Khaberni - The European Bank for Reconstruction and Development is considering approving a loan worth up to $475 million for the National Carrier Project (Meridiam and Suez consortium) to finance the desalination and water transportation project from Aqaba to Amman and the provinces, which has a total cost of $6 billion.
According to the bank's data, the project "has passed the restructuring review stage and is awaiting final review" before final approval from the bank's board of directors on February 25th.
The project aims to provide long-term solutions to Jordan's severe water crisis, by supplying 300 million cubic meters of drinking water annually, covering about 40% of Jordan's water needs starting from 2030.
The project consists of a desalination plant in Aqaba with a capacity of 300 million cubic meters annually, a 438-kilometer water transmission system to pump desalinated water from Aqaba to Amman and the provinces, and a renewable energy system through a 281 megawatt solar plant. The project seeks to alleviate pressure on depleted groundwater resources, support the recovery of water basins, and enhance the water sector's resilience to climate change and population growth.
The financing targets supporting the creation of extensive infrastructure for water supplies in Jordan, within the design, build, finance, operate, maintain, and transfer (DBFMOT) model, in a partnership between the public and private sectors, under a 30-year concession agreement with the Ministry of Water and Irrigation.
The project is classified as a national priority due to its importance in providing a long-term, reliable, and sustainable water solution, and addressing the water shortage for domestic uses and supporting economic development.
In parallel with the loan being considered by the European Bank for Reconstruction and Development, the project benefits from concessional financing, which the bank has mobilized through the High Impact Partnership for Climate Action (HIPCA) multi-donor fund, with contributions from Canada up to $30 million, and from Finland up to 7 million euros.
The environmental and social impact assessment led to a fundamental design change in the water extraction method, adopting a solution to extract water from an internally created lagoon instead of from the open sea, in order to reduce construction impacts such as dredging on coral reefs, seagrasses, and sea water quality.
