The agreement was signed on Monday by Jordanian Water and Irrigation Minister Mohammad Najjar and KfW Amman Office Director Mark Schwiete.

The loan will fund three sections of a climate protection project in the canal’s northern 65 km stretch. It will pump some 10 million cubic meters of water annually to 300,000 people while reducing water loss and energy costs.

The project will also provide water to several regions as well as irrigation water to the Jordan Valley.

Najjar said that Jordan’s Water and Irrigation Ministry is seeking additional funding for new projects that enhance water service efficiency “in light of exceptional circumstances and mounting challenges.”

The ministry previously said that the country’s irrigation resources provided about 90 cubic meters of water per person annually, below the international threshold of 500 cubic meters.