AMMAN: Jordan has signed two loan agreements worth $650 million with the World Bank to support the country’s climate-responsive investments, electricity sector and job creation, Jordan News Agency reported on Tuesday
The agreements were signed on Monday 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 $400 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 effeciency through participatory, data, and evidence-based policymaking.
A second $250 million loan aims to boost Jordan’s electricity sector efficiency, maintaining progress on service reliability and strengthening sector governance.
“We appreciate the continued partnership and support of the WB for Jordan’s reform and development priorities,” Toukan said.
“These two new programs will help the government’s efforts to implement the Economic Modernization Vision Executive Program 2023-2025, which is focused on advancing Jordan’s climate agenda, promoting green investment-led growth, and improving the efficiency and reliability of our 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.
Since 2021, Jordan has strengthened its climate agenda by raising its emission reduction targets and emphasizing green investments.
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.