Projected $250m World Bank loan to support state budget — Hassan

Reported by Omar Obeidat JORDAN TIMES

AMMAN – Spain on Thursday agreed to provide Jordan with 12 million euros in soft loans to help develop the water sector in the northern region.

The loan agreement, signed by Minister of Planning and International Cooperation Jafar Hassan and Spanish Ambassador in Amman Javier Sangro de Liniers, seeks to improve water pumping systems in the north by electronically linking pumping stations, wells and dams.

At the signing ceremony, also attended by Minister of Water and Irrigation Mousa Jamani, Hassan said the project will enable workers at water authorities in the north to use advanced pumping and control systems, adding that the system will facilitate operation and maintenance of these systems in addition to reducing water loss in the Kingdom.

Although the government has terminated foreign borrowing this year in order not to expand public debt, the minister said the soft loan provided by Spain was excluded due to its easy repayment terms.

The interest rate of loan, which is part of the 125-million euro financial cooperation programme that was signed between Jordan and Spain two years ago, is 0.01 per cent with a grace period of 21 years and a maturity period of 42 years, according to Hassan, who indicated that the two countries are scheduled to sign another loan agreement early next year to finance projects in the renewable energy sector.

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Note by editor: Why not just make it ‘interest-free’?