JORDAN WATER SECURITY AND CLIMATE ADAPTATION

Promoter – Financial Intermediary

AQABA WATER COMPANY,JORDAN WATER - MIYAHUNA LLC,WATER AUTHORITY,YARMOUK WATER LLC

Location

• Jordan

Description

The current Results-Based Loan (RBL) will finance small scale investments aiming to reduce Non-Revenue Water (NRW), increase water supply and improve sanitation services throughout Jordan.

Additionality and Impact

The Results-Based Loan will finance small scale investments to reduce Non-Revenue Water, increase water supply as well as sanitation measures throughout Jordan. It will therefore increase the climate resilience of the Jordanian water sector and improve public health. It will mitigate market failures by financing drinking water infrastructure generating positive externalities, which are not internalised and hence require public intervention. The operation thus contributes significantly to the objectives of: i) Jordan's National Water Strategy ii) the EU policies and priorities, including the EU's New Agenda for the Mediterranean, the EU-Jordan Partnership Priorities, regional and country-specific Multi-Annual Indicative Programmes, the objectives of the Flagship 11 for water services as part of the Economic and Investment Plan, and the Team Europe Initiative for sustainable water management in Jordan, and iii) the EIB Climate Bank Roadmap and Adaptation Plan. The benefits of the operation include increased availability of water for domestic, municipal and industrial uses. Bank's financial and non-financial contribution to the Project is excellent. The Bank is offering a concessional financing package combining loans and grants (to be sought) for the operation. In addition, the Bank is providing technical expertise in the origination and structuring of the proposed operation. This will be the first RBL for the Bank in Jordan, which is fully adapted to the current needs in water sector

Objectives

The aim is to improve water security and climate adaptation, in line with the Government of Jordan's National Water Strategy, Non-Revenue Water Strategy and Financial Sustainability Roadmap by applying Results-based financing.

Sector(s)

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

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 450 million

Total cost (Approximate amount)

EUR 1000 million

Environmental aspects

The project will have a number of positive effects on the environment: (i) Improvement of potable water services throughout the country; (ii) Adaptation to climate change impacts by reducing water losses due to leakages and thus a reduction of non-revenue water; (iii) Adaptation to climate change impacts by providing valuable water for re-use in irrigation from the treated wastewater; (iv) Reduced energy consumption in the water supply system by increasing energy efficiency and reducing leakages of the water supply system. Inside the EU, the project components would be categorised under Annex II of the environmental impact assessment (EIA) Directive 2011/92/EU (as amended by the Directive 2014/52/EU). The compliance with principles of relevant environmental EU legislation and EIB's Environmental & Social Standards as well as climate change aspects will be further examined during appraisal. The EIB will assess the social aspects of the project during appraisal to ensure adherence to its social standards.

Procurement

The promoter shall ensure that the project implementation complies with the EIB's Guide to Procurement.

Status

Signed - 18/07/2024