EIB offers €400 m loan in its largest water financing in Jordan

22 / 07 / 2024

By Marwa Nassar - -

The European Investment Bank (EIB) has announced offering a €400 m loan in its largest water financing in Jordan to improve water availability, security and sustainability across the country and increase access to water supply, improve sanitation and reduce water losses.

The 30-year loan, backed by a European Union guarantee, represents both the largest EIB backing for water investment outside Europe, and the EIB’s first financing worldwide in which disbursements will be tied to the achievement of policy and impact objectives – a system known as results-based financing.

“The European Investment Bank is a key partner for priority investment in Jordan. The EIB’s latest backing for water investment will strengthen water security across Jordan and help to deliver our national water strategy goals. Improving water security, increasing water supply and expanding sanitation will benefit people across Jordan, enhancing both public health and tackling the impact of climate change.” said Zeina Toukan, Minister of Planning and International Cooperation of Jordan.

EIB Vice-President Gelsomina Vigliotti said the loan highlights the importance of helping countries that are particularly vulnerable to climate change, The financing is part of a pooled-resource system known as “Team Europe”, which brings EU and Member-State institutions.

“The European Investment Bank is committed to supporting climate resilience and sustainable development here in Jordan, one of the world’s most water-scarce countries. The new EUR 400 million water security loan for investment agreed today, our largest ever financing for water in Jordan, will strengthen water security across Jordan in the years to come and demonstrate how the Team Europe initiative is backing climate adaptation. Jordan is the first country worldwide to benefit from EIB’s results-based financing to strengthen impact and efficiency.” said Gelsomina Vigliotti, Vice President of the European Investment Bank.

European Commissioner for Neighborhood and Enlargement Olivér Várhelyi said the EIB funding deepens EU-Jordan cooperation.

“With the signature of this EUR 400 million loan from the EIB to Jordan, we not only mark another step towards strengthening the partnership between the EU and Jordan but also underscore the significant role of this loan in addressing Jordan’s water management challenges, particularly in the face of water scarcity. This EUR 400 million loan, in conjunction with the EU-supported Aqaba-Amman Water Desalination and Conveyance project, is a tangible example of our commitment to action. These initiatives, part of the Economic and Investment Plan, are set to directly benefit Jordan and its people, offering a more sustainable and secure water flow and usage in the country” said Olivér Várhelyi, European Commissioner for Neighborhood and Enlargement.

Implementation across Jordan is planned over the next five years and will support small-scale water projects under the authority of the Ministry of Water and Irrigation.