AIIB’s first investment in Jordan supports climate resilient economic growth

AMMAN — The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors has approved a $250-million investment in Jordan to accelerate economic recovery from the COVID-19 pandemic. 

AIIB’s first loan to Jordan is expected to create more jobs by capitalising on the economy’s potential, especially its green growth opportunities, according to a  statement posted on the bank’s statement.

The bank in the statement cited recent national statistics, which showed Jordan’s real GDP contracted by around 1.6 per cent in 2020 due to the pandemic. Unemployment soared to 24.7 per cent and poverty increased by an estimated 40 per cent in the earliest stage of the health crisis.

Totalling $1.2 billion and cofinanced with the World Bank, the Inclusive, Transparent and Climate Responsive Investments Programme-for-Results (PforR) project supports Jordan’s ongoing reforms initiated under the Five-Year Reform Matrix. 

The reforms are aimed to strengthen systems to deliver well-targeted public investments, including public-private partnerships and address major challenges to the country’s competitiveness. 

In both cases, the programme supports the greening of investments.

“Investing in green infrastructure creates jobs and economic value,” said Konstantin Limitovskiy, AIIB Vice President, Investment Operations, in the statement.

“Jordan has been one of the most active countries in the region in adopting international climate change initiatives, including the Paris Agreement. Our support will assist the government’s drive toward a greener, more climate responsive and more competitive economy,” Limitovskiy said.

In August, AIIB held a high-level roundtable with Jordanian public and private sector officials to discuss investment strategies to support the growth of the country’s transport sector. 

The discussion was part of AIIB’s ongoing engagement with its non-regional members in the Middle East and North Africa region as it prepares for its Annual Meeting in October hosted by the United Arab Emirates.