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    Reference: 20180858
    Release date: 11 October 2021

    Promoter – Financial Intermediary

    MINISTRY OF WATER AND IRRIGATION - HASHEMITE KINGDOM OF JORDAN

    Location

    Description

    The project involves the implementation of measures to increase the efficiency of the use of water resources in the Jordan Valley.

    Additionality and Impact

    The project involves the implementation of measures to increase the efficiency of the use of water resources in the Jordan Valley thus reducing water losses and contributing to climate change adaptation. It helps mitigate market failures by financing drinking and irrigation water supply infrastructure generating positive externalities, which are not internalised and hence require public intervention. The project thus contributes significantly to the objectives of Jordan's National Water Strategy, the EU Joint Communication on Renewed Partnership with the Southern Neighbourhood, and the EIB Climate Bank Roadmap and Adaptation Plan. The benefits of the project include increased availability of water for domestic, municipal and industrial uses. EIB's financial and non-financial contribution to the project is excellent. The Bank is complementing an advantageous financing package combining loans and grants from KfW, the EU and EIB. In addition, the Bank provided technical expertise in the origination and structuring of the proposed operation, primarily through the feasibility study, which was funded and managed by EIB. 

    Objectives

    The overall long-term objectives of the project are to contribute to the following: (i) support the Government of Jordan in achieving measurable improvement and greater sustainability of the water sector as set out in Jordan's National Water Strategy 2016-2025, (ii) reallocation of fresh water resources from agricultural use to potable water supply and contributing to the best management of the existing water resources, (iii) improvement in the efficiency of bulk irrigation water delivery, (iv) increased security of water supply for both domestic and agriculture uses through adaptation to the impacts of climate change, (v) job creation, during construction and through the safeguarding of agricultural activities in one of the poorest areas of Jordan. The project is of high priority for the Jordanian government and is fully in line with EU and EIB priorities and objectives in the country. The project is in line with national priorities, and in particular the National Water Strategy 2016-2025, which identifies the responsible and efficient water management for all uses based on Integrated Water Resources Management (IWRM) as a strategic objective for the water sector. The project contributes to the priority areas of intervention in Jordan identified in the EU Joint Communication on Renewed Partnership with the Southern Neighbourhood, published in February 2021, specifically by supporting a green and resilient recovery in line with the 2030 Agenda for Sustainable Development, the Paris Agreement and the external dimension of the European Green Deal. The project is also expected to contribute to the objectives of the Team Europe Initiative on the Jordanian water sector by tackling non-revenue water and sustainable water resources management as well as given the expected combination of EU NIP, KfW and EIB funding.

    Sector(s)

    • Water, sewerage - Water supply; sewerage, waste management and remediation activities

    Under ELM Guarantee

    This operation is covered by the ELM Guarantee.

    Proposed EIB finance (Approximate amount)

    EUR 70 million

    Total cost (Approximate amount)

    EUR 109 million

    Environmental aspects

    Inside the EU, the project components would be categorised under Annex II and therefore would be subject to environmental screening to define if an environmental impact assessment (EIA) would be required according to the relevant competent authority. The project EIA categorisation will be confirmed during appraisal. Climate change and adaptation aspects will be examined during the appraisal. The Bank will assess the environmental and social aspects of the project during appraisal to ensure adherence to its standards.

    Procurement

    The Promoter will have to ensure that procurement for investments financed by the EIB will be done in accordance with the EIB's Guide to Procurement.

    Status

    Signed - 16/12/2021

    Disclaimer

    Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The data provided on this page is therefore indicative and cannot be considered to represent official EIB policy (see also the Explanatory notes).

    Related tags

    Jordan Water, sewerage