Amman, Jordan:—IFC, a member of the World Bank Group, signed an grant agreement today with the government of Jordan represented by the Ministry of Planning and International Cooperation to help boost Jordan’s public-private partnership projects in several sectors, including transport, logistics, water services, education, health and tourism.
The signing was also attended by Mahmoud Khoshman, Advisor to the Prime Minister and Director of Jordan’s National PPP Program.
The two will partner for a new three-year initiative, the Project Pipeline Development Facility (PPDF), designed to support the newly established Central PPP Unit at the Prime Ministry to attract more private sector participation to invest in and finance infrastructure development and foster Jordan’s competitiveness and resilience.
Under the agreement, IFC will support the work of Jordan’s Public-Private Partnership (PPP) Unit, which coordinates government efforts to increase private sector participation in key infrastructure projects. IFC’s team will work with the government to help assess a pipeline of viable PPP projects, open those projects to more private sector bidders through a competitive and transparent process and help ensure the optimal combination of benefits and costs and delivering the needed services. IFC will also contribute $2 million to the Project Development Fund.
“Jordan’s new PPP program aims at attracting the private sector to become a true partner and powerful ally that will work hand-in-hand with the Government on the physical and social infrastructure development,” said Wissam Rabadi, Minister of Planning and International Cooperation. “IFC has been a long-term partner for Jordan, helping us develop several key PPP projects over the years. We hope this new strategic partnership will help attract more private investment in core sectors, ultimately helping to make daily life better for everyone.”
The agreement, the first of its kind in the Middle East, will support the government’s efforts to prepare high quality PPP projects and mobilize private sector investment to meet the increasing demand for infrastructure and services and help create in a systematic and transparent manner of a pipeline of well-designed projects with appropriate risk allocation for the public and private sectors. It will support economic development and job creation and help the country address some of the effects of the refugee crisis.
“Today’s agreement is an important sign of the government's commitment to moving forward with reforms and enabling the Jordanian economy to be more resilient to current macroeconomic challenges,” said Dalia Wahba, IFC’s country manager for Jordan, Lebanon, and Iraq. “The work is part of IFC’s creating markets strategy, which helps open new sectors to private investment, driving economic growth, improving service delivery, and creating jobs. IFC has been a long-term partner of Jordan’s private sector and we hope that our continued involvement will send a positive signal to other investors.”
Jordan has raised about $10 billion in private capital through PPPs in the electricity, transport, and water sectors since the 1990s. IFC and the government of Jordan have worked together on several key PPP projects, including the Queen Alia Airport. IFC is currently working on a number of PPP advisory mandates in Jordan across the sectors to support a better access to critical yet basic services and help bring in private sector innovation.
Jordan’s new PPP law, a key milestone to provide a strong legal framework for the private sector investments and enable future PPP projects in the country, has been ratified in April 2020 and the Bylaws (Regulations) will take effect in August 2020.
Over the past 15 years, IFC has advised governments on more than 135 PPP projects globally, mobilizing $29 billion in private investment.
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About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
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