November 28, 2018
On November 28, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the Hashemite Kingdom of Jordan to provide a Japanese ODA loan of up to 300 million US dollars for the Business Environment, Employment and Fiscal Sustainability Reform Development Policy Loan.
The loan will support self-reliant and sustainable socioeconomic development to the Government of Jordan, which faces the challenges of a rapidly increasing population due to a large influx of refugees and of an expanding financial burden resulting from a rise in the number of people requiring public services. This support will work toward improving the environment for SMEs and other businesses, promoting employment especially for youth, women and foreign workers, including Syrian refugees, and appropriately managing public investment.
Specifically, the support will provide the Government of Jordan with policy and organizational reform support in three sectors: the business environment, employment and fiscal sustainability. For the business environment sector, the loan will support a reduction in costs related to government procedures, the advancement of trade and the promotion of SMEs. For the employment sector, the loan will support enhancements to career education for youth, the introduction of part-time work and the simplification of work permit procedures for women and foreign workers. For the fiscal policy sector, the loan will support the promotion of public-private partnerships and the appropriate management of public investment.
The loan will support such improvements in the business environment over the long term while contributing to a reduction in the short-term financial burden on Jordan arising from the influx of refugees and instability in nearby countries.
Details for the project are provided below.
1. Terms and Amount of Loan
Project title: Business Environment, Employment and Fiscal Sustainability Reform Development Policy Loan
Amount (million U.S dollar): 300
Annual interest rate (%)
Project: US dollar LIBOR+1.1%
Consulting services: -
Repayment period (years): 25
Grace period (years): 7
Procurement: General untied
2. Executing Agency
The Ministry of Planning and International Cooperation
Address: PO Box 555, Amman 11118, Jordan
Phone: +962-6-4644466, fax: +962-6-4649341~4642247
3. Planned Implementation Schedule
(1) Completion of project: December 2020 – with completion of the loan disbursement
(2) Issuing of letters of invitation for consulting services: No hiring of consultants is planned for the loan
(3) Tender announcement of initial procurement package for international competitive bidding on project construction: No work in conjunction with bidding is planned for the loan