This project is really transformational for people in Jordan
Signature(s)
Amount (.*)
€ 350,000,000
Countries
Sector(s)
Jordan
: € 350,000,000
Water, sewerage
: € 350,000,000
Signature date(s)
28/11/2023 : € 50,000,000
3/12/2023 : € 100,000,000
8/12/2022 : € 200,000,000
Link to source
Data sheet
Other links
Summary sheet
Release date
27 April 2022
Status
Reference
Signed | 08/12/2022
20190712
Project name
Promoter - financial intermediary
AQABA-AMMAN WATER DESALINATION & CONVEYANCE
MINISTRY OF WATER AND IRRIGATION - HASHEMITE KINGDOM OF JORDAN,SPECIAL PURPOSE ENTITY(IES)/FUND
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
USD 606 million (EUR 601 million)
USD 2700 million (EUR 2682 million)
Location
Sector(s)
- Water, sewerage - Water supply; sewerage, waste management and remediation activities
Description
Objectives
The primary objective of the project is to provide 300 million cubic metres (MCM) of potable water to Amman and other governorates in Jordan and, possibly, to areas along the project pipelines route. The water will come from a seawater reverse osmosis plant south of Aqaba and will be conveyed to Amman via a new, approximately 420 km long water conveyor that would run for most of its part parallel to the existing Disi Conveyor.
Jordan has one of the lowest levels of water availability per capita in the world, which is anticipated to decline even more over the next years. This is due to an increase in population (expected to increase by 2047 from the current estimated 10 million to 18 million inhabitants) and the consequences of climate change in the country. In that context, the AAWDCP is expected to contribute to the following objectives: (i) increase the resilience of the water supply by substantially increasing water production by providing up to additional 300 million cubic metres of water per year to Amman; (ii) adapt to and potentially mitigate the impacts of climate change; and (iii) create jobs both during construction and operation. The project is a high priority for the Government of Jordan and supports the EU and EIB objectives in the country. Specifically it is in line with: - National priorities, in particular the National Water Strategy 2016-2025, which identifies projects that contribute to a resilient water sector as a key priority for concessional financing. - EU policy objectives, as the project is included among the flagship initiatives identified in the EU Joint Communication on Renewed Partnership with the Southern Neighbourhood, published in February 2021. - The EIB's objectives under the Neighbourhood, Development and International Cooperation Instrument (NDICI), specifically the development of social and economic infrastructure, as well as the Bank's Water Sector Lending Orientation, Adaptation Plan and Climate Bank Roadmap. - Sustainable Development Goal #6, which calls for ensuring availability and sustainable management of water and sanitation for all, and #11 (make cities and human settlements inclusive, safe, resilient and sustainable).
Additionality and Impact
The AAWDCP is the largest water generation scheme to be implemented in the history of Jordan. It will generate from the outset 300 MCM per year of water and will be implemented through a build-operate[1]transfer (BOT) scheme. The project will close a supply-demand gap that is growing over time as a result of climate change. The project thus contributes significantly to the objectives of Jordan's National Water Strategy, the EU Joint Communication on Renewed Partnership with the Southern Neighbourhood, and the EIB Climate Bank Roadmap and Adaptation Plan. The benefits of the project include increased availability of water for domestic, municipal and industrial uses. The project also helps mitigate market failures by financing critical water supply infrastructure that generates positive externalities, mainly (i) security of supply in a wider geographic context with very scarce water resources, allowing for stable and prosperous social and economic livelihoods and (ii) environmental benefits by relieving further over-exploitation of groundwater resources. EIB's financial and non-financial contribution to the project is excellent. The Bank, alongside numerous development partners, is providing a substantial and favourable financing package, consisting of sovereign lending, project finance, and the management of an investment grant from the EU. In addition, the Bank has been involved from the very beginning of the project and provided technical expertise in the origination and structuring of the project, primarily through the ESIA, which establishes environmental and social standards in line with international best practices and which was funded and managed by EIB.
