EBRD funded 5 projects with 62M euros in 2023

view of the Amman cityscape
(File photo: Jordan News)
AMMAN — The European Bank for Reconstruction and Development (EBRD) allocated 62 million euros for five projects throughout 2023, with 61 percent focusing on the private sector and 45 percent on sustainable infrastructure, Al-Mamlaka TV reported.اضافة اعلان

The bank's strategy in Jordan focuses on enhancing the competitiveness of the private sector and small and medium-sized enterprises, sustainable infrastructure, better municipal services, and transitioning to a green economy. The bank also participates in capacity building and corporate restructuring, such as supporting water utility companies.

According to available data, the investments comprised a financing package blending a 30 million euro grant from the European Union (EU) and a 41.3 million euro loan from the EBRD to construct a sewage treatment tank facility in the Al-Ghabawi area east of Amman.

 This initiative is expected to improve and increase water and sanitation services in Jordan for local communities and Syrian refugees. Furthermore, EBRD issued a $15 million loan to promote green investment in Jordan through agreements signed with local banks.

The loan also included $3.75 million as co-financing from the Green Climate Fund (GCF) and up to $1.8 million in incentive grants from the EU, in addition to technical assistance supported by all three parties. This loan is anticipated to assist the private sector and local micro, small, and medium-sized enterprises in Jordan in obtaining loans to enhance their investments in climate change mitigation and adaptation technologies and services.

In the field of building greener cities, the bank contributed to financing the purchase of the first 15 electric buses in cooperation with the Greater Amman Municipality (GAM) and their deployment by a private operator. It is expected that these buses will reduce emissions by 290 tonnes of carbon dioxide annually, equivalent to removing 62 cars from the road in one year.

In September 2023, EBRD projected Jordan's GDP growth to stabilize at 2.5 percent in 2023 and 2024, supported by continued recovery in tourism and strong growth in non-service sectors.

Notably, the bank's report on the global economic outlook praised the Economic Modernization Vision (EMV) launched by the government in 2023, affirming that successful implementation of the announced reforms within the framework of the vision plan aimed at attracting foreign direct investment ‘could unleash new growth engines.’ 

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