EBRD invested 550 million euros in Jordan since 2011 — official

AMMAN — The European Bank for Reconstruction and Development (EBRD) has invested 550 million euros (around JD445 million) across 27 projects in various sectors of the Jordanian economy since 2011, according to Heike Harmgart, EBRD head of office in Jordan.

The bank, which extended its support to Jordan in 2011 in response to the international effort to address the radical changes in the Arab world, has also issued 125 million euros of trade facilitation guarantees to local banks to promote the country’s foreign trade, Harmgart said at a celebration on Wednesday marking the bank’s 25th anniversary.

“Fostering the role of the private sector in Jordan is a key priority for the bank and the local authorities,” she said at the event, attended by Amman Mayor Aqel Biltaji and representatives of EBRD partners in the country.

“Through our investments, we focus on financing small- and medium-sized enterprises [SMEs], the diversification of energy sources using the country’s potential for solar and wind power, and the development of infrastructure and municipal services,” Harmgart added.

“This is especially pertinent and urgent now given the pressures caused by the refugee crisis.” 

Addressing a key issue for Jordan by helping to alleviate the strain on water resources, the EBRD provided a loan of up to $14 million (around JD10 million) and mobilised $5.5 million in grants to the Water Authority of Jordan to carry out an urgently needed upgrade of the wastewater network. 

The investment will increase the network’s capacity and reduce the risk of water pollution in the Zarqa area, Harmgart noted.

The bank is also enhancing energy sustainability, having invested $75 million in multiple solar photovoltaic power plants in Jordan in 2014, while continuing to promote energy efficiency programmes and contribute to policy reforms. 

The bank official said the skill mismatch in the local labour market can be addressed through financing vocational training to provide skill transfer at a dedicated on-site training facility. This approach allows the bank to promote inclusive growth and greater participation by women and young people in the workforce.

Through the EBRD’s Small Business Support, the bank has also initiated 145 technical assistance projects that directly benefit the Kingdom’s SMEs.

“We are looking forward to further cooperation and future challenges and opportunities in Jordan,” said Harmgart.