Prime Minister Jafar Hassan witnessed the signing of the final technical and legal agreement for the National Water Carrier Project (AAWDC). This milestone paves the way for financial close in July, with construction and excavation works set to begin this coming summer. The project’s capital cost is estimated at $4.3 billion, while the total cost, including financing, is expected to reach approximately $5.8 billion.
اضافة اعلان
The agreement follows 16 months of government negotiations to optimize financing terms, secure the best possible pricing, and enhance engineering and technical specifications.
Strategic Significance and Technical Pillars
The project is a global first of its kind, integrating several strategic pillars:
Desalination: Treating 300 million cubic meters (mcm) of seawater annually.
Infrastructure: Pumping systems reaching elevations of 1,100 meters above sea level via a 450-km pipeline.
Sustainability: Heavy reliance on renewable energy using advanced, eco-friendly technologies.
Impact on National Water Security
The National Water Carrier will meet approximately 40% of the Kingdom's drinking water needs. Expected to commence operations in 2030, its annual capacity (300 mcm) is nearly equivalent to the total capacity of all Jordanian dams and triple the output of the Disi project. It will:
Increase the annual per capita water share from 60 to 110 cubic meters.
Boost water supply frequency from one to three days per week across all governorates.
Provide water sufficiency until the year 2040.
Financial Framework and Pricing
The final agreement reduced the water price from an estimated $3 per cubic meter in 2024 to an indicative price of $2.7 per cubic meter. Negotiations are currently finalized on inflation indexing for the final closure. The government will continue to subsidize water prices, noting that the Water Authority's debt currently constitutes 12% of the total public debt.
Financing and Partnership
The project follows the Build-Operate-Transfer (BOT) model, with full ownership reverting to the government after 26 years. It is supported by 29 donors and international financial institutions:
Grants ($663 million): Provided by the USA, EU, Germany, Netherlands, UK, France, Italy, Japan, and the Green Climate Fund.
Private Sector Financing ($2.9 billion): For the Meridiam company, involving the World Bank Group, EIB, EBRD, Islamic Development Bank, Proparco, JICA, and the OPEC Fund.
Government Contribution ($722 million): The largest capital expenditure in the history of the Jordanian budget.
Local Financing ($1.1 billion): Provided by a syndicate of Jordanian commercial banks led by Housing Bank, with participation from the Social Security Investment Fund (SSIF), which is also an equity partner in the project.
The National Water Carrier is a cornerstone of the Economic Modernization Vision and stands as a top national priority to ensure sustainable water security for the Kingdom.
