The Ministry of Water and Irrigation clarified details regarding the misleading and incorrect information circulated by some media outlets about the cost of the National Conveyance Project. The Ministry called on everyone to approach this project with a high sense of national responsibility given its vast strategic and sovereign importance.
اضافة اعلان
It emphasized that since early 2000, the government has sought to implement a strategic water project to address the chronic water deficit, alongside other local projects implemented annually to stabilize water supplies. The Red Sea–Dead Sea Project was initially proposed but faced political challenges over the years that thwarted its implementation. This prompted the government to immediately push for an independent Jordanian national project (the National Conveyance Project) in 2016 with a capacity of 100 million cubic meters annually to transport water from the south, at an initial estimated cost of about $1.5 billion at the time.
The project initially consisted of a conveyance pipeline without a desalination plant or a renewable energy station. It gradually evolved to a capacity of 150 million cubic meters. In light of worsening regional challenges and tensions, the project's strategic importance was reinforced to reach a capacity of 300 million cubic meters to meet 40% of water supply needs until 2040. The project's value increased due to rising production, desalination, and financing costs, along with cumulative inflation rates based on economic indicators between 2016 and 2025.
The Ministry added that securing a national water source is the most economically viable solution. It guarantees sustainable water supplies, reduces costs for all productive sectors, supports economic growth, and boosts investment through a long-term national investment that fosters self-reliance for the most essential commodity, water.
It noted that this project is the largest water project in Jordan's history, reflecting the state's strength in turning challenges into opportunities with a capital cost of around $5.8 billion. It is funded by 29 international institutions, with the treasury securing its largest financing in history at $722 million. Local banks contributed around $1.1 billion, and the Social Security Investment Fund held a 15% stake to lower costs and per-meter prices, mitigate risks, and ensure the financial burden is gradual, as the project is funded through external and international partnerships. While the government shoulders the burden in the short term, the project is not a financial burden in the medium and long terms. Instead, it helps solve the country's severe water crisis, transitioning to a supply schedule of 3 days a week for citizens, and paving the way for numerous productive, investment, and industrial projects to move forward, thereby enhancing economic stability. Consequently, the project is not merely a utility service but a strategic investment essential for Jordan's water and economic future by preventing future economic losses.
The Ministry explained that through exhaustive efforts during long and arduous negotiations, the government managed to reduce the total expected project costs by about $2.5 billion. The government also launched a water tariff reform program to ensure equity across different segments and sectors and to maintain social security until 2029. This is especially critical given that the water sector's debt currently exceeds 4 billion dinars, accounting for 12% of the total public debt. Therefore, if the situation continues without reforms, rising financing costs, implementation of water loss reduction plans, financial sustainability efforts, and addressing high energy costs, the water sector's debt would inevitably rise to around 15 billion dinars by the end of the project in 2040.
Accordingly, the National Water Conveyance Project is one of the strategic national projects that has maintained a high level of transparency and governance throughout its preparation, evaluation, and tendering phases. This has boosted the confidence of international financing institutions and investors to provide extensive funding for its execution, alongside government support, given the project’s vital importance and technical and economic viability. This project will increase the average Jordanian citizen’s water share from 60 cubic meters annually to 110 cubic meters annually, against the global water poverty line of 500 cubic meters annually.
