CASCR Reviewieg.worldbankgroup.org/sites/default/files/Data/reports/Jordan_CASCR.pdftargets, the quantification was limited, and most of results were outputs rather than outcomes

CASCR Reviewed by: Peer Reviewed by: CASCR Review Coordinator

Ismail Arslan Sr. Evaluation Officer, IEGCC

Juan Jose Fernandez-Ansola Consultant, IEGCC Jaime Jaramillo-Vallejo

Lead Economist, IEGCC Allan Dizioli Consultant, IEGCC

Hiroyuki Hatashima Evaluation Officer, IEGPR

CASCR Review Independent Evaluation Group

2. Executive Summary

i. This review examines the implementation of the Country Assistance Strategy (CAS) that was issued on April 6, 2006, and was meant to cover the period from July 1, 2006 through June 30, 2010. A CAS Progress Report (CASPR) was prepared in 2009. The strategy was joint between IBRD and IFC, and this review covers the joint program of the two agencies.

ii. The World Bank Group (WBG) strategy was designed around four pillars: strengthening the investment environment for a skill-intensive and knowledge-based economy (Pillar I); supporting local development through increased access to services and economic opportunities (Pillar II); reforming social protection and expanding inclusion (Pillar III); and restructuring public expenditures and supporting public sector reform (Pillar IV). The FY09 CASPR maintained the strategy outlined in the original CAS. Within the first broad objective, IFC was to support the Jordanian private sector through: (i) privatization and public-private partnerships (PPPs); (ii) financial sector development; (iii) private sector development through prioritized investment; and (iv) an improved enabling business environment.

iii. Outcomes with respect to specific objectives and targets of the WBG assistance were mixed, and IEG rates the overall outcome of the WBG’s assistance program as moderately satisfactory. The WBG made positive contributions on the public private partnership program, the adoption of oil subsidy reform, the improvements in the market structure of energy, the performance based block grant system to municipalities, the social protection system, and the introduction of a medium-term expenditure framework. Outcomes, however, were not as strong in export competitiveness, employment creation, the business enabling environment, the sustainable use of local endowments and assets, the small-scale entrepreneurial initiatives, the targeting of social assistance, and, especially, the public administration reform. The area of PPPs seems to be one where synergies between IBRD and IFC led to better outcomes.

iv. IEG underscores three lessons. The Jordan strategy exemplifies how timely analytical work and technical assistance can make important contributions in helping design and carry through important programs and reforms, particularly when institutional change is involved. Secondly, country strategies need to better ponder the risks stemming from the political economy and the alternative approaches that the WBG may take when those risks materialize. Within this spirit, CASPRs seem particularly appropriate to deal with those risks when they materialize, keeping the Executive Board informed and abreast of developments. Thirdly, the Jordan strategy shows how a well worked joint preparation of a strategy between IBRD and IFC, where there is a clear division of labor, helps each institution focus on their strengths and experiences while exploiting important synergies.

1. CAS Data

Country: Jordan

CAS Year: FY06 CAS Period: FY06- FY11

CASCR Review Period: FY06 - FY11 Date of this review: January 10, 2012

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3. CASCR Summary

Overview of CAS Relevance:

1. In 2005, the government, in collaboration with civil society, the private sector, and the media launched the National Agenda (NA), meant to transform Jordan into a modern knowledge-based economy with a higher value added, increased productivity and employment, and improved living standards for all Jordanians. The NA targeted a doubling of income per-capita over the next ten years, and included a number of key performance indicators.

2. The 2006 CAS for FY07-11 was well aligned with the NA. The structure of the CAS was based on four pillars: (i) strengthening the investment environment and building human resources for a value-added, skill-intensive and knowledge-based economy; (ii) supporting local development through increased access to services and economic opportunities; (iii) reforming social protection and expanding inclusion; and (iv) restructuring public expenditures and supporting public sector reform. A CAS Progress Report (CASPR) was introduced in March 2009, to accommodate the strategy to help Jordan through the global economic crisis. The CASPR did not significantly alter the strategy, but its objectives and results framework were to a large extent less ambitious than the original CAS, particularly with regard to local development and public administration reforms.

3. The relevance of the strategy was diminished, however, by its design. The design of the program did not factor in enough the political economy constraints. Government commitment waned with the many cabinet reshufflings, resulting in slow-decision making and implementation. Despite acknowledging the risk, the strategy did not have the appropriate mitigating measures, including flexibility, to lessen the effects of high government turnover. The CASPR did not address this issue. Furthermore, while the CAS was result-based, very few of the CAS outcomes had baselines and targets, the quantification was limited, and most of results were outputs rather than outcomes.

4. IFC’s strategic priorities were aligned with the first pillar of the CAS: strengthening the investment environment and building human resources for a value-added, skill-intensive and knowledge-based economy. IFC supported the Jordanian private sector through: (i) privatization and public-private partnerships (PPPs); (ii) financial sector development; (iii) private sector development through prioritized investment; and (iv) an improved enabling business environment.

Overview of CAS Implementation: Lending and investments

5. The lending program proposed in the original CAS for IBRD was $440 million in the base case, which could go as high as $540 million in the high case. The CASPR didn’t change the lending envelope. As of end-June 2010 and against this original lending plan over five years, IBRD committed $575.5 million for 9 projects and one development policy loan (DPL). To finance the economic crisis needs, IBRD replaced the two programmed DPLs—for a combined total of $200 million—with a Recovery Under Global Development Uncertainty Development Policy Loan of $300 million approved in November 2009. All the remaining new operations originally envisaged in the lending program were approved. During the CAS period, two projects were cancelled: the Higher Education Development Project (new) and the Public Sector Reform Capacity Building Project (from the previous CAS).

6. Performance of IBRD’s portfolio was mixed. Of the four projects completed in the CAS period and evaluated by IEG, two were rated satisfactory or moderately satisfactory, while the other two were rated moderately unsatisfactory. Nevertheless, the disbursement ratio for investment projects continued to be strong at 23 percent on average during the CAS period. However, as of end of December 2010 two projects were considered as problem projects—the Cultural Heritage, Tourism and Urban Development Project and the GEF financed Promotion of Wind Power Promotion Project.

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7. During the CAS period, IFC expanded substantially its operations in Jordan, growing from around US$ 45 million in FY06 to US$ 432 million in FY10 according to IFC Annual Report of 2005 and 2010. The establishment of the IFC’s field office in Amman has contributed to this expansion. During the CAS period, IFC committed seventeen investments, which sought to support privatization and PPPs ($217.2 million), for the most part in infrastructure, bolster financial sector development ($156.4 million), and promote to support private sector development ($58.2 million) through prioritized investment in the tourism, cement, chemical, and education sectors. At end June 2011, IFC had an investment portfolio of around US$540 million in 14 companies.

AAA and advisory work

8. IBRD delivered more than 20 pieces of AAA, which were aligned with the strategy, well timed and provided a solid basis for policy dialogue with the government. Policy dialogue areas covered included public expenditure management, social protection and assistance, poverty monitoring, and energy sector reform. Within weeks after the financial crisis broke in September 2008, the WBG deployed a joint IBRD/IFC team, at the authorities' request, to assess the implications of the crisis for Jordan. The team reviewed the main macroeconomic and financial sector issues, and provided new projections and recommendations for action. This report was a key input for the government's crisis response. AAA work included a full set of due-diligence economic and sector work: a poverty assessment, a public expenditure review, a country environment analysis, an investment climate survey, an FSAP update, and an investment and labor market analysis. IBRD also provided programmatic analytic support in public expenditure management, social protection and safety nets, and energy policies.

9. During the CAS period, IFC approved 17 advisory services projects, mainly through PEP-MENA, for a total cost of $8.1 million. The largest one, 64 percent of the total, was in the area of privatization and PPPs. Others addressed access to finance (10 percent), corporate advice, including small and medium enterprise development (12 percent), and enabling the business environment (13 percent).

10. Coordination with other international financial institutions was outstanding, particularly with the IMF. A joint IBRD/IMF mission, at the request of Ministry of Finance, advised the government on developing a medium-term debt management strategy, including operational risk management and the integration of debt, fiscal and cash management.

Overview of Achievement by Objective:

Pillar I. Strengthening the investment environment and building human resources for a value-added, skill-intensive and knowledge-based economy.

11. Under this pillar the WBG’s support focused on: (i) operationalizing a broad-based, multisectoral investment strategy; (ii) supporting export competitiveness and job creation; (iii) supporting PPPs in all areas, especially large infrastructure financing; (iv) advancing institutional and market structure reforms in the energy sector; and (v) supporting enhanced quality of education. IBRD support included a Recovery Under Global Uncertainty DPL, as well as several investment loans in education, employment and export promotion, and a partial risk guarantee in power generation. IBRD AAA support included, among others, Private Participation in Infrastructure, Economic Reform and Development TA, Investment and Labor Market Report, FSAP Update, Fiscal and Poverty Impact Study, as well as several pieces on energy sector, corporate sector restructuring, and education. IFC committed 17 investments, supporting infrastructure, financial sector development and selected leading sectors. In addition, IFC had 17 advisory services in support of this pillar.

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12. Operationalizing a broad based, multisectoral investment strategy for the country. Jordan has embarked on an investment climate reform process since 2008. The Ministry of Planning and International Cooperation heads a committee responsible for coordinating and facilitating the reforms. Key reforms include the reduction of the minimum capital required to establish a limited liability company from the equivalent of 795 percent of GDP per capita in 2007 to 19.9 percent in 2009, lowering property taxes, establishing a single reception service for company registration, and improving the resolution of business dispute. These reforms, however, have yet to have traction on the ground, as evidenced by the report from the World Economic Forum and as suggested by the sluggish pick up in employment and other indicators. IBRD provided both lending and AAA support in this area. Lending support was provided through the Recovery Under Global Uncertainty Development Policy Loan (RUGUDPL); AAA included an Investment Climate Analysis (2007), Doing Business (various years), Quick Response Survey (November 2008 and April 2009), and programmatic technical assistance.

13. IFC supported this objective in three areas: (i) financial sector development; (ii) prioritized investments; and (iii) the business enabling environment.

14. IFC’ support for financial sector development was done through advisory services and investments. Advisory services included the corporate governance code for banks, a draft law on leasing; a draft law on sharing credit information, aiming to establish the first private credit bureau in the country. In addition, IFC made an investment in a large commercial bank, and provided trade finance guarantees to four banks.

