Jordan’s $6 billion national desalination project has secured another major piece of financing, with the US International Development Finance Corporation (DFC) approving support as part of a broader package worth more than $8 billion for Jordan, Africa and Ukraine.
The DFC greenlit a loan for the National Carrier Project Company, the special-purpose vehicle behind the project, along with political-risk insurance for its equity investors, Meridiam and Suez, to help advance construction, operation and maintenance of the Aqaba-Amman seawater desalination plant and its conveyance system. “Enabling Jordan’s long-term water security by expanding access to new water resources will support economic growth, expand regional connectivity and enhance stability for a key US ally,” the DFC said in its statement.
The latest in a long financing chain
The approval builds on a string of earlier commitments this year. In March, the US announced a $203 million grant for the project, followed by Jordan’s government signing the final technical and legal agreement in April to pave the way toward financial close. In July, Jordan’s cabinet approved a further $97 million from the French Development Agency, adding to earlier support that has included a $295 million package from the Green Climate Fund and a $189 million loan from the Arab Fund for Economic and Social Development.
Also known as the National Water Carrier, the project will desalinate 300 million cubic metres of water annually once operational, providing almost 40% of Jordan’s drinking water needs. Jordan is one of the most water-scarce countries in the world, and the project — which includes a seawater desalination plant, a roughly 438-kilometre underground conveyance system and a 281-megawatt solar power plant — is expected to begin operations in 2030.
For background on the project’s earlier financing milestones, see our previous coverage of the Green Climate Fund’s record commitment and Jordan’s earlier KfW financing agreement.
Source: AGBI