IFC, gov’t sign ‘Green Buildings’ project agreement

AMMAN — The government, the International Finance Corporation (IFC) and the Greater Amman Municipality (GAM) have signed a cooperation agreement to implement the Green Buildings project in Jordan. 

The total project fund is $575,000, with $500,000 provided as a grant from IFC and an in-kind contribution of $75,000 from GAM, the Jordan News Agency, Petra, reported on Thursday.

The agreement was signed by Minister of Planning and International Cooperation Zeina Toukan, representing the government, Amman Mayor Yousef Shawarbeh, representing the implementing entity, and Managing Director of the IFC, the investment arm of the World Bank, Makhtar Diop, representing the donor institution.

The project aims to promote sustainable buildings by improving policies and regulatory frameworks for green buildings in Amman, in addition to raising community awareness and capacity building.

The scheme will also issue certificates for green buildings, with a focus on the "EDGE" design certification for greater efficiency.

Prior to the signing of the agreement, Diop and his accompanying delegation met with officials to discuss current and future cooperation between Jordan and IFC, as well as ways to bolster and expand the institution's portfolio in Jordan. 

The meeting emphasised the significance of utilising IFC’s investments in Jordan, which have amounted to more than $2 billion. 

These investments have helped implement priority projects and provide financial and technical support to several private sector companies in renewable energy, industry, pharmaceuticals, banks, pioneering projects and startup institutions.

The meeting focused on priority projects within the Economic Modernisation Vision's executive programme, which are currently being prepared. 

Attendants of the meeting also discussed the potential for the corporation to support these projects, including water desalination, water transportation, infrastructure, water loss reduction, logistics and education.

They highlighted the importance of improving the business environment to strengthen the public-private sector partnership within the Ministry of Investment. The meeting also emphasised the crucial role of IFC in providing technical support for the preparation and execution of public-private sector projects.

Toukan expressed appreciation to IFC for its pledge to finance $400 million for the National Water Carrier Project, expressing her hope that the corporation would mobilise additional funding through project and climate change grants.

The minister noted that the government recognises the importance of expanding the IFC’s permanent mission in Amman into a regional office for the Middle East, Pakistan and Afghanistan.

This move enhances partnership and boosts Jordan’s strategic role in the region, she added. 

The decision aims to promote public-private sector partnership on sustainable infrastructure projects, particularly those that address climate change and water scarcity. It also encourages financial inclusion and an advanced entrepreneurial climate in Jordan. 

For his part, Diop commended the cooperation between Jordan and IFC, confirming the corporation’s dedication to helping Jordan achieve its developmental priorities.

Diop noted that he expects future collaboration to maximise the use of IFC’s available financing tools,