15. IFC’s prioritized investments included transportation in selective sectors, such as shipping, tourism, and SMEs. As for the support to business enabling environment, aside from the work on Doing Business, IFC supported the government in the implementation of an inspection reform program in 2009, which sought to increase the efficiency and effectiveness of government agencies and improve their regulations on issues like labor, health, safety and environment. The outcome of this advisory activity is not documented in the CASCR.

16. Improving exports competitiveness and job creation. Underpinned by its strong trade links with the region, Jordan’s economy showed strong performance since 2006, with real per capita GDP growing annually at an average of 4.3 percent. Growth was broad-based, led by manufacturing, construction and services sectors. Despite the strong growth, unemployment among nationals only declined slowly, from 14 percent in 2006 to 12.9 percent in 2009. Meanwhile exports increased from $5.2 billion in 2006 to 6.4 billion in 2009. However, improvements in export competitiveness are not documented in the CASCR, and Jordan’s ranking in the World Economic Forum Competitive Index dropped during the CAS period. IBRD supported exports through the Horticultural Exports Promotion and Technology Transfer Project, which was rather small, $5 million, and focused only on the export marketing of fresh products. IFC made an additional investment in pharmaceutical companies that produce a wide range of medicines for the MENA regional markets, and supported the refurbishing of a terminal port for a large mineral exporter, creating space for new tourism activities in the country’s resort areas.

17. On the jobs front, IBRD provided support through the Employer-Driven Skills Development Project for technical-vocational education and training. This project is assisting the restructuring of the institutional framework, including the establishment of an Employment-Driven, Technical, and Vocational Education Council in charge of taking a holistic approach to the issues with input from the employer community. The Vocational Training Corporation is also in the process of restructuring. IBRD also provided support in this area with AAA.

18. Supporting public private partnerships in all areas, especially large infrastructure financing. The government launched its public private partnership program in 2008 and promoted

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public private partnerships for selected infrastructure investments, in part based on IBRD’s FY06 Public Private Partnership Report. Among PPPs, Jordan successfully tendered two independent power producers (IPPs) over the past three years, with technical assistance and a partial risks guarantee from IBRD. IBRD’s assistance has shifted away from the privatization of state owned enterprises, which is almost completed as of early 2011, to the development of a regulatory and institutional framework for PPPs and a pipeline of medium-size PPPs needed for infrastructure and services. IFC had four advisory services and five investment projects in this area. The main contribution was advising the government and then investing in the concession for the Queen Alia International Airport. IFC also was a leading advisor in the implementation of the Amman Ring Road PPP concession, the first toll road in Jordan.

19. Advancing institutional and market structure reforms in the energy sector. Jordan has taken several steps in this area. An oil subsidy reform was completed in February 2008, gradually removing the subsidies for oil products, except for liquefied petroleum gas (LPG), resulting in a significant increase in prices of oil products. To ease the burden on low and middle income groups, the government introduced a number of measures with IBRD's analytical support. In addition, the WBG has provided a partial risk guarantee ($45 million) and a MIGA guarantee ($69.8 million) for the construction of the Amman East Power plant. This was one of initial gas-based independent power producer contracts. The power plant was completed and achieved full commercial operation in August 2009. IBRD also provided technical assistance for the construction of the Al-Qatrana Power Plant, but the planned partial risk guarantee operation did not go forward. Instead, the operation secured alternative financing from the Islamic Development Bank.

20. On the distribution side, Jordan privatized all electricity distribution. In this area, IFC provided support by participating in the privatization of the Electricity Distribution Company (EDCO), funding a portion of the acquisition cost, CAPEX and working capital with long term debt.

21. IBRD’s AAA included Jordan Power Sector - Medium Term Issues and Options, Energy Efficiency Framework for Jordan, and Concentrated Solar Power for Jordan.

22. Supporting enhanced quality of education. IBRD’s support focused on education quality and improving the linkages with the labor market, mainly through an Education Reform for the Knowledge Economy (ERKE) project, in which it is a lead donor. This program backed the development and implementation of a student outcomes-based curriculum for all subjects and grades, a system of performance-based achievement; the development and piloting of supplemental e-learning materials in core subject areas; the connection of more than 2,000 schools to a high-speed learning network; and the development and implementation of a national curriculum and teacher guides and accreditation standards. PISA scores show no progress in mathematics and some progress in science. Meanwhile, the national knowledge economy assessment scores (NAfKE) indicate improvements in all grades tested in 2008 compared to the 2006 baseline.

23. IFC launched its first student loan program for university students in 2008, with IFC sharing the risk of up to US$5 million on a portfolio of student loans originated and managed by a private commercial bank.

24. IEG rates the outcome of the WBG’s support in Pillar I as moderately satisfactory based on significant achievements in the public private partnership program, in the adoption of oil subsidy reform, and in the improvements in institutional and market structure of energy. Outcomes in export competitiveness, employment creation, and the business enabling environment were weak, while outcomes in education were mixed.

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Pillar 2: Supporting local development through increased access to services and economic opportunities.

25. There were four objectives pursued under this pillar: (i) increasing local voice and participation in resource allocation and related decision making; (ii) developing the capacity of sub-national institutions to plan, implement and manage their development programs; (iii) improving the sustainable use of local endowments and assets as means of catalyzing local economic development; and (iv) leveraging small-scale entrepreneurial initiatives through increased access to credit and support services, as well as expanding public-private partnerships at the local level. IBRD lending support included: (a) the Cultural Heritage, Tourism, and Urban Development Project (CHTUDP); (b) the Regional and Local Development Project (RLDP); and (c) the Amman Solid Waste Management Project (ASWMP). Non lending support and AAA included an Integrated Ecosystem Management GEF, the Amman Landfill Gas Recovery Carbon Fund Guarantee, a Greater Amman Municipality TA, and a Clean Development Mechanism TA.

26. Increasing local voice and participation in resource allocation and related decision making. The government has taken steps to balance the fiscal transfers among municipalities, in order to redress the imbalance created by the concentration of the benefits of growth in Amman and a limited number of large cities. It also introduced the performance based block grant system. A series of infrastructure projects in 72 municipalities have benefited from the new resource allocation system. In addition, the Ministries of Finance and Municipal Affairs published the joint annual report on intergovernmental transfers in October 2009, making the transfer pool transparent. Despite these steps, there is no information on whether the cumulative increase in additional resource transfers to municipalities other than Amman has reached the 6 percent targeted in IBRD’s strategy. IBRD helped the Ministry of Municipal Affairs develop and implement the 2008-2015 Municipal Development Strategy through the RLDP. Additional IBRD support was provided through CHTUDP.

27. Developing the capacity of sub-national institutions to plan, implement and manage their development programs. There is no information on the increase in capital expenditures by subnational governments, an outcome indicator of the results matrix of the strategy. Capital expenditures in the Greater Amman Municipality (GAM), the only available information, shows an increase from JD 98 million in 2006 to JD 207 million in 2009. GAM has been sharing its experience with other municipalities on urban infrastructure and services, including PPPs in infrastructure, affordable housing, clean development projects, and solid waste management. In addition, the government launched an integrated municipal finance information system in 72 municipalities, but it has yet to produce information on items such as capital expenditures. IBRD has provided assistance in these endeavors through the assistance from RLDP and the ASWMP.

28. Improving the sustainable use of local endowments and assets as means of catalyzing local economic development. There has been no progress in updating the urban planning regulations and standards targeted in IBRD’s strategy. In addition, the Local Economic Development Fund has been created, but resources are yet to be appropriated to make it operational. IBRD assistance through the CHTUDP, which has been restructured, focused on activities in and around the historic sites of Jerash (30 percent completed), Karak (38 percent completed), Madaba (100 percent completed), Salt (four historic buildings and 36 percent of the works in the Mosque) and Ajloun, upgrading and improving street networks and public spaces, as well as renovating and preserving heritage buildings. In Madaba, where all works are completed, the value of properties in the downtown areas has increased, while new tourism businesses are coming to life.

29. Leverage small-scale entrepreneurial initiatives through increased access to credit and support services, as well as expanding public-private partnerships at the local level. There is no firm evidence on the extent of progress in this objective. One of the components of the CHTUP, which is still at an early stage of implementation, has been providing financial and technical support to

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local entrepreneurs, investors and community groups for the creation and expansion of environmentally appropriate and financially viable small and medium enterprises in the civic core areas - cultural heritage, tourism and program development, and management consultancy services.

30. IEG rates the WBG's contribution to Pillar II as moderately unsatisfactory. There were slow starts in key IBRD projects and there is little information on key results indicators—even though the results matrix was modified in the CAS Progress Report in 2009. Some progress was made in improving the equity of local resource transfers to municipalities, including the performance based block grant system. Local development projects seem to be making some progress, but there is little evidence of impact yet on the sustainable use of local endowments and assets, or on small-scale entrepreneurial initiatives.

Pillar III: Reforming social protection and expanding inclusion.

31. There were two objectives pursued under this pillar: (i) reforming the social assistance system by developing robust targeting and monitoring systems; and (ii) reforming social protection. IBRD lending support included the FY08 Social Protection Enhancement Project (SPEP), and some aspects of the RUGUDPL. AAA included a Poverty Update, Poverty Institutional Framework, Social Protection and Safety Net Strategy, PESW Pension and Social Insurance PESW reports.

32. Social assistance. The National Aid Fund (NAF), which provides assistance to about 8-10 percent of the population, has recently completed a pilot for 6468 households, screening them using the proxy means testing targeting formula to ascertain their eligibility to receive cash benefits. IBRD has supported a NAF renewal plan, which included: (i) implementing a management information system on the poor and vulnerable population; (ii) strengthening NAF’s technical, administrative and benefit delivery capacity; and (iii) improving the targeting mechanism by adopting the proxy-means testing targeting method. Progress on IBRD’s assistance program has, thus, been slower than expected.

33. Social protection. In March 2010, Jordan introduced several amendments to its Social Security Law on a temporary basis. These included (i) the extension of the base period to calculate the average pensionable wage from 2 years to 3 years; (ii) the introduction of income-related accrual rates; (iii) the extension of social security benefits to workers in firms with less than 5 employees; and (iv) the increase in the minimum early retirement age from 45 to 50. In addition, the Social Security Law introduced maternity benefits to finance maternity leave currently paid by employers, thus eliminating a significant disincentive to hire women. It also introduced social health insurance mechanisms on a compulsory basis, and created unemployment insurance to be financed with contributions from employers (0.5 percent) and employees (1 percent). IBRD provided support to these reforms through the SPEP and the RUGUDPL.

