The European Investment Bank (EIB) and the government of Jordan have signed a $74 Million USD loan to finance the improvement of water supply systems in the Jordan valley, as well as a wastewater treatment network.
EIB President Werner Hoyer announced in London February 28 the bank’s 2019-2020 plans to support infrastructure and development of the private sector in the Middle-Eastern country. The EIB’s support is part of its Economic Resilience Initiative (ERI) that is designed to strengthen EU Southern Neighbouring countries’ ability to withstand shocks. In addition to the loan, the project will benefit from an additional investment grant of $18.5 Million USD from the Economic Resilience Initiative Fund (ERIF). The project will improve water supply and sanitation services for more than 85,000 people in the Jordan Valley and will have a positive impact on agriculture, environment, and tourism in the Jordan Valley region.
The Project, known as the “Deir Alla Water Supply and Sanitation”, is described by EIB as a good example of cooperation between donors and the bank to support the preparation and implementation of the project. It is financed under the External Lending Mandate (ELM) guarantee provided by the European Union (EU) to the EIB. The feasibility study was prepared with the support of the EU funded Mediterranean Hot Spots Investment Program (MeHSIP), according to information from EIB.
Commenting on the transaction, Mr. Hoyer said “the EU bank is demonstrating Europe’s commitment to resilience, stability, and quality of life in the country [Jordan]. Projects like ‘Deir Alla Water Supply and Sanitation’ provide water services to Jordanians and refugees alike. We must help public investment but focus also, and primarily, on private financing.”
“The Government of Jordan is grateful for new EIB financing that will support our plans to provide better access to water and sanitation services. The EIB has significantly been supporting Jordan’s economic development over the years by investing in key sectors of our economy such as mining, industry, water, education, and energy in addition to private sector operations”, said Mary Kawar, Jordan's Minister of Planning and International Cooperation. “Furthermore, I would like to thank EU donors supporting the Economic Resilience Initiative (ERI) for the technical assistance and investment grants provided to the project,” added Kawar.
The grant for the preparation of the feasibility study was provided by the Climate Action in the Middle East and North Africa (CAMENA) initiative. CAMENA is a climate action endowment under the exclusive support of the UK Department for International Development (DFID) and managed by the EIB.