Jordan - Second Hussein Thermal Power Project

FILE COPY DOCUMENT OF INTERNATIONAL DEVELOPMENT ASSOCIATION Not For Public Use Report No.P"1624a-JO REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE HASHEMITE KINGDOM OF JORDAN FOR A SECOND POWER PROJECT May 27, 1975 This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  Currency Unit: Jordanian Dinar (JD) Currency Equivalent: Before February 1973 US$ 1 = JD 0.357 JD 1 = us$2.8o Since February 1973 11$ 1 -JD 0.322 JD) 1 = US$3 .11 Since February 1975 US$ 1 = JD 0.311 JD 1 = US$3.22 Fiscal Year: January 1 to December 31  INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE HASHEMITE KINGDOM OF JORDAN FOR A SECOND POWER PROJECT 1. I submit the following report and recommendation on a proposed credit to the Hashemite Kingdom of Jordan for the equivalent of US$5.0 mil- lion, on standard IDA terms, to help finance the Second Power Project. The proceeds of the credit would be relent to the Jordan Electricity Authority (JEA) for 25 years, including 3-1/2 years of grace, with interest at 8-1/2 percent per annum. PART I - THE ECONOMY 2. An economic mission visited Jordan in January 1974, and its report entitled "Current Economic Position of Jordan", (#479a-JO dated November 5, 1974,) was distributed to the Executive Directors on November 15, 1974. Country data sheets are attached as Annex I. 3. Before the 1967 war with Israel, the Jordanian economy grew at about 8 percent per year in real terms. Price stability prevailed, and high levels of foreign assistance sustained a high level of investment and a surplus in the balance of payments. However, Jordan's economy was adversely affected by the 1967 war and the confrontation with the Palestinian Fedayeen groups in 1970/71. The occupation of the West Bank, with 30 percent of Jordan's popula- tion, deprived the country of about 40 percent of its GNP, and over 200,000 refugees emigrated to the East Bank. Growth of agriculture, tourism, and in- dustry was curtailed, and the economy's dependence on external transfers in- creased. The latter, together with net factor income from abroad, accounted for about a quarter of GNP since 1969. In 1970/71, the Government's efforts to check the activity of Palestinian guerillas provoked economic sanctions against Jordan by some Arab countries. Jordan was particularly affected by the closure of the Jordanian-Syrian border from July 1971 to November 1972, which resulted in a decrease in exports from $41 million in 1969 to. $32 mil- lion in 1971, bv the suspension of budget support from Kuwait and Libya after 1970, and by the closure of the Syrian-Lebanese frontier during the first half of 1973. Following the October 1973 war and an Arab summit conference at Rabat of 1974, more financial aidl from OAPEC sources was granted to Jordan. 4. After a period of economic stagnation from 1967 to 1970, signs of economic recovery began to appear in the second half of 1971, with agricultural output recovering to the level of 1967. In 1974, agriculture recovered sharply from the drought of 1973. Industry picked up in 1972, and reached almost full capacity utilization In 1973. In 1974 industrial production is estimated to have grown by over 6 percent. Exports of goods rose sharply  -2- from $32 million in 1971 to $58 million in 1973, and are estimated at over S150 million in 1974, reflecting increased phosphates prices. Overall economic growth is likely to have reached 8 percent in real terms in 1974, partly due to the recovery of agricultural production from a bad crop in 1973. With the reopening of the Syrian frontiers with both Lebanon and Jordan in mid-1973, an improved domestic political situation, and a revival of private investment, the economy of Jordan has good prospects for renewed growth. A five-fold increase in phosphate prices since 1972 and an expected expansion in phosphates production from 1 million tons in 1973 to 3 million tons in 1975 (and to 8 million tons by 1980) have improved the balance of payments prospects. In- creased costs of oil requirements may be expected to be offset by a correspond- ing increase in royalties from oil pipeline through-put. However, since imports represent more than 40 percent of GNP, the economy remains strongly affected by increases of world prices. 