At the center of Jordan’s plan to ease water scarcity and reduce its dependence on external sources is the National Water Carrier Project, which envisages desalinating Red Sea water in Aqaba and delivering it to different parts of the country.
Described as the largest water investment in the country’s history, the project is estimated to have a total cost of approximately $5.8 billion, including $4.3 billion in capital expenditure. Construction and excavation work is expected to begin after financial close, while official water transfers are planned to start in 2030.
Public-private partnership for water security
The financing package includes an international grant of $663 million, $2.9 billion in investment loans, $1.1 billion in financing from Jordan’s banking sector and a $722 million government contribution.
The National Water Carrier is expected to be implemented under a public-private partnership model. Ownership is planned to be transferred fully to the government 26 years after the project officially begins operations.
According to data from Jordan’s Ministry of Water and Irrigation, the facility will desalinate each year an amount of water equivalent to the total capacity of all the country’s dams. Production is expected to reach approximately three times that of the currently operating Disi Water Project.
Annual production of 300 million cubic meters of drinking water
Energy expert Amer al-Shubaki said annual production of 300 million cubic meters could meet approximately 40 percent of Jordan’s drinking water needs. Al-Shubaki said water for agriculture and other uses would not fall within the project’s scope and that the investment could support drinking water security until 2040.
Al-Shubaki said Jordan’s annual water availability per capita was approximately 60 cubic meters, adding that the water poverty threshold was generally considered to be around 500 cubic meters.
The project is expected to reduce pressure on groundwater resources and give these aquifers time to recover. However, its impact could diminish after 2040 because of rising population and industrial demand.
Salameh also said annual production of 300 million cubic meters would contribute to the recovery of groundwater aquifers, but added that additional water sources could be needed within 15 to 20 years if demand continues to rise.
Energy and transport costs
Electricity consumption is one of the project’s largest expense items. Electricity use could reach 7 to 8 percent of Jordan’s total consumption, while direct operating costs are estimated at approximately $2.70 per cubic meter, excluding electricity, transport and water losses.
The final price could exceed $7 per cubic meter once the project is completed. Connecting the project to renewable energy sources is being considered to reduce operating costs, while a system based entirely on those sources could require expensive storage technologies.
Approximately 450 kilometers of pipeline will be laid between Aqaba and different parts of Jordan. Excavation work required to route the pipes, which will have diameters ranging from 2 to 2.5 meters, through populated areas is expected to create logistical challenges.
Discharging the water produced after desalination into the Gulf of Aqaba is among the environmental issues under debate because of its potential effects on marine life. If financial close is delayed, raw material prices and additional costs could increase investment expenses. An elevation difference of approximately 1,100 meters will have to be overcome to deliver water to some areas.
The expert considers desalinating Red Sea water a viable option for Jordan because of regional political conditions. Arguing that dependence on external sources should be reduced in water management, the expert said imported water or supplies dependent on external sources were not reliable options and that deep groundwater did not constitute a realistic alternative to the project.
French consortium to lead development work
A French consortium comprising Meridiam, which holds a 90 percent stake, and Suez, which holds 10 percent, will carry out the project’s development work. Egypt-based Arab Contractors and Orascom Construction will participate in construction, operations and maintenance activities.
The project, which coincides with Jordan’s plans to strengthen its water security, is intended to be accelerated. Jordan did not renew in May 2024 an agreement providing for the purchase of 50 million cubic meters of water annually from Israel.
