
World bank approves $1.1 billion in new financing to support Jordan
AMMAN: The World Bank said on Monday it approved $1.1 billion in new financing to support Jordan's economy in the face of external shocks.
The bank said the financing bolsters the country's IMF-led reforms focused on four areas that aim to accelerate growth, create jobs and invest in sustainable energy projects.
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Arab News
3 hours ago
- Arab News
World Bank to end ban on nuclear energy projects, still debating upstream gas
WASHINGTON: The World Bank's board has agreed to end a longstanding ban on funding nuclear energy projects in developing countries as part of a broader push to meet rising electricity needs, the bank's president Ajay Banga said on Wednesday. Banga outlined the bank's revised energy strategy in an email to staff after what he called a constructive discussion with the board on Tuesday. He said the board was not yet in agreement on whether the bank should engage in funding the production of natural gas, and if so, under what circumstances. The global development bank, which lends at low rates to help countries build everything from flood barriers to railroads, decided in 2013 to stop funding nuclear power projects. It announced in 2017 it would stop funding upstream oil and gas projects beginning in 2019, although it would still consider gas projects in the poorest countries. The nuclear issue was agreed fairly easily by board members, but several countries, including Germany, France and Britain, did not fully support changing the bank's approach to embrace upstream natural gas projects, sources familiar with the discussion said. 'While the issues are complex, we've made real progress toward a clear path forward on delivering electricity as a driver of development,' Banga said, adding that further discussion was required on the issue of upstream gas projects. Banga has championed a shift in the bank's energy policy since taking office in June 2023, arguing the bank should pursue an 'all of the above' approach to help countries meet rising electricity needs and advance development goals. In his memo, he noted that electricity demand was expected to more than double in developing countries by 2035, which would require more than doubling today's annual investment of $280 billion in generation, grids and storage. The Trump administration has been pushing hard for ending the ban on nuclear energy projects since taking office. The US is the bank's single largest shareholder — at 15.83 percent, followed by Japan with 7 percent and China with close to 6 percent — and the bank's decision to broaden its approach to energy projects will likely please President Donald Trump, who withdrew the US from the Paris Climate Agreement and its emission-reduction targets as one of his first acts in January. Twenty-eight countries already use commercial nuclear power, with 10 more ready to start and another 10 potentially ready by 2030, according to the Energy for Growth Hub and Third Way. Banga said the World Bank Group would work closely with the International Atomic Energy Agency to strengthen its ability to advise on nuclear non-proliferation safeguards, safety, security and regulatory frameworks. The bank would support efforts to extend the life of existing nuclear reactors, along with grid upgrades. It would also work to accelerate the potential of small modular reactors. ENERGY MIX Trump administration officials and some development experts say developing countries should not be blocked from using inexpensive power to expand their economies while advanced economies like Germany continue to burn fossil fuels. But climate activists worry that funding more nuclear and natural gas projects will divert funds away from urgently needed efforts by developing countries to adapt to climate change and benefit from abundant alternative energy sources such as solar. 'Net zero does not mean fossil fuel free. It means, still, that there will be 20 percent energy coming from fossil fuels,' said Mia Mottley, prime minister of Barbados. 'We know natural gas is that clean fuel.' Banga said the bank's revised strategy would allow countries to determine the best energy mix, with some choosing solar, wind, geothermal or hydroelectric power, while others might opt for natural gas or, over time, nuclear. He said the bank would continue to advise on and finance midstream and downstream natural gas projects when they represented the least-cost option, aligned with development plans, minimized risk and did not constrain renewables. The bank would further study evolving technologies like carbon capture and ocean energy, Banga said, adding it aimed to simplify reviews and approvals. Banga said the bank would continue advising on and financing the retirement of coal plants, supporting carbon capture for industry and power generation, but not for enhanced oil recovery, which can typically secure commercial financing.


Arab News
6 hours ago
- Arab News
Pakistan PM heads to UAE for daylong visit, talks with president
ISLAMABAD: Prime Minister Shehbaz Sharif departed for the United Arab Emirates on Wednesday for a daylong official visit to meet President Sheikh Mohamed bin Zayed Al Nahyan and hold talks with the UAE leadership, the Pakistani government said. The trip comes amid Pakistan's efforts to deepen strategic and economic ties with Gulf nations, especially the UAE, which has remained a key financial and diplomatic partner. 'Prime Minister Muhammad Shehbaz Sharif, accompanied by a delegation, has departed from Islamabad for a one-day official visit to the United Arab Emirates,' his office said in a statement. 'He is undertaking the visit on the invitation of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi,' it continued. 'The Prime Minister will meet the UAE leadership during the visit.' The UAE is Pakistan's third-largest trading partner, home to over a million Pakistani expatriates, and a critical source of investment. It played a key role in helping Pakistan avert a balance-of-payments crisis in recent years by depositing funds in the central bank, which facilitated a bailout deal with the International Monetary Fund (IMF). According to a statement issued by the foreign office a day earlier, Sharif is expected to follow up on more than $3 billion in cooperation agreements signed during his earlier visit in January 2024. In a phone call last month, Sharif and the UAE president discussed bilateral ties and regional security following a sharp military escalation between Pakistan and India. Islamabad praised the UAE's 'constructive diplomatic role' during the crisis.


Asharq Al-Awsat
6 hours ago
- Asharq Al-Awsat
World Bank: Earthquake Worsens Myanmar's Economic Decline
Myanmar's beleaguered economy is expected to contract by 2.5 percent in the 2025/26 fiscal year largely due to the devastating impact of a powerful earthquake in late March, the World Bank said in a report on Thursday. The World Bank said direct damages to property and infrastructure from the 7.7 magnitude quake were estimated at $11 billion, or 14% of the nation's gross domestic product, estimating that economic output would be about $2 billion lower than it otherwise would have been because of the quake. The quake affected more than 17 million people, with nine million severely impacted, the World Bank said. The death toll has topped 3,700, according to Myanmar's ruling junta. "The earthquake caused significant loss of life and displacement, while exacerbating already difficult economic conditions, further testing the resilience of Myanmar's people," Melinda Good, Division Director for Thailand and Myanmar, said a statement. "Recovery efforts are essential to help the most vulnerable populations." A junta spokesman did not respond to a call from Reuters seeking comment on the report. In December, the World Bank had projected Myanmar's economy would shrink 1% in the 2024/25 fiscal year that ended in March due to the severe flooding in the country. Myanmar has been in turmoil since the military seized power in a coup in February 2021, sparking a civil war. There have been international efforts to stall the conflict, but rebels have accused the junta of breaching a ceasefire called to allow relief efforts to reach earthquake-affected areas. The hardest-hit regions of Mandalay and Naypyidaw were expected to lose up to one-third of their production between April and September before a partial recovery in the second half of the fiscal year, the World Bank said. The earthquake could increase the national poverty rate by 2.8 percentage points, pushing more households into poverty, the report stated. A survey before the quake estimated the poverty rate at 31% in 2024. "Myanmar's compounding crises have put household coping mechanisms under severe stress," said Kim Edwards, Senior Economist and Program Leader for Thailand and Myanmar.