Amman — Ahead of the Jordan-EU Investment Conference at the Dead Sea, attention is turning to Jordan’s ability to finalize agreements for one of its largest strategic projects through a financing mix combining government funding, local bank credit, international financing and grants, amid expectations over what the European partnership could offer in terms of additional investment and risk-sharing opportunities.
The importance of the National Water Carrier Project goes beyond its ability to provide a sustainable water source. It also represents a test of Jordan’s capacity to mobilize domestic and international financing for a major capital project at a time when infrastructure investment and water security are becoming increasingly important.
With the Jordan-EU Investment Conference scheduled to be held at the Dead Sea on November 19, 2026, the project’s financing structure is gaining additional significance, not only because of the amount of funding required, but also because completing financial close is a key step in moving from financing arrangements to actual implementation.
40 Investment Opportunities
According to the Ministry of Investment, the conference will showcase more than 40 investment opportunities with a combined value exceeding $15 billion, covering sectors including water, energy, industry, infrastructure, technology and logistics.
The program will also include a dedicated session on financing mechanisms for the public and private sectors, as well as ceremonies for signing memoranda of understanding and investment agreements.
These developments give the conference particular importance for the National Water Carrier. The success of the Jordan-EU partnership will not be measured solely by the amount of financing announced, but by its ability to translate financial cooperation into implementable agreements, improve financing terms, and expand the use of guarantees and risk-mitigation instruments.
The conference could therefore provide an opportunity to strengthen dialogue among the government, local banks and European financial institutions over the remaining financial-close arrangements, or to explore additional financing tools if needed.
The announced financing structure shows that the National Water Carrier relies on multiple parties: the government is covering part of the cost, Jordanian banks are leading a large banking consortium, the Social Security Investment Fund is participating in financing and equity, international institutions are providing development financing, and international partners are contributing grants.
This diversity reflects the ability to mobilize different sources of funding around a strategic project. However, it also makes completing financial close, verifying each party’s final commitments, and assessing financing costs and conditions critical at the current stage.
Additional Financing Tools
As the conference approaches, there appears to be an opportunity to strengthen the partnership between domestic capital and European institutions, either by completing existing arrangements or developing additional financing and risk-sharing instruments.
However, the conference’s real value will ultimately be determined by the clear commitments and implementable agreements it produces, rather than simply the size of the investment opportunities presented.
The National Water Carrier needs not only substantial financing, but also structured and sustainable funding capable of moving the project from agreements to implementation and eventually to economically efficient operations.
This is the key measure of a successful partnership: ensuring that the funds Jordan has mobilized with its domestic and international partners are transformed into sustainable water security without imposing long-term burdens on public finances or the water sector that cannot be managed.
Government data show that the project combines a direct contribution from the Treasury, bank financing led by Jordanian banks, financing from international institutions, and grants from international partners.
The immediate task is to complete the financial procedures and agree on their terms, bringing the project to a stage where the financing can be implemented under the final agreements.
The capital cost of the National Water Carrier is estimated at $4.3 billion, while the total estimated cost, including financing expenses, stands at $5.8 billion, according to a Prime Ministry announcement on April 21.
This means the project requires a long-term financing structure that goes beyond securing construction costs and takes into account the financial burden associated with financing a project of this scale.
Strengthening Technical Specifications
In April, the government signed the project’s final technical and legal agreement following nearly 16 months of negotiations aimed at improving financing terms, securing competitive pricing and strengthening technical and engineering specifications.
At the time, the government was targeting financial close in July, paving the way for construction to begin. However, an informed source previously told Al-Ghad that the financial-close procedures were still being finalized.
The local banking sector is one of the main pillars of the project’s financing structure. The government announced that a consortium of Jordanian commercial banks, led by Housing Bank, would provide up to $1.1 billion in financing.
This contribution is particularly important given the project’s need to mobilize substantial financial resources and the role local banks can play in providing long-term credit, mobilizing savings and expanding national participation in strategic projects.
In March last year, Housing Bank announced that it had signed a mandate for a syndicated loan of up to $770 million. In July, the bank announced that it had led the arrangement of a local syndicated loan worth JD800 million last year, equivalent to around $1.13 billion.
