meed-logo

line1 line2 line3
SIGN IN / REGISTER

Jordan water project enters critical phase

11 January 2024

Commentary
Jennifer Aguinaldo
Energy & technology editor

Jordan’s national water carrier programme, previously known as the Aqaba-Amman water desalination and conveyance project, achieved a major milestone in December when a developer consortium submitted a bid to develop the project.

It is a much-anticipated water infrastructure project to alleviate the kingdom’s gaping water scarcity issue.

Jordan has only 97 cubic metres of water available per capita annually, less than one-fifth of the absolute water scarcity threshold of 500 cu m/capita a year, according to the World Bank.

The project has so far received pledges in the form of loans and grants from financial institutions such as the European Investment Bank, the EU and the World Bank’s International Finance Corporation.

These total roughly $730m in loans and $107m in grants, far smaller than the total investment the project requires.

Notably, in 2022, the heads of Jordan’s Planning Ministry and Water Ministry confirmed that the pledges and commitments at the time reached a total of $2.2bn, although a breakdown was not published.

A source close to the project says there are no legal obstacles to awarding the contract to the single bidder, “provided the client finds the price acceptable”.

The bidding team comprises Paris-headquartered Meridiam, a shareholder in Suez, Vinci, also of France, and Egypt’s Orascom.

The proposed levelised water cost for the project has not been disclosed.

Some prequalified bidders have told MEED they did not bid for the contract due to potential challenges in obtaining financing for the project, which is estimated to cost between $2bn and $3.5bn depending on its final configuration.

The build-operate-transfer project is Jordan’s single largest planned infrastructure scheme to date. It will pipe water from the southern coast to the country’s northern regions.

The desalination component of the project will have the capacity to treat 835,000 cubic metres a day (cm/d) of water, of which 250,000 cm/d to 300,000 cm/d are expected to be transported to the capital Amman.

The conveyance segment of the project includes the construction of a seawater intake pump station, reservoir, pipeline, booster pump stations and freshwater collection pipes.

The project is expected to use clean energy in line with the government’s commitment to reduce greenhouse gas emissions.

An estimated 1.6 million people, roughly a 10th of the kingdom’s population, are expected to benefit from improved water services through the project. 

It is not the only project planned to alleviate Jordan’s worsening water woes, which result from population growth, the influx of refugees, and leaking, ageing pipes.

In June, the World Bank approved a $250m financing to improve and rehabilitate Jordan’s water distribution network. An estimated 50 per cent of Jordan’s municipal water is considered non-revenue water (NRW), meaning it either leaks from pipes or is not paid for by the consumer.

Water levels in the country’s 14 major dams are also understood to sit at about 43 million cubic metres – roughly a 10th of their total capacity of 336.4 million cubic metres.

Jordan’s treaty with Syria to import water has fallen through, with Syria rejecting the latest request to import 30 million cubic metres of water.

Its only other water source is Israel, with whom it signed a peace treaty in 1994. Under this deal, Israel agreed to provide Jordan with 55 million cubic metres of water a year. In 2021, Israel agreed to supply Jordan with an additional 50 million cubic metres of water outside the framework of the 1994 treaty.

In late 2022, Jordan and Israel signed a water-for-energy deal brokered by the UAE and US. Under the plan, Jordan will build a 600MW solar power plant and export the capacity to Israel. In return, Israel will provide Jordan with 200 million cubic metres of desalinated water.

The project appeared to be advancing in 2023 before the Israel/Hamas conflict began on 7 October.  

Jordan said in November that it would not sign the deal, which leaves Jordan’s water problem unsolved until the water national carrier project is completed – assuming it is successfully awarded, financed and developed – in three or four years’ time. 

https://image.digitalinsightresearch.in/uploads/NewsArticle/11429011/main.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Navigating financial markets amid geopolitical fragmentation

    28 December 2025

     

    As we move towards 2026, geopolitical fragmentation is no longer a background risk that occasionally disrupts markets.

    It has become a defining feature of the global financial landscape. Shifting alliances, persistent regional tensions, sanctions and the reconfiguration of supply chains are reshaping how capital flows, how liquidity behaves and how confidence is formed.

    For firms operating in the Middle East, this does not simply mean preparing for more volatility. It means operating in a system where the underlying rules are evolving.

    For much of the past three decades, businesses and investors worked within a broadly convergent global framework. Trade expanded, financial markets deepened and policy coordination – while imperfect – created a sense of predictability. That environment has changed.

