Aqaba: Gretchen Perry, Director of the Eastern Mediterranean Region at the European Bank for Reconstruction and Development (EBRD), reaffirmed the bank’s significant role in financing a range of development projects across Jordan aimed at bolstering infrastructure, enhancing tourism, and supporting sectors such as transportation, green cities, municipal services, waste management, and renewable energy. These initiatives have been instrumental in improving the standard of living for local communities and refugees.
In an interview with the Jordan News Agency (Petra) during the Green Economy Conference in Aqaba, Perry highlighted the EBRD’s commitment to supporting Jordan’s economic development and reform agenda. The bank, which has been operating in Jordan since 2012, focuses on enhancing the competitiveness of the private sector and investments, alongside providing technical assistance and financing for critical infrastructure development to ensure the delivery of essential services to the population.
Perry
noted that the EBRD recently signed a $35.5 million loan as part of an $81 million financing package, co-financed by the International Finance Corporation and Capital Bank, to support sustainable tourism in Jordan. The funding is earmarked for the development of Ayla Marina Village and forms part of the broader Ayla Oasis renewal plan. In 2023, the bank provided pound 62 million for five projects in sustainable infrastructure, green economy financing, and trade facilitation, with 61 percent of the funds directed toward the private sector.
The EBRD’s partnership with the Greater Amman Municipality was also emphasized, with Perry detailing the bank’s contributions to improving municipal infrastructure, including water, sanitation, solid waste management, and public transportation, benefiting both local communities and refugees in Amman. The bank has allocated approximately pound 193 million to enhance municipal infrastructure and public transportation in the capital, with pound 70 million of this sum comprisin
g investment grants and soft loans. This funding supports 11 diverse projects aimed at upgrading waste management and public transport systems.
Perry outlined the EBRD’s investments in nine municipal projects related to wastewater, solid waste, and transportation infrastructure as part of its response to the solid waste crisis in Amman, driven by the needs of local communities and the impact of refugee inflows. These projects include the Pepsi Pond Treatment Project, the Sha’er Waste Transfer Station, and the purchase of 136 public transport buses, among others.
In 2023, the bank allocated pound 23.4 million to support municipal infrastructure projects for the Greater Amman Municipality and the Water Authority of Jordan. This includes pound 10.2 million for the Ain Ghazal Wastewater Treatment Plant Project and an additional pound 11.3 million for the Ghabawi Sewage Reservoir Project, bringing the EBRD’s total contribution to pound 41.3 million for these initiatives, co-financed by a pound 30 million investm
ent grant from the European Union.
Moreover, Perry disclosed that an additional pound 1.9 million has been allocated for the construction of the al-Sha’er Waste Transfer Station, increasing the bank’s total contribution to pound 5.2 million. These efforts are designed to enhance wastewater treatment services for local communities and Syrian refugees in the affected areas.
Perry also highlighted that Amman became the first city in the southern and eastern Mediterranean region to join the EBRD Green Cities Program in 2018, with hopes that Aqaba will soon follow.
Under this program, the sixth cell at the Ghabawi landfill, which began operations in late 2023, will play a key role, with a capacity of 5.5 million tons and an additional landfill gas facility with a 6.4-megawatt capacity feeding into the national grid. Other notable projects include the Amman Electric Buses initiative and the West Irbid Lake and Wastewater Network Treatment Projects.
The EBRD has also provided technical support aimed at improving
human resources, promoting equal opportunities, and developing on-the-job training programs for youth, particularly within the Water Authority of Jordan, to address the skills gap in the sector.
Perry elaborated on a recent agreement with the Ministry of Planning and International Cooperation, which facilitates a $30 million financing package for the Water Authority of Jordan to provide essential wastewater services to refugee communities in western Irbid. The EBRD’s contribution amounts to $19 million, supported by an pound 8 million investment grant from the United Kingdom government under the High Impact Partnership on Climate Action, and an additional pound 2.75 million grant from the European Union.
Discussing the bank’s impact on Jordan’s green economy, Perry affirmed, “We continue to support Jordan’s transition towards a greener, more sustainable economy by facilitating access to green financing through local partner banks and improving municipal infrastructure and services. Our efforts also focus on
enhancing the efficiency of energy and water resources to support a comprehensive economy that elevates the quality of life for all Jordanians.”
Perry noted that the EBRD was an early partner in Jordan’s renewable energy sector, aiding the government in establishing bankable power purchase agreements and financing 11 projects worth pound 290 million, which have contributed to increasing the country’s renewable energy capacity by 475 megawatts. She reiterated the EBRD’s objective of becoming a green bank by 2025, targeting over 50 percent of its projects to support the green economy. Over the past eight years, 39 percent of the bank’s investments have been dedicated to this goal.
The EBRD is also collaborating with the Jordanian government to advance the green hydrogen sector, with discussions held in Aqaba last month to address challenges and identify solutions for hydrogen project development. The bank is supporting the development of a hydrogen production hub in Aqaba, focusing on shared infrastructure.
In addition, Perry highlighted a recent agreement to support the fourth phase of Jordan’s green economy with a $15 million loan to the Housing Bank for Trade and Finance, backed by the European Union and the Green Climate Fund. This initiative aims to accelerate private sector investments in climate change mitigation and adaptation projects aligned with the Paris Agreement.
This year, the bank also extended a $4 million loan to Jordan Microfinance Company (Tamweelcom) under the Green Economy Financing Program, aimed at supporting businesses engaged in climate change mitigation and adaptation efforts.
As part of this program, the EBRD has provided pound 38 million to three local banks and two microfinance institutions in Jordan, alongside technical assistance to build capacity within partner financial institutions. This support ensures that their clients have access to the best available technologies to meet their specific needs.
Perry concluded by noting the EBRD’s pivotal role in supporting small and medi
um-sized enterprises (SMEs) in Jordan. The bank has provided pound 5 million in financing under the Small Business Advice Program to enhance the growth of SMEs, including women-led businesses and innovative startups, through advisory assistance and capacity-building initiatives.
The program helps SMEs digitize their business processes, adopt new technologies, find green and sustainable solutions, acquire new skills, scale operations, and expand into new markets.
The EBRD’s assistance has enabled more than 30 companies and 300 individuals across various sectors to achieve economic growth while generating positive environmental impacts.
Source: Jordan News Agency