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19-04-23

Jordan Secures USD650 Million in World Bank Loans to Boost Climate-Responsive Investments

(MENAFN) Jordan has signed two loan agreements worth USD650 million with the World Bank to support the country's climate-responsive investments, electricity sector, and job creation. The agreements were signed during the World Bank spring meetings in Washington, by Jordanian Minister of Planning and International Cooperation Zeina Toukan and World Bank Country Director for the Middle East Department, Jean-Christophe Carret.

The first loan agreement is for USD400 million in financing for the Jordan Inclusive, Transparent, and Climate Responsive Investments Program for Results, a climate initiative that aims to promote job and business opportunities for women, and strengthen government efficiency through participatory, data, and evidence-based policymaking. A second USD250 million loan aims to boost Jordan's electricity sector efficiency, maintaining progress on service reliability and strengthening sector governance.

The loans will help Jordan implement the Economic Modernization Vision Executive Program 2023-2025, which focuses on advancing Jordan's climate agenda, promoting green investment-led growth, and improving the efficiency and reliability of the electricity sector. According to Carret, Jordan has demonstrated resilience in the face of major regional and global crises, and the two programs will promote the government's economic reform agenda, as well as structural reforms to achieve sustainable job creation, particularly for youth and women.

Jordan has been strengthening its climate agenda by raising its emission reduction targets and emphasizing green investments since 2021. It has also improved the reliability of its electricity supply, increasing the share of renewable energy in the supply mix from 6 percent in 2017 to 26 percent in 2021. Despite these developments, the electricity sector confronts a number of long-term challenges, including the National Electric Power Company's difficult financial situation and rising electricity and debt service costs.

The loans from the World Bank will enable Jordan to continue its efforts to promote sustainable development and address the challenges facing the electricity sector. The programs will also support the government's efforts to achieve its economic reform agenda, creating job opportunities for youth and women and promoting green investment-led growth. Jordan's partnership with the World Bank demonstrates its commitment to building a more sustainable and resilient future for the country.
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