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The Hashemite Kingdom of Jordan

Infrastructure Development in the Poor Areas


 

Loan No.: 358 Interest Rate: 4.5%
Beneficiary: Ministry of Planning Grace Period: 6 years
Project Cost: KD 42.7 million Maturity: 22 years
Amount of Loan: KD 6.0 million Repayment: 33 semi-annual installments
Date of Loan Agreement: 03/03/1998 First Installment: 6 years following the first disbursement
Date of Effectiveness: -    

 

Objectives:

As a part of the social safety network, the project aims at the following:

  1. Developing infrastructure in squatter settlements, refugee camps, municipalities and villages.

  2. Creating additional job opportunities in order to decrease unemployment and alleviate poverty.

  3. Providing institutional support for the Housing and Urban Development Corporation, the Cities and Villages Development Bank, the Ministry of Planning, and the Ministry of Rural Affairs and the Environment's municipalities and village councils, in order to help them deliver more effective and better targeted services to benefit the poor and their communities.

 

Description:

The project, which is expected to be completed by the beginning of the year 2002, consists of the following major components:

  1. Developing infrastructure in squatter settlements, refugee camps and neighboring areas. This consists of:  

    1. Squatter settlements: This includes the development of infrastructure for 14 different sites, including the construction and maintenance of water and sewerage networks, sewerage treatment, roads and footpaths, bridges, pedestrian crossing, street lighting, retaining walls, health and social centers, and schools. This component will also provide the necessary transport vehicles, equipment and machines.

    2. Refugee camps: This includes the development of infrastructure for 13 camps, including the construction and maintenance of water and sewerage networks, roads and footpaths, bridges, pedestrian crossing, street lighting, protecting walls, health and social centers, and schools, as well as providing the necessary transport vehicles, equipment and machines.

    3. Sewerage treatment facilities: This includes the construction and equipping of sewerage treatment stations in the refugee camps and surrounding areas.

  2. Development of infrastructure in municipalities and villages: This includes the development of infrastructure in about 300 poor municipalities and villages, including the construction and maintenance of water and sewerage networks, sewerage treatment, roads and footpaths, bridges, pedestrian crossing, street lighting, protecting walls, health and social centers, and schools, as well as providing the necessary transport vehicles, equipment and machines.

  3. Technical services and institutional support. This includes:  

    1. Institutional support for the Housing and Urban Development Corporation to assist in the project implementation including consulting services, systems, computers, training, equipment, and supporting the sub-project management unit.

    2. Institutional support for the Cities and Villages Development Bank to assist in the implementation of the project, including consulting services, systems, computers, training, equipment, and supporting the sub-project management unit.

    3. Supporting the Ministry of Planning's project management unit. This includes consulting services, qualified experts, carrying out studies, financing selected projects, and providing equipment, transport vehicles, computer systems and installations and others.

 

Financing:

The Arab Fund loan constitutes about 14% of the total project cost. Other co-financiers include the World Bank with a loan of US$ 30 million, the Islamic Development Bank with loan of US$10 million, the Italian Government with a loan of US$ 20 million and the German Development Fund with a grant amounting to DM 20 million. The Jordanian Government will finance the remaining costs.

 

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