Kuwait Funds Jordan Energy Projects

Jordan and Kuwait signed agreements for the Gulf state to fund USD215 million in energy-related projects.  Jordan has been suffering since the Arab Spring, when Egypt cut off the supply of low-cost natural gas for electricity generation, especially since high government subsidies prevent shifting the cost onto electricity consumers.

For more on Jordan’s energy problems, see:

Jordanian Planning Minister Ibrahim Saif and Kuwait Fund for Arab Economic Development (KFAED) General Director Abdul Wahab Al Bader signed the two agreements as part of Kuwait’s pledge to grant $1.25 billion in funding as part of a $5 billion GCC development grant to Jordan, according to statement released to the Jordan Times.

The deals cover two energy-related development projects.  The first is a $65 million liquefied natural gas terminal at the Port of Aqaba.  The LNG terminal will have a daily capacity of 715 million cubic feet of gas.  The second is a $150 million wind power project in Maan Governate.  The project will generate about 65 MW and help Jordan move away from its reliance of fossil fuels.

Altogether, Kuwait has so far pledged $1,196.98 million for development projects to be implemented between 2012 and 2016, as well as $80 million for “mega-projects.”

The GCC decided during its December 2011 summit to extend $5 billion each to Jordan and Morocco over a period of five years for use in development projects.  The ultimate purpose of these funds are to prevent the two Kingdoms from falling to an Arab Spring-like uprising.

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