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Background
The Government of Jordan embarked upon a privatization program, the goal
being to orient Jordan's economy more towards the private sector and best
present Jordan to the international financial community.
The specific objective of the program includes increasing the efficiency
of enterprises, consolidating public finances, and attracting private
investment into the economy and deepening the financial markets. As part
of the privatization process promoted by the Government of Jordan, the
Ministry of water and Irrigation has produced a number of key policy
documents. These documents amongst other form a framework within which
integrated water and wastewater services shall be provided within the
country. Key issues within the Water Utility Policy relate to Private
Sector Participation and water Pricing and Cost Recovery.
As part of the above policy Water Authority of Jordan has been considering
options for water and wastewater services in the Northern Governorates of
Irbid, Jerash, Ajloun and Mafraq and has concluded that the fixed term
Management Contract to currently be the best option.
The four Governorates have a current population of around 1.374 million
and current growth rate indicates that this will have increased to 1.857
million by 2010. Current water demand is estimated at 59.28 million m3
per year with the overall unaccounted for water being estimated at 62%.
Of this 40% are attributed technical losses and 60% to administrative
losses. A water loss reduction program has been developed to address the
technical losses in the Governorate of Jerash and Irbid at an estimated
cost of JD 15.25 million.
The project is subject to formal agreement with the German and Jordanian
Governorate. It is anticipated that this program will be implemented
through KfW and will be prepared in parallel with the established of the
Management Contract.
The Minister’s Cabinet had assigned to French Company together with a
local Company the management of the water and sewer systems of greater
Amman, using the equipment and facilities of the water Authority, as
follows.
Particulars of the project:
·
The assets will remain under ownership of WAJ.
·
The prices and water tariffs will remain as set by WAJ.
·
The contract will finance by the KfW and the government of Jordan
with a value of DM 24million, 50% to be paid out of grant from the KfW
and 50% from WAJ's budget.
·
The duration of the contract is 6 years.
·
The Government will decide the status of the contract.
·
Water Resources Monitoring within WAJ
Objectives:
·
Reducing the unaccounted for water, by improving the administrative
system.
·
Improving the cash flow.
·
Improving the quality of services offered to the citizens.
·
Attracting investments and availing funds to recondition
and
·
Improving the water quality and water treatment.
·
Training the personnel to increase efficiency.
The works, which will be assigned:
·
Operating and maintaining the water networks including pumping,
treating of water and making sure it complies with Jordanian water
standards.
·
Operating and maintaining the swear system by transporting the
wastewater treatment plants
·
Conducting regular maintenance procedures.
·
Rehabilitation of certain facilities and networks connected to the
houses as per tender documents.
·
Reading the meters and issuing the invoices in the name of WAJ and
collecting the money due and depositing this money in special bank
accounts.
·
Cooperation with WAJ by giving the technical advises to execute the
investment program to rehabilitates the water networks.
·
Training the employees of WAJ.
Financial terms:
·
Fixed amount, to be determined, will be paid over the contract
period; 6 years.
Performance Standards and
indicators:
·
Making sure the water of the equality to conform to the Jordanian
Standards.
·
Setting forth a program to control a water quality.
·
Setting forth a plan for contingencies.
·
Setting forth for operation and maintenance procedures.
·
Setting forth a plan for reduction in the energy costs.
·
Establishing a system for computerizing or information.
·
Establishing a plan for training of employees.
·
Establishing preventive maintenance procedures.
·
Reducing the amounts of unaccounted of water.
·
Improving the distribution of water in the networks.
·
Reducing the time needed for maintenance.
·
Improving the distribution of invoices to the subscriber.
·
Improving the collection procedures.
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