The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to $8.8mn (€8.2mn) to KbW Investments Jordan to improve street lighting coverage in 14 underserved villages in the south of Jordan.

The EBRD's investment will finance an energy performance contract for street lighting between KbW Investments Jordan and the Ministry of Energy and Mineral Resources, the EBRD announced to IntelliNews on March 6.

The project covers the supply and installation of 45,000 new energy-efficient LED lights in the villages to either replace inefficient existing street lighting or extend coverage to currently underserved areas.

This investment is expected to improve service levels and increase coverage from 60 to 100 per cent in the targeted villages, benefiting more than 300,000 people.

The improved street lighting is expected to encourage business activity, as well-lit areas can be more attractive and conducive to commerce, facilitating longer opening hours and increased access to economic opportunities.

The project will also deliver significant environmental benefits, with expected reduction in annual CO2 emissions by around 4,600 tonnes and a 50 per cent decrease in energy consumption for street lighting.

As part of the investment, the EBRD and KbW Investments Jordan will work with local communities to study the positive impact of this new infrastructure on mobility and access to economic opportunities.

The EBRD will also provide a FINTECC grant of €0.4mn to help KbW Investments Jordan install energy-efficient equipment, promoting the implementation of highly efficient technologies.

KbW Investments Jordan is a private development company specialising in energy-efficient street lighting solutions. It introduced energy performance contracts for street lighting to Jordan in 2016.

Since beginning operations in Jordan in 2012, the EBRD has invested almost €2.3bn across 76 projects in the country.