The European Investment Bank (EIB). (File photo: agencies)

AMMAN, Feb. 28 (Xinhua) -- The European Investment Bank (EIB) plans to extend 870 million euros (990 million US dollars) of loans and grants during 2019-2020 to support infrastructure and development of Jordan, sources told Xinhua on Thursday.

President of EIB, Werner Hoyer, announced the plans in London alongside EU and world leaders during a conference co-hosted by the governments of Britain and Jordan, according to a Jordanian official on condition of anonymity.

The Jordanian government and the EIB signed a loan agreement of 65 million euros to finance the improvement of water supply systems in Deir Alla and Al-Karamah districts in the Jordan valley, as well as the construction of a centralized sewage collection and treatment network in Deir Alla district.

The EIB's support is part of the bank's Economic Resilience Initiative designed to strengthen the EU's southern neighboring countries' ability to withstand shocks.

The project will benefit from an additional investment grant of 16.3 million euros from the Economic Resilience Initiative Fund.

The EIB's finance will improve water supply and sanitation services for more than 85,000 people in the Jordan Valley and will have a positive impact on agriculture, environment, and tourism in the region.

"As leaders gather in London to pledge support for Jordan, the EU bank is demonstrating Europe's commitment to resilience, stability, and quality of life in the country," Hoyer said.

"We must help public investment but also focus primarily on private financing ... We have more projects in the pipeline that will more than double our investment in the country over the next two years to over 1 billion dollars," Hoyer added.

Federica Mogherini, High Representative of the EU for Foreign Affairs and Security Policy, said that "the partnership between the EU and Jordan is strong and solid, and the EU is engaged in supporting Jordan's stability and its resilience."

Mogherini added that with this financing agreement, the EU and Jordan will further strengthen mutual commitment to "delivering on the partnership priorities we agreed in 2016 and our joint determination to enhance Jordan's social and economic development."

EIB's financing of the water supply system will benefit some of the most vulnerable groups in Jordan and have a positive environmental impact in the country, Mogherini noted.

Johannes Hahn, commissioner for European Neighborhood Policy and Enlargement Negotiations, welcomed the signing of the financing agreement.

"This project is a good example of how the EU seeks to improve the lives of the people in this vulnerable region ... The European Commission has been pleased to support the development of this project and looks forward to its implementation," Hahn added.

The EIB plans to extend 800 million euros of loans during 2019-2020 to Jordan which will be split between the public (200 million euros) and private sectors (600 million euros).

And 70 million euros of grants are expected to be procured for projects in a variety of sectors including water, energy efficiency and microfinance.