U.S. green lights $275 million grant to Jordan to combat poverty and enhance economic growth

December 18, 2011

Minister of Water and Irrigation Mousa Jamani and U.S. Ambassador to Jordan Stuart Jones announce the entry into force of a $275.1 million MCC grant at a ceremony December 18, 2011 at King Abdullah’s Cultural Center in Zarqa.`

Zarqa - Minister of Water and Irrigation Mousa Jamani and U.S. Ambassador to Jordan Stuart Jones exchanged official letters at a ceremony today Dec. 18, 2011 at King Abdullah’s Cultural Center in Zarqa to announce the entry into force of a $275.1 million grant agreement from the U.S. Government’s Millennium Challenge Corporation (MCC) to the Hashemite Kingdom of Jordan.

The ceremony marked the official beginning of the five-year compact, which aims to alleviate poverty and stimulate economic growth for the citizens of the Zarqa Governorate.

Collectively the compact’s projects will alleviate poverty in Zarqa in many ways such as saving income by decreasing the population’s reliance on expensive alternative sources of water, protecting health by minimizing water borne diseases, and supporting SMEs who could significantly benefit from increased water supply.

In his remarks, Ambassador Jones highlighted the strong U.S.–Jordanian partnership that has been going on for the past sixty years, adding that the compact marks another milestone in this close relationship. Ambassador Jones also said that the grant will improve water service, expand the availability of wastewater collection, and enhance a state-of-the art wastewater treatment facility for the people of Zarqa, especially those in the poorest households.

The MCC grant will be managed and executed by the Millennium Challenge Account – Jordan (MCA-Jordan), a company fully owned by the Government of Jordan. It will be channeled into three integrated projects:

1. Water Network Project, $108 million - restructures and rehabilitates water networks in Zarqa and Russeifa cities, improving the efficiency of network water delivery and the condition of home water systems. 
2. Wastewater Network Project, $58 million - expands and rehabilitates the wastewater network to increase the amount of wastewater collected for treatment, increases households access to the network, and reduces sewage overflow.
3. As-Samra Expansion Project, $93 million - expands the existing wastewater treatment plant in order to increase the capacity to treat more water coming from Amman and Zarqa Governorates and increase the amount of treated wastewater as a substitute for freshwater for non-domestic use.

“The Compact’s projects will bear many positive fruits for the citizens of Zarqa Governorate, such as increasing potable water to almost all households, enhancing the water supply time, reducing regular sewage overflow, and increasing supply of treated wastewater to the Jordan valley for irrigation,” according to Eng. Kamal Zoubi, MCA-Jordan CEO.

Part of the interventions will include direct assistance to the poorest households in Zarqa Governorate to improve their plumbing, water storage, sewage connections, and general awareness of best practices for sanitation and water use.

“As the clock starts ticking for this compact, we will take it upon ourselves to work diligently with our partners to achieve the strategic and sustainable solutions for this significant economic development program. We are very confident that the MCA-Jordan team, which prides itself to be all Jordanian experts, is predetermined to achieve nothing but success,” Zoubi said.

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About MCC

The Millennium Challenge Corporation, a U.S. Government agency designed to work with developing countries, is based on the principle that aid is most effective when it reinforces sound political, economic, and social policies that promote poverty reduction through economic growth.  For more information, please visit the MCC website: www.mcc.gov.

About MCA-Jordan

The Millennium Challenge Account – Jordan (MCA-Jordan) is a Limited Liability Company owned by the Government of Jordan. MCA-Jordan has been established in June 2010 to manage and implement the program funded by the Millennium Challenge Corporation in accordance with the Compact Agreement and international best practices. The program consists of several water and wastewater projects, which will be implemented in Zarqa Governorate over 5 years of the Compact (2011-2015). For more information, please visit MCA-Jordan website: www.mca-jordan.gov.jo.