German loans worth 97 million euros for water sector

Jordan

Published: 2018-12-17 16:19

Last Updated: 2018-12-17 17:07


German loans worth 97 million euros for water sector
German loans worth 97 million euros for water sector
Roya News Source

The Jordanian Government has signed two concessional loan agreements with the German banking group (KfW) of a total value of 97 million Euros to finance two major vital projects for the water sector, December 17, 2018.

The agreement was signed by Jordanian Minister of Planning and International Cooperation Dr. Mary Kawar, and Minister of Water and Irrigation Raed Abu Al-Saud with the Director of the Middle East Department of the German Bank (KFW) Stefan Zeeb.

Minister Kawar thanked Germany’s continued support to Jordan over the years in vital sectors such as water, sanitation, education and other priority sectors, and with helping the Kingdom face the consequences that accompanied the outbreak of the Syrian crisis.

A financing agreement to complete the fourth phase of project energy efficiency and renewable energies for the water sector was signed with a total value of 60 million Euros. The project aims to save on energy consumption in the water and sanitation sector, in addition to lowering energy costs of Jordanian water companies.

The first tranche of the total loan to be financed by the German Bank (KfW) was signed to contribute to the financing of the fourth phase of the Water Resources Management Program for 2018 at a cost of 37 million Euros, with the aim of restructuring, expanding and improving the performance of water networks in Greater Irbid and Ramtha to provide additional quantities of water and adequate levels of services to the host communities of Syrian refugees in both municipalities, as well as improve the performance of water systems to reduce water loss and reduce energy consumption.

The implementation period of the projects will be approximately five years, and the financing terms for these two loans will be very easy, with a repayment period of fifteen years, including a grace period of five years.

Kawar said that both the Jordanian and German sides are working jointly to design support and objectives in line with national sectoral priorities, especially service development projects that have a direct impact on improving the level of services provided to citizens and host communities.

Zeeb said that the partnership with Jordan is exemplary and constructive among countries that partnered with Germany. He also lauded Jordan's government for the success of the talks and their outcome.