34. IEG rates the outcome of the WBG's support under Pillar III as moderately satisfactory. Outcomes benefit a wide spectrum of Jordanians, but the sustainability of the new legislation is not clear at this stage. In addition, targeting of social assistance progressed slower than expected.

Pillar IV: Restructuring public expenditures and supporting public sector reform.

35. The objective pursued under this pillar was to restructure public expenditure management by improving transparency in the budget system, strengthening the efficiency in public expenditures and introducing a medium-term expenditure framework. IBRD lending included the RUGUDPL, and the Public Sector Reform Capacity Building Project, which was cancelled without any disbursement. IBRD provided five pieces of AAA as well. In the CAS, IBRD had sought to support the public sector reform agenda. However, the objective was dropped in the CASPR, because its ownership was rather weak in the known volatile political environment and no progress had been made. IBRD’s

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project to support the reform agenda, the FY05 Public Sector Reform Capacity Building Project, was canceled without any disbursements after nearly three years of inactivity and no clear path forward.

36. Restructuring public expenditure management. The medium-term expenditure framework became fully operational in 2008 and budget planning horizon was extended to three years. In this endeavor, Jordan received support from GTZ, USAID and IBRD, with emphasis on strengthening the policy orientation of the budget planning reforms. IBRD support included: (i) strengthening medium term macroeconomic and fiscal analysis and forecasting in the Ministry of Finance and tax authorities; (ii) introducing budget performance indicators and targets; and (iii) setting budgetary ceilings for the ministries. These actions improved transparency in the budget system.

37. Jordan’s efforts to redress the fiscal imbalance in the wake of the global financial crisis are estimated by the IMF to have led to a reduction of the fiscal deficit from 6 percent of GDP to about 4 percent, mostly on account of lower expenditures. The expenditure contraction, however, turned out to be only half of what was originally targeted with IBRD support, which also included eliminating tax exemptions and subsidies for oil derivatives, while broadening the tax base.

38. IEG rates the outcome of WBG support under Pillar IV as moderately satisfactory. Progress was made in the introduction of a medium-term expenditure framework, yet the fiscal contraction measures only had half of their expected impact.

Pillars CASCR Rating

IEG Rating

Pillar I: Strengthening the investment environment and building knowledge based economy:

NA Moderately Satisfactory

Pillar II: Supporting local development NA Moderately Unsatisfactory

Pillar III: Reforming social protection and expanding inclusion


Pillar IV: Restructuring public expenditures and supporting public sector reform.


4. Overall IEG Assessment

Outcome: Moderately Satisfactory

IBRD Performance: Satisfactory

IFC ‘s Performance: Satisfactory

39. Overall Outcome: Outcomes with respect to specific objectives and targets of the WBG assistance were mixed, and IEG rates the overall outcome of the WBG’s assistance program as moderately satisfactory. The WBG made positive contributions on the public private partnership program, the adoption of oil subsidy reform, the improvements in the market structure of energy, the performance based block grant system to municipalities, the social protection system, and the introduction of a medium-term expenditure framework. Outcomes, however, were not as strong in export competitiveness, employment creation, the business enabling environment, the sustainable use of local endowments and assets, the small-scale entrepreneurial initiatives, and the targeting of social assistance. While support for crisis response was timely and effective, the fiscal contraction measures supported by IBRD only had half of their expected impact. The area of PPPs seems to be one where synergies between IBRD and IFC led to better outcomes, with IFC building on the foundations initially laid by IBRD with its AAA.

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40. IBRD Performance: IBRD’s program was relevant and delivered as planned, though with delays that were significant in some instances and with loan cancellations. Some of the delays and the cancellation might have been avoided if IBRD had spent more time and effort in assessing ownership of the reform proposals, particularly in the controversial area of the public administration reform. AAA was also relevant, in line with WBG’s assistance strategy, allowing substantive policy dialogue with the government. IBRD’ support to Jordan on account of the global financial crisis was timely, flexible and effective.

41. IFC Performance: IFC’s strategy was relevant and appropriate to Jordan’s conditions. The establishment of an IFC field office in Amman boosted its role. IFC investment and advisory services increased significantly during the CAS period, with the investment portfolio increasing five-fold.

5. Assessment of CAS Completion Report

42. The CASCR is informative but would need to go beyond a description of the WBG and government activities to focus more on results achieved. The report needs to include a fuller discussion of results, especially when there are indicators in the results matrix of the strategy, and the reasons behind lagging performance - for example, the modest achievement in local development. In the same vein, the CASCR could have better balanced the presentation with more focus on past achievements under the CAS period, and much less emphasis on ongoing and planned activities. On IFC activities, taking into account that there are many ways to mitigate the conflict of interest that arises from providing advice on a concession and then being an investor benefiting from that advice, the CASCR could have highlighted the actions taken by IFC (and IBRD, the government or the client, if relevant) to mitigate it, especially in a major operation like the one on the airport.

6. Findings and Lessons

43. IEG underscores three lessons. The Jordan strategy exemplifies how timely analytical work and technical assistance can make important contribution in helping design and carry through important programs and reforms, particularly when institutional change is involved. Advice on PPPs and on the medium-term expenditure framework exemplify this success. Secondly, country strategies need to better ponder the risks stemming from the political economy and the alternative approaches that the WBG may take when those risks materialize. Within this spirit, CASPRs seem particularly appropriate to deal with those risks when they materialize, keeping the Executive Board informed and abreast of developments. Thirdly, the Jordan strategy shows how a well worked joint preparation of a strategy between IBRD and IFC, where there is a clear division of labor, helps each institution focus on their strengths and experiences while exploiting important synergies. The joint advisory work on the financial sector and on PPPs are good examples.

Annexes

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Annex Table 1A: Actual vs. Planned Lending Annex Table 1B: Trust Funds for Jordan, FY06-10 Annex Table 2: Analytical and Advisory Work: actual vs planned Annex Table 3: IEG Project Ratings Annex Table 4: Portfolio Status Indicators by Year Annex Table 5: IBRD / IDA Net Disbursements and Charges Annex Table 6: Net Aid Flows (net or gross, ODA or ODA+OOD, as relevant) Annex Table 7: Economic and Social Indicators Annex Table 8: Millennium Development Goals Annex Table 9: List of IFC’s investment in Jordan that were active during FY06-10 Annex Table 10: List of IFC’s Advisory Services in Jordan, FY06-10. Annex Table 11. Jordan-Doing Business Rank 2011 Annex Table 12. Jordan-Country Risk Rating Annex Table 13: Jordan - Summary Achievements of the CAS Objectives

Annexes

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Annex Table 1A: Jordan - Planned and Actual Lending, FY06-10

Projects Approved During CAS Period Proposed

FY Approval

FY Proposed Amount

Approved Amount

Programmed projects

Cultural Heritage, Tourism, and Urban Developmenta/ 2006 2007 35.0 56.0

Regional and Local Developmentb/ 2007 2007 20.0 20.0

Social Protection Enhancement Projectc/ 2007 2008 10.0 4.0

Employer-Driven Skills Development Projectd/ 2008 2008 10.0 7.5

Higher Education Development Project IIe/ 2008 Cancelled

2009 25.0 25.0

Amman East Power Guarantee (Guarantee(s))1/ 2008 2008 100.0 45.0

Education Reform for Knowledge Economy II 2009 2009 60.0 60.0

Amman Development Corridor Supplement (Other Investments) 2009 2009 80.0 33.0

Recovery Under Global Uncertainty DPLf/ 2009 2010 200.0 300.0

Total Programmed projects CAS FY06-10 540.0 550.5

Non-programmed projects Proposed

FY Approval

FY Proposed Amount

Approved Amount

Amman Solid Waste Management Project2/

2009

25.0

540.0 575.5

On Going Projects During CAS Period Approval

FY Closing

FY

Approved Amount

Amman Water & Sanitation 1999 2007

55

Higher Education Development 2000 2007

34.7

Horticultural Exports Promotion 2002 2008

5

Education Reform for Knowledge Economy3/ 2003 2009

120

Amman Development Corridor 2004 2012

38

Public Sector Reform Capacity Building 2005 Cancelled

2009 15

Total On Going projects CAS FY06-10 267.7

Total projects CAS FY06-10 1,393.7 Source: THE HASHEMITE KINGDOM of Jordan 2006 CAS, 2009 CASPR and WB Business Warehouse Table 2a.1, 2a.4 and 2a.7 as of 12.29.10.

a/ This project was partially financed by IBRD and partially financed by Trust Funds.

b/ This project was partially financed by IBRD and partially financed by Trust Funds.

c/ This project was partially financed by IBRD and partially financed by Trust Funds.

d/ This project was partially financed by IBRD and partially financed by Trust Funds.

e/ This project was partially financed by IBRD and partially financed by Trust Funds.

f/ The original CAS envisaged 2 DPLs, one of $ 150 million in 2007 and one of $ 50 million in 2009

1/ In CAS, it was planned $100 million in guarantees. This value was later divided in the AI Qatrana Power Guarantee, which was later dropped, and the Amman East Power Guarantee.

2/ This project was planned in CAS, but the IBRD contribution was not planned.

3/ This project was partially financed by IBRD and partially financed by Trust Funds.