5. The return of internal stability in 1971 permitted the Government to devote more attention to medium- and long-term economic issues. The planning machinery was reactivated with the establishment of the National Planning Council (NPC), in late 1971, and of coordination committees with the private sector. As a first step, a Three Year Plan (1973-75) was prepared, which aims at achieving an 8 percent annual rate of growth with relative price stability; creating new jobs in an attempt to reduce the 8 percent unemployment rate and the serious underemployment in the East Bank; and improving manpower skills through vocational and technical education. The Plan also aims at fostering a more equitable distribution of economic: gains between the various income groups and geographical regions, mainly through rural development and improvement of housing and public services; and at phasing out the economy's heavy dependence on foreign budget support by reducing the budget and trade deficits through increased domestic revenues and foreign exchange earnings. 6. The Plan envisages a thorough restructuring of the economy by reduc- ing its heavy reliance on services (about two-thirds of GDP), and on defense (about 22 percent of GDP in 1973), and by developing agriculture, manufactur- ing and mining, both through institutional and infrastructure support to pri- vate initiative and through public investment in production enterprises if needed. In agriculture, which accounts for about 19 percent of GDP, one-third of commodity exports and 30 percent of employment, emphasis is placed on dev- elopment of irrigation and, to a lesser extent, on improvement of rainfed farming to exploit the substantial potential for export--especially citrus and other fruits--and for import substitution of wheat aand meat. Support of manufacturing and mining, which account for about 14 percent of GDP, 7 percent of employment and two-thirds of commodity exports (half of which are phos- phates), aims at making production more competitive and export-oriented, particularly to neighboring countries; developing fertilizer production based on the country's phosphate reserves; increasing the production of Jordan's high quality phosphate rock; and exploiting the country's deposits of potash and copper. Four large projects, in phosphates, potash, fertilizer and copper production, aim at reducing budget and trade deficits by generating substan- tial foreign exchange earnings.  7. The plan anticipated an aggregate investment of $557 million from 1973 to 1975. However, the achievement in the first two years was somewhat slower than was expected. Public investments were 49 percent of what was planned in 1973 and 1974, and private sector investment was 46 percent of the target during the same period. External financing accounted for 44 percent of total investment for 1973 and 1974: 59 percent for the public sector, and 12 percent for the private sector. While investments in transportation and agriculture were about 75 percent of the planned target on the average, in- vestments in the social sectors such as education and health were very slow (less than 20 percent). The public sector's performance is expected to improve in 1975. Budgetary funds were earmarked to compensate for the shortfalls of the previous twxo vears, in addition to meeting the original target for 1975. 8. The pattern of external assistance to Jordan in the recent past has largely been influenced by the unsettled conditions of the region. Transfers to the Government, mostly in the form of budgetary support and military aid, averaged $140 million per year during 1967-73. Under the Khartoum Agreement, Jordan received subsidies amounting to about $105 million annually from Kuwait, Libya and Saudi Arabia in 1967-69. Saudi Arabia maintained financial assis- tance in 1970 and increased its aid from $40 million to $64 million in 1972. Substantial US transfers (around $60 million in both 1972 and 1973) compensated for the suspension after 1970 of the payments from Kuwait and Libya; Kuwait resumed its support in April 1973, raising total official transfers received by Jordan to $179 million in that year. In 1974, budget support amounted to $168 million, mainly from the Arab countries ($123 million), but also from the USA ($45 million). It also received $28 million in development loans in 1974, of which Kuwait provided $3 million, Federal Republic of Germany $14 million, and IDA around $5 million. 