Project Description
This summary covers an application by Meridiam Eurasia 3 SAS (“Meridiam”) of France; Suez International SAS (“Suez”) of France, and/or any of their affiliates (collectively referred to as the “Sponsors”), and Commercial lenders yet to be identified for their equity/quasi-equity and/or shareholder loan, and non-shareholder loan investments into the National Carrier Project Company (the “Project Enterprise”) for the financing, construction, operation and maintenance of the Aqaba-Amman Water Desalination & Conveyance project, a seawater desalination plant and associated infrastructure, with a net potable water capacity of 300 million cubic meter (“MCM”) per year (the “Project”). The investors seek MIGA coverage for up to US$1.25 billion against the risks of Expropriation, Transfer Restriction and Currency Inconvertibility, and War and Civil Disturbance for a period of up to 20 years.
The scope of the Project includes the following components: (i) Marine Works: an intake system composed of a pumping station to convey seawater to the desalination plant site; (ii) Desalination Plant: a reverse osmosis seawater desalination facility producing 300 MCM of desalinated water per year through four independent parallel production lines, located in the Aqaba area; (iii) Conveyance System: composed of a 438-km long underground water pipeline, three tanks and four pumping stations to convey water to the Aqaba turnout and to existing reservoirs near Amman; and (iv) Renewable Energy (“RE”): a solar power plant with a production capacity equal to [281] MWp sized to cap the carbon emissions of the Project to 3.2 kge per cubic meter (“m3”) of desalinated water produced by supplying approximately 28% of the Project’s electricity needs (the “RE Facility”).
Environmental Categorization
The Project is a Category A under MIGA’s Policy on Environmental and Social Sustainability. To view the Environmental and Social Review Summary prepared by the IFC please click here.
Development Impact
Jordan is one of the most water-scarce countries in the world and has annual renewable water resources of less than 61 m3 per capita, well below the 500 m3 absolute water scarcity threshold. Jordan’s escalating water crisis is driven by climate change and conflict-induced refugee influx, combined with diminishing water supply. Groundwater is being used twice as fast as it can be replenished, meeting only two-thirds of the population’s water demand. In 2025, water demand is expected to exceed available resources by 26%, with the gap widening thereafter. In dry seasons, residents often resort to expensive and time-consuming alternatives like water tankers to cover their needs.
The Project will increase accessibility to quality water services for Jordanians through a clean and renewable water supply by bringing online a net potable water capacity of 300 MCM per year, aiming to increase Jordan's water supply by ~ 30% and narrowing the supply-demand gap. The Project will enhance the quality and reliability of access.
The Project offers a supply-side solution to ensuring water security and increasing the sector's resilience, especially when no other viable options exist to mitigate the water supply deficit in light of the supply-demand gap that is exacerbated by dwindling resources. The Project is anticipated to enhance downstream activities in the economy.
