Jordan has taken a decisive step toward advancing its flagship National Water Carrier project, with the signing of the final technical and legal agreement in Amman. The milestone paves the way for financial close expected in July and the start of construction works next summer, according to the Jordan News Agency.
With an estimated capital cost of $4.3 billion—rising to $5.8 billion including financing—the project represents one of the country’s largest infrastructure investments. Authorities highlighted that the agreement follows 16 months of negotiations aimed at improving financing conditions, achieving competitive tariffs, and strengthening technical specifications.
The scheme centres on large-scale seawater desalination of 300 million cubic metres annually, combined with a 450-kilometre conveyance system and pumping infrastructure capable of lifting water up to 1,100 metres. It will also integrate renewable energy, with solar capacity of around 300 MW expected to meet approximately 30% of the project’s power demand.
Jordanian officials indicated that the initiative will supply around 40% of the Kingdom’s drinking water needs once operational in 2030. It is expected to increase overall water availability by 40%, raising per capita supply from 60 to 110 cubic metres per year and improving distribution frequency to up to three days per week across all governorates.
The agreement also reflects progress on cost optimisation, with the benchmark water tariff reduced from about $3 per cubic metre in 2024 to approximately $2.7, while discussions continue on inflation adjustment mechanisms.
Financing will be supported by a consortium of 29 international donors and financial institutions. Grants from partners that include the United States, the European Union, Germany, the Netherlands, the United Kingdom, France, Italy, Japan, and the Green Climate Fund total $663 million.
Meridian will secure approximately $2.9 billion in financing from leading international financial institutions. They include the World Bank Group, the European Investment Bank, the European Bank for Reconstruction and Development, the Islamic Development Bank, Proparco, the private sector financing arm of the French Development Agency, the Japan International Cooperation Agency (JICA), the Green Climate Fund, the OPEC Fund for International Development, and others.
The government will contribute $722 million, while a group of Jordanian banks headed by Housing Bank is set to contribute up to $1.1 billion, while the Social Security Investment Fund will join the project as both a lender and equity partner alongside Meridiam.
The project will be implemented under a build-operate-transfer model, with ownership reverting to the government after 26 years of operation. It is structured as a public-private partnership between the Ministry of Water and Infrastructure and the National Carrier Project Company, a special purpose vehicle 90% owned by Meridiam and 10% by Suez.
Positioned as a cornerstone of Jordan’s Economic Modernisation Vision, the National Water Carrier is expected to enhance long-term water security, reduce pressure on conventional resources, and support sustainable development through to 2040.