9. The new emphasis on development and an extensive project list pre- sented in the Plan have helped to increase development aid. New commitments over 1972-73 amounted to $137 million, mostly from Western sources, Kuwait anid IDA. Average terms on $92 million committed in 1973 were about I percent interest, 7 years of grace and 30 years maturity. The gross inflow of long- and medium-term capital to the central and local governments, which had averaged $10 million per year during 1967-70, increased to an average of mtore than $30 million annually after 1970. The external public debt, including undisbursed amounts, was about $325 million at the end of 1973, of which about 13 percenit was held by the Bank Group. The outstanding and disbursed debt at the end of 1973 was estimated at $225 million. Because of the concessional terms, the debt service ratio was low, at 6.5 percent in 1974. Nonetheless, because of the difficult development problems arising from the country's still unexploited natural resources, serious underemployment, and the progres- sive reorientation of the economy which is likely to follow the development of new centers of economic activity and possibly a peace settlement, Jordan still needs a substantial part of external assistance on concessional terms.  - 4 - PART II - BANK GROUP OPERATIONS 10. Jordan has to date received ten IDA credits totalling $53.8 million (net of cancellations). Four credits were made before 1967--two for agri- cultural credit ($6.0 million) and two for water supply ($5.4 million)-- and are fully disbursed. War and local disturbances adversely affected the pace of economic development and Bank Group lending resumed in mid-1971. Credits were made for a highway project ($6 million) in 1971; a first education proj- ect ($5.4 million) in 1972, and a second one $6.0 million) in 1975; a power project ($10.2 million) in 1973, a water supply project ($8.7 million) in 1973, and an Irrigation project ($7.5 million) in 1974. Performance under these projects is generally satisfactory. An engineering credit to initiate the potash project is being prepared and would be presented to the Executive Directors before the end of the current fiscal year. IFC made two investments in Jordan consisting of a $224,000 equity participation and a $1.6 million loan to Jordan Ceramic Industries Limited (JCI) in 1974, and also a $3.2 mil- lion equity participation in the promotion of a phosphatic fertilizer project. Annex II contains a summary statement of IDA credits and IFC investment as of April 30, 1975, and notes on the execution of on-going projects. 11. Last year, the Government requested Bank assistance in formulating, implementing and mobilizing multilateral financing for a package of develop- ment projects in the Rift Valley. This region includes the largest portion of Jordan's resources which are critical to the future improvements in the balance of payments and in incomes and living standards. Large mining proj- ects in phosphate, potash and copper, a phosphatic fertilizer project, and the related port and railway development are included in the package, as well as further development of the water resources of the Jordan Valley and the region south of the Dead Sea. These developments, together with the estab- lishment of industrial zones and supporting services for light manufacturing and tourism in other parts of the country, would contribute to reduce the present trend of excessive concentration of economic activities in the Amman- Zarqa area. Preparatory studies are also underway for projects in rainfed areas which would expand cereal and livestock production and reduce the country's dependence on agricultural imports. In view of the magnitude of the new investments contemplated and of Jordan's reliance on external financ- ing for the bulk of them, the Bank has requested the Government to review this program in the framework of the current three-year Plan so as to establish priorities in light of the financial resources likely to be available. This review has been initiated by Government and the results are being incorporated in the next Five Year Plan (11976-1980) now under preparation. 12. Since 1973, the Bank has been acting as Executing Agency to a three- year UNDP Planning Assistance Project based in the National Planning Council. The planning team has been working with the NPC on project preparation and ap- praisal. The Bank is also acting as Executing Agency for a UNDP-financed study of industrial investmenl: opportunities and industrial estates in Jordan.  - 5 - PART III - THE POWER AND ENERGY SECTOR 13. There are no coal deposits nor any known deposits of oil in Jordan. The only indigenous energy resources are (a) small hydro-power potential of about 5-MW on the Zarqa River, which is associated with an irrigation program for the Jordan Valley where a dam is being constructed (the execution of the power component, however, has not yet been considered pending further study of its justification); and (b) development of about 50-MW of hydro-power potential on the Yarmuk River in North Jordan, also associated with Jordan Valley irrigation. The Government is expected to engage consultants soon for the final feasibility study of the latter development. Oil is the main source of commercial energy and is partly