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EIB to finance Jordan’s upgrade of water-supply system with US$66.52mn

Flags are seen behind the logo of the European Investment Bank pictured in the city of Luxembourg, Luxembourg. (WAM)
  • EIB said the project will improve the quality of drinking water in the area and reduce the loss of water due to leakage from the major water networks
  • Late last year, EIB singed a $218 million loan agreement with Jordan to construct a desalination project between Aqaba and Amman, to be completed in 2028

Amman, Jordan–The European Investment Bank (EIB) has approved the provision of $66.52 million for Jordan to upgrade the water supply system and reduce water loss in Bani Kinanah district north of Jordan.

The project is intended to improve the quality of drinking water in the targeted districts and reduce water loss due to leakage from the major water networks, EIB said in a press statement.

It added that the project represents a top priority to the Jordanian government within the framework of the National Water Strategy 2023-2040 in conformity with the partnership priorities between EU and Jordan, especially growth development and job opportunities.

In December 2022, the EIB signed a $218.13 million loan with Jordan to construct the Aqaba-Amman Water Desalination and Conveyance Project. It will take water from the Red Sea at the Gulf of Aqaba in the south, desalinate it, and channel it 450 kilometers north to the capital Amman and its surrounding area, supplying a desperately needed 300 million cubic meters of water a year.

The procurement process is ongoing, and construction is expected to start in June 2024. The Jordanian government hopes to deliver desalinated water to the Amman area before the end of 2028.

“Once this project is operational, there will be continuous water supply, 24/7, so people will no longer have to ration water,” says Souad Farsi, the European Investment Bank’s representative to Jordan. “This project is really transformational for people in Jordan.”

The mammoth infrastructure venture, the largest in the history of the country – and the region – is the fruit of cooperation between the Jordanian government, the European Investment Bank and Team Europe, as well as other international agencies and institutions.

It is expected to cost €3 billion and create 4 000 jobs during the construction phase.