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Water Governance in Jordan

Overcoming the Challenges to Private Sector Participation

image of Water Governance in Jordan

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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The diagnostic analysis of the governance challenges to private sector participation in the Jordanian water sector

This chapter provides a diagnostic analysis of the governance challenges to private sector participation in the water sector in Jordan. First, the chapter provides a mapping of the main public agencies involved in various functions in the water sector, including institutions involved in private sector participation (PSP). It reviews the capacities of public authorities (and other entities involved in water and wastewater services) to carry out their activities. Second, the chapter provides an overview of the country’s experience to date with PSP in water services, some lessons learnt and areas that could be avenues for further private sector involvement. Third, the chapter analyses the policy, legislative and regulatory framework for water PSP and identifies related challenges. Fourth, the chapter discusses the financial sustainability in the water service sector, including affordability for budget. Lastly, the diagnostic analysis takes stock of the existing mechanisms for ensuring the accountability of responsible authorities and private partners, including the ways and means to engage stakeholders in related policies and service provision.

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