Annexes

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Annex Table 1B: Trust Funds for Jordan, FY06-10

Proposed FY Approval FY Proposed Amount

Approved Amount

Non-Programmed projects

IDF

Gender Monitoring and Evaluation

2009

0.3

Support for Development of Monitoring and Evaluation Systema/

2004 0.4

Regional Network for Education Research Initiative

2010

0.5

Recipient Executed

PPIAF on Private Public Partnerships in Infrastructure 2007 2007

0.8

Output Based Aid Dropped

Implementation of Economic Reform and Development Program

1998 &2005

23.7

Jordan - Pub. Sector Reform Loan

2004

0.4

Development of the Statistical Master Plan

2007

0.1

5M-Displaced Iraqis in the Sub-Region Program 2008 2008 1 2.2

Education Reform for Knowledge Economy1/ 2004 2004 3.7 4.9

Regional & Local Development2/ 2004 2004 0.5 0.5

Cultural Heritage, Tourism & Urban Development3/ 2006 2006 0.7 0.7

Social Protection Enhancement Project4/ 2007 2007 0.5 0.5

Employer Driven Skills Development Project5/ 2007 2007 0.4 0.4

Higher Education Reform for the Knowledge Economy6/ 2007 2007 0.4 0.4

GENTF – Employment for Young College Graduates in Jordan

2010

1.0

GEF

Conservation of Medicinal/Herbal Plants 2003 2001 &2004

5.0

Integrated Ecosystem Management in the Jordan Rift Valley. 2007 2008 6.2 6.2

Promotion of a Wind-Power Market 2005 2005 & 2008 6.0 6.3

Energy Efficiency investment Support Framework 2009 2009

1.0

Carbon Fund

Solid Waste Management Project (Amman Landfill Gas Recovery )

2009

15

Montreal Protocol

ODS Phase-out II 1997

5.0 6.0

Total Programmed projects CAS FY06-10 24.4 76.1

Source: THE HASHEMITE KINGDOM Jordan 2006 CAS, 2009 CASPR and WB Business Warehouse Table 2a.1, 2a.4 and 2a.7 as of 12/29/2010. a/ This IDF closed in FY07 with only $64K spent out of the approved amount. 1/ This project was partially financed by IBRD and partially financed by Trust Funds. 2/ This project was partially financed by IBRD and partially financed by Trust Funds. 3/ This project was partially financed by IBRD and partially financed by Trust Funds. 4/ This project was partially financed by IBRD and partially financed by Trust Funds. 5/ This project was partially financed by IBRD and partially financed by Trust Funds. 6/ This project was partially financed by IBRD and partially financed by Trust Funds. 7/ This amount comprises 2 separate TF allocations from GEF. $0.29 was approved in FY01 and closed in FY03; $5.0 was approved in FY04 and closed in FY10. 8/ This amount comprises 2 separate TF allocations from GEF. $0.23 was approved in FY05 and closed in FY08; $6.0 was approved in FY09 closing in FY13.

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15


Annex Table 2: Planned and Actual Analytical and Advisory Work, FY06-10

Proposed

FY Delivered to

Client FY Output Type

Economic and Sector Work

Planned (CAS FY06-10) PESW Pension Reform FY06 Not approved. Policy Note

Water Sector Review FY07-10 Dropped PPI Study FY07 Not found PSD Diagnostic Report FY07 Dropped Investment and Labor Market

Not approved. Policy Note

Investment and Labor Market FY06 FY07 Policy Note

Poverty Assessment FY09 Not found Country Environment Analysis FY07 FY09 Report

Strengthening of Country Systems (FM and Procurement)1/ FY06-07 Not found Social Protection and Safety Net Strategy FY07 FY07 Policy Note

Price Shocks & Subsidy Reform: Fiscal & Poverty Impact Study2/

FY10 Report

Non-planned Investment Climate Survey

FY07 Report

Institutional Financial Capacity Assessment

Not found Poverty Update

FY08 Report

FSAP update Jordan

FY09 Report

Jordan - ICR ROSC (Insolvency & Creditors Rights: Report on the Observance of Standards and Codes)

FY10 Report

Technical Assistance

Planned (CAS FY06-10) PER FY06 Dropped

PESW Pension FY06 FY06 "How-To" Guidance

Skills and Vocational Education FY06 FY06 "How-To" Guidance

Poverty Institutional Framework3/ FY06 FY06 "How-To" Guidance

PESW Pensions FY07 FY07 FY07 "How-To" Guidance

Public Expenditure Review PESW FY07 FY07 "How-To" Guidance

Programmatic TA in Poverty Monitoring/ Mapping/institutional Framework FY07 FY07 "How-To" Guidance

Jordan PESW Social Insurance FY08 FY08 FY08 "How-To" Guidance

Social Insurance PESW FY08 FY08 "How-To" Guidance

Energy Strategy Update FY08 FY08 "How-To" Guidance

Programmatic TA in Public Expenditure Management FY09 FY09 "How-To" Guidance

Programmatic TA in Public Expenditure Management FY10 FY10 "How-To" Guidance

Employment for Young Women Graduates FY10 FY10 "How-To" Guidance

Vulnerability to Recent Global Financial Turmoil

Not found Non-planned

Private Participation in Infrastructure FY06 FY06 "How-To" Guidance

Cooperative Sector Restructuring FY07 FY07 "How-To" Guidance

PER Support FY07 FY07 Institutional Development Plan

High Policy Gender Forum FY07 FY07 Knowledge-Sharing Forum

Amman Development Strategy FY08 FY08 "How-To" Guidance

Annexes 16

CPSCR Review Independent Evaluation Group

Proposed

FY Delivered to

Client FY Output Type

Macro Modeling FY08 FY08 Model/Survey

Wage and Earnings Statistics FY08 FY08 "How-To" Guidance

Investment Climate Seminar FY08 FY08 Knowledge-Sharing Forum

Medicines Transparency Alliance (MeTA) Jordan TA FY09 FY09 Knowledge-Sharing Forum

Clean Development Mechanism (CDM) TA for Jordan FY10 FY10 "How-To" Guidance

Pharmaceutical GAC TA FY10 FY10 "How-To" Guidance Source: THE HASHEMITE KINGDOM of Jordan 2006 CAS, 2009 CASPR and WB Business Warehouse Table ESW/TA 8.1.4 as of 12/29/10, and Imagebank.

1/ MNAPR received funding from OPCS in FY10 to carry out OECD DAC assessments in connection with UCS. Two workshops were delivered and completed first stage assessment. 2/ Not delivered as CEM but as programmatic ESW to respond to global financial crisis: Price Shocks & Subsidy Reform, Fiscal and Poverty Impact Study. 3/ An ESW was initially planned, Poverty Profile, but a programmatic TA, Poverty Institutional Framework, was delivered instead.

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17


Annex Table 3a: Project Ratings for Jordan, FY06-10

Closed Projects Evaluated by IEG

Exit FY Project Name Total

Evaluated (US$M)

IEG Outcome IEG Risk to

Development Outcome *

2007 AMMAN WATER & SANITATION 54.2

MODERATELY SATISFACTORY SIGNIFICANT

2007 HIGHER EDUCATION DEVELOPMENT 33.0

MODERATELY UNSATISFACTORY MODERATE

2008 Hort. Exports Promotion & Tech. Transfer 3.8 UNSATISFACTORY SIGNIFICANT

Closed Projects Not Evaluated by IEG YET

Exit FY Project Name Total

Evaluated (US$M)

ICR Outcome ICR Risk to

Development Outcome *

2009 Education Reform for Knowledge Economy I Program 119.7 SATISFACTORY MODERATE

Ongoing Projects. ISR ratings

Closing

FY Project Name

Total Evaluated

(US$M) ISR DO ISR IP ISR DATE

2015 JO-Amman Landfill Gas Recovery 15 SATISFACTORY SATISFACTORY 9/15/2009

6/16/2010 JO-Conservation of Medicinal/Herbal Pl 5 MODERATELY

SATISFACTORY MODERATELY

UNSATISFACTORY 12/22/2009

7/14/2013 JO-Integrated Ecosystems/Rift Valley 6.15 MODERATELY


SATISFACTORY 6/30/2010

12/31/2012 JO-PROMOTION OF A WIND POWER MARKET 6

MODERATELY SATISFACTORY

MODERATELY UNSATISFACTORY 6/23/2010

7/1/2011 JO- Energy Efficiency 1 # # #

# JO - Amman East Power Plant 45 # SATISFACTORY 9/1/2010

1/25/2007 Dev. for Monitoring and Evaluation System 0 #

HIGHLY UNSATISFACTORY 8/23/2007

11/9/2011 JO - Gender Monitoring 0 #

HIGHLY SATISFACTORY 6/8/2010

12/31/2011 JO - Regional & Local Development 20 SATISFACTORY MODERATELY


6/30/2009 JO - Educ. Reform for Knowledge Econ.I 120 SATISFACTORY SATISFACTORY 6/29/2009

12/31/2011 JO - Amman Development Corridor 38 SATISFACTORY SATISFACTORY 6/24/2010

9/30/2012 JO - Cultural Heritage, Tourism & Urban 56 MODERATELY

UNSATISFACTORY MODERATELY


3/31/2009 JO: Public Sector Reform Capacity Bldg. 15 UNSATISFACTORY UNSATISFACTORY 6/22/2007

9/30/2013 JO - Employer Driven Skills Dev. 7.5 MODERATELY



8/31/2013 JO - Social Protection Enhancement 4 MODERATELY



12/31/2015 JO-HERKE 25 SATISFACTORY SATISFACTORY 6/17/2009

6/30/2014 JO - Amman Solid Waste Management 25 MODERATELY



12/31/2015 JO - ERKE II 60 SATISFACTORY SATISFACTORY 5/6/2010

# JO - Amman Dev Corridor Add'l Financing 33 # # #

12/31/2011 JO - Privatization TA (USAID) 10 SATISFACTORY SATISFACTORY 2/20/2010 Source: WB Business Warehouse Table 4a.5 and 4a.6 as of 12/30/2010.

* With IEG new methodology for evaluating projects, institutional development impact and sustainability are no longer rated separately. ** This project was rated with IEG previous methodology. Ratings are: IEG Sustainability - "Likely" ; IEG ID Impact - "Modest".

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18


Annex Table 3b: IEG Project Ratings for Jordan and Comparators, FY06-10

Region Total

Evaluated ($M)

Total Evaluated

(No)

Outcome % Sat ($)

Outcome % Sat (No)

RDO % Moderate or Lower ($) *

RDO % Moderate or Lower (No) *

Jordan 91.0 3 59.6 33.3 36.2 33.3

Egypt, Arab Rep 1,128.2 7 100.0 100.0 91.4 71.4

Iran, Islamic R 207.3 3 0.0 0.0 39.5 33.3

Lebanon 215.2 4 44.2 50.0 37.0 33.3

MNA 3,183.8 65 80.9 65.6 75.0 53.6

World Bank 61,093.6 908 85.8 77.7 73.7 62.8

Source: WB Business Warehouse Table 4a.5 and 4a.6 as of 12/30/2010. * With IEG new methodology for evaluating projects, institutional development impact and sustainability are no longer rated separately.

