VZCZCXRO5226
PP RUEHDE RUEHDIR
DE RUEHAM #2562/01 1651302
ZNR UUUUU ZZH
P 141302Z JUN 07
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC PRIORITY 9083
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEHTV/AMEMBASSY TEL AVIV 0636
RUEHDM/AMEMBASSY DAMASCUS 3620
RUEHEG/AMEMBASSY CAIRO 3210
RUEHJM/AMCONSUL JERUSALEM 4499
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 AMMAN 002562 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
FOR NEA/ELA, NEA/RA, AND OES; PASS TO USAID AND OPIC 
 
E.O. 12958: N/A 
TAGS: EAID SENV JO
SUBJECT: JORDAN SLOWLY AND CAREFULLY PROCEEDING WITH PLANS 
TO TAP INTO DISI AND AQABA WATER RESOURCES 
 
REF: A. 06 AMMAN 8401 
     ¶B. 06 AMMAN 4692 
 
Sensitive but unclassified -- protect accordingly.  Not for 
internet distribution. 
 
¶1.  (SBU)  Summary and comment:  After years of research and 
discussion, the GOJ is evaluating three bids to transfer 
water from the Disi Aquifer in southern Jordan to Amman. 
Officials are also contemplating an unofficial offer from an 
Arab country to exploit Disi and/or build a large 
desalination plant at cost in exchange for real estate 
development projects.  Both approaches are viable  according 
to Bassem Awadallah, Director of King Abdullah's office, who 
stressed that there would be considerable private sector 
involvement.  Awadallah is hopeful that Disi water will reach 
Amman by 2011.  Continued economic and population growth will 
increase Jordan's water needs, and desalination is a 
long-term solution which could also benefit neighboring 
countries.  Awadallah admits that Jordan would eventually 
need to address heavy agricultural use of its limited water 
resources, a politically sensitive issue.  Comment:  Post 
believes that water from Disi, a fossil aquifer, should not 
be used for agricultural purposes.  Groundwater levels in 
Jordan are steadily dropping and post has encouraged the GOJ 
to promote increased water use monitoring and regulation. 
End summary and comment. 
 
 
¶2.  (SBU)  OPIC representatives Vice President for Structured 
Finance Robert Drumheller, Director of Structured Finance 
Nancy Rivera, and Maria Goravanchi visited Jordan June 10 - 
12 for meetings with Jordanian officials in Aqaba and Amman 
on plans to develop projects for the delivery of water from 
the Aqaba region to Amman and other areas.  Following 
technical discussions in Aqaba, the OPIC team met June 12 
with Bassem Awadallah, Director of the King's Office, who 
briefed them, the Ambassador, FCS Counselor, and EconCouns on 
Jordan's water strategy.  Awadallah identified water security 
as one of three key elements of Jordan's five-year plan. 
Energy security and infrastructure security, including roads, 
rail, and pipelines, are the other two elements. 
 
¶3.  (SBU)  Awadallah commented that "all governments are 
cautious on mega-projects," but said that after ten years of 
no progress, the GOJ was ready to move forward on a 
Build-Own-Transfer system to deliver groundwater to Amman 
from the Disi Aquifer.  The top three bids from the private 
sector are on the desk of the Prime Minister, who has also 
received recommendations from the Ministry of Finance and the 
Ministry of Water and Irrigation.  He said the proposals' 
price per cubic meter of water was higher than desired, so 
the GOJ was also weighing an informal proposal from an Arab 
country to provide water at cost as part of a real estate 
development proposal.  Whether the GOJ accepted one of the 
bids or pursued a deal with an Arab country, Awadallah was 
confident the project could be done and was optimistic that 
work on the Disi Aquifer could begin by 2009 with water 
delivery in 2011.  He restated the GOJ commitment to private 
sector involvement in the winning bid, welcomed news that 
OPIC had offered to provide financing to some of the 
successful and unsuccessful bidders, and encouraged continued 
OPIC involvement.  Awadallah was also sensitive to the need 
to address environmental concerns in Aqaba, and admitted that 
Jordan needed to address the political hot potato of water 
consumption by the agricultural sector. 
 
¶4.  (SBU)  Despite efforts to proceed with the Disi project, 
with 6 per cent economic growth, 2.4 per cent population 
growth, and increasing industrial demands for water, Jordan's 
needs and the price of water would continue to rise, 
Awadallah explained.  He said the long-term solution to 
Jordan's water problems was desalination, either in tandem 
with Disi or the Red Sea - Dead Sea Conveyance project.  The 
latter would not only raise the water level of the Dead Sea, 
but could also address regional water shortages. 
Construction of a desalination plant could occur independent 
of or concurrent with the Disi project.  Awadallah added that 
after years of fruitless discussions with the Israelis and 
the Palestinian Authority, Jordan was going to pursue a 
desalination project independent of the Red-Dead project, 
while still waiting for the results of a World Bank 
coordinated feasibility study funded by international donors, 
 
AMMAN 00002562  002 OF 002 
 
 
including the U.S.  Awadallah also outlined a plan "still on 
the drawing board" for the Wadi Araba region that would bring 
desalinated water up from a plant to be located on the Red 
Sea.  He asserted increased water resources would attract 
economic development, provide economic opportunities to 
residents thereby eliminating the emergence of more Zarqawis, 
and serve as a money-making vehicle through the sale of water 
to Jordan's neighbors. 
 
¶5.  (U)  OPIC did not clear this message. 
 
Visit Amman's Classified Web Site at 
http://www.state.sgov.gov/p/nea/amman/ 
Hale