The World Bank has approved a $250 million (£162m) financial package to support Jordan’s energy and water sectors.
The nation’s policy programme includes a gradual reform of electricity and water subsidies, diversifying fuel sources for sustainable power generation and increasing efficiency in both sectors.
Jordan has seen frequent natural gas interruptions from Egypt since 2011, which has led to the country importing more expensive diesel and fuel oil, according to the World Bank.
That has encouraged the government to develop programmes to reduce energy supply costs through renewable energy sources.
It has set a target of generating 10% of renewable energy by 2020.
The country’s water sector is one of the largest consumers of electricity and aims to reduce costs as well as carbon emissions.
Ferid Belhaj, World Bank Director for the Middle East said: “We are pleased to continue supporting the Government of Jordan in implementing its ambitious and far reaching reform programs, which aim to bolster the country’s broad development agendas aid.
“Implementation of the programme will lead to significant gains in efficiency for the water and electricity sectors, thus offering public services to the Jordanian citizens in a more sustainable manner.”