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    11-May-2018

EBRD offers $1 billion to finance infrastructure projects in Jordan

 

The Jordan Times

 

DEAD SEA — Jordan and the European Bank for Reconstruction and Development (EBRD) on Thursday signed a 2.8 billion euros memorandum of understanding (MoU) that governs the bank's participation in Jordan’s infrastructure investment projects in several areas.
 
 
Under the deal, signed in the presence of Prime Minister Hani Mulki, the EBRD confirms its interest in considering participation in Jordan’s infrastructure investment programme, which the country is developing to upgrade existing and develop new sustainable infrastructure. 
 
The 2.8 billion euros programme will cover multiple infrastructure sectors including energy, transport, water and wastewater, solid waste, education and other municipal services.
 
 
 
The EBRD, as part of the deal, confirms its readiness to consider the provision of long-term financing and technical assistance for eligible projects and intends to support public-private partnership projects in order to stimulate private sector participation in the infrastructure sector.
 
The bank will directly contribute 1 billion euros to finance these projects, while it will help lure investors to cover the remaining funding needs, Minister of Planning and International Cooperation Imad Fakhoury said during the signing ceremony on Thursday.
 
“This MoU confirms the interest of the bank to consider participating in the Investment Programme through the potential provision of long-term financing and/or technical assistance funds to the eligible projects,” Fakhoury said.
 
In his remarks, the minister said EBRD in Jordan has been a true “success story”, whose vision translated into concrete projects on the ground supporting key sectors and areas in Jordan. 
 
Since 2012, EBRD has committed more than 1 billion euros for investments in various sectors, 85 per cent of which went to private sector operations, mainly in the fields of sustainable and renewable energy, in addition to sovereign and sub-sovereign financed operations, the official said.
 
EBRD President Chakrabarti voiced satisfaction at the high level of collaboration with Jordan, reiterating the bank’s support for the Kingdom.
 
 
 
“We are very pleased to sign this Memorandum of Understanding, which demonstrates our commitment to Jordan. Infrastructure development is key to unlocking the country’s potential and creating the basis for sustained and sound growth. In addition, the enhanced delivery of infrastructure and municipal services will result in tangible improvements in people’s daily lives,” Chakrabarti said during the ceremony.
 
Also Thursday, Jordan and the EBRD signed a MoU to improve the investment climate in Jordan, the performance of the private sector development and good economic governance.
 
Fakhoury said that EBRD “intends to cooperate, where and as appropriate, with the government on implementation of investment climate reform priorities, as well as the government’s efforts aimed at increasing investment and improving the development of the private sector, and of the business climate in general in Jordan”.
 
Jordan aims to establish a unified national platform for public-private dialogue to support communication and cooperation between the authorities and the private sector, promote corporate governance in the corporate and banking sectors, develop the local capital market and expand the implementation of commercial mediation, according to an EBRD statement.
 
Under the deal, EBRD will help the government to implement measures that will improve public procurement and introduce technology to enable small-and medium-sized enterprises to participate in the public procurement process.
 
EBRD is also committed to strengthening the regulatory framework in the information and communication technology sector and supporting the delivery of e-government services aimed to cut red tape and improve the operational environment for domestic and foreign investors.
 

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