AMMAN (JT) – Jordan and France on Wednesday signed a memorandum of understanding (MoU), under which France will provide the Kingdom with 600 million euros ($900 million) to finance development projects for the period 2011-2013.

The memo, signed by Minister of Planning and International Cooperation Jafar Hassan and Director General of the French Development Agency (AFD) Dov Zerah, will finance projects within the coming three years in priority sectors, including water, energy, sanitation, transport and environment, in addition to supporting small and medium enterprises.

The MoU was signed on the sidelines of a meeting between His Majesty King Abdullah and French President Nicolas Sarkozy at the Elysee Palace in Paris, during which the two leaders held talks on Middle East developments and several regional and international issues of mutual concern, a Royal Court statement said.

In a separate statement, the planning ministry elaborated that in addition to the 600 million euros, the French agency will supply the Kingdom with 40 million euros as loan guarantees for small and medium enterprises.

The ministry said AFD is particularly interested in a project to build a national railway, adding that a large slice of the financial package can be used to fund such projects without the need for the government to guarantee the loans obtained in the process. The other part of the package can be used as soft loans to support the state budget, which would lessen government dependence on internal borrowing.

Detailed agreements governing the aspects of cooperation between Jordan and France will be signed later, the statement said.