    Today, economic decisions are increasingly influenced by strategic alignment, security considerations and political resilience. Markets still function, but they do so in a more fragmented and less forgiving way.

    Shifting landscape

    One of the most important consequences of this shift is that risk no longer travels along familiar paths. In the past, geopolitical events were often treated as temporary shocks layered onto an otherwise stable system.

    Today, they shape the system itself. Trade flows are influenced as much by political compatibility as by cost efficiency. Supply chains, once optimised for speed and scale, are reorganising into regional or allied clusters. Financial markets respond not only to data, but to narratives about stability, alignment and long-term credibility.

    This change places greater pressure on firms that rely on historical relationships to guide decisions. Models built on past correlations – between interest rates and equity markets, or between energy prices and regional growth – are less reliable when markets move between different regimes. The challenge is not simply higher volatility, but the fact that correlations themselves can shift quickly.

    Monetary policy adds a second layer of complexity. Major central banks are no longer moving in step. The US, Europe and parts of Asia face different inflation dynamics and political constraints, leading to diverging interest-rate paths.

    For the GCC, where currencies are largely pegged to the US dollar, this divergence has direct consequences. Local financial conditions are closely tied to decisions taken by the Federal Reserve, even when regional economic conditions follow a different cycle.

    This matters because funding costs, liquidity availability and hedging conditions are shaped by global rather than local forces. When US policy remains tight, dollar liquidity becomes more selective. When expectations shift abruptly, market depth can disappear quickly.

    For firms with international exposure, long-term investment plans, or reliance on external financing, these dynamics require careful management. They cannot be treated as secondary macro considerations.

    Energy markets further complicate the picture. The Middle East remains central to global energy supply, which means geopolitical events often interact with oil prices and financial conditions at the same time.

    When shifts in energy expectations coincide with changes in global interest-rate sentiment, liquidity conditions can tighten rapidly. This interaction is well known in academic research on fixed exchange-rate systems, but its practical implications are often underestimated in corporate planning.

    Expanding vulnerabilities

    These dynamics expose clear vulnerabilities. Concentrated supply chains are more susceptible to disruption. Financing structures dependent on continuous market access are more exposed to sudden repricing. Risk management approaches that assume stable relationships between assets are more likely to disappoint. Operational risks – particularly in technology and data – are increasingly shaped by geopolitical considerations rather than purely technical ones.

    At the same time, the region enters 2026 from a position of relative strength. GCC economies benefit from fiscal buffers, long-term investment programmes and a growing perception of stability compared to other parts of the world. In an environment where uncertainty is widespread, predictability itself becomes valuable. Capital increasingly seeks jurisdictions that combine economic ambition with institutional credibility.

    The question, therefore, is not whether opportunities exist, but whether firms are prepared to capture them responsibly. This requires a shift in how future risks are assessed and embedded into decision-making. Linear forecasts and static plans are insufficient when the environment itself can change state. Scenario thinking must evolve beyond optimistic and pessimistic cases to reflect different combinations of geopolitical alignment, monetary conditions, and supply-chain stability. These scenarios should inform capital allocation, not sit in strategy documents.

    Liquidity and risk management discipline also become central. In both trading and corporate finance, experience shows that many failures stem not from being wrong on direction, but from being overexposed when conditions change. Scaling risk to market conditions, maintaining funding flexibility and understanding how quickly liquidity can evaporate are essential practices. This is as true for corporate balance sheets as it is for trading books.

    Operational resilience must be viewed through the same lens. Supply-chain redundancy, cybersecurity preparedness and data governance are no longer purely operational concerns. They influence financial stability, investor confidence and regulatory trust. In a fragmented world, operational disruptions can quickly translate into financial and reputational damage.

    Facing the future

    As we approach 2026, leadership in the Middle East faces a clear test. The global environment is unlikely to become simpler or more predictable. Firms that continue to rely on assumptions shaped by a different era will find themselves reacting rather than positioning. Those that invest in disciplined risk management, flexible planning and operational resilience will be better placed to navigate uncertainty and to turn volatility into strategic advantage.

    In this environment, risk management is not an obstacle to growth. It is the framework that makes sustainable growth possible.

    Ultimately – and this is an often overlooked critical point – none of these adjustments, whether in scenario planning, liquidity discipline, or operational resilience, can be effective without the right human capital in place. 

    Geopolitical fragmentation and financial volatility are not risks that can be fully addressed through models or policies alone. They require informed judgement, institutional memory and the ability to interpret weak signals before they become material threats or missed opportunities. 

