Jordan Water Efficiency Loan: $25M to Stop the Leaks

Jordan is the second most water-scarce country in the world. The average Jordanian has access to less than 100 cubic meters of water per year—far below the UN’s “absolute scarcity” threshold of 500 cubic meters.

But the crisis is not just about scarcity. It is about waste. Jordan’s water utilities lose 50% of their water to leaks, theft, and billing errors. This is called “Non-Revenue Water” (NRW). For every 100 liters pumped, only 50 liters are billed and paid for.

The Jordan Water Efficiency Scale Loan is a $25 million concessional financing facility designed to help utilities plug the leaks, install smart meters, and scale up wastewater reuse—turning sewage into irrigation water for farmers.

This is not just about pipes. It is about survival. Jordan’s aquifers are being depleted faster than they can recharge. Climate change is making droughts more frequent. The only way forward is radical efficiency.

Key Details at a Glance

What This Opportunity Offers

Concessional Financing This is not a commercial loan. The interest rate is 2-3% below market rates. For a $25 million loan, this saves millions of dollars over the life of the loan.

Performance-Based Grants If you hit your NRW reduction targets, a portion of the loan converts to a grant. For example: “If you reduce NRW from 50% to 30%, $5 million of the loan is forgiven.”

Technical Assistance The loan comes with a $2 million grant for technical assistance. This pays for:

• Leak detection surveys (using acoustic sensors and satellite data).
• Hydraulic modeling (to optimize pressure zones).
• Smart meter installation (and the software to analyze the data).

Tariff Reform Support Water in Jordan is heavily subsidized. Utilities cannot cover their costs. The loan includes support for tariff reform—helping you design a tariff structure that is financially sustainable and socially acceptable.

Who Should Apply

This is for Water Utilities and Water User Associations.

Ideal Candidates:

• The Municipal Water Utility: You serve a city of 100,000+ people. Your NRW is 50%. You want to install District Metering Areas (DMAs) and reduce NRW to 30%.
• The Water User Association: You manage irrigation water for 500 farmers. You want to switch from groundwater to treated wastewater.
• The Regional Utility: You serve multiple municipalities. You want to install a centralized SCADA system to monitor the entire network in real-time.

Eligibility Checklist:

• Legal Status: Must be a licensed water utility or a registered Water User Association.
• Baseline Assessment: Must have a recent NRW assessment (within the last 2 years).
• Financial Health: Must have audited financial statements showing you can service the debt.
• Community Engagement: Must have a plan for engaging customers (especially on tariff increases).

Insider Tips for a Winning Application

I have worked on water efficiency projects in the Middle East. Here is how to unlock this loan.

1. The “Quick Wins” Strategy Don’t try to fix everything at once. Identify the “Quick Wins”—the leaks that are easy to fix and save the most water. For example: “We will replace 5 km of old asbestos pipes in Zone 3, which currently loses 70% of its water. This will save 500,000 cubic meters per year.”

2. The “District Metering Area” (DMA) Approach The best way to reduce NRW is to divide your network into DMAs—small zones (500-1,000 connections) with a single meter at the inlet. You monitor the flow 24/7. If the flow at night (when no one is using water) is high, you have a leak. This “pressure management” approach can reduce NRW by 20-30% without replacing a single pipe.

3. The “Wastewater Reuse” Multiplier Jordan treats about 100 million cubic meters of wastewater per year. Most of it is discharged into wadis (dry riverbeds) or used for irrigation. If you can scale up reuse—building pipelines to deliver treated wastewater to farmers—you create a “new” water source. This is politically popular because it reduces pressure on drinking water supplies.

4. The “Tariff Transparency” Commitment Jordanians are skeptical of water utilities. They see corruption and inefficiency. If you can commit to “Tariff Transparency”—publishing your costs, your revenues, and your investment plans online—you build trust. This makes tariff increases more acceptable.

5. The “Gender Inclusion” Angle Women in Jordan are the primary water managers in households. If your project includes specific outreach to women (e.g., “We will hold community meetings in women’s centers to explain the new tariff structure”), you align with donor priorities.

Application Timeline

January-March 2025: Baseline Assessment

• Action: Conduct a comprehensive NRW assessment. Hire a consultant if needed.
• Action: Identify the worst-performing zones (the “low-hanging fruit”).

April-June 2025: Feasibility Study

• Action: Prepare a feasibility study. What interventions will you do? What will they cost? What will they save?
• Action: Build a hydraulic model of your network.

July 2025: Community Engagement

• Action: Hold public meetings. Explain the project. Listen to concerns.
• Action: Get endorsement from the local Water Council.

August 29, 2025: Submission

• Action: Submit the application to the MWI.

Required Materials

• NRW Baseline Report: Showing current losses.
• Feasibility Study: Technical and financial analysis.
• Hydraulic Model: Of your water network.
• Financial Statements: Last 3 years, audited.
• Tariff Reform Plan: How you will move toward cost recovery.
• Community Engagement Plan: How you will communicate with customers.

What Makes an Application Stand Out

The “Digital Twin” Approach A “Digital Twin” is a real-time computer model of your water network. It uses data from smart meters and SCADA to predict where leaks will occur before they happen. If you propose building a Digital Twin, you show you are thinking long-term.

The “Energy-Water Nexus” Pumping water uses a lot of energy. In Jordan, energy is expensive. If you can show that reducing NRW will also reduce energy costs (because you pump less water), you make the business case stronger.

The “Climate Resilience” Framing Jordan is getting hotter and drier. If you frame your project as “Climate Adaptation”—i.e., “We are preparing for a future with less rainfall”—you align with national climate strategies and unlock additional funding.

Common Mistakes to Avoid

Ignoring the “Social Tariff” Jordan has a “Social Tariff” for low-income households. If your tariff reform eliminates this, you will face massive public backlash. Design a tariff structure that protects the poor while charging higher rates to heavy users.

Underestimating the “Illegal Connections” Problem A significant portion of NRW is theft—illegal connections. Fixing this is politically sensitive. You need a strategy that combines enforcement with amnesty (e.g., “We will legalize illegal connections if households agree to pay a connection fee and start paying bills”).

Weak Monitoring Plan The loan requires you to report on NRW reduction quarterly. If you don’t have a monitoring system in place, you cannot prove you are hitting your targets. Invest in the monitoring infrastructure upfront.

Frequently Asked Questions

Is this a grant or a loan? It is primarily a loan, but with a performance-based grant component. If you hit your targets, part of the loan is forgiven.

What is the interest rate? Typically 2-3% (in USD), which is well below Jordan’s commercial lending rates (8-10%).

Can we use the loan for salaries? No. The loan is for capital investments (pipes, meters, treatment plants) and technical assistance. It cannot be used for operational costs like salaries.

What if we don’t hit the NRW reduction targets? You still have to repay the full loan. The grant component is only unlocked if you hit the targets.

How to Apply

1. Contact MWI: Visit the Ministry of Water and Irrigation.
2. Attend the Briefing: MWI holds quarterly briefings for interested utilities.
3. Submit the Concept Note: This is a 5-page summary.
4. Full Proposal: If shortlisted, you will be invited to submit a full proposal.

Water is life. In Jordan, it is also politics, economics, and survival. This loan is your chance to secure the future—one leak at a time.