Jordan EPC-ElKhatib

Jordan’s PPP Programme :Transparency, Competitiveness,Efficiency and FairnessExecutive Privatization CommissionAbdel-Rahman El-Khatib,Chairman.

PPPs : Key Component to Economic reform &Development StrategyAll national economic initiatives emphasized the necessity toaccelerate & improve the delivery of infrastructure and servicesprovided to the citizens through a more proactive role of theprivate sector.Jordan’s PPP Programme (2008) main objectives:Enhance and increase the construction, rehabilitation, operation andmaintenance of public infrastructure.Mobilize private finance and reduce the debt burden off the Treasury.Encourage private initiatives for the delivery of public works andservices.Increase technical capacity and employment.Implement projects that provide value-for-money; quality services andoptimal risk allocation between the public and private partners.2

Private sector involvement in Jordan OverTime1992 1996 1998 2000 2005 2006 2007 20082009Jordan witnessed intense activities in thearea of privatization spreading over anarray of vital sectors such as transport,electricity, telecoms, mining, water, etc3

Private sector involvement in Jordan OverTime1992 1996 1998 2000 2005 2006 200720082009Jordan witnessedintense activities in thearea of privatizationJordan moved towards long termpartnership with the private sector (PPP)4

Legal FrameworkPrivatization LawRegulations 80/2008Institutional set-upPriv. CouncilEPCMinisterial &TechnicalCommitteesEPC SupportingEffortsLegal, institutional,and financialcomprehensivestudyPPP ManualCabinetresolutionPPP Committeechaired by EPCA new PPP Law is under active preparation

EPC evolving into PPP CommissionCapitalizing on its track record and cumulative expertise,EPC has been officially designated, in 2006, as the qualifiedentity to develop and implement the PPP program and todevelop into :– Jordan’s center for PPP expertise and knowledge,providing clear flow of procedures, standard projectdocuments, management systems and best practices.– Coordinate and facilitate the PPP process across differentinvolved stakeholders.– Interface with international organizations, align effortsand ensure effective utilization of donor support withregards to PPPs.

Legal Set Up: Why a PPP Law? To provide a stable framework promoting and facilitating thewider implementation and development of PPP Projects Define Jordan PPP policy framework. Identify roles and responsibilities/accountability ofstakeholders. Identify eligible sectors of the national economy for PPPschemes. Provide clear legal reference and flow of procedures that willgive investors a sense of security and certainty. Define and safeguard rights and responsibilities of bothpublic and private entities. Institutionalize the capacity building within the governmentto ensure knowledgeable reference point to all stakeholders.

Main features of the proposed PPP Law The draft Law shall address, inter alia, thefollowing issues:• PPP definition and objectives• Institutional framework• Project life cycle and Procurement procedures• PPP contracts content, duration and termination• PPP proceeds and divestiture proceeds funds• General provisions8

Ongoing PPP ProjectsJordan National Railway Network,Light Rail system (Amman –Zarqa),Amman Ring Road,Azraq- Omary Road;Facility Management System;Medical and Industrial Waste Treatment Plant,Solid Waste Management and Recycling/ GAM,Small pilot projects: Municipalities and Tourism sectorIdentification of potential PPP projects /feasibility studies.MoICT: Improved e-gov. services; Expanded regional IT services.Jordan maintains a sound macroeconomic environment friendly to investors conducive toprivate investments in the public infrastructure delivery and provision of services.9

The Way AheadJordan is committed to: Develop a PPP Policy and Legal Framework safeguarding therights of both investors and consumers; Strengthen the Enabling Environment for PPPs- Institutional,regulatory, financial/creating a PPP Fund; Ensure good governance of PPP projects:. Proceed with implementing a transparent, efficient, fair andsuccessful partnership program in infrastructure and Publicservices sectors.

Thank Youwww.epc.gov.jo