The European Investment Bank (EIB)'s Water Sector Fund has received a significant boost from the Dutch government with a €31 million contribution, doubling the fund's size. This substantial commitment, provided through the Dutch state-owned development financier Invest International, will bolster the EIB's capacity to provide technical and financial support for high-impact water investments in low and lower-middle-income countries.
The new funding will be specifically used to enhance water security in Jordan through the Aqaba-Amman Water Desalination and Conveyance project.
The Minister of Planning and International Cooperation, Zeina Toukan, commended the Dutch government, Invest International, and EIB’s Water Sector Fund for their support of this critical project as part of the Team Europe initiative on Green Economy. “This project will provide an important source of water and contribute to enhancing economic development in Jordan.”
The European Investment Bank (EIB)'s Water Sector Fund has received a significant boost from the Dutch government with a €31 million contribution, doubling the fund's size
“We are proud to partner with the EIB in supporting the Aqaba-Amman Water Desalination and Conveyance project through the Water Sector Fund. This investment is vital for enhancing water security in Jordan and addressing water challenges, which have been exacerbated by regional conflicts and climate change. The investment demonstrates our commitment to addressing global challenges through innovation and collaboration,” said Ms. Petra Vernooij Invest International’s Director for Public Infrastructure.
“This significant contribution from the Netherlands underscores our shared commitment to ensuring access to safe and sustainable water resources,” said EIB Vice-President Gelsomina Vigliotti. “The Water Sector Fund plays a crucial role in mobilising finance for essential projects, and this new funding will allow us to expand our impact in Jordan.”
The Water Sector Fund, established by the EIB and the Dutch government, targets projects in regions where public authorities have limited resources to develop adequate water infrastructure. The fund's technical assistance and advisory services support institutional skill development, project preparation, and innovative solutions, investment grants help to decrease the total funding needs for the promoter at given investment project costs. The Water Sector Fund provides financial instruments to leverage private and public investment in water, sanitation, and hygiene projects and is open to further contributions from donors seeking to promote a greater impact in this sector.
This new €31 million contribution represents the fourth agreement between the EIB and the Netherlands to support the Water Sector Fund.
The contribution is earmarked for the Aqaba-Amman Water Desalination and Conveyance project, Jordan’s largest water generation scheme. This project aims to address the country's dire water scarcity by generating 300 million cubic meters of potable water per year. The project includes the development of seawater abstraction, desalination, and water conveyance infrastructure. The fund's contribution will be disbursed as an investment grant, blended with a sovereign loan already agreed with the EIB and project financing expected to be finalised later this year.
The contribution is earmarked for the Aqaba-Amman Water Desalination and Conveyance project, Jordan’s largest water generation scheme
The Ministry for Planning and International Cooperation of Jordan and Dutch government announced the grant support for the Aqaba-Amman Water Desalination and Conveyance Project during a signature event in Amman. The funds will be channelled through the EIB’s Water Sector Fund.
"Making additional, non-ground water available through desalination is crucial for water security,’ said Harry Verweij, Ambassador of the Kingdom of the Netherlands to Jordan. ‘The Netherlands is proud to partner with the EIB and Jordan in the Aqaba Amman Water Desalination and Conveyor Project. This will secure future supplies of drinking water, including for vulnerable communities, and support economic growth in the country."
The EIB is one of the world’s largest lenders to the water sector, providing over €33 billion for water investment over the last decade. The Water Sector Fund’s innovative financial structure has helped to mobilize additional funding from other investors to share risks and accelerate project development.
In 2023, the fund supported its first private equity fund, the Water Access Acceleration Fund. The fund is currently active in sub-Saharan Africa, with projects in developing countries around the globe also eligible.
The EIB is expected to sign a grant agreement with the Jordanian government for this project in the coming weeks.
