The US International Development Finance Corporation (DFC) has approved up to US$1.8 billion in financing for Jordan’s US$5.8 billion National Carrier Project Company (NCPC), owned by Meridiam and Suez, to develop Jordan’s National Water Carrier Project in Jordan.

The package includes a loan of up to US$1 billion and political risk insurance of up to US$800 million. Also known as the Aqaba-Amman Water Desalination and Conveyance Project (AAWDCP), the project is being developed as a PPP between Jordan’s NCPC, a special-purpose vehicle owned 90% by France-based infrastructure investor Meridiam and 10% by Suez.

The project covers the design, development, construction, operation and maintenance of a seawater desalination plant, a water transmission network and a dedicated solar power generation facility under a 26-year Design, Build, Finance, Operate, Maintain and Transfer (DBFOMT) contract. The desalination facility in Aqaba will produce approximately 300 million cubic metres of water annually, which will be conveyed north through a pipeline network spanning around 450 km. Water supply from the project is scheduled to commence in 2030.

The project has received approximately US$663 million in grants from international partners, including the US, European Union, Germany, the Netherlands, UK, France, Italy, Japan and the Green Climate Fund. The Jordanian government is contributing a further US$722 million. In addition, Meridiam has arranged around US$2.9 billion in private-sector financing from international financial institutions, while a consortium of commercial banks led by Housing Bank is providing up to US$1.1 billion in local financing. The Social Security Investment Fund (SSIF) is also participating in the project through equity investment alongside Meridiam. The Jordanian government signed the project’s final technical and legal agreement in April. Once operational, the project is expected to supply around 40% of Jordan’s drinking water requirements.