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Annex Table 4: Portfolio Status for Jordan and Comparators, FY06-10

Fiscal year 2006 2007 2008 2009 2010

Jordan # Proj 8 9 12 13 11

# Proj At Risk 1 1 1 1 2

% At Risk 12.5 11.1 8.3 8.3 18.2

Net Comm Amt 277.7 270.2 268.3 290.7 261.2

Comm At Risk 15.0 15.0 0.6 5.0 62.0

% Commit at Risk 5.4 5.6 0.2 1.7 23.7

Lebanon

# Proj 6 9 9 10 8.0

# Proj At Risk 1 4 4 5 4.0

% At Risk 16.7 44.4 44.4 50.0 50.0

Net Comm Amt 296.6 334.6 315.7 315.4 269.8

Comm At Risk 20.0 63.5 63.5 69.5 86.0

% Commit at Risk 6.7 19.0 20.1 22.0 31.9

Iran, Islamic R

# Proj 9 9 8 4 2.0

# Proj At Risk 2 2 0 0 1.0

% At Risk 22.2 22.2 0.0 0.0 50.0

Net Comm Amt 1355.0 1355.0 1210.0 703.0 344.0

Comm At Risk 140.0 359.0 0.0 0.0 224.0

% Commit at Risk 10.3 26.5 0.0 0.0 65.1

Egypt, Arab Rep

# Proj 16 15 18 15 20.0

# Proj At Risk 1 2 2 4 1.0

% At Risk 6.3 13.3 11.1 26.7 5.0

Net Comm Amt 1795.1 1321.6 1988.5 1793.7 3395.5

Comm At Risk 15.0 140.0 27.1 292.1 145.0

% Commit at Risk 0.8 10.6 1.4 16.3 4.3

MNA

# Proj 110.0 116.0 128.0 120.0 129.0

# Proj At Risk 10.0 24.0 25.0 26.0 36.0

% At Risk 9.1 20.7 19.5 21.7 27.9

Net Comm Amt 6621.3 6118.5 6999.6 6761.0 8658.8

Comm At Risk 254.3 1148.5 983.1 1197.0 1903.1

% Commit at Risk 3.8 18.8 14.0 17.7 22.0

Source: WB Business Warehouse Table 3a.4 as of 12/30/2010.

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20


Annex table 5: IBRD/IDA Net Disbursements and Charges Summary Report for Jordan

(in US$ million)

FY Disb. Amt. Repay Amt. Net Amt. Charges Fees Net Transfer

2006 30.0 73.9 -43.9 39.4 .6 -83.9

2007 47.3 83.3 -36.0 49.0 .5 -85.6

2008 33.1 81.9 -48.8 47.8 .8 -97.4

2009 51.8 93.2 -41.4 31.4 .9 -73.7

2010 329.5 101.5 228.1 16.7 1.5 209.8

Total (2006-2010) 491.6 433.7 57.9 184.4 4.3 -130.8

Source: WB Loan Kiosk, Net Disbursement and Charges Report as of 12/30/2010.

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21


Annex Table 6: Total Net Disbursements of Official Development Assistance and Official Aid, 2005- 2009 (in US$ million)

Bilaterals 2005 2006 2007 2008 2009 2005-2009

Austria 0.15 0.07 0.1 0.15 0.13 0.6

Australia 0.03 .. 0.03 0.06 0.21 0.33

Belgium 0.12 -0.05 -0.16 -0.18 -0.14 -0.41

Canada 7.91 5.51 8.8 7.68 10.97 40.87

Denmark 1.41 1.4 -5.9 2.95 1.35 1.21

Finland 0.25 0.39 0.2 0.25 0.21 1.3

France 1.11 -3.51 -3.82 3.32 58.94 56.04

Germany 21.93 17.18 27.87 21.72 39.77 128.47

Greece 1.39 1.38 4.87 3.1 4.47 15.21

Italy 14.4 9.56 7.54 17.5 12.94 61.94

Ireland 0.03 0.25 0.14 0.14 0.1 0.66

Japan 23.55 -15.58 -28.31 -50.08 -57.37 -127.79

Luxembourg .. .. .. .. .. 0

Netherlands 0.78 0.26 0.14 0.25 0.6 2.03

New Zealand .. .. .. .. .. 0

Norway 1.55 3.84 4.58 2.41 0.79 13.17

Spain 3.16 8.02 10.26 12.65 10.15 44.24

Sweden 0.63 0.43 0.21 0.14 0.24 1.65

Portugal .. .. .. .. .. 0

Switzerland 2.42 2.33 2.94 5.94 2.87 16.5

United Kingdom 6.05 0.85 0.45 4.5 1.52 13.37

United States 353.33 329.5 259.51 384.05 394.61 1721

DAC Countries, Total 441.46 365.06 291.71 428.57 486.26 2013.06

Czech Republic 0.2 0.21 0.13 0.07 0.07 0.68

Iceland .. .. .. .. 0.19 0.19

Israel 19.9 21.95 33.87 34.88 29.72 140.32

Poland 0.05 0.01 0.07 0.15 0.07 0.35

Slovak Republic .. .. .. .. 0.01 0.01

Slovenia .. .. .. .. 0.01 0.01

Thailand .. 0.02 0.03 0.08 0.09 0.22

United Arab Emirates 13.77 18.67 11.28 4.43 10.76 58.91

Hungary .. .. .. .. .. 0

Korea 1.26 3.23 2.26 12.02 3.9 22.67

Turkey 0.62 1.04 1.1 1.4 0.93 5.09

Other Donor Countries, Total 19.91 21.97 33.91 34.96 29.82 140.57

Non-DAC Countries,Total 76.85 58.06 42.07 43.72 41.35 262.05

Multilaterals

Arab Agencies 3.11 3.04 -1.35 3.04 5.38 13.22

IAEA .. 0.84 0.55 0.9 0.38 2.67

IFAD 0.18 -0.88 -0.41 4.16 -1.1 1.95

UNHCR 0.6 0.32 .. 0.43 0.88 2.23

UNRWA 101.79 100.8 110.93 130.8 133.45 577.77

WFP 0.34 0.41 0.42 0.06 0.05 1.28

EU Institutions 37.2 50.23 67.33 106.59 85.44 346.79

GEF .. .. 12.85 6.57 5.46 24.88

Global Fund 0.79 0.51 1.76 1.24 2.57 6.87

IDA -2.55 -2.55 -2.55 -2.54 -2.57 -12.76

Montreal Protocol 2.9 0.15 0.27 0.19 0.09 3.6

IDB Spec. Fund .. .. .. .. .. 0

UNAIDS .. 0.01 0.17 .. .. 0.18

UNDP 0.61 0.61 0.8 0.73 0.57 3.32

UNFPA 0.61 1.11 0.69 0.45 0.72 3.58

UNICEF 1.15 0.77 2.27 0.6 0.77 5.56

UNTA 1.71 1.56 1.56 0.85 0.85 6.53

Multilateral Agencies, Total 148.44 156.93 195.29 254.07 232.94 987.67

All Donors, 666.75 580.05 529.07 726.36 760.55 3262.78

Source: OECD DAC Online database, Table 2a. Destination of Official Development Assistance and Official Aid - Disbursements, as of 11/2/2010.

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22


Annex Table 7: Economic and Social Indicators for Jordan and Comparators, 2006- 2009

Series Name Jordan Lebanon

Egypt, Arab Rep

Morocco Iran,

Islamic R MNA World

2006 2007 2008 2009 Average 2006-2009

Growth and Inflation

Real GDP growth (annual %)2/ 7.9 8.5 7.6 2.3 6.6 6.6 6.4 5.3 3.9 5.0 2.0

GDP per capita growth (annual %)2/ 5.5 6.2 5.3 0.1 4.3 5.9 4.0 4.0 1.9 3.3 0.8

GNI per capita, Atlas method (current US$) 2,750 3,100 3,660 3,980 3,373 6,728 1,665 2,410 3,788 3,032 8,280

GNI per capita, PPP (current international $) 4,850 5,370 5,720 5,730 5,418 11,633 5,255 4,100 10,898 7,472 10,256

Inflation, consumer prices (annual %)2/ 6.3 4.7 13.9 -0.7 6.0 5.4 10.8 2.5 16.6 … …

Composition of GDP (%)

Agriculture, value added (% of GDP) 3.0 3.0 3.0 3.0 3.0 6.5 13.8 15.4 10.0 10.8 2.9

Industry, value added (% of GDP) 28.0 30.0 33.0 32.0 30.8 20.0 37.3 28.3 44.0 43.1 27.6

Services, etc., value added (% of GDP) 69.0 67.0 65.0 65.0 66.5 73.5 49.0 56.3 45.5 46.1 69.5

Gross fixed capital formation (% of GDP)3/ 27.0 26.0 24.0 15.0 23.0 27.3 20.3 30.8 26.0 24.0 21.1

Gross domestic savings (% of GDP) -3.0 -10.0 -6.0 -7.0 -6.5 2.8 15.5 24.3 42.5 32.8 21.3

External Accounts

Exports of goods and services (% of GDP) 52 52 55 43 50.5 22.8 29.5 34.0 32.0 38.3 27.4

Imports of goods and services (% of GDP) 85 88 85 65 80.8 47.8 34.5 43.7 23.0 32.4 27.5

Current account balance (% of GDP)2/ -11.0 -16.0 -10.0 -5.0 -10.5 -11.8 -0.3 -2.1 … … …

External debt (% of GDP)2/ 52 47 30 28 39.3 90.8 23.0 26.4 6.0 17.9 …

Total debt service (% of GNI) 4.0 4.0 12.0 2.0 5.5 16.3 2.0 4.8 1.0 3.0 …

Total reserves in months of imports1/ 6 4.7 6.2 8.1 6.3 11.5 6.8 7.5 … 20.7 11.9

Fiscal Accounts

Revenue and Grants (% of GDP) 2/ 31.1 32.5 29.1 25.1 29.5 24.4 28.0 28.4

Primary (noninterest) Expenditure (% of GDP)1/

33.4 36.2 36.5 35.0 35.3

Overall Balance(% of GDP)1/ -3.6 -5.9 -6.1 -5.3 -5.2

Public Sector Gross Debt (% of GDP)1/ 28.2 31.5 40.7 … 33.5

Social Indicators

Health

Life expectancy at birth, total (years) 72.0 72.0 73.0 .. 72.3 72.0 70.0 71.0 71.0 70.4 68.7

Immunization, DPT (% of children ages 12-23 months)

98.0 98.0 97.0 98.0 97.8 74.0 97.5 97.5 98.8 88.5 81.4

Improved sanitation facilities (% of population with access)

.. .. 98.0 .. 98.0 … 94.0 69.0 … 84.3 60.6

Annexes 23


Series Name Jordan Lebanon

Egypt, Arab Rep

Morocco Iran,

Islamic R MNA World

2006 2007 2008 2009 Average 2006-2009

Improved water source (% of population with access)

.. .. 96.0 .. 96.0 100.0 99.0 81.0 … 87.3 86.8

Mortality rate, infant (per 1,000 live births) 23.0 22.0 22.0 22.0 22.3 12.5 20.5 35.2 27.8 29.1 44.9

Population

Population, total (in millions) 5.54 5.68 5.81 5.95 5.7 4.1 80.8 31.4 71.5 322.3 6659.3

Population growth (annual %) 2.0 2.0 2.0 2.0 2.0 1.0 2.0 1.2 1.0 1.8 1.2

Urban population (% of total) 78.3 79.0 79.7 80.4 79.3 86.9 42.7 55.9 68.2 57.2 49.5

Education

School enrollment, preprimary (% gross) 34 33 36 .. 34.3 69.3 16.5 58.6 54.0 28.2 44.4

School enrollment, primary (% gross) 97 96 97 .. 96.7 100.0 99.0 106.7 129.0 105.2 105.9

School enrollment, secondary (% gross) 85 86 88 .. 86.3 82.3 … 54.1 77.7 72.0 66.3 1/ IMF. Jordan: Article IV Consultations 2007, 2008, 2009 and 2010. 2/ International Monetary Fund, World Economic Outlook Database, October 2010. Estimates start in 2009. 3/ Central Bank of Jordan Source: WB World Development Indicators (12/30/2010) for all indicators excluding those noted.

