Green Climate Fund backs $6B Jordan water project, biggest deal
Credit: Getty
The Green Climate Fund (GCF), the world’s largest multilateral climate financing body, has made its largest single investment to date, backing a $6 billion desalination and water conveyance project in Jordan, reported Reuters and The New Arab on 29 October.
The funding approval, a mix of grant and concessional loan totaling $295 million, was confirmed at a board meeting in South Korea. The goal is to leverage additional capital from entities such as the International Finance Corporation (IFC) and private lenders.
GCF CEO Mafalda Duarte described the commitment as the fund’s highest investment in a single project. “It will transform the country,” she told Reuters.
The project, dubbed the Aqaba Amman Water Desalination and Conveyance Project, is one of the world’s largest desalination projects. It is expected to directly supply nearly half of Jordan’s population.
Jordan already ranks among the world’s most water scarce countries, and climate change is projected to worsen the pressure by a 4 °C rise in temperature and a 21 % decline in rainfall are forecast by end of century, increasing evaporation, stressing groundwater, and intensifying drought cycles.
The U.S. has pledged $300 million in grants and $1 billion in loans toward the scheme, according to Jordanian officials speaking to Reuters.
Jordan’s Minister of Water and Irrigation, Raed Abu Soud, told Reuters, “The project is a strategic project to desalinate and transport 300 million cubic meters of water every year to most parts of the kingdom.”
A senior official involved in the initiative said the GCF’s participation would help reduce water costs by 10 cents per litre and save the government $1 billion over the project’s lifetime.
The official added that more favourable loan terms from the IFC would lower financing costs for private investors.
The Jordan project is one of 24 plans the GCF is considering. If all are approved, together they would total $1.4 billion which would be the fund’s biggest round of investments so far.
The GCF has sped up its decision making this year to make climate funding faster and more efficient ahead of COP 30.
Reuters and The New Arab, Maghrebi.org
Want to chase the pulse of North Africa?
Subscribe to receive our FREE weekly PDF magazine