imported under an agreement with the Trans-Arabian Pipeline Company (Tapline) for the transit of oil from Saudi Arabia through Jordan to the Mediterranean. The oil is conveyed by pipe from Tapline to the Jordan Refinery, located at 7.arqa, in which the Government has majority shareholding. Presently Jordan's entire power require- ments is met by diesel stations operating on gas oil and residual oil. 14. Jordan's total installed electric power generating capacity is about 125 MW, including about 40 MW is captive plant (auto producers). The present rate of growth of electricity consumption is about 15 percent per annum. Pub- lic electTicity supplies in northern Jordan are provided by the Jordan Electri- city Company (JEPCO) and the Irbid District Electricity Company (IDECO), both private Jordanian companies. The number of consumers served by JEPCO and IDECO as of September 1974 was about 113,300, of whom 86,400 or 76% were sup- plied by JEPCO and 26,900 or 24% by IDECO. JEPCO supplies the area with the greatest growth potential, including the capital city of Amman and the Zarqa industrial area. The area supplied by IDECO is mainly agriculturally oriented, In southern Jordan, electricity supply Is provided by isolated undertakings, the largest public one being the Aqaba Port Authority which supplies a peak demand of about 3 MW. Some users are generating their own energy. The largest plants are at the Jordan Cement company (14 M;), near Amman, the Jordan Oil Refinery at Zarqa (4.8-M;), and at the Jordan Phosphate Company, which has a load of some 5 MW near its mine at Al Hasa in the south. There are a number of small private plants, nome of which are used for emergency standby only. In the Jordan Valley, there are thought to be about 200 small pumping stations, mostly operated by small individual diesel sets, aggregating at least 1,500 kW. In 1967, the Jordan Electricity Authority (JEA) was estab- lished by Law No. 21 to provide for a coordinated developmenc of the power sector and the country's power resources. The various regional power produc- tion companies are under its general authority. 15. The national development program is well defined. In the northern sector, IDECO would complete by mid-1975 the construction of a new power station with an installed capacity of about 9 MW and continue to expand its 30-kV networks including the connection to the Jordan Valley in the north.  JEA would complete its 132-kV transmission system, financed with UK develop- ment funds, linking Zarqa with the Amman ring, and JEPCO would further expand its 30 kV system including the connection to the Jordan Valley in the south. Demand is expected to exceed JEPCO's firm capacity in 1975 despite commission- ing of a third 6-MW diesel unit in the Marqa station, and JEA would meet JEPCO's peaking requirements for 1975/76 with the gas turbine financed under Credit 386-JO. By mid-1976, JEA would meet most of JFPCO's requirements from the Hussein Thermal Station. In order to continue to meet this commitment, the proposed project should be completed in 1978. JEA's 1974-1978 development program, together with its cost, is shown in Annex III. It amounts to JD 35.1 million (US$108.8 million), of which the first IDA power project constitutes about 23% and the second proposed project about 20%. JEA's 1974-80 program includes (a) completion of the new Hussein Tnermal Station at Zarqa and the 132-kV facilities around Amman (1967/77); (b) the Project and some reinforce- ment of the 132-kV facilities in the Amman area (1977/78); (c) the fourth unit (66-MW) at the Hussein station and 24-MW in gas turbine capacity, to- gether with 220 km of 132-kV lines linking Irbid to Amman, and El Hasa in the south to the northern grid (1978/79); and (d) a fifth unit (66-MW) and fur- ther transmission expansion (1980/81). JEA's total investment program through 1978 is about $108.8 million. After 1976, JEA is expected to meet all local costs of expansion from internal cash generation and Government equity, but foreign loans of about $76.5 million would be needed to meet the remaining external financing of the investment program. 16. In the southwestern part of the country, rapid developments are expected to take place including the expansion of the El Hasa phosphate mines requiring about 10 MW in additional capacity in 1978 and a further 20 MW in 1980; the construction of a potash plant (17 MW) at the southern end of the Dead Sea; the opening of a copper mine east of Shan (5 MW); the construction of a fertilizer plant (10 MW), a cement plant (20 MW) and a glass factory (0.6 MW) in the area of Ma'an; the development of tourist facilities through- out the area, including Aqaba, requiring about 1 MW; and the improvement of present power facilities in towns and a rural development plan in the Karak area. In view of the relatively large industrial requirements, JEA has re- quested IDA to finance from the proposed credit a long-term power development study for southern Jordan (including the possibilities of future connection of the area to the northern system); the study should be completed before March 31, 1976. 