Local Bank Financing
These developments indicate that local bank financing is no longer a marginal element of the project, but has become one of its main components. The fact that a Jordanian bank is leading a syndicated loan of this size also highlights the ability of the local banking sector to participate in financing a project far larger than the typical scale of individual investments.
Local participation in the project is not limited to commercial banks. The Social Security Investment Fund is participating in financing through the banking consortium, in addition to its investment in the equity of the project company.
According to data published by the fund in April, National Water Investments Company, which is wholly owned by the Social Security Corporation, holds a 15% stake in the project company.
This arrangement represents two distinct forms of financial participation: bank financing and equity investment. While debt financing is linked to repayment terms and an agreed return, equity participation is tied to investment risks and returns.
The model could strengthen the participation of local investment institutions in infrastructure and link part of national capital to a strategically important long-term project.
However, the cited data do not provide a separately announced figure for the Social Security Fund’s contribution to the bank loan. It therefore would not be accurate to estimate that contribution based on its 15% ownership stake or to treat that percentage as its share of the debt financing.
In addition to local financing, the project relies on international financing and grants from a group of partners.
According to government data announced in April, international financing committed to Meridiam amounts to $2.9 billion, while international grants are estimated at $663 million and the government contribution stands at $722 million.
The international institutions named in the announcement include the World Bank, the European Investment Bank, the European Bank for Reconstruction and Development, the Islamic Development Bank, Proparco, the Japan International Cooperation Agency, the Green Climate Fund and the OPEC Fund for International Development, among others.
The grants include contributions from the United States, the European Union, Germany, the Netherlands, the United Kingdom, France, Italy, Japan and the Green Climate Fund.
Risk-Mitigation Tools
These components play different roles in the financial structure. Grants help cover part of the project cost without creating a repayment obligation comparable to a loan, subject to the terms of each agreement. International development financing provides channels for funding major projects and can offer risk-mitigation tools that improve the project’s bankability.
The government contribution, meanwhile, confirms that the state is directly bearing part of the project’s cost, helping establish the financial structure required for implementation.
The investment conference comes at an important time. The government and the European Union have announced that it will be held on November 19 as part of the strategic and comprehensive partnership between the two sides, supported by a €3 billion financial and investment package for 2025-2027.
The package includes additional investments, financial assistance, grants and concessional loans. However, it is not an amount allocated entirely to the National Water Carrier and should not be considered new project financing unless explicitly announced as such.
The project’s financial equation does not end with raising the funds. The success of the National Water Carrier will depend on its ability to provide water at a manageable cost and on clearly distributing operational and financial risks.
Government data indicate that the project aims to desalinate 300 million cubic meters of Red Sea water annually and transport it through a 417-kilometer pipeline, using renewable energy generated by solar facilities with a capacity of approximately 300 megawatts.
The project also aims to provide 40% of Jordan’s drinking-water needs, with water deliveries scheduled to begin in 2030 under the announced timetable.
These targets have major economic significance because providing an additional and stable water source could support the continuity of economic activity, ease pressure on traditional water resources and improve the ability of productive sectors to plan.
Improving loan terms, maximizing the use of grants, distributing risks and reducing water losses will also be important alongside project implementation to ensure that the major investments translate into sustainable water and economic benefits.
EU Ambassador to Jordan Pierre-Christophe Chatzisavas previously offered a broad assessment of Jordan-EU relations, focusing on the upcoming investment conference and stressing that it should not be an event that ends when the conference concludes, but rather the beginning of a long-term process to follow up on commitments and turn them into actual investments and projects.
Chatzisavas said at the time that the National Water Carrier was nearing completion, expressing hope that this would be achieved by mid-November.
Regarding Jordanian sectors that could benefit from the conference, he said investment opportunities include digitalization, energy, transport and water, noting that the National Water Carrier is among the projects being presented and announced.
He added that the EU is on the right track toward achieving its investment target even without counting the National Water Carrier, saying that after the conference it would be able to identify the destination of investments more precisely.
He stressed that the EU’s focus includes digitalization, energy, transport and water, as well as traditional sectors in which the bloc operates and where projects are ready for investment.
Source: Al-Ghad
