AMMAN: Jordan’s Ministry of Water and Irrigation and the US Agency for International Development signed an agreement on Tuesday paving the way for a $20.5 million grant to the Aqaba Water Company, Jordan News Agency reported.

The grant will assist the AWC in improving Jordan’s water infrastructure, including improving the accuracy and efficiency of its billing system meter readings, and replacing old meters.

The AWC will also contribute an additional $2 million during the course of the five-year agreement.

The $22.5 million will also help to fund the company’s projects to reduce water loss in southern Jordan, while delivering 1.2 million cubic meters of water per year, as part of the country’s National Water Strategy 2023-2040.

AWC will also establish administrative offices in the southern governorates, build a new reservoir in Aqaba with a storage capacity of 30,000 cubic meters, construct a water station to increase supply to villages near Wadi Rum, and complete repairs on pipelines.

The deal also includes offering the AWC consulting services in management and planning, as well as technical support for its employees.

Jordan is one of the driest countries in the world, according to the UN, with an annual average precipitation of less than 100 mm.

Roughly 50 percent of Jordan’s extracted water is lost to leakage, theft, or inaccurate metering, USAID reported.

Jordan’s Minister of Water and Irrigation Mohammad Najjar said reducing water loss and improving the quality of services were priorities under the 2023-2040 strategy.

He expressed the Jordanian government’s gratitude for the continued support of the US government through USAID, which has had a substantial impact in addressing the country’s water challenges.

The AWC is owned by the Water Authority of Jordan and the Aqaba Development Corporation.