Annexes

24


Annex Table 8: Jordan - Millennium Development Goals 1990 1995 2000 2009

Goal 1: Eradicate extreme poverty and hunger

Employment to population ratio, 15+, total (%) 36 39 37 38

Employment to population ratio, ages 15-24, total (%) 25 26 22 20

Income share held by lowest 20% 5.9 7.5 .. ..

Malnutrition prevalence, weight for age (% of children under 5) 4.8 3.8 3.6 ..

Poverty gap at $1.25 a day (PPP) (%) 1 1 .. ..

Poverty headcount ratio at $1.25 a day (PPP) (% of population) 3 2 .. ..

Prevalence of undernourishment (% of population) 5 5 5 5

Vulnerable employment, total (% of total employment) .. .. .. ..

Goal 2: Achieve universal primary education

Literacy rate, youth female (% of females ages 15-24) .. .. .. 99

Literacy rate, youth male (% of males ages 15-24) .. .. .. 99

Persistence to last grade of primary, total (% of cohort) .. .. 97 ..

Primary completion rate, total (% of relevant age group) 98 98 96 100

Total enrollment, primary (% net) .. .. 96 94

Goal 3: Promote gender equality and empower women

Proportion of seats held by women in national parliaments (%) 0 1 0 6

Ratio of female to male primary enrollment (%) 99 100 100 101

Ratio of female to male secondary enrollment (%) 105 104 104 104

Ratio of female to male tertiary enrollment (%) 112 96 116 111

Share of women employed in the non-agri. sector (% of total non agri. Employ.) 23.1 22.7 23.4 ..

Goal 4: Reduce child mortality

Immunization, measles (% of children ages 12-23 months) 87 92 94 95

Mortality rate, infant (per 1,000 live births) 32 28 25 22

Mortality rate, under-5 (per 1,000) 39 33 30 25

Goal 5: Improve maternal health

Adolescent fertility rate (births per 1,000 women ages 15-19) .. .. 33 24

Births attended by skilled health staff (% of total) 87 97 100 99

Contraceptive prevalence (% of women ages 15-49) 40 53 56 59

Maternal mortality ratio (modeled estimate, per 100,000 live births) 110 95 79 59

Pregnant women receiving prenatal care (%) 80 96 99 99

Unmet need for contraception (% of married women ages 15-49) 22 14 11 12

Goal 6: Combat HIV/AIDS, malaria, and other diseases

Children with fever receiving antimalarial drugs (% of children under age 5 with fever) .. .. .. ..

Condom use, population ages 15-24, female (% of females ages 15-24) .. .. 4 ..

Condom use, population ages 15-24, male (% of males ages 15-24) .. .. .. ..

Incidence of tuberculosis (per 100,000 people) 16 14 7 6

Prevalence of HIV, female (% ages 15-24) .. .. .. ..

Prevalence of HIV, male (% ages 15-24) .. .. .. ..

Prevalence of HIV, total (% of population ages 15-49) .. .. .. ..

Tuberculosis case detection rate (all forms) 84 84 86 91

Goal 7: Ensure environmental sustainability

CO2 emissions (kg per PPP $ of GDP) 1.4 1.1 1 0.7

CO2 emissions (metric tons per capita) 3.3 3.2 3.2 3.8

Forest area (% of land area) 1 1 1 1

Improved sanitation facilities (% of population with access) .. 97 98 98

Improved water source (% of population with access) 97 96 96 96

Marine protected areas (% of total surface area) .. .. .. 22

Terrestrial protected areas (% of total surface area) .. .. .. 10.5

Goal 8: Develop a global partnership for development

Debt service (PPG and IMF only, % of exports, excluding workers' remittances) 22 15 16 20

Internet users (per 100 people) 0 0 2.7 27.4

Mobile cellular subscriptions (per 100 people) 0 0 8 91

Net ODA received per capita (current US$) 279 129 115 128

Telephone lines (per 100 people) 8 8 13 9

Other

Fertility rate, total (births per woman) 5.5 4.7 3.9 3.5

GNI per capita, Atlas method (current US$) 1390 1560 1790 3980

GNI, Atlas method (current US$) (billions) 4.4 6.5 8.6 23.7

Gross capital formation (% of GDP) 31.9 33 22.4 14.8

Life expectancy at birth, total (years) 67 69 71 73

Literacy rate, adult total (% of people ages 15 and above) .. .. .. 92

Population, total (millions) 13.2 14.4 15.4 17

Trade (% of GDP) 64.5 56.4 61.3 75.2

Population, total (millions) 3.2 4.2 4.8 6

Trade (% of GDP) 154.6 124.6 110.3 108.5

Source: World Development Indicators database as of 12/30/2010.

Annexes

25


Annex Table 9: List of IFC’s investment in Jordan that were active during FY06-10

Project ID Approval

FY Project Status

Project Size US$

thousand

Greenfield or Existing

Primary Sector Loan

(net) US$ thousand

Equity (net) US$ thousand

Total net commitment

US$ thousand

20216 2003 Closed 32000 G Chemicals 14,560 0 14,560

11445 2003 Closed 38000 G

Industrial & Consumer Products

19,000 0 19,000

11106 2002 Closed 18500 G

Construction and Real Estate

8,000 0 8,000

11369 2002 Active 17800 G Oil, Gas and Mining 4,400 600 5,000

10112 2001 Closed 35600 G

Construction and Real Estate

3,000 0 3,000

9627 2001 Closed 27700 G Finance & Insurance 0 3,322 3,322

10527 2001 Active 39000 G Textiles, Apparel & Leather 8,000 0 8,000

8858 2000 Closed 19010 E

Accommodation & Tourism Services

0 3,600 3,600

8731 1999 Active 5000 E

Transportation and Warehousing

0 1,003 1,003

7919 1998 Closed 10044 E Textiles, Apparel & Leather 5000 0 5000

7749 1998 Closed 25148 G


4000 1000 5000

7205 1996 Active 102128 E


15,000 2,966 17,966

4827 1995 Closed 2860 E Chemicals 0 138 138




Subtotal

101,590

28124 2010 Active 235900 G Chemicals 50000 0 50000

29811 2010 Active 3000 E Finance & Insurance 3000 0 3000

26760 2009 Active 24703 G Electric Power 1415 0 1415

26878 2009 Active 23500 G


16000 0 16000

26639 2008 Closed 15096 G Education Services 0 0 0

26899 2008 Closed 903 E Finance & Insurance 0 897 897

Annexes 26


Project ID Approval

FY Project Status

Project Size US$

thousand

Greenfield or Existing

Primary Sector Loan

(net) US$ thousand

Equity (net) US$ thousand

Total net commitment

US$ thousand

25928 2008 Active 50000 E Finance & Insurance 20000 30000 50000

26113 2008 Active 141000 E


40000 0 40000

26182 2008 Active 755400 G


120000 0 120000

26685 2008 Active 4000 G


0 0 4000

26864 2008 Active 3200 G


0 0 3200

24947 2007 Closed 3117 E Finance & Insurance 0 0 847

24669 2006 Active 24000 G


15,000 0 15,000

24726 Active NA E Chemicals 0 1,213 1,213

24772 Active NA E Chemicals 0 206 206

25398 Active NA E Finance & Insurance 0 0 48983



27707 Active 9989 E Education Services 0 0 4996


28378 Active 1000 E


1800 0 1800

30517 Active NA E Electric Power 38585 0 38585

Subtotal

438,595

Total

540,185

Annexes

27


Annex Table 10: List of IFC’s Advisory Services in Jordan, FY06-10.

No. Projects

Project ID

Project Name Project Status

Primary Business

Line

Total Funding,

US$ Start FY End FY

1 569935 Jordan Secured Lending Project Active Access To Finance

310,000 2010 2012

1 569902 Jordan Corporate Governance Project

Active Corporate Advice

585,000 2010 2012

1 28740 Amman-Zarqa LRS Active Infrastructure 1,428,504 2010 2012

1 566168 Amman Ring Road Project Active Infrastructure 2,264,032 2009 2011

1 553811 Credit Bureau - Jordan Active Access To Finance

39,680 2009 2009

574387 Jordan Inspection Reform Project Phase II

Active Investment Climate

32,160 2011 2011

1 539552 Business Edge Jordan Closed Corporate Advice

287,000 2007 2008

1 553288 Jordan Student Loan Market Study Closed Infrastructure 79,000 2007 2008

1 550486 MFW-TA Closed Access To Finance

97,473 2007 2009

0 551085 DEF Jordan Closed Access To Finance

45,000 2007 2009

1 549548 Labor QIZs Closed Investment Climate

140,000 2007 2007

1 546384 D Bus Better Jdn Closed Investment Climate

43,597 2006 2006

539205 Jordan Inspection Reform Project Closed Investment Climate

881,500 2006 2010

546804 Corporate Governance Assessment for Cairo Amman Bank

Closed Corporate Advice

45,054 2006 2009

539323 Royal Jordanian Airline Privatization

Closed Infrastructure 25,000 2006 2006

538941 Corporate Governance Code for Banks in Jordan

Closed Corporate Advice

75,605 2006 2007

538110 Jordan Leasing Project Closed Access To Finance

361,753 2007 2009

1 24706 Queen Alia Airpt Closed Infrastructure 1,400,000 2006 2009

Grand Total 8,140,358

Source: IFC TAAS, January 2011

Annexes

28


Annex Table 11. Jordan-Doing Business Rank 2011

Rank by Morocco Iran,

Islamic Rep.

