Jordan has embarked on an ambitious, national public-private partnership (PPP) program with the broad objective of creating a driving force for economic growth and employment through well-defined partnerships in the infrastructure, utilities, and service sectors.
Increasing private sector participation—enhancing an environment conducive to private investments, supported by a strong political will, apt regulatory framework, and transparency—is at the core of the new era of private sector-led growth and development in Jordan.
Vulnerable to a host of interrelated international and regional challenges, Jordan’s economic growth has recently slowed despite remarkable achievements over the past decade. Regional crises, including the rising costs associated with supporting Syrian refugees and disruptions of Egyptian gas, have contributed to the decline in overall economic performance. Immediate measures targeting private sector participation in economic activities and planned development are required.
Given chronic fiscal turbulence, Jordan needs to leverage private sector resources to meet infrastructure development requirements by exploiting public-private partnerships (PPPs). PPPs are recognized as a catalyst for growth and employment and a key ingredient for achieving the national development goals as outlined in the recently launched blueprint Jordan 2025: A National Vision and Strategy.
Public-private partnerships have the following goals:
• Building, rehabilitating, operating, and maintaining public infrastructure.
• Encouraging the private sector to enter investment partnership projects with the Government Body.
• Finding the necessary funding to support feasible projects presented by the Government Body.
• Benefiting from up-to-date technical and technological experience and knowledge in building and managing projects.
The 2014 Public-Private Partnership Law is the exclusive legal framework for public-private partnership projects in Jordan and takes into account all sectors, including water, energy, transport, municipalities, and information technology. In order to clarify and further strengthen the provisions set down in the law, Jordan has also released the Public-Private Partnership Regulation.
The Public-Private Partnership Unit, under the supervision of the Ministry of Finance and the Public-Private Partnership Council led by the Prime Minister, acts as a central body for the supervision, regulation, and support of all PPPs conducted by the Government of Jordan.