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The Green Climate Fund (GCF) has approved a record USD 295 million in grants and concessional loans to support Jordan's USD 6 billion Aqaba-Amman Water Desalination and Conveyance Project. The initiative aims to provide around 300 million cubic metres of desalinated water annually to almost half of Jordan's population. With rising temperatures, declining rainfall, and severe water scarcity, the project has become a national priority. The United States and other partners are also extending financial support, making this one of the largest water projects in the region.
The Green Climate Fund has approved its largest-ever single-project investment by committing USD 295 million in grants and low-interest loans to Jordan's Aqaba-Amman Water Desalination and Conveyance Project. The approval took place during a recent board meeting in South Korea. The financial commitment is expected to help attract additional investment from the International Finance Corporation (IFC), development partners, and private lenders. Advertisement
The total project cost is estimated at around USD 6 billion. Once operational, the project will desalinate seawater from the Gulf of Aqaba and convey it through a 450-kilometre pipeline to Amman and other cities across Jordan. It will supply nearly 300 million cubic metres of water every year, benefiting close to half of the country's population. Jordan currently ranks as the second most water-scarce nation in the world, facing persistent shortages that threaten both urban and agricultural needs.
According to the GCF, the project represents a major step towards improving Jordan's water resilience. The project is being developed under a public-private partnership model led by the Meridiam and SUEZ consortium. The infrastructure will include desalination plants, pumping stations, and renewable energy components to ensure energy-efficient operations.
Jordan's Minister of Water and Irrigation, Raed Abu Soud, said the project is considered a strategic priority for the country, as it aims to desalinate and deliver 300 million cubic metres of water annually to most parts of the kingdom. The United States, one of Jordan's strongest regional partners, has pledged USD 300 million in grants and USD 1 billion in loans to support the project. Other regional contributors are also expected to join in the financing effort.
A senior official associated with the initiative explained that the GCF's funding would help lower the cost of water by nearly USD 0.10 per litre and save the Jordanian government about USD 1 billion over the project's lifetime. It would also enable the IFC to offer better lending terms, encouraging more private sector participation at affordable rates.
The project was one of 24 under discussion at the recent GCF board meeting. If all are approved, the total value would reach about USD 1.4 billion, marking the fund's largest collective financial release to date. The GCF has recently adopted faster decision-making processes as part of global efforts to reform climate financing systems. The upcoming COP30 summit in Brazil is expected to focus further on how international financial institutions can mobilize more private investment for climate-related infrastructure while managing risk effectively.
Jordan's water crisis is projected to worsen in the coming decades. Climate data suggest that average temperatures could rise by up to 4 °C by the end of the century, accompanied by a 21% reduction in rainfall. This would accelerate groundwater depletion and increase drought frequency. In this context, the Aqaba-Amman project is viewed as a critical measure to strengthen national water security and reduce dependence on rapidly declining aquifers.
Source Reuters
5th Jun, 2025
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