Challenge
Advancing U.S. foreign policy in the Middle East is contingent on trusted partners and allies such as the Hashemite Kingdom of Jordan, which plays an integral role in security cooperation with the United States as well as in regional peacekeeping and humanitarian relief. Yet the country is facing mounting factors that threaten its stability, notably a decades-long severe and growing water crisis.
Jordan is one of the most water-scarce countries in the world. Its population is growing, as are its industrial and agricultural capacities, but its rapidly diminishing water resources represent challenges to a flourishing future.
Water in Jordan’s urban areas is usually available once a week, according to international reporting, and less than once every two weeks in rural areas – even less so during the summer. Water levels in its main aquifers are falling and nearing depletion. And, shifting weather patterns are expected only to make the situation worse as increased temperatures, variations in precipitation, and extreme events like flash flooding will further compromise the resilience of Jordan's water and sanitation services.
Solution and Impact
DFC is providing a loan of up to $1 billion and up to $800 million in political risk insurance, or PRI, in support of the design, development, construction, operation, and maintenance of a seawater desalination plant and conveyance system in Jordan. The U.S. Department of State has separately approved a $300 million grant to help finance certain project costs.
The project is poised to support U.S. manufacturing, with an American company having already signed a memorandum of understanding to support the project’s substantial infrastructure requirements. Jordan’s fiscal sustainability opens markets for U.S. companies and reinforces America’s leadership in Middle East development while deepening commercial ties with the United States and allied nations.
DFC’s financing fulfills President Donald Trump’s commitment to Jordan’s King Abdullah II to help address the country’s water security challenges. It represents a commercially viable investment that aligns economic returns with America’s foreign policy priorities and security objectives.
Known as the National Conveyance Project, the Jordanian desalination plant and pipeline system is expected to meet the water needs of at least 4 million people by conveying 300 million cubic meters of desalinated water per year from the Gulf of Aqaba to various delivery points in the country, including the capital, Amman. It represents a significant milestone in water supply innovation in Jordan, delivering a water source that is independent of depleted groundwater systems at an unprecedented scale. The desalination plant will reduce reliance on overstressed resources while supporting both job creation and regional stability.
The project in Jordan is expected to be substantially valuable for the United States and its interests in an already instable region. It fortifies Jordan as one of America’s most reliable strategic allies and strengthens the country’s position as a central node and land bridge for future infrastructure investments along economic corridors from Eastern Europe to India. The project safeguards Jordan’s support for U.S. military priorities in the region and enables it to remain a trusted American partner – while bolstering Jordan’s own socio-economic interests.
This project was profiled in 2026.