Amman, Jordan–Jordan and the World Bank have signed a $250 million financing agreement for a water sector efficiency project in the kingdom.
In this connection, Jordanian Minister of Planning and International Cooperation Zina Toukan and World Bank Country Director for the Middle East Department Jean-Christophe Carret signed Sunday the agreement.
Jordan News Agency (Petra) quoted the ministry as saying in press release that $200 million of the total amount will be in the form of a soft loan from the International Bank for Reconstruction and Development, and $50 million will be in the form of a grant from the Global Concessional Financing Facility (GCFF), which is managed by the World Bank and provides concessional financing to middle-income countries hosting large numbers of refugees.
The water project aims to support the government in improving the services and efficiency of the water sector by working to rehabilitate water distribution networks, reduce wastage rates, and improve both energy efficiency and the drought management system.
The components of the project are summed up in the sustainable reduction of water loss rates, raising energy efficiency, reducing the costs of supplying water to water pumping stations and developing measures related to water security that will preserve water resources and increase the efficiency of its use.
Toukan lauded the World Bank Group for its ongoing partnership with the Jordanian government and support for reform and development needs in Jordan.
This project, she indicated, will support the government’s efforts to implement reforms and priorities within the framework of the executive program for the Economic Modernization Vision 2023-2025.
Carret said that Jordan is one of the most water-scarce countries in the world, adding that it is witnessing a severe water crisis that undermines economic and human development in the country.
This funding, he noted, is the first step in a series of proposed projects that aim to support Jordan’s efforts in addressing water waste, improve energy efficiency, enhance services provided and improve the financial sustainability of the water sector, while enhancing the country’s resilience to climate shocks.
The water sector efficiency project in Jordan is fully consistent with the national strategy for the sector, which was recently approved by the government, and the road map for financial sustainability of the water sector, which was approved by the Cabinet in November 2022.
The project also supports the implementation of the main recommendations contained in the World Bank Group’s Country Climate and Development Reports in Jordan, which put water sector efficiency at the top of its priorities, in addition to reducing water loss rates, improving drought risk management systems, and promoting interconnected solutions between the water, energy and water security sectors.