IFC and Jordan Partner to Combat Water Scarcity and Enhance Climate Resilience

Under the agreement, IFC will collaborate with the Government of Jordan and Miyahuna to co-develop a project that attracts private sector investments in reducing NRW.

The International Finance Corporation (IFC), a member of the World Bank Group, has signed a collaboration agreement with the Government of Jordan and Amman’s water utility company, Miyahuna, to tackle water loss and enhance water sustainability and climate resilience. This initiative aims to reduce Non-Revenue Water (NRW) across Amman’s distribution network, thereby increasing water supply and efficiency.

In many Jordanian cities, limited water deliveries force residents to rely on expensive water tankers, particularly during the summer months. A significant portion of the water supplied to Amman is lost due to outdated pipelines, resulting in substantial NRW. This lost water does not generate revenue for Miyahuna and exacerbates the water scarcity issue.

Zeina Toukan, Jordan’s Minister of Planning and International Cooperation, highlighted the importance of this partnership: "This new partnership with IFC will help us increase water supply for everyone and improve the efficiency of the network by engaging the private sector – a basic human need."

Under the agreement, IFC will collaborate with the Government of Jordan and Miyahuna to co-develop a project that attracts private sector investments in reducing NRW. The project will be competitively tendered to enhance water-management efficiency and significantly reduce water loss across one-third of Amman.

Jordan is one of the world’s most water-scarce countries, a situation exacerbated by rising temperatures due to climate change. Every drop of water is crucial, and reducing water loss is imperative for the country’s sustainability.

Mohammad Ouran, CEO of Miyahuna, emphasized the broader implications of the project: "The agreement demonstrates our commitment to addressing the long-standing issue of water scarcity that can impact every aspect of life. Reducing water loss will not only help us save water for more people but will also support our revenues to provide better services in the long run."

Miyahuna supplies potable water to over 6 million residents in the Greater Amman region and neighboring governorates of Zarqa, Madaba, and Balqa, where half of Jordan’s population resides. The country’s water system has been under strain due to population growth and the influx of refugees.

Hela Cheikhrouhou, IFC Regional Vice President for the Middle East, Central Asia, Türkiye, Afghanistan, and Pakistan, pointed out the significant potential benefits: "Cutting water loss by half can supply water for about half a million people in Jordan. IFC aims to work in tandem with the government to engage the private sector as part of the solution for not only saving water but also for increasing Jordan’s overall resilience to climate change."

This long-term project aligns with the World Bank Group’s strategy and the Jordanian government’s target to reduce water loss by 2 percent annually. The IFC has been working with the government to identify and define opportunities for private sector-financed solutions to the water scarcity issue.