Egypt, Arab Rep.

Lebanon Jordan Jordan

2010

Ease of Doing Business 114 129 94 113 111 107

Starting a Business 82 42 18 103 127 129

Dealing with Construction Permits 98 143 154 142 92 95

Registering Property 124 156 93 111 106 106

Getting Credit 89 89 72 89 128 125

Protecting Investors 154 167 74 93 120 119

Paying Taxes 124 115 136 36 29 26

Trading Across Borders 80 131 21 95 77 74

Enforcing Contracts 106 49 143 122 129 128

Closing a Business 59 111 131 122 98 97

Source: Doing Business Report 2011 Note: Economies are ranked on their ease of doing business, from 1 – 183. A high ranking on the ease of doing business index means the regulatory environment is more conducive to the starting and operation of a local firm

Annex Table 12. Jordan-Country Risk Rating

Country 2003 2004 2005 2006 2007 2008 2009 2010 2011

Jordan 38.55 42.15 45.2 45.25 44.65 45.75 44.65 45.8 44.65

Iran, Islamic Republic of 36.1 39 42.4 38.1 36.7 36.9 33.15 32 36.7

Egypt, Arab Republic of 42.45 43.25 47.25 48.1 50.6 51.4 50.65 51 50.6

Lebanon 25 26.75 29.95 31.2 29.1 29.4 27.75 32.5 29.1

Morocco 47.75 48.85 51.25 50.75 53.45 54.65 53.5 55.2 53.45 Source: IICCR score January 2011

Note: 30 or less: High risk, 45 or above: low risk

Annexes

29


Annex Table 13: Jordan - Summary Achievements of the CAS Objectives

Pillar 1: Strengthening the Investment Environment and Building Human Resources for a Value-Added, Skill-Intensive and Knowledge-Based Economy

Actual Results (as of current month year)

Comments

Objectives 1. Operationalize a broad-based, multisectoral investment strategy for the country.

2. Improve exports competitiveness and job creation

3. Support Public Private Partnership in all sectors of activity, but especially in the area of large infrastructure finance and provision.

4. Advancing institutional and market structure reforms in the energy sector

5. Support enhanced quality of education and skills of the Jordanian population at all levels, and support better linkages with the labor market.

Major Outcome Measures

1. Operationalize a broad-based, multisectoral investment strategy for the country

Improvement in Jordan’s investment climate/business environment, as measured by:

WEF

Doing Business Data

Investment Rating

ICA Baseline Indicators

WEF Global Competitiveness Index: 2006: 46/121 2007: 49/131 2008: 48/134 2009: 50/132 2010:65/139 Ranking on the ease of doing business (2006-09): 2006: 139/175 2007: 137/175 2008: 94/181 2009: 101/181 Ranking on the ease of doing business, new methodology: 2010:107/183 2011: 111/183 Investment Rating: No data available.

ICA specified licensing and permits as especially troubling.


2. Improve exports competitiveness and job creation

None Exports growth: 6% in 2006; 5% in 2007; 1%in 2008; 1% in 2009 and 2% until 2010 Q2. Unemployment rate: 14% in 2006 and 12.9% in 2009.

IBRD sought to support small farmers’ exports, but did not achieve the expected results. Source: ICR Review Horticultural Exports Promotion And Technology Transfer Project.


3. Support Public Private Partnership in all sectors of activity, but especially in the area of large infrastructure finance and provision.

None. During the CAS period, two PPP were completed: the Assamra Water Treatment Plant/ BOT (2007) and the Expansion of Queen Alia International Airport (QAIA) BOT (2009). In the electric-power sector the government successfully privatized the Central Electricity Generating Company in 2007 and two formerly state-owned electricity distribution companies in 2008.

During the CAS period, the GoJ launched its Public Private Partnership program and promoted Public Private Partnerships (PPPs). In addition, Jordan launched the independent power producer program, leading to two new privately-owned power plants (the Amman East power in 2006 and the Al Qatrana power project in 2008). Source: Executive privatization commission, Government of Jordan.

Annexes 30




Comments


4. Advancing institutional and market structure reforms in the energy sector.

Diversification of energy imports. 80% of the Jordan’s electricity energy in 2009 was generated out of the natural gas imported from Egypt,

Source: Ministry of Energy and Mineral Resources Annual report 2009.

Strengthened regional trade of gas and electricity. No information available.

Development of renewable energy. The renewable energy and energy efficiency law was approved in 2010.


5. Support enhanced quality of education and skills of the Jordanian population at all levels, and support better linkages with the labor market.

Further improvements in Jordan’s performance in 2007 Trends in International Mathematics and Science

Results in Mathematics show no progress, average score was very similar 424 in 2003 (32/45) and 427 in 2007 (rank 31/48). Results in Science show progress, the average score was 475 in 2003 (25/45) and in 2007 was 482 (rank 20/48). Pisa Scores: Mathematics in 2006: rank 51/57 Mathematics in 2009: rank 56/65 Science in 2006: rank 45/57 Science in 2009: rank 51/65

Improvements in scores in National Knowledge Economy Assessment relative to baseline

2008 NAFKE results show improvements in scores compared to 2006 baseline in all grades tested (5th, 9th, 11th) and in following subjects per grade tested: (i) 5th: reading; (ii) 9th: math, science and reading; and (iii) 11th: math and reading.

Source: CASCR

Student aid program for poor students to universities expanded and functioning adequately

A student aid program in the Ministry of Higher Education and Scientific Research, which existed prior to CAS period, was expanded to provide loans and grants to about 12,000 students annually in the past two years.

GOJ has endorsed, in October 2010, a new model for student aid (the Jordan Student Aid Bank – JSAB).

An Independent quality assurance and accreditation system for universities in place and functional.

Law #20 enacted in April 2008 establishing the Higher Education Accreditation Commission (HEAC) became operational in 2009. All 12 private universities became accredited, but the law was only partially implemented.

Source: Jordan Higher Education Development ICR Review

Ongoing pre

CAS/CPS 06-10

Higher Education Development Project Approved: FY00; Closed: FY07; IEG outcome rating: Moderately Unsatisfactory

Horticultural Exports Promotion Project Approved: FY02; Closed: FY08; IEG outcome rating: Unsatisfactory

Education Reform for Knowledge Economy Project (EDSDP)

Approved: FY03; Closed: FY09; ICR outcome rating: Satisfactory

Amman Development Corridor Project Approved FY04; Closing FY12 ISR rating as of 6/2010. DO: Satisfactory; IP: Satisfactory;

Support New

Lending Support

Employer-Driven Skills Development Project Approved FY08; Closing FY14; ISR rating as of 12/2010. DO: Moderately Satisfactory; IP: Moderately Unsatisfactory;

Higher Education Development Project II Cancelled FY10. Cancelled; Higher Education TA ongoing

Education Reform for Knowledge Economy II Project Approved FY09; Closing FY16 ISR rating as of 5/2010. DO: Satisfactory; IP: Satisfactory;

Amman East Power Guarantee (Guarantee(s)) Approved FY07; Closing: FY12 ISR rating as of 12/2010. DO: Satisfactory; IP: Satisfactory;

Amman Development Corridor Supplement (Other Investments)

Approved FY09 ISR rating as of 6/2010. DO: Satisfactory; IP: Satisfactory;

Amman Solid Waste Management Project Approved FY09 ISR rating as of 6/2010. DO: Moderately Satisfactory; IP: Moderately Satisfactory;

Recovery Under Global Uncertainty DPL Approved FY10

AI Qatrana Power Guarantee Dropped

Non-lending Project

PPIAF on Private Public Partnerships in Infrastructure Approved FY10; Closing FY11 PPIAF (Bank-executed)

Private Participation in Infrastructure Approved FY07, Closed FY10 PHRD Recipient Executed

Annexes 31




Comments

Support Regional Network for Education Research Initiative Approved FY10; Closing FY13 IDF (Recipient-executed)

Energy Efficiency investment Support Framework Approved FY09; Closing FY12 GEF (Recipient-executed)

Promotion of a Wind-Power Market Approved: FY09; Closing: FY13; GEF (Recipient-executed)

Economic Reform and Development TA Pre-CAS project Approved FY05; Closing: FY12 USAID ( Recipient-executed)

Employer Driven Skills Development Approved FY07, Closed FY08 PHRD (Recipient-executed)

Higher Education Development II Approved FY07, Closed FY09 PHRD (Recipient-executed)

Planned AAA

Investment and Labor Market DELIVERED FY07 P095781

PSD Diagnostic Report Was dropped ESW

Country Economic Memorandum

Was not delivered as CEM but programmatic ESW to respond to global financial crisis: Price Shocks & Subsidy

Reform: Fiscal and Poverty Impact Study (FY10)

ESW

Skills and Vocational Education DELIVERED FY06 TA

Programmatic TA in Energy Sector Reform and Implementation DELIVERED FY08

TA

Employment for Young Women Graduates DELIVERED FY10 TA

Additional AAA

Investment Climate Survey DELIVERED FY07 ESW

FSAP Update Jordan DELIVERED FY09 ESW

Jordan - ICR ROSC DELIVERED FY10 ESW

Private Participation in Infrastructure DELIVERED FY06 TA

Cooperative Sector Restructuring DELIVERED FY07 TA

Wage and Earnings Statistics DELIVERED FY08 TA

Investment Climate Seminar DELIVERED FY08 TA

Amman Development Strategy DELIVERED FY08 TA

Jordan: Energy Financing & Institutional Framework (i) Power Sector Medium-term Issues and Options (ii) Concentrated Solar Power for Jordan (iii) Energy Efficiency Framework for Jordan

DELIVERED FY10 TA

Power Sector Financial Vulnerability Assessment (ESMAP) DELIVERED FY10

TA

Annexes 32


Pillar 2: Supporting Local Development through Increased Access to Services and Economic Opportunities.


Comments

Objectives 1. Increase local voice and participation in resource allocation and related decision-making.

2. Develop the capacity of sub-national institutions to plan, implement and manage their development programs.

3. Improve the sustainable use of local endowments and assets as a means of catalyzing local economic development.

4. Leverage small-scale entrepreneurial initiatives through increased access to credit and support services, as well as expanding public-private partnerships at the local level.


