Jordan signed an agreement on Saturday with Iraq to provide the country with electricity, the Jordanian authorities said.
Work to connect the grids of the two countries will start in three months and the project will be completed in two years, according to statement by the prime minister's office.
The two countries had already started conducting technical and financial studies on the project, including the possibility of building an oil pipeline from Iraq's Basra to Jordan's Aqaba.
Iraq will also provide Jordan with 10,000 barrels of crude oil per day, the statement said.
The two countries also decided to take measures to facilitate the exchange of commodities at borders areas, and agreed to study the possibility of building a joint industrial zone to exchange expertise and create jobs.
Several meetings between the two countries were held over the past few weeks to enhance trade and economic cooperations.