hPPIAF Enabling Infrastructure Investment DECEMBER 2014 PPIAF Supports the Institutional and Policy Environment for PPPs in Jordan PPIAF has supported the Government of Jordan to improve the institutional and policy environment for public-private partnerships (PPPs). The objective is to provide the enabling conditions for the development of a PPP program that seeks to improve and expand access to infrastructure services to the people of Jordan. The Public-Private Infrastructure Advisory Facility (PPIAF) provided funding in 2013 to support the definition and establishment of a PPP Unit within the Ministry of Finance, provide recommendations to improve the legal and regulatory framework for PPPs, draft a PPP policy, and identify a pipeline of priority PPP projects. As a result of the PPIAF support, the PPP Unit has been established based on the recommended organizational structure. In addition, a new PPP Law passed through Parliament and was ratified on November 2, 2014. Since 1994, Jordan has achieved financial closure on 17 PPPs with combined investment of $6.6 billion across core infrastructure sectors. Nevertheless, given the infrastructure deficit in Jordan, there is substantial scope for additional PPPs to improve public services and generate fiscal savings across core infrastructure sectors, municipal services, health, education, and facilities management. In order to expand Jordan's PPP program, the need for improvements to the institutional and legal environment for PPPs were identified. While PPPs have proceeded under some sector-specific laws (e.g., electricity) or Jordan's general privatization law (from 2000), the Government of Jordan (GoJ) through the Executive Privatization Commission (EPC) concluded that a special-purpose PPP Law was needed to address certain legal ambiguities (e.g., authority of private developers to collect government fees, step-in rights for lenders) and place Jordan's PPP program on a more certain legislative footing. Hence, in June 2011, the GoJ approved a draft PPP law, but despite submitting it to Parliament for approval on a priority basis, the law was not passed. Despite the lack of legislative progress, in December 2012, Identification of a pipeline of potential PP projects: the Minister of Finance announced his intention to improve - Consultation with line ministries and other stakeholders to the institutional framework for PPPs in Jordan through the identify a pipeline of priority infrastructure projects suitable to be establishment of a PPP Unit within the Ministry of Finance. It developed as PPPs. was in this context that the Go] approached PPIAF, via the World Bank, to provide catalytic support to its PPP program. Following the PPIAF-supported technical assistance, several PPIAF SUPPORT outcomes have already been achieved and more are expected as In early 2013 the GoJ requested support from PPIAF to provide the activity progresses. The PPP Unit has been established within significant support to the enabling environment for PPPs in Jordan. the Ministry of Finance based on the organizational structure Following the request, PPIAF provided multiple areas of technical recommended by PPIAF. In addition, the preparation of a new assistance, including: draft of the PPP Law was supported under this activity, and the new PFP Law has since been passed by the Jordanian Farliament Review of gaps in existing laws and regulations: and ratified by King Abdullah 11 on November 2, 2014. Finally, a - Review of current laws, procedures and regulations to identify PFF policy has been drafted, and it is expected that this will be gaps and overlaps to be addressed in the definition of the PFP adopted and launched by the PP Unit in early 2015. A second Unit mandate and the new draft PPP Law (also re-drafted as phase activity to support the further operationalization of the part of this activity). PPF Unit is currently under preparation. DONOR COORDINATION PPP Unit mandate: - Helped to define the role of the PPP Unit on various issues related to the PPP Unit's mandate, roles, and authority, including benefitted from significant support from the United States on developing PPP policies, line ministry coordination, and the denifiatio, dvelpmen an maagemnt f PFs. capital funding support to the successful As Samra Wastewater the identification, development and management of PPPs. In addition, recommendations were made on the PPP Unit's organizational structure, and job profiles and human resource Transfer PPF structure. With particular relation to this PPIAF comptenies eredrafed.activity, USAID's Fiscal Reform Froject 11 was modified to include competencies were drafted. C further support to the establishment of the PFP Unit, including l Devlopentof drft FP oliy:paying the salaries of select PFF Unit staff, and technical 0 * Development of a draft PPP policy: - Guidance document drafted that describes GoJ's PPP policy and key sectors of focus, in order to focus and guide line RELATED ACTIVITIES IN JORDAN ministries and communicate the GoJ's intentions with the 2013: JORDAN: Impact Assessment of Frivate Sector Jordanian public and potential investors.Ptiipation ofa e ENABING PPIF isa mltidono trstundhatproide tChniclasisnwthne ogonmentis ndtervteloinhounrerst IUentie patie ineof in infrastructure. rojecs tuil INVSTMNT ranforatinalparnerhiptoenaleutcme aearemact ien achievg our gorear xpceda the ctiityprogesss. he PP Uit as ben stalishd wthi the initry f Fnane baed n te oraniatinal trutur ENABING PIAFis amult-donr trst fnd tat rieecmmndedl byitac PPIAF veInmadinthe prpain de of aountrew INFRASTRUCTURE ~ ~ ~ ~ ~ ~~ne PPP Lawlo hnbigevrnet adtaiiaepi as vsimne ben pfassedubte. 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