With a pipeline of about $46bn-worth of planned projects, more than double of those underway, Jordan is one of the smallest projects market in the Mena region. The government’s focus is on a project pipeline of 123 schemes that requires $17.7bn of investment, including 10 projects worth $4.2bn lined up for 2019.
About $65.3bn of major projects are planned or underway in Jordan.
Of these, about $19.5bn of projects are under construction, with a further $45.8bn of projects planned.
The construction and power sectors together account for nearly half of all projects planned or underway in Jordan.
About $25.6bn of project contracts have been awarded in Jordan from 2008 to 2018, an average of about $2.3bn a year.
After hitting a record high of $5.5bn in 2008, the value of annual project contract awards reached the next highest in 2017 at $3.3bn, when it was boosted by the award of the main contracts on the $2.1bn Attarat Um Ghudran power plant.
Jordan has a pipeline of about $20bn energy and infrastructure projects under study. Many have been in planning for many years, and their delivery depends on finding finance, either through development loans or private investment. Finance is the biggest challenge facing the country’s projects sector.
Projects with regional funding support are advancing, such as a hospital on the outskirts of Amman.
Amman has secured pledges of not only $2.5bn-worth of financial aid from Saudi Arabia, the UAE and Kuwait, but also global support for dozens of planned infrastructure projects following a conference in London in February 2019.
With a challenging outlook for real estate, the construction sector will become more reliant on government-backed projects, which in many cases are supported by foreign development funds.
Jordan’s Transport Ministry is in the process of identifying investors to undertake the Jordan Inter-Regional Railway Network project under public-private partnership (PPP) mode, estimated to be valued at $5bn.
Saudi Arabia has signed 15 cooperation agreements and said it will set up a $3bn joint investment fund for Jordan.
In April 2019, UAE-based Amea Power reached financial close for a 50MW photovoltaic (PV) solar project in Jordan.
Jordan is also in ongoing talks with Iraq, another crude supplier, to build a 1,680-kilometre supply pipeline from Basra to the port of Aqaba.
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