Director General of the Cities and Villages Development Bank (CVDB), Osama Azzam, said the Energy Efficiency Project is a “key” enterprise currently being implemented to help municipalities reduce energy bills by replacing traditional lighting units in municipal streets with LED energy-efficient technology. In a statement to “Petra” on Saturday, Azzam said the project is being implemented in cooperation between Ministry of Local Administration, CVDB and Ministry of Energy, at a cost of JD65 million. Azzam added that 50% of the cost will be paid from the Ministry of Energy’s “Rural Fils” scheme, while the other half is funded by CVDB as a loan to be repaid over a 7-year period. On its economic feasibility, Azzam said the project saves about JD20 million of electricity consumption annually and slashes maintenance costs for old units by about JD7 million annually, pointing out that the duration of the project cost extends about 3 years. Azzam indicated that the CVDB’s role aims to guarantee payment of all financial dues for tenderers, which is a “major and pivotal” effort in stimulating companies to implement and finance this energy-efficient technology. He also stressed project’s importance to help municipalities slash energy bill by replacing 410,000 traditional lamps in municipal streets with energy-saving LED lights, which are installed by electricity distribution companies within their concession areas, adding that the number is expected to increase to about 600,000 units. According to Azzam, the project also aims to reduce carbon emissions by 87,941.3 tonnes and slash energy expenditure. Energy costs constitute about 20% of municipal expenditures, which would reflect “positively” on the quality of services provided to citizens and the local community, he said.

Source: Jordan News Agency