Kuwait will grant Jordan $1.25 billion to fund development projects for the next five years, Kuwait's official news agency KUNA reported Thursday (August 30th).

The move comes as part of a Gulf Co-operation Council (GCC) pledge to contribute $5 billion to Jordan in a period of five years.

Hamad al-Duaij, the Kuwaiti ambassador to Jordan, said Kuwait will grant Jordan $250 million annually.

He said the Kuwait Fund for Arab Economic Development, which is responsible for administering the grant, will also manage funding other development projects based on its 2012-2014 budget plans.

The fund will finance water and energy projects, with $150 million allocated for renewable energy projects and another $150 million allocated for provincial development.