Jordan secures 400m euro loan from EIB

AMMAN — Minister of Planning and International Cooperation ZeinaToukan on Monday signed a 400 million euro loan agreement with the European Investment Bank (EIB) to enhance water security and climate adaptation in Jordan.

During the signing ceremony, on the sidelines of the 15th EU-Jordan Association Council meeting, Toukan said that the programme, which was announced during His Majesty King Abdullah's visit to Brussels on November 7, 2023 and will be financed through the general budget, aims to support water sector reforms by reducing water losses in facilities.

It also seeks to enhance sustainable water supply, improve operational efficiency, improve the level of water and sanitation services and build sector capacity, she added in a statement carried by the Jordan News Agency, Petra.

EIB Director for Neighbouring Countries Lionel Rapaille signed the agreement on behalf of the EIB, according to Petra.

Toukan also announced that an additional grant of $54.36 million (equivalent to 50 million euros) will be signed in the coming weeks under the EIB's Global Concessional Financing Facility, managed by the World Bank, to support the implementation of the programme.

She commended the EIB for its support through investment loans and grants, which have financed key sectoral projects, including water, sanitation, energy, transport, health, industry, mining, education, private sector development, infrastructure and intermediated lending to SMEs through Jordanian banks.

Major projects financed by the bank in the Kingdom include the Disi Water Conveyance Project, the Wadi Arab Water Project for the northern governorates, support for water sources in the Jordan Valley, water supplies for Deir Alla and Karamah and the purchase of vaccines as part of the pandemic response.

The bank has also committed to the Aqaba-Amman Water Desalination and Conveyance Project — the national water carrier.

The EIB’s portfolio in Jordan grew to around 1.8 billion euros between 2014 to 2024, focusing on sectors such as water, health, transport, energy, urban and municipal development, as well as lending to local corporates and commercial banks in support of SMEs.

The bank is considered a key development partner in support of Jordan’s water sector.