states.