Jordan Signs $4.3 Billion National Water Carrier Agreement, Aiming for July Financial Close

Jordan has officially signed the final technical and legal agreement for its National Water Carrier project, known as the Aqaba-Amman Water Desalination and Conveyance (AAWDC). The signing took place in the capital, Amman, marking a significant step toward achieving financial closure anticipated by July.

Project Financial Overview

The Prime Minister’s office has estimated the capital cost of the project at approximately $4.3 billion. When including financing expenses, the total project cost is projected to reach around $5.8 billion. Following the financial close, construction and excavation activities are set to commence in the summer.

The agreement was executed by Water and Irrigation Minister Raed Abu Al Saud and Thierry Déau, the chief executive of Meridiam, in the presence of Jordan’s Prime Minister Jaafar Hassan.

Tariff Adjustments

Negotiations spanning 16 months have resulted in a reduction of the indicative water tariff for the project. Initially set at about $3 per cubic meter for 2024, the tariff has been lowered to approximately $2.7 per cubic meter. Final discussions are ongoing regarding the inflation adjustment formula.

Public-Private Partnership Structure

The National Water Carrier project operates under a Public Private Partnership (PPP) framework, involving the Ministry of Water and Irrigation and the National Carrier Project Company (NCPC). This special purpose vehicle is predominantly owned by Meridiam (90%) and Suez (10%). The project will be executed under a Build-Operate-Transfer (BOT) model, with full ownership transitioning to the Jordanian government 26 years after operations commence.

Financing for the project will be sourced through a combination of grants and loans. Grants totaling $663 million have been secured from various entities, including the United States, the European Union, Germany (KfW), the Netherlands, the United Kingdom, France (AFD), Italy, and Japan (JICA).

Loans amounting to $2.9 billion have been provided by several institutions, including the World Bank Group, the European Investment Bank (EIB), the Arab Fund, the Green Climate Fund (GCF), the Islamic Development Bank (IsDB), the International Financial Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), the Asian Infrastructure Investment Bank (AIIB), Proparco, the Japan International Cooperation Agency (JICA), and the OPEC Fund for International Development.

The Jordanian government will contribute $722 million, while a consortium of local banks led by the Housing Bank for Trade and Finance is expected to provide up to $1.1 billion. Additionally, the Social Security Investment Fund (SSIF) will also participate through debt and equity.

Technical Scope of the Project

The National Water Carrier project encompasses several key components:

• Desalination Capacity: The project aims to desalinate 300 million cubic meters per year of seawater, which is nearly equivalent to the total capacity of all of Jordan’s dams and almost three times the output of the Disi water conveyance project.
• Infrastructure: Approximately 450 kilometers of pipelines will be constructed to transport water, along with pumping stations capable of reaching elevations of up to 1,100 meters above sea level.
• Renewable Energy: Solar power plants with a combined capacity of 300 megawatts (MW) will be developed to supply 30 percent of the project’s energy requirements.

The project is anticipated to begin operations in 2030.

Implications for Water Security

The National Water Carrier project is expected to fulfill around 40 percent of Jordan’s drinking water needs, as stated by the Prime Minister’s Office. It aims to increase annual per capita water availability from 60 cubic meters to 110 cubic meters and improve the frequency of water supply from once a week to three times a week across all governorates.

The government will continue to subsidize water tariffs, acknowledging that the Water Authority’s debt currently constitutes about 12 percent of total public debt. This figure is expected to rise due to the high costs associated with water supply and essential infrastructure projects.

In parallel, the government intends to alleviate the debt burden by expanding high-efficiency water projects, enhancing wastewater treatment capabilities, and improving overall resource management.

Strategic Importance

This project is a cornerstone of Jordan’s Economic Modernisation Vision. It is designed to alleviate pressure on traditional water sources, enhance supply reliability for various sectors, including industrial and agricultural, and address water demand through 2040.

Source: www.zawya.com

Read all the latest developments and breaking updates in the Latest News section.

Published on 2026-04-21 22:13:00 • By the Editorial Desk