1. Increase local voice and participation in resource allocation and related decision-making;

6 percent cumulative increase in additional resource transfers to municipalities other than Amman.

No information available. ISR does not report any number for this indicator.

Progress towards full disclosure of resource transfer pool. MoMA and MoF published the joint annual report on intergovernmental fiscal allocation (Jordan resource transfer pool and allocation to municipalities’ bulletin) in October, 2009.

Source: CASCR and Regional & Local Development ISR as of 3/2010.

2. Develop the capacity of sub-national institutions to plan, implement and manage their development programs.

Increase in capital expenditures by sub-national government.

No information available.

Develop a sound municipal financial management systems and investment planning to avoid unsustainable municipal indebtedness.

Some initiatives were developed, such as the launch of the design of an integrated Municipal Finance MIS and 72 municipal compacts containing performance indicators have been signed. Besides these initiatives, there was no progress in developing a sound municipal management system.

Source: Regional & Local Development ISR as of 3/2010.

Cities and Villages Development operating sustainably and at arm’s length from Central Government (no evidence of Central Government interference in CVDB operations and no need for Central Government recapitalization).

No information available.

3. Improve the sustainable use of local endowments and assets as a means of catalyzing local economic development.

Updated urban planning regulations and standards. No progress to date.

Leverage cultural heritage assets to create the conditions to generate local economic opportunities.

Local Economic Development Fund is ready for operation. However, no financing has been allocated to the fund from FY 10 budget.

Undertake works to restore cultural heritage assets and improve overall quality of life in historic cores of at least two project municipalities

No indicator to measure the overall quality of life was developed. In Madaba, all the works have been completed. In Karak, 38 percent of the physical work is completed and in Jerash 30 percent of the physical work is completed. In Salt, the renovation of the four historic buildings has been completed and 36 percent of the physical works in Salt Mosque have been completed.

Source: Cultural Heritage, Tourism, and Urban Development ISR as of 10/10

4. Leverage small-scale entrepreneurial initiatives through increased access to credit and support services, as well as expanding public-private partnerships at the local level.

Increase in number of credit-worthy municipalities. No available information.

Ongoing pre CAS/CPS 06-

10

Amman Development Corridor Approved FY04; Closing FY12 ISR rating as of 6/2010. DO: Satisfactory; IP: Satisfactory;

Support New Lending

Cultural Heritage, Tourism, and Urban Development Project

Approved FY07; Closing FY13; ISR rating as of 11/2010. DO: Moderately Unsatisfactory; IP:

Annexes 33


Pillar 2: Supporting Local Development through Increased Access to Services and Economic Opportunities.


Comments

Support Moderately Satisfactory;

Regional and Local Development Project Approved FY07; Closing FY12; ISR rating as of 5/2010. DO: Satisfactory; IP: Moderately Satisfactory;

Amman Development Corridor Supplement (Other Investments)

Approved FY09 ISR rating as of 6/2010. DO: Satisfactory; IP: Satisfactory;

Amman Solid Waste Management Project Approved FY09 ISR rating as of 6/2010. DO: Moderately Satisfactory; IP: Moderately Satisfactory;

Non-lending Project Support

Integrated Ecosystem Management in the Jordan Rift Valley.

Approved: FY08; Closing: FY14 GEF (Recipient-executed

Solid Waste Management Project Approved: FY09 Closing: FY15 Carbon Fund (Recipient-executed)

Conservation of Medicinal and Herbal Plants Project

Pre-CAS project: Approved FY03; Closed FY10; ICR rating: MS

GEF (Recipient-executed)

ODS Phaseout II Pre-CAS project: Approved FY96, Closing: FY12 Montreal Protocol

5M-Displaced Iraqis in the Sub-Region Program

Approved: FY08; Closing: FY11 PCF (Recipient-executed)

Cultural Heritage, Tourism and Urban Development Approved FY06, Closed FY07 PHRD (Recipient-executed)

Planned AAA None.

Additional AAA Amman Development Strategy DELIVERED FY08

TA

Pillar 3: Reforming Social Protection and Expanding Inclusion. Actual Results

(as of current month year) Comments

Objectives 1. Develop a comprehensive social protection and safety net strategy

2. Assist the Government to reform the social assistance and social protection system, and develop robust targeting and monitoring and evaluation systems

3. Increase the quality and quantity of basic services provision to the most disadvantaged areas.


1. Develop a comprehensive social protection and safety net strategy

Significant progress towards establishing the national database on poor and vulnerable made.

Progress has been slower than anticipated.

Improvement in targeting mechanism identified and implemented.

Less than 50% of NAF beneficiaries have been using smart cards to collect assistance. The coverage of the target poor population by NAF assistance increased from 20 percent in 2006 to 40 percent by November 2010.

The NAF has recently completed the pilot for the 6468 households to be screened using the Proxy Means Testing formula to ascertain their eligibility to receive NAF cash benefits. The results of the pilot are confidential. Source: Jordan Social Protection Enhancement Project ISR.

2. Assist the Government to reform the social assistance and social protection system, and develop robust targeting and monitoring and evaluation systems

Pension system reformed to be more sustainable and equitable in future

Reform proposal enacted into temporary law end March 2010.

Source: March 2010 amendments to the Social Security Law (SSDL).

Social health insurance reform underway with objective of increased coverage in sustainable and equitable way.

The temporary law gives the right for the SSC to provide its pensioners, insured persons and dependants with health insurance on a compulsory basis. However, non members of

Source: March 2010 amendments to the Social

Annexes 34


Pillar 3: Reforming Social Protection and Expanding Inclusion. Actual Results


SSC are still not covered. Currently, approximately 50 percent of the population is covered by formal health insurance.

Security Law (SSDL).

Financial parameters and technical features of the unemployment insurance system designed and incorporated in new draft pension law. Implementation details developed

The temporary law enhances social protection and security for laid off workers. Financial parameters and technical features of the unemployment insurance system were designed. The social security law, which provides unemployment insurance benefits to all members of the SSC, was approved.

Source: March 2010 amendments to the Social Security Law (SSDL).

3. Increase the quality and quantity of basic services provision to the most disadvantaged areas.

None. There has been no progress in the percentage of people benefitting from social work and care services in pilot districts.

Source: Jordan Social Protection Enhancement Project ISR.


10

None.

Support New Lending

Support

Social Protection Enhancement Project Approved FY08; Closing FY14. ISR rating as of 12/2010. DO: Moderately Satisfactory; IP: Moderately Unsatisfactory

Recovery Under Global Uncertainty DPL Approved and delivered FY10


Support for Development of Monitoring and Evaluation System

Pre-CAS project, Approved FY04, Closed FY07 IDF (Bank-executed)

Social Protection Enhancement Approved FY07, Closed FY09 PHRD (Recipient-executed)

Planned

AAA

Social Protection and Safety Net Strategy DELIVERED FY07 ESW

PESW Pension DELIVERED FY06 Programmatic TA

PESW Pension DELIVERED FY07

Social Insurance PESW DELIVERED FY08 TA

Poverty Profile / Assessment Was not delivered as ESW, but programmatic TA: ESW

Poverty Institutional Framework DELIVERED FY06 Programmatic TA

Programmatic TA in Poverty Monitoring/ Mapping/lnstitutionaI Framework DELIVERED FY07

TA

Fiscal and Poverty Impact Study Delivered in FY10 instead of CEM ESW

Additional AAA Poverty Update

DELIVERED FY08 ESW

Pillar 4: Restructuring Public Expenditures. Actual Results


Objectives 1. Strengthen the Public Administration’s ability to design and implement development polices, through a better aligned pubic expenditures management system and the enhancement of the service delivery infrastructure.


1. Strengthen the Public Administration’s ability to design and implement development polices, through a better aligned pubic expenditures management system and the enhancement of the service delivery infrastructure.

Transparency in the budget system is improved and clearly describes government priorities and expected outcomes of public spending.

The PEFA study of 2010 has the Comprehensiveness and Transparency performance indicator, in which Jordan has performed in the satisfactory range for all 6 indicators.

Source: MENA Regional PEFA Study 2010

Budget outcomes are consistent with government policy and National Agenda. Planning and forecasting capacities are developed and strengthened.

The PEFA study of 2010 has the Policy-Based Budgeting performance indicator, in which Jordan has performed in the satisfactory range for the 2 indicators.

Source: MENA Regional PEFA Study 2010

Medium-term expenditure framework (MTEF) prioritized. MTFF prepared and approved by Cabinet prior to issuing of Budget Circular and resource ceilings. New policy-led budgeting procedures were piloted in selected ministries for

Development of an integrated planning and budgeting

Annexes 35


Pillar 4: Restructuring Public Expenditures. Actual Results


2009 Budget. State Institutions now required review and update strategic plans annually.

process made difficult by split in responsibilities between MoF and MoPIC.


10

Public Sector Reform Capacity Building Approved FY05; Cancelled FY08. ISR rating as of 6/2007. DO: Unsatisfactory; IP: Unsatisfactory

Support New Lending

Support

Recovery Under Global Uncertainty DPL Approved and delivered in FY10


Jordan - Pub. Sector Reform Loan Recipient Executed

Development of the Statistical Master Plan (TF for Statistical Capacity Building)

Approved: FY07; Closing: FY09 TFSCB (Recipient executed)

Measuring the Impact of National Policies & Strategies on Gender Equality

Approved FY09, Closing FY12 IDF (Recipient-executed)

Planned

AAA Strengthening of Country Systems (Procurement)

MNAPR received funding from OPCS in FY10 to carry out OECD DAC assessments in connection with UCS. Two

workshops were delivered and completed first stage assessment.

TA

PER Dropped in FY07 TA

Public Expenditure Review PESW DELIVERED FY07 TA

Public Expenditure Management DELIVERED FY09 Programmatic TA

Programmatic TA in Public Expenditure Management DELIVERED FY10 TA

Vulnerability to Recent Global Financial Turmoil Not Found TA

Additional AAA

PER Support DELIVERED FY07 TA

Macro Modeling DELIVERED FY08 TA

Medicines Transparency Alliance DELIVERED FY09 TA

Pharmaceutical GAC DELIVERED FY10 TA

Country Environment Analysis DELIVERED FY09 ESW

Documents

CASCR Reviewieg.worldbankgroup.org/sites/default/files/Data/reports/Jordan_CASCR.pdftargets, the quantification was limited, and most of results were outputs rather than outcomes