17. The Government intends to conduict a final study of the multipurpose project on the Yarmuk River on the border with Syria. A feasibility study was completed in the mid-sixties but further progress was impossible in the after- math of the 1967 war. Jordan and Syria aare expected to renew the agreement embodied in their treaty of 1953 on the use of waters for irrigation and on the construction of a dam and power station. Since power operation would depend on the requirements for irrigation and a large part of the power would be reserved for Syria, the power benefits for Jordan cannot be assessed at this stage. Because the countries are also studying the possibility of inter- connecting their respective power systems, which could have a major effect on Jordan's requirements for transmission lines (includ:[ng the Yarmuk plant con- nerting line), these developments are in too early a stage to be included in the present development program. In anv event, the hydro station would not be completed before the end of this decade.  -7- PART IV - THE PROJECT 18. A detailed description of the proposed project is given in the report entitled "Appraisal of the Second Hussein Thermal Power Project," dated May 23, 1975, which is being distributed separately. A Credit and Project Summary ls attached as Annex III. A map showing the location of the project is also attached. Negotiations for the proposed credit were held in Washington from May 19 to 21, 1975. The Jordanian Delegation was headed by Mr. Ali El Nousour, General Manager, Jordan Electricity Authority. Background 19. The Government first requested IDA's assistance in financing the Hussein Thermal Power Station in 1969. The U.S. Agency for International Development (USAID) had previously assisted in financing a feasibility study for this project, which was to be operated in conjunction with a proposed hydroelectric power station at Shuneh on the Yarmuk River, and a 138-kV transmission system interconnecting Amman, Jerusalem, Nablus and Irbid. Sub- sequently, the envisaged expansion had to be modified because of the June 1967 war and the civil disturbances in 1970 and 1971. The first project (386-JO) was appraised in June 1971, but the Association concluded that construction of the steam plant would be premature: it was then re-appraised by the Asso- ciation and the Kuwait Fund in 1972, on the basis of an updated feasibility study prepared by the Kulijian Corporation of the United States. A $10.2 mil- lion Credit (386-JO) was signed in 1973 and the first power project is being financed jointly (50/50) with the Kuwait Fund. It comprises two 33-MW steam electric units and one 12-MW gas turbine generator unit at the Hussein Station (near Amman). Although there were some initial delays, the project is now progressing satisfactorily; the gas turbine is scheduled to be commissioned shortly, and the steam unit in 1976, nearly on schedule. The proposed project includes adding a third 33-MW unit to the Hussein station whose capacity may ultimately reach some 200 MW. Beneficiary: Jordan Electricity Authority (JEA) 20. The JEA is responsible to the Minister of National Economy and its principal functions are: (a) to establish generating and transmission facil- ities to supply energy in bulk to distributors whose systems are connected to the JEA system; (b) to manage and operate any facilities transferred to or acquired by JEA; and (c) to develop the supply of electricity in areas where there is an economic demand and which are not within the area of supply designated in concessions to other companies. Existing power stations may be designated by JEA as "selected power stations" to operate under JEA's direction. Subject to Cabinet approval, these power stations may either be purchased by agreement with the owners, or the energy produced may be bought by JEA at a cost sufficient to cover the owner's operating costs. JEA may require that power stations connected to the system but not designated as "selected power stations" and not considered to be economically justified for continued generation cease operation. JEA may also purchase any of the other  - 8 - electricity undertakings in Jordan by agreement with the owners subject to the Cabinet's consent. 