    Firms that succeed in this environment will be those that deliberately invest in corporate knowledge: building internal capabilities where possible and complementing them with external expertise where necessary. This means involving professionals with the right background, cross-market experience and a proven, proactive approach to risk awareness and governance. 

    In a fragmented world, competitive advantage increasingly depends not only on capital or strategy, but on the quality of people entrusted with understanding risk, challenging assumptions and guiding decision-making under uncertainty.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15306336/main.gif
  • Oman’s growth forecast points upwards

    24 December 2025

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15306449/main.gif
    MEED Editorial
  • December 2025: Data drives regional projects

    23 December 2025

    Click here to download the PDF

    Includes: Top inward FDI locations by project volume | Brent spot price | Construction output

    MEED’s January 2026 report on Oman includes:

    > COMMENT: Oman steadies growth with strategic restraint
    > ECONOMY: Oman pursues diversification amid regional concerns
    > BANKING: Oman banks feel impact of stronger economy
    > OIL & GAS: LNG goals galvanise Oman’s oil and gas sector
    > POWER & WATER: Oman prepares for a wave of IPP awards
    > CONSTRUCTION: Momentum builds in construction sector

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15306140/main.gif
    MEED Editorial
  • Local firm bids lowest for Kuwait substation deal

    22 December 2025

    The local Al-Ahleia Switchgear Company has submitted the lowest price of KD33.9m ($110.3m) for a contract to build a 400/132/11 kV substation at the South Surra township for Kuwait’s Public Authority for Housing Welfare (PAHW).

    The bid was marginally lower than the two other offers of KD35.1m and KD35.5m submitted respectively by Saudi Arabia’s National Contracting Company (NCC) and India’s Larsen & Toubro.

    PAHW is expected to take about three months to evaluate the prices before selecting the successful contractor.

    The project is one of several transmission and distribution projects either out to bid or recently awarded by Kuwait’s main affordable housing client.

    This year alone, it has awarded two contracts worth more than $100m for cable works at its 1Z, 2Z, 3Z and 4Z 400kV substations at Al-Istiqlal City, and two deals totalling just under $280m for the construction of seven 132/11kV substations in the same township.

    Most recently, it has tendered two contracts to build seven 132/11kV main substations at its affordable housing project, west of Kuwait City. The bid deadline for the two deals covering the MS-01 through to MS-08 substations is 8 January.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15305745/main.gif
    Edward James
  • Saudi-Dutch JV awards ‘supercentre’ metals reclamation project

    22 December 2025

    The local Advanced Circular Materials Company (ACMC), a joint venture of the Netherlands-based Shell & AMG Recycling BV (SARBV) and local firm United Company for Industry (UCI), has awarded the engineering, procurement and construction (EPC) contract for the first phase of its $500m-plus metals reclamation complex in Jubail.

    The contract, estimated to be worth in excess of $200m, was won by China TianChen Engineering Corporation (TCC), a subsidiary of China National Chemical Engineering Company (CNCEC), following the issue of the tender in July 2024.

    Under the terms of the deal, TCC will process gasification ash generated at Saudi Aramco’s Jizan refining complex on the Red Sea coast to produce battery-grade vanadium oxide and vanadium electrolyte for vanadium redox flow batteries. AMG will provide the licensed technology required for the production process.

    The works are the first of four planned phases at the catalyst and gasification ash recycling ‘Supercentre’, which is located at the PlasChem Park in Jubail Industrial City 2 alongside the Sadara integrated refining and petrochemical complex.

    Phase 2 will expand the facility to process spent catalysts from heavy oil upgrading facilities to produce ferrovanadium for the steel industry and/or additional battery-grade vanadium oxide.

    Phase 3 involves installing a manufacturing facility for residue-upgrading catalysts.

    In the fourth phase, a vanadium electrolyte production plant will be developed.

    The developers expect a total reduction of 3.6 million metric tonnes of carbon dioxide emissions a year when the four phases of the project are commissioned.

    SARBV first announced its intention to build a metal reclamation and catalyst manufacturing facility in Saudi Arabia in November 2019. The kingdom’s Ministry of Investment, then known as the Saudi Arabian General Investment Authority (Sagia), supported the project.

    In July 2022, SARBV and UCI signed the agreement to formalise their joint venture and build the proposed facility.

    The project has received support from Saudi Aramco’s Namaat industrial investment programme. Aramco, at the time, also signed an agreement with the joint venture to offtake vanadium-bearing gasification ash from its Jizan refining complex.

    Photo credit: SARBV

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15305326/main.gif
    Edward James