In a recent development, the World Bank has allocated $101 million to support Jordan’s economic recovery through a dedicated program that promotes public and private investments responsive to climate change.
According to the data, this new installment increases the World Bank’s payments to the program to $332 million out of the initial $500 million allocated for the core program. Additionally, the Asian Infrastructure Investment Bank has contributed approximately $110.106 million out of $250 million for infrastructure investment.
This brings the total payments from the World Bank and the Asian Infrastructure Investment Bank for the program to $442 million.
The World Bank approved the Comprehensive, Transparent, and Climate-Responsive Investment Program in Jordan as a core program on June 10, 2021, to achieve green and comprehensive recovery from the COVID-19 pandemic. The Asian Infrastructure Investment Bank also agreed to provide additional financing of $250 million to support this program and assist Jordan in addressing poverty.
In April last year, the World Bank also approved an additional funding of $400 million for the program, which aims to promote job creation, particularly for women, and enhance the effectiveness of government work through participatory policies, data, and evidence-based approaches. This increases the World Bank’s total financial commitment to $900 million.
The Jordanian government requested an additional $200 million in financing from the Asian Infrastructure Investment Bank to further aid the infrastructure development.
The additional funding helps build upon the progress made by Jordan during the program’s initial phase by integrating climate concerns as a key pillar in the economic reform agenda and national investment plans.
Since 2021, the government has reinforced its climate-related agenda, including increasing its commitments to national contributions for climate change mitigation, setting ambitious emission reduction targets, and prioritizing public and private green investments.
The additional financing aims to continue enhancing the quality of public investments and prioritize climate-responsive public investments, including partnerships between the public and private sectors.
According to the recommendations in the Climate and Development Report in Jordan, the program will also support Jordan’s goals to achieve a path characterized by low carbon emissions, aligning with the current national contributions for climate change, which include a target of 31% renewable energy in the electricity supply mix.
As part of the additional financing and restructuring, the World Bank has decided to extend the program’s closing date from June 30, 2026, to June 30, 2028, and allocate the additional funding to expand the scope of initial disbursement indicators and enhance result indicators in line with the vision of economic revitalization.