Foreign Assistance:

·         As per the Planning Law No. (68) for the year 1971, the Ministry of Planning and International Cooperation is the “focal point” between the donor community and the line ministries, as well as public and private institutions. Accordingly, by mandate the Ministry is the only governmental entity authorized to seek foreign assistance (grants, soft loans, and technical assistance) to finance priority development programs and projects in accordance with the national development priorities as reflected in the National Agenda, as well as the Government Action Plan in coordination with the various sectoral ministries, and concerned institutions.  

·         Over the years, and as a result of His Majesty King Abdullah II ibn Al Hussein continuous efforts as well as the Government’s progress on the political, social and economic reform fronts, Jordan is entitled to receice foreign assistance from various donor countries and financing institutions and international organizations. The foreign assistance provided is directed to finance priority development programs and projects in order to enhance growth and sustain development in various vital sectors, particularly in the areas of: water and wastewater, education, energy, health, infrastructure, youth and poverty, and microfinance, in addition to budget support. Thus, the impact of foreign assistance was reflected in supporting the development and modernization process on all fronts. 

I.          Types of Foreign Assistance:

·         Accordingly, the Government of Jordan and through the Ministry of Planning and International Cooperation continues to exert extensive efforts with the donor community to maintain the same level of assistance provided to Jordan and seeking additional aid, as well as approaching new donor countries to secure extra funding for priority programs and projects. It is worth noting that Key donors to Jordan include; United States of America, European Union, Japan, Germany, Canada, Italy, Spain, France, China, South Korea, UN Agencies, the World Bank, European Investment Bank, the International Fund for Agriculture Development (IFAD), OPEC Fund for International Development , Arab Fund for Economic and Social Development, Islamic Development Bank, Kuwaiti Fund for Arab Economic Development, Abu Dhabi Fund for Development, and Saudi Fund for Development. 

1)        Types of Grants extended to Jordan:

a.         Grants directed as budget support through the Ministry of Planning and International Cooperation (MOPIC):  This type of grants is extended directly to the national budget to finance developmental programs and projects included in the General Budget Law, or it is provided as additional allocations within sectoral ministries’ budgets that are concerned with implementing identified programs and projects in coordination with the relevant donor. Key donors that provide direct budget support are; the United States of America, the European Union, and Japan. Hence, MOPIC is entitled to conclude and sign the financing agreements of these grants and follow up on necessary actions to disburse the amounts in coordination with the Ministry of Finance. However, grants directed to budget support provided by the GCC Countries are transferred directly to the Ministry of Finance to be calculated in the national treasury.

2)       Grants managed directly by the donor community: this type of grants is concluded by the Ministry of Planning and International Cooperation with the donor community and in coordination with concerned line ministries and institutions to ensure its best utilization. Accordingly, the Government of Jordan represented by MOPIC signs the grant agreement, and it is subject to the financial and administrative regulations of the concerned donors and with proper coordination with the relevant ministries, as well as under the supervision of the Audit Bureau.

3)       Soft Loans: soft loans are contracted through the Ministry of Planning and International Cooperation in coordination with the Ministry of Finance and the donor community as well as financial and lending institutions upon the approval of the Ministerial Debt Committee. Furthermore, soft loans are directed to finance mega projects in various sectors such as infrastructure, water and wastewater, energy, and education. The contracted soft loans are of low interest rates ranging from (zero% -5%) and repayment period that varies between (15-30 years) with a grace period from (5-7years).   

4)       Technical Assistance: the donor community has been providing different types of technical assistance to Jordan, with the aim of building the institutional and administrative capacities of various public institutions and ministries. Technical assistance provided include: twining programs, dispatch of experts, dispatch of volunteers, support for feasibility and analytical studies as well as training programs and scholarships.

II.      Foreign Assistance to Jordan (2000-2012):

·        The total amount of foreign assistance (grants and soft loans) committed to Jordan by the donor community during the years (2000-2012) amounted to US$13.3 billion, of which US$9.1 billion in the form of grants, whereas US$4.15 billion as soft loans.

US$ million

III.   Ongoing projects funded through foreign assistance:

1)      By Donor

2)      By Sector

IV.    Sectors  Supported  by  Foreign Assistance:

 Sectors  Supported  by  Foreign Assistance

 

V.  Foreign Assistance Reports for the years (2006-2012): 

1) Foreign Assistance Report 2006

2) Foreign Assistance Report 2007

3) Foreign Assistance Report 2008

4) Foreign Assistance Report 2009

5) Foreign Assistance Report 2010

6)      Foreign Assistance Report for the year 2011

7)      Foreign Assistance Report for the year 2012