Environmental aspects
Procurement
A full Environmental and Social Impact Assessment (ESIA) has been completed with funding from the EIB and in line with international best practices and EIB environmental and social standards. The ESIA has also been approved by the relevant Jordanian authorities.
The Bank will require the Promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.
Under Global Europe NDICI guarantee
Under EFSD+ Guarantee
Related documents
Link to source
Summary sheet
Other links
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).
Documents
Environmental and Social Impact Assessment (ESIA) - AQABA-AMMAN WATER DESALINATION & CONVEYANCE - Annexes
Publication Date
7 Jun 2022
Document language
Main Topic
Lending
Document Number
157701388
Document Focus
Environmental Information
Document Type
Project Number
20190712
Sector(s)
Regions
Countries
Publicly available
Download now
Environmental and Social Impact Assessment (ESIA) - AQABA-AMMAN WATER DESALINATION & CONVEYANCE
Publication Date
8 Jun 2022
Document language
Main Topic
Lending
Document Number
157505254
Document Focus
Environmental Information
Document Type
Project Number
20190712
Sector(s)
Regions
Countries
Publicly available
Download now
Environmental and Social Impact Assessment (ESIA) - AQABA-AMMAN WATER DESALINATION & CONVEYANCE - Non-Technical Summary
Publication Date
8 Jun 2022
Document language
Main Topic
Lending
Document Number
157505368
Document Focus
Environmental Information
Document Type
Project Number
20190712
Sector(s)
Regions
Countries
Publicly available
Download now
Environmental and Social Data Sheet (ESDS) - AQABA-AMMAN WATER DESALINATION & CONVEYANCE
Publication Date
16 Jul 2022
Document language
Main Topic
Lending
Document Number
156117900
Document Focus
Environmental Information
Document Type
Project Number
20190712
Sector(s)
Regions
Countries
Publicly available
Download now
Link to source
Other links
News & Stories
Link to source
Other links
Inside the project
How and Why
Sourcing water responsibly from the Red Sea to Amman
Why
- Climate change has led to a significant reduction in rainfall in Jordan
- The country’s population has grown rapidly over the past decade, to 11 million in 2022 from 7 million in 2011, mainly due to refugees
- Water is not reaching its intended destination because of leaks, theft, or other reasons
How
- Water will be taken from the Red Sea
- It will be desalinated and pumped 420 kilometres north to the capital Amman and its surrounding area
- Seawater is retrieved without destroying marine life. No chemicals used in the desalination process will be ejected back into the sea
- The project provides 300 million cubic metres of water every year, equal to the water use of about 4 million people
Sectors & Countries
PLAY VIDEO
3:26
Story
Environmental and social impact assessment
Many Jordanians do not have regular access to water which is why they keep water tanks on their roofs for when the main supply runs out. The Aqaba-Amman Water Desalination and Conveyance Project will change this by the end of 2028. It will take water from the Red Sea at the Gulf of Aqaba in the south, desalinate it, and channel it 420 kilometres north to the capital Amman and its surrounding area, supplying a desperately needed 300 million cubic metres of water a year, which is equivalent to the water demands of about 4 million people.
Limiting the environmental impact
Desalinating water and transporting it across the country is an environmental challenge. Seawater will be drawn in at a depth, with limited velocity, and over a large surface so that no marine life will be harmed. A wastewater treatment plant will be incorporated into the desalination plant to ensure that no chemicals will be released into the sea. Solar energy will power the project. Photovoltaic fields will be set up without damaging nature reserves or disrupting the flight path of the 500 million birds that migrate through Jordan every year.
Being the climate bank, we discussed with the government the optimal solutions for the power supply to the project, since Jordan has ample renewable energy resources, especially for solar power
Financing the Aqaba-Amman desalination project
The European Investment Bank’s involvement in the project started early on. Jordan had begun planning a new desalination plant, and in 2019 asked the EU bank to conduct an environmental and social impact assessment to help define long-term, best practice, environmentally sustainable solutions to the water shortage. The project’s cost was estimated at around €2.7 billion and is set out to create 4 000 jobs during the construction phase. The Jordanian government hopes to deliver desalinated water to the Amman area before the end of 2028.
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