The Board to the World Bank approved the Country Partnership Framework (CPF) for Jordan in July 2016, and its Performance and Learning Review (PLR) was reviewed in May 2021. The CPF rests on two pillars: (i) strengthening private‑sector‑led growth and better employment opportunities for all and 2) improving the quality and equity of service delivery. The PLR adds a third pillar: (iii) supporting an effective response and resilient recovery from COVID‑19, including a one‑year extension of the CPF (until FY23) and focusing on reform implementation and results.
Over the period of the CPF, the World Bank’s portfolio in Jordan has expanded rapidly to support Jordan’s reforms and, in FY20–22, to promote COVID‑19 response and recovery. As of the end of March 2022, the Bank’s active portfolio in Jordan comprised 14 projects valued at US$2.75 billion in loans, concessional financing and grants. About 46.42% (a total of US$1.48 billion) had been disbursed out of a total commitment of US$2.75 billion. The Bank Group has used concessional resources to support Jordan’s Syrian Crisis Response, through an exceptional International Development Association (IDA) allocation of US$200 million and the establishment of the Global Concessional Financing Facility. This facility has been used to help fund several projects in Jordan (see below).
Active projects span the following 10 sectors:
Finance, Competitiveness and Inclusion
- Economic Opportunities for Jordanians and Syrian Refugees PforR – US$349 million (US$51 million GCFF co‑financing).
- Innovative Startups Fund Project – US$50 million.
- Youth, Technology and Jobs Project – US$163.1 million (US$36.90 million GCFF co-financing).
- Promoting Financial Inclusion Policies in Jordan – US$1 million
Macroeconomics, Trade and Investment
- Inclusive, Transparent and Climate Responsive Investments PforR – US$500 million
Health, Nutrition and Population
- Emergency Health Project – US$177.2 million (US$72.80 million GCFF co‑financing)
- COVID‑19 Emergency Response – US$70 million (US$13.75 million Trust Fund co‑financing)
- Education Reform Support Program – US$229.1 million (US$70.9 million GCFF co‑financing)
Social Protection and Jobs
- Emergency Cash Transfer COVID‑19 Response – US$990 million (US$24.17 million Trust Fund co‑financing)
- Support to Private Sector Employment and Skills – US$112 million
Urban, Resilience and Land
- Municipal Services and Social Resilience – US$102 million
- Strengthening Reform Management in Jordan – US$6.5 million
Environment, Natural Resources and the Blue Economy
- Ozone Depleting Substances HCFC Phase‑Out Project – US$3.9 million
Agriculture and Food
- Exploring High‑Value, Socially Inclusive and Water‑Efficient Agriculture – US$1 million
Social Sustainability and Inclusion
- Integrated Social Services for Vulnerable Youth – US$2.8 million
Jordan also administers a Multi‑Donor Trust Fund (MDTF), the Jordan Inclusive Growth and Economic Opportunities MDTF (US$62.7 million). It includes contributions from the UK’s Foreign, Commonwealth and Development Office (FCDO), Canada, Germany, Norway and the Netherlands. The MDTF funds 24 recipient‑executed and Bank‑executed grants to support reforms for private sector‑led growth and employment creation.
International Finance Corporation (IFC)
The IFC program in Jordan has doubled since 2010. It represents IFC’s third largest investment portfolio in the Middle East, Central Asia, Turkey, Afghanistan and Pakistan region, with outstanding commitments of US$713.3 million as of April 30, 2022.
Over the past decade IFC mobilized more than US$510 million across several landmark projects. These include three wind independent power projects (IPP) starting with Tafila Wind — the first privately owned renewable energy facility; nine solar PV projects starting with Seven Solar Sisters; ACWA Zarqa IPP to 485 MW CCGT — the largest power project IFC has financed in Jordan and Baynouna Solar.
During FY21–FY22, IFC partnered with Flat6Labs Fund, which is a startup accelerator and early‑stage venture capital fundraising, to invest in 90+ Jordanian startups. IFC also expanded financing of three existing clients within the renewable energy sector and education with Shamsuna, Falcon Maan and Luminus.
Amid the COVID‑19 pandemic, IFC provided a US$200 million debt financing package to Hikma Pharmaceuticals to help ensure smooth deliveries of medicines across the Middle East and North Africa. This was part of IFC's US$8 billion fast‑track COVID‑19 facility, aiming to help existing clients address the operational and financial impact of the pandemic.
A key objective for IFC in Jordan is to enable the private sector to create additional jobs and reverse the negative impact of high unemployment. Boosting the private sector’s competitiveness is the sustainable path to recovery and growth for Jordan, especially given the country’s fiscal constraints. In doing so, Jordan needs to advance investment climate reforms to reduce the cost of doing business and increase internal efficiency and market competition.
Accordingly, IFC has recently developed a strategy for Jordan that is designed to tackle three main developmental gaps that are constraining growth and employment through the following strategic priorities: (i) create competitiveness and jobs; (ii) stimulate sustainable infrastructure and green economy to alleviate fiscal pressure, provide access to quality services at lower costs and promote sustainable economic growth and (iii) improve access and inclusion to address labor market segmentation and support entrepreneurship.
IFC’s work to proactively build a pipeline of investible opportunities to which we--and others--can bring capital is enabled by policy reforms and strengthening the investment environment of client countries. We undertake these activities in close partnership with the International Bank of Reconstruction and Development (IBRD), the Multilateral Investment Guarantee Agency (MIGA), and the International Monetary Finance (IMF). The World Bank Group as a whole is critical to scaling up IFC’s engagement in the financial sector, continuing to implement a strong Public Private Partnership (PPP) program, addressing climate risks, opening new markets for job creation, and addressing high business costs and labor market inefficiencies.
Although risks to reform implementation exist, the government of Jordan has indicated that it recognizes the need for improvement in its growth trajectory through its Reform Matrix 2018–2024. It is aligned with IFC’s strategy in adopting a private sector led growth model and addressing climate change risk. Through policy dialogue, the World Bank Group (WBG) tools, including upstream and advisory services, will be leveraged to address key policy priorities and overcome risks to program delivery.
IFC, in partnership with IBRD, is collaborating with the Ministry of Planning and International Cooperation (MOPIC) and the Ministry of Environment (MOE) in the development of the Jordan Climate Change and Development Report (CCDR), which is a FY22 WBG joint analytical product. The CCDR will identify selected policies and investments through two intersectoral and two economy‑wide technical deep‑dives exploring adaptation and mitigation. The following climate priority sectors are identified: (i) energy, water and agri‑food, (ii) low‑carbon urban development, transport and energy, (iii) financing and (iv) inclusive, climate‑responsive businesses, skills and jobs. The private sector is a major GHG emissions contributor in Jordan, and it is also vulnerable to climate change. The private sector role is recognized to implement climate adaptation and mitigation actions at a sectoral and economy wide level.
Multilateral Investment Guarantee Agency (MIGA)
MIGA has been active in Jordan’s PPP sector, and the country is MIGA’s second largest exposure in the MENA region. MIGA’s outstanding gross exposure in Jordan stood at US$564 million as of April 2022. Jordan remains MIGA’s largest exposure in the Mashreq region. MIGA has been very active in the country’s PPP sector, having supported projects in water, energy and transport. MIGA‑supported projects in Jordan include gas power, wastewater treatment, Queen Alia International Airport and bromine manufacturing. MIGA is working closely with the IFC advisory team to identify opportunities to support FDI flows into the transport sector.
Last Updated: May 26, 2022