Jordan’s water utilities given energy efficiency boost from US$3m loan

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In the Middle East, Jordan’s water utilities will benefit from a US$3 million loan from the European Bank for Reconstruction and Development (EBRD) to finance public-private projects to increase the efficiency of energy consumption in the water sector.

Local energy service companies owned by Engicon O&M, a Jordanian operations and maintenance company, will use the funds to finance projects in water and waste water management.

Part of the investment will target the modernisation of the Wala and Lib water pumping stations that serve the town of Madaba, south of Amman.

The EBRD loan builds on, and scales up, a successful German Agency for International Cooperation pilot project with Engicon energy service companies.

Energy efficiency

The modernisation of the pumping stations will lead to greater energy efficiency, through improved pumping technology, and lower costs for the Water Authority of Jordan, one of the country’s largest energy users.

The financing, provided under the EBRD’s Local Enterprise Facility, will also be used to improve management and operation of the pumps.

Heike Harmgart, head of the EBRD office in Jordan, said: “Energy is an acute problem in Jordan and this partnership will contribute to the increased use of energy-saving measures.

“In addition, this public-private partnership will have an important demonstration effect and encourage further participation by the private sector in vital public sector improvements.”

EBRD has invested about €200 million across 9 projects in Jordan to date.

The energy service companies that will benefit from the EBRD loan are to be incorporated in Jordan and are 100 per cent owned by Engicon O&M.

Jordan’s water utilities given energy efficiency boost from US$3m loan