The European Investment Bank (EIB), the lending arm of the European Union, and the Cities and Villages Development Bank (CDVB) have signed a loan agreement of €45 million to finance energy efficiency projects targeting municipal, building and lighting infrastructure in Jordan. The financing agreement was signed today during a ceremony hosted by the EU delegation in Amman.
This first EIB loan to municipalities in Jordan, through CVDB which will allocate additional 45 million from own resources to the project, will have a substantial impact on the sustainable development of municipalities in Jordan, especially those most affected by the refugee crisis and far from economic centres. It will concretely reduce the energy costs for municipalities by boosting the implementation of renewable energy and energy efficiency projects such as rooftop solar PV, street lighting refurbishments, energy efficiency building and other similar types of investments.
This initiative supports the objectives of the current EU-Jordan Partnership Priorities and Compact, especially achieving “a sustainable use and management of natural resources”, as it will contribute to the objective of developing energy efficiency and renewable energy investments to attain reduction of energy use by 2020 by 20% and improve contribution of renewables in electricity generation to 15%.