21. JEA has not yet operated as an electricity supply undertaking; it presently channels Government loans for power development to JEPCO and IDECO and supervises the expansion of generation facilities and the 33-kV distribu- tion networks in the Amman and Irbid areas, the Jordan Valley and other major towns in the country. JEA is expected to sell small quantities of energy from the gas turbine in 1974 and 1975, but JEA's operations as a utility company will not really start until 1976 with the coming into service of the steam generating units at the Hussein station financed by Credit 386-JO. Initially, JEA would supply power in bulk to JEPCO and two other large consumers but by 1978/79 would also meet power requirements in Irbid (IDRCO). In order to prepare for carrying out its new operational functions, JEA has contracted consultants for a management study to train Jordanian personnel and provide supervisory staff for the power station. Project Description 22. Together with the first IDA project, the Project would assist JEA's developing as an efficient public bulk supply utility providing economic and reliable service and removing capacity shortages. It consists of the fol- lowing: (a) A third 33-MW steam-electric unit to be installed at the Hussein Power Station at Zarqa, a site which has existing access facilities, adequate supply of ground water, and is adjacent to the oil refinery which will supply fuel. (b) Reconditioning of diesel units at JEPCO's 38-MW power station at Marqa and adding radiator cooling to them. The Marqa station would eventually form part of the standby reserve for the Hussein station after 1980. (c) A Power DeveloDment Study for southern Jordan which would evaluate existing developments and future plans for industrial, agricultural, tourist, rural, and urban developments in the area, and prepare forecasts of demand for the period 1976-85. Project Cost and Financing 23. The total estimated cogt of the proposed project, excluding interest during construction, is $22.0 mlllion, including a foreign exchange component of $17.3 million. The proposed $5.0 million credit would be made to the Gov- ernment, which would relend the total amount to TEA. The relending terms, to be set forth in a subsidiary loan agreement between the Government and JEA, and approved by the Association would provide for repayment in 25 years, in- cluding a 3-1/2 year grace period, at 8-1/2 percent per annum interest. The Government has asked the Arab Fund to finance the S12.5 million balance of the foreign exchange cost of the project, and this request is presently under con- sideration. Should this financing not be forthcoming the Government will bear the balance of the foreign exchange cost of the project (Section 3.01(a) of the Development Credit Agreement). The local costs of the project would be financed by internal cash generation and by Government equity contribution.  -9- Enactment of an Electricity Law and Tariffs 24. Although the Jordan Electricity Authority Law of 1967 and numerous contracts and licenses to other power entities form a reasonably comprehensive basis for regulation of the sector, certain aspects of its Law do not give JEA sufficient authority to carry out its asslgned functions. Under the first IDA Credit (386-.JO, 1973), the Government had provided assurances that it would initiate by September 30, 1974, appropriate legislative action to amend as necessary the existing laws to: (i) enable JEA to become a more fully auton- omous power company and be subject only in specific matters of sufficient general importance to the direction of the Minister of the National Economy, (ii) define more adequately the basic principles needed to regulate the sec- tor in such matters as tariffs, easements, inspection and testing, a unified accounting system, the collection of statistics and the preparation of tech- nical information; and (iii) formulate regulations or bylaws setting out the detailed procedures and requirements to achieve the objectives of the Law. In view of the unexpected difficulties in drafting the proposed legislation, and in order to incorporate the results of the ongoing tariff study discussed below, the Association has agreed to a postponement of the date for initiating legislative action. During negotiations, a new date, December 31, 1975, was agreed (Section 3.06 (a) of the Development Credit Agreement). 