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AMMAN — The Cabinet, during a session chaired by Prime Minister Jafar Hassan on Monday, approved an agreement with the French Development Agency to help finance the National Water Carrier Project, with an initial contribution of $97 million, as the government moves to complete the mega project’s financial closure and begin implementation.
The approval marks another step towards advancing the Kingdom’s largest water infrastructure project, which is expected to cost approximately $5.8 billion, according to a Prime Ministry statement.
The government signed the project’s final technical and legal agreement in April, paving the way for the completion of financing arrangements and the start of construction works.
The National Water Carrier Project is considered the first project of its scale in Jordan’s history.
It will involve the desalination of 300 million cubic metres of seawater annually, the construction of pumping systems capable of transporting water to elevations of up to 1,100 metres above sea level, and a pipeline network extending approximately 450 kilometres.
The project will rely heavily on renewable energy and advanced environmentally friendly technologies. Upon completion, it is expected to meet around 40 per cent of Jordan’s drinking water needs, representing a major boost to the country’s water security efforts.
The Cabinet also approved the validating reasons for the 2026 amendments to the Natural Resources Law, to be referred to the Legislation and Opinion Bureau for review and the completion of legal procedures.
The proposed amendments are part of efforts to modernise investment legislation and create a more attractive environment for investors in the natural resources sector, the statement said.
They are also aligned with Jordan’s Economic Modernisation Vision, which identifies mining as a key driver of “high-value industries.”
The statement said that the draft legislation was developed following consultations with public and private sector partners and aims to bring Jordan’s regulatory framework in line with the best international practices.
The amendments are designed to encourage investment in petroleum, natural gas, oil shale, critical minerals, and other natural resources by allowing investors to enter into production-sharing agreements or mining agreements once the economic feasibility of projects has been established, according to the statement.
The proposed changes would also expand investment incentives, including exemptions aimed at encouraging exploration activities, while simplifying procedures for allocating land for natural resource projects, it said.
Under the draft law, the Ministry of Energy and Mineral Resources would continue to oversee policy development for the natural resources sector and establish mechanisms for the exploitation of petroleum, natural gas, oil shale, and critical minerals.
The legislation also proposes the establishment of an exploration and community development support fund, which would support mineral exploration projects across Jordan, help update geological and petroleum data maintained by the ministry, and contribute to local communities hosting mining, petroleum, and oil shale projects through infrastructure development and job creation, the statement said.
