Hashemite Kingdom of Jordan

Comprehensive Development of

Wadi Araba Region

(Phase I)

Loan No.:

522

Interest Rate:

4.5%

Beneficiary:

Jordan Valley Authority

Grace Period:

5 years

Project Cost:

KD 7.9 million

Maturity:

22 years

Amount of Loan:

KD 6.0 million

Repayment:

35 semi-annual installments

Date of Loan Agreement:

10/03/2008

First Installment:

5 years following the first disbursement

Date of Effectiveness:

26/03/2008

 


Objectives:

The project aims at reducing poverty and unemployment, and providing permanent residence for the population of Wadi Araba region, by creating small irrigation projects, developing agricultural and animal resources, and supporting related activities. The project also aims at improving the living standards for the inhabitants of the region by developing public utilities, improving health and education services and supporting local activities. This project constitutes the first phase of a comprehensive program aimed at transforming the region from a poor, low-density population area, to one that attracts people and different economic activities, through the utilization of the natural resources available locally.

Description:

The project, which is expected to be completed by the end of 2010, consists of drilling and equipping wells, constructing small irrigation networks, rehabilitating and constructing health and educational facilities, as well as rural roads, supporting local society services, availing awareness and agricultural guidance services and training, preparing studies, supervising project execution and providing institutional support for the recipient parties. The project consists of the following main components:

  1. Irrigation Works: This includes equipping 5 existing underground wells, drilling and equipping 20 underground wells including power supply distribution and necessary equipment needed for operating and monitoring wells, preparing land lots and distributing them among farmers, constructing agricultural roads, reservoirs, pumping stations and irrigation networks, and constructing a water intake and equipping it with meters to control water distribution.
  2. Public Utilities and Local Community Support: This includes building additional sections in some schools, rehabilitating, constructing and equipping small health centers, constructing some roads, supplying water tanks and providing equipment to enable local communities to improve their services.
  3. Agricultural Awareness: This includes obtaining non-governmental services, consultancy and experts services to establish and support cooperative societies to advise and coordinate between farmers. This component also includes establishing a center for agricultural awareness and research, acquiring necessary equipment and transport facilities, establishing demonstration farms and veterinary units, as well as supplying necessary equipment related to animal production, and executing training programs for the workers and beneficiaries of the project.
  4. Technical Services and Institutional Support: This includes necessary technical services for preparing studies, detailed designs and the supervision of project execution, and the preparation of any necessary socio-economic studies to achieve the project objectives. It also includes hiring experts to support the project execution unit and providing institutional support to recipient parties, including necessary equipment required for the maintenance and operation of establishments that will be constructed under the project

Financing:

The Arab Fund's loan covers about 75.9% of the total project cost. The Jordanian Government will cover the remaining cost of the project and any additional cost that may arise.


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