25. As most of Jordan's future power generation is expected to be thermal, wholesale and retail tariffs for electricity should include a fuel price adjustment clause to protect the financial viability of the operating companies. Under this clause, all increases in the price of residual fuel oil above a pre-determined base price would automatically be passed onto the retail distributor and, if appropriate, to the consumers. The Government and JEA have agreed under Credit 386-JO to incorporate such a fuel price adjust- ment clause in tariffs by mid-1975 and also to maintain JEA's tariffs at a level high enough to produce an annual rate of return of at least 9 percent on its average net fixed assets. Because of the significance of this require- ment in protecting JEA's financial position, introduction of the fuel price adjustment clause is a condition of effectiveness of the proposed credit (Section 5.01 (c) of the Development Credit Agreement). 26. Consultants were retained under 386-JO to study JEA's future bulk sales tariffs and to make recommendations for a modern retail tariff structure to be implemented throughout the country. Their final report is expected to be completed before the end of 1975, taking into account the effects of IDECO's new power station, and of JEA's supplies to JEPCO from the new Hussein thermal plant and future expansion. During negotiations, the Government and JEA have agreed: (i) to discuss with IDA the final tariff recommendations; and (ii) to introduce the new tariffs not later than March 31, 1976 (Section 3.02 of the Development Credit Agreement). Procurement 27. All contracts to be financed from the proposed Credit would be awarded on the basis of international competitive bidding, consistent with  - 10 - the Bank/IDA Guidelines for Procurement. A preference of 15 percent or the customs duty level, whichever is less, would be granted to Jordanian manu- facturers. Disbursements 28. Disbursement would be against the c.i.f. costs of equipment and re- lated services, and the foreign exchange cost of civil works, engineering and consulting services. The proposed credit would finance 30 percent of the foreign exchange costs of equipment for the Hussein thermal station, 10 percent of the cost of the civil works, and 15 percent of the foreign exchange cost of related consulting services. IDA would also finance 25 percent of the foreign exchange costs of the Southern Jordan Power Development Study. The reconditioning of the diesel units at the Marqa station would be financed from Government or other sources. Works under the project are expected to be completed by June 30, 1978. The closing date would be December 31, 1979, to allow for unexpected delays final payment of retention monies. 29. Retroactive financing estimated not to exceed US$100,000 is proposed for foreign expenditure required before credit signing for the Southern Jordan Power Development Study which is expected to be initiated as soon as possible, and for engineering services. Justification 30. Power development in Jordan has been on the basis of diesel genera- tion since the country has no significant sources of hydropower or other energy sources that can be developed readily. The only feasible alternative to continued diesel development is therefore steam-electric capacity. The Hussein Stage I, an all-steam development, was compared with continued diesel development up to 100-MW in new capacity followed by steam. It was shown that, at the highest assumed growth rate, an all-steam development would be the least cost up to a discount rate of about 15 percent. The internal fi- nancial rate of return (IFR) is about 15 percent on the basis of existing tariff. The sensitivity analysis shows that the most likely range of the TFR is 12 to 18 percent, with a most likely average of 15 percent. Ecology 31. The proposed extension of the oil-burning steam plant is located several kilometers from the township of Zarqa, adjacent to the oil refinery. The surrounding countryside is largely desert. A 95 percent effective me- chanical precipitator would be installed and no problems with dust emissions are expected. Sufficient space would be provided to install additional exhaust gas cleaning facilities, if necessary, in the future.  - 11 - PART V - LEGAL INSTRUZMENTS AND AUTHORITY 32. The draft Credit Agreement between the Hashemite Kingdom of Jordan and the Association, Project Agreement between the Association and TEA, the Recommendation of the Committee provided for in Article V, Section 1 (d) of the Articles of Agreement, and the text of a draft resolution approving the proposed credit are being distributed to the Executive Directors separately. 33. Features of the draft Development Credit Agreement and draft Project Agreement of special interest are referred to in paragraphs 26 through 30 of this Report. Otherwise, the draft agreement conforms to the normal pattern of Credits for power projects. 