AMMAN — The Ministry of Planning and International Cooperation is
currently in negotiations with the
World Bank and the Asian Infrastructure
Investment Bank to borrow an additional $600 million to finance a program that
will support comprehensive and climate-conscious investments that help Jordan
accelerate its recovery.
اضافة اعلان
According to Al-Mamlaka TV, the negotiations are still being studied and
investigated.
The board of directors of the World Bank is set to meet in April to
approve or reject the additional program of $400 million, while negotiations
with the
Asian Infrastructure Investment Bank are ongoing to approve $200
million.
Expected government contributionThe government's contribution to the additional financing for the
program is expected to reach $242 million, bringing the total funding for the
additional program by the government to $842 million, as stated in a document
seen by Al-Mamlaka TV.
The program aims to help Jordan accelerate its recovery and create more job opportunities by leveraging its economic potential, especially green growth opportunities, and enhancing mechanisms for government accountability in implementation
If all parties approve the additional financing, the total government
funding for the project will rise to $706 million, the
World Bank to $900
million, and the Asian Infrastructure Investment Bank to $450 million, bringing
the total project funding to $2.056 billion.
ObjectivesThe program aims to help Jordan accelerate its recovery and create more
job opportunities by leveraging its economic potential, especially green growth
opportunities, and enhancing mechanisms for government accountability in
implementation.
The proposed additional financing and program restructuring aim to align
it with an updated reform matrix supported by the London Initiative 2019, after
46 percent of the program's value was disbursed in its first phase. It also
seeks to extend the program closing date to June 30, 2028, instead of June 30,
2026.
Other goals of the program are to improve the effectiveness of public
investment development and financial sustainability, increase support for
public and private climate-responsive investments, enhance opportunities for women's
employment and entrepreneurship, and enhance government effectiveness through
evidence-based policy participation and development.
Comprehensive investment financing programOn June 14, 2021, the World Bank approved a financing program for
comprehensive, transparent, and climate-conscious investments worth $500
million to stimulate public and private investment in Jordan in order to
achieve green and comprehensive recovery from the coronavirus pandemic.
Meanwhile the Asian Infrastructure
Investment Bank provided $250 million
in funding to support the program.
In November, the World Bank stated that the implementation of the
comprehensive, transparent, and climate-conscious investment financing program
it funds for Jordan is progressing "satisfactorily," noting that
"9 out of 11 targeted results for 2021 have been achieved".
The World Bank has transferred $231 million to Jordan out of the $500
million it committed to implementing the project, while the Asian
Infrastructure Investment Bank has transferred its $250 million share to
support the program, and the government will provide funding for the program in
the amount of $463.5 million, bringing the total to $1.2 billion.
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