Announcement of Jordan will Receive Six Million Dollars IDA Credit for Tourism Project on June 10, 1976

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 76/30 JUNE 10, 1976 JORDAN WILL RECEIVE $6 MILLION IDA CREDIT FOR TOURISM PROJECT Tourism in Jordan will benefit from a $6 million IDA credit for the improvement and expansion of the splendid sites of Petra and Jerash and the preservation of their antiquities. Since 1967 the Jordanian Government has made a special effort to develop its tourist attractions on the East Bank of the Jordan River. Tour- ism has become an increasingly important sector of the economy and represents, In gross foreign exchange earnings, 18% of the country's total 1975 exports of goods and services. While tourism in Jordan has been increasing from 257,000 visitors in 1971 to an estimated 750,000 in 1975, hotel accommodations have not been able to meet the rising demand. Both Petra and Jerash have been recommended by UNESCO as Jordan's prime historical and archaeological sites. Petra, an ancient Nabataean rock- hewn city, located 250 kilometers (km) south of Amman, is undoubtedly one of the wonders of the ancient world. The grandeur of its antiquities and its • setting, deep within the heart of the surrounding mountain, imbue the city with its special magic. Jerash, 50 km north of Amman, is an impressive example of a well-preserved Roman provincial city of the Eastern Empire. The $12. 1 miii ion project wil 1 include: at the entrance of Petra, the modernization and expansion of a hotel to include an additional 76 rooms, as well as the expansion of catering, shopping, reception, and other facilities such as camping grounds and stables; also the construction of modest infrastruc- ture works; In the Petra Basin, which houses the city's major monuments, the construction of a restaurant, visitors' facilities and supporting infrastructure works; an important project component will involve the relocation of 96 Bedouin families who have been 1 iving within the Petra Basin and doing harm to the cultural monuments and artifacts. Under the project, the Government will pro- vide these families with housing and other community facilities on land near Wadi Musa and will also accord these people priority in employment opportunities generated by the project. in Jerash a restaurant, several visitors' facillties and a sound and light program will be developed; measures for the protection and preservation of thearchaeological monuments wiil also be undertaken under the project. Following the completion of the project in 19EO, visitors to Petra are expected to increase by 18% annually and visitors to Jerash by 15% per annum. The project is expected to yield net foreign exchange earnings of $1.5 million in 1979 and &i:>proximately $4.8 million from 1988 on; it is also expected t~ generate an additional 1,100 jobs in hotels, construction, trans- port, handicrafts and other services provided by the tourism industry in Petra and Jerash. • The IDA credit to Jordan is for 50 years, including ten years of grace. It is interest-free, except for a service charge of 3/4 of 1% to meet IDA's administrative expenses. So far, Jordan has received 12 IDA credits totalling $59.8 million. NOTE: Money figures are expressed in U.S. dolla~ equivalents. Form No. 1121 (9-75) PROJECT: T ECHNI CAL Tourism DAT A • COUNTRY: Jordan TOTAL COST: $ 12 . 1 mi 11 ion IDA FINANCING: $6 million, standard IDA terms OTHER FINANCING: Government of Jordan IMPLEMENTING ORGANIZATION: Ministry of Tourism and Antiquities, Amman, Jordan PROJECT DESCRIPTION: The project will consist of: (a) tourist accommodation, related superstructure facilities and supporting infras- • tructure works near the Petra Entrance; (b) visitor facilities, infrastructure works and archaeological preservation in the Petra Basin; also the resettlement of about 96 Bedouin families currently living in the Basin; (c) visitor facilities (including a Sound and Ligh-t Program), infrastructure works and archaeological preservation at Jerash; and (d) funds for a project unit and on the job and overseas training for staff of the Antiquities Department of the Ministry of Tourism and Antiquities. PROCUREMENT: Major civil works and equipment contracts wi'il be awarded on the basis of international competitive bidding, in accordance with the Bank's guidelines on procurement. ECONOMIC RATE OF RETURN: Jerash investments: 30.3% Petra investments 16.9% Combined 20. 1% ESTIMATED COMPLETION DATE: 1980 • -0-