Amman - The financial closure of the multimillion-dollar Disi Water Conveyance Project is expected to be formally finalised in early April, a senior Water Ministry official said on Thursday.
"Following the signing of the Disi project's financial closure, the contractor will embark on construction works in the project," Ministry of Water and Irrigation Secretary General Maysoun Zu'bi told The Jordan Times.
When completed, the Disi project will supply the capital with 100 million cubic metres (mcm) of water annually. It needs three years to be ready after work begins.
Established on a build-operate-transfer basis, the megaproject is one of six strategic plans initiated by the ministry to address the country's water deficit, which currently stands at 12.7mcm, a figure the ministry hopes to cut down to 5.5mcm through the 48 artesian wells put into service last year.
Over the past month, Minister of Water and Irrigation Raed Abu Saud discussed with GAMA, the Turkish company implementing the project, amendments to the agreement signed in April this year.
The negotiations took place in light of recent developments, including a government decision to increase its equity in the project from JD300 million to JD400 million and the drop in international steel prices.
As part of negotiations, the ministry urged GAMA to expedite the purchase of steel to take advantage of the international drop in prices, particularly as plans call for a 325-kilometre pipeline to transfer water to Amman. The project is estimated to use around 250,000 tonnes of steel.
A source, who preferred to remain unnamed, said the European Investment Bank and French Development Agency have initially approved a request for funding.
The initiative seeks to supply Amman with much-needed water and alleviate the capital's water shortage, create job opportunities and promote private sector participation in the country's development process.
The project, deemed a key solution for the country's annual water deficit, has faced several obstacles since the first tender was floated in 2001. GAMA won the bid in September 2007.
By Hana Namrouqa
© Jordan Times 2009
