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Water Governance in Jordan

Overcoming the Challenges to Private Sector Participation

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This report assesses the main governance and financing challenges to private sector participation (PSP) in the water supply and sanitation sector of Jordan, and provides ways forward to address them, based on international experience and OECD compendium of principles and good practices. Using the diagnostic analysis of the governance challenges to PSP in the Jordan water sector (Chapter 1), the report identifies ways forward to overcome bottlenecks focusing on three key pillars (Chapter 2): i) managing public-private partnership in a fiscally constrained environment through appropriate budget processes; ii) reducing the regulatory risks through supporting the development of a high-quality framework; and iii)managing and enhancing stakeholder engagement to improve accountability and buy-in. The report also includes an action plan with concrete measures to implement the recommendations proposed in the report.

The report has been developed as part of a water policy dialogue conducted by the OECD jointly with the Global Water Partnership-Mediterranean (GWP-Med) in the context of the project labelled by the Union for the Mediterranean (UfM) “Governance and Financing for the Mediterranean Water Sector”, with the support of the FEMIP Trust Fund of the European Investment Bank.

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Foreword

The OECD has long been a strong advocate for water management that contributes to economic growth, environmental sustainability and social welfare. With a multi-disciplinary team drawn from across the organisation, the OECD provides analysis to improve the information base, identify good practice and provide a forum for exchanging country experiences. Specific areas of OECD expertise and tools of relevance to water involve financing, governance, regulatory policy and private sector participation. This report builds on this expertise to diagnose the main governance and financing challenges to private sector participation (PSP) in the water supply and wastewater sector of Jordan, and provides ways forward to address these challenges.

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