European Investment Bank Commits EUR 100 Million to Aqaba Amman Desalination and Water Conveyance Project in Jordan

European Investment Bank Commits EUR 100 Million to Aqaba Amman Desalination and Water Conveyance Project in Jordan

(IN BRIEF) The European Investment Bank (EIB) has announced an additional EUR 100 million investment for the Aqaba Amman Desalination and Water Conveyance project in Jordan. This project aims to desalinate water from the Red Sea and transport it to water-scarce areas, including Amman and various towns across Jordan, as part of climate change adaptation efforts. This financing, in addition to the EUR 200 million already committed in December 2022, supports sustainable water investment and addresses Jordan’s water scarcity challenges. The financing agreements were signed during the COP 28 climate conference in Dubai, with EUR 50 million provided as a grant from the European Union. The investment underscores the EIB’s commitment to water security and environmental sustainability in Jordan, with discussions also underway for future financing to support small-scale water schemes and climate adaptation efforts in the country.

(PRESS RELEASE) LUXEMBOURG, 5-Dec-2023 — /EuropaWire/ — European Investment Bank (EIB) announced an additional EUR 100 million of new investment for construction of the Aqaba Amman Desalination and Water Conveyance project. The scheme will desalinate water from the Red Sea and transport it to Amman and towns across Jordan, one of the most water-scarce countries in the world, thereby contributing to climate change adaptation. This additional funding follows EUR 200m signed in December 2022.

Finance agreements for the new EUR 100 million loan provided by European Investment Bank, the world’s largest international public bank and leading global financier for water investment, were signed by Gelsomina Vigliotti EIB Vice President and Zeina Toukan, Jordanian Minister of Planning and International Cooperation at the COP 28 climate conference currently taking place in Dubai.

The latest EIB financing for sustainable water investment in Jordan will be used alongside a EUR 50 million grant from the European Union.

“Climate change has enhanced Jordan’s water challenges and requires sustainable and comprehensive solutions. The EUR 100 million additional investment to support implementation of the Aqaba Amman Desalination and Water Conveyance project will help to secure water supply for our citizens and future generations. The new financing signed today and future support to upgrade local water projects shows the depth of Jordan’s partnership with the EIB and aligns perfectly with the Government of Jordan’s National Water Strategy,” said H.E. Zeina Toukan, Minister of Planning and International Cooperation of the Hashemite Kingdom of Jordan.

“Water is a fundamental resource for life, and Jordan’s water scarcity is an existential challenge for the country’s future. Here at COP 28 the EIB is strengthening our water partnership with the Government of Jordan through further financing for the Aqaba Amman Desalination and Water Conveyance project, raising the Bank’s participation in the public financing of the project to EUR 300 million in total. This new cooperation demonstrates our shared commitment to addressing water scarcity and climate adaptation in Jordan.” said Gelsomina Vigliotti European Investment Bank Vice President.

“This significant EIB investment made possible by a grant from the European Union, is a new step forward in the fight against water scarcity in Jordan. The EU stands with Jordan in its efforts to enhance water security and to increase water supply. This is key for the future of Jordan and of the Jordanian people,” said Ambassador Pierre-Christophe Chatzisavas, European Union Ambassador to the Hashemite Kingdom of Jordan.

Signing EUR 100 million backing a month after Royal visit

The importance of the Aqaba Amman Desalination and Water Conveyance project was highlighted last month during the visit of His Majesty King Adbullah II to Brussels when details of the EIB’s additional financing support were announced.

A statement of intent confirming cooperation to enable the EUR 100 million new financing was signed on 7th November by H.E. Ayman Safadi, Deputy Prime Minister and Minister of Foreign Affairs and Expatriates of the Hashemite Kingdom of Jordan, Gelsomina Vigliotti European Investment Bank Vice President and Olivér Várhelyi, European Commissioner for Neighbourhood and Enlargement.

The latest EIB backing for the Aqaba Amman Desalination and Water Conveyance project follows EUR 200 million financing signed in December, 2022.

Future EIB water engagement to benefit small schemes

Ahead of the COP 28 signature ceremony the Jordanian and EIB delegations also discussed further EIB financing for water projects in Jordan including EUR 400 million results-based backing for investment to support water security and climate adaptation through small scale schemes across the country, expected to be confirmed in the coming months.

The new results-based financing approach will ensure a tangible impact, contributing significantly to improving the sustainability of Jordan’s water infrastructure and adapting to a changing and more unpredictable climate.

Over the last three decades, the EIB has provided nearly EUR 1 billion for water investment across Jordan, reinforcing its commitment to the country’s water security and environmental sustainability.

EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance.  EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.

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SOURCE: European Investment Bank