Proceedings of the 14th Meeting of the
Transport and Communications Working Group
15
Case study Jordan
Based on consultations with the Jordan Authorities a total of 7 PPP initiatives is active in the
transport sector in the country. These include 1 airport project under the responsibility of the
Ministry of Transport and 6 ports and logistics projects under the responsibility of the Aqaba
Development Corporation, all of them implemented in the Aqaba Special Economic Zone. A PPP
Unit and a dedicated PPP law are in place in Jordan. Standard risk management
guidelines/checklists have been also adopted. A database of PPP projects is also available. A mix
of public and private entities as well as international funding institutions have been consulted
as part of the case study analysis. Two major PPP projects have been described as part of the
case study: the Queen Alia International Airport (QAIA) in Amman and the Aqaba Container
Terminal.
The following main findings and challenges were highlighted with reference to the elements of
the conceptual framework:
 Strategy and policy. PPPs are strategic to address major infrastructural needs and deliver
assets without causing excessive burdens on the national budget. PPPs are also expected to
ensure quality in the management of transport and logistics services. However, PPPs are not
identified and selected as part of national strategies and transport plans.
A PPP Unit has been established, which was effective in promoting the PPP policy and
developing a set of PPP guidelines. However, the actual involvement of the PPP unit in the
whole life-cycle of the PPPs is less evident.
A PPP dedicated legislation is in place, which is considered overall adequate by public and
private stakeholders. Concerns are expressed about its actual implementation and the fact
that it oversees fiscal commitments.
The involvement of IFIs proved to be successful for the mitigation of financial credit risks.
 Pre-tendering decision process. PPP guidelines issued in January 2019 provide a sound and
well-detailed framework for pre-tendering PPP appraisal, also accounting for risk-
management dimensions. Fiscal Commitment and Contingent Liabilities impact assessment
and reporting of the system of PPPs, represents a major gap, also according to foreseen
amendments in the PPP law. No measures appear to have been taken to ensure an
appropriate level of administrative capacity in risk management practices, with a possible
risk that PPP guidelines are not followed and implemented.
 Procurement and contracting. Requests for Pre-Qualifications in Jordan require risk
management experience and capacity. Requests for Proposals should also contain among the
bid documents a detailed risk allocation matrix. Standard procurement procedures do not
seem to apply to PPPs implemented under the responsibility of the Aqaba Development
Corporation that seems to benefit from special rules and a degree of autonomy.
 Construction and operation. A Project Management Unit is generally in charge of managing
and monitoring the PPP. PPP guidelines recognize the need for whole life-cycle performance
monitoring, also after construction. A set of KPIs can be also defined for the monitoring of