34. The introduction of the fuel price adjustment clause is a condition of effectiveness of the proposed credit (Section 5.01(c) of the Development Credit Agreement). 35. I am satisfied that the proposed development credit would comply with the Articles of Agreement of the Association. PART VI - RECOMMENDATION 36. I recommend that the Executive Directors approve the proposed development credit. Robert S. McNamara President Attachments Washington, D.C. May 27, 1975  Page 1 of 3 papa SOUNURY SAYS - JORDAN ARKA POPULATION DENSITY 97.7740 beD 25~Uo (mid-1972) * e eo rbcln SOCIAL INSICATCRS Refrence. Countries P. Rep. of Jordan Congo Ynieta Lebanon ON? PER CAPITA 05$ (ATIAS RASIS) / . 2 70 a 300IA 380A/ 700IA DMDGRUAPHIC raET~ ts (par thousand) 47 lb 49 /c 4( .1. 38 41 C,nde death rate (Per thousad) 16 7 16 7) 23 77 14 13 Infant mortality rate (Par th ..ousnd live birth,e) -36 7;. . 25/ Lif exnpentanny et birth (ye,ar) 52/ 2 i~ 52 If Gross reprodontion rate ~~~~ ~ ~~3.4 3 .5 /n 2. aIn 3.4 1.9 Population grout: rate - urban ~ ~ ~ ~ ~ ~ ~~~~~~~.3 17 2.2 71 2.1Alb 2.6Al Age ettrutre (pernnt) lo-IL 45Ia 47 /1 h2I/s 46/Ic 43 15-6hi5 l4 50 7! 53 7; 517; 52 65 and near 4j 37! 57; 37m 5 Age Dnandency ratio /4 -.o?W l.o T.9 -, i.o/ 0.9 Nononic Sapnndnney ratio /4 2.1 1ln . ~2.17 i18 Urban ppulation us parn_nt af total441. F-ilY PI-i-g- H- Of -PtOl. th-.. 44 Lh ~44tk 60 /k 3KPLOMEN? No. of ...ers (8 af married women) ... .12 ToF-tal uir force (thousands) 390ILrd 360 /Ir. 520 /n 1,500 /a 570AI P.rne...g - se.ploysd in agiculture 35 7, 29 /3 r a 56 7n 57 71t 1i7y Percantucs -nploynd 78jj 7T5 16Lst. 147 6 7 INCOM DIIITRIIBUSON ercentfntinlinco.e received by highest 5%... Prntof na:tiica " onus received by higbest 20% .. Pero...t Of nujnlincome receivd by 1east 20% .. Per-at Of cutioca1 inc-mo rece.ived by least 40% .. IISTCIaOLOo 0? 085 *toSIP NadbytopoNfnuar ..t.. 53 /v 57 /d Souned bsnint10% of -0c -. -.ro 7;5 i72 HEALTH AND NUTIRITIOR Pnjoiiiutioc per physician ~~~~~~5,900IA 'Lc 7,240 /f 5,9505 1,470 Population per nursing person 101.0 77 _2,670 7? 730A /n 5- P.P11 ti.. per h..pit.1 bed680 -170 T)b 410 T. 260 Per caPitu caoiespply As 5 of reqirssents59 a 0a 4a 6a Per caPita prtein oupply, total (grams per day)~ 907 ; io d 634 7do972. Death rata 1-4 years /7 . 237 ..7 1.5 7)as 2 7.- AdJooted /8 ;loovbuaroletaio76 Ia! 70 /f a of 11'5 4 h307 9LaL 'i l Adjurtod Z! solccda:y .nhcl -11lilent ratio 24 T. 30 Ytjjtf 3 0 YasOf uch-olir- yrovided, firet and .-cud les 12 12 l3o131 ..natioca acrllsuta % Of sac, school .nr... ni f 3/1tt /f 1342a fa Adult literon y rate % 32TAf.o 2 or 9I 3 501..a 5e Averug. No., of peranoso per run (urban)..... 26d Perce nt Of occpied unts sitbht pipud eater 79A 2aan -..O 7d Ac.s to electricity (as 5 af total population) 17/.o .* 2 10 Percent of coral peplation n.ouected to alacrirtity I..7d- r -.per 1000 popultion 38 160 69 77 21 Pae.seger car Par 1000 population 4 7 34 Nlectrict -ptuy .. kagapa (ber y.c.) 59 71 81 055 441 Nausprint nooscuption p.c. kg par year 0.2 0.2 0.04 lab 0.1 1.6 Not-s Pigure refer either to tba latent periods or to ancoat Of avrnnta. p enraturs,boysih,an the latent Years. Latent psriode rfer i. principle to distribution by age and san Of natienel ppulatiane. the year i 956-60 or 1966-70; the lotesi yee.ra in prin- /6 Protein staod.rde (reqafranante) for all Countrie s aesotAb- cipin to 1960 and 1970. lobed by USDA NEno-in Reearch le..mma provide fnr a eliss- jj The Per Copita GO entimata ie st -krir price, for alicano Of 60 gran- of tot.i protein par day, And 20 grae Of y-ar oth-r tiun 196i,-clcuited by ths -an covran niasi and pales protein cf uhici 10 grane should be animal techoiqus as ths 1972 World Bank Atlnn. prtein. Thane tadar," are aceahat lane than theae Of 75 L2 Averg.g numbe of daughters per ane of reproductive gr,n of total protein And 23 gram of animal protein asa u. .. average for the sorld, proposed by PAO in the Third World Peed 12. Pepulotice grotih riss ar for the decdes adnalg in Sircy. 1960 and 1970. /7 San etudia have suggeeted that crude death ratea ef huldren, & RtNito of under 15 and 65 and ovr age brehste to p.~ I through 4 may he o.d asafirst appranimatia iodin at th.ee in luhor f-re bncbst of agee 15 through 64. eaSn-trition. 15PAO refernc etnd-rde represon t physiological re- /8 Peeatage rromolid of --respoodiog pupoation of sohoal age quirseents for coreu -tinlty and health, tahiog As defined for such enotry. Ia 1972; /b 1959-63; In 1965-70 UN eetieate; Id 1966; /A Estimate; If 1969; - /g 1961; A6 1960-72; 7! Over 3,0W Ppoplation 15 1956-66; lb leer l27000 pspua.tTs; /I ReeltNank only; .Is 97; -/e RatiOof papulatian coder 15 and 61 ad ove ta t2al labor farce; /o 198-69-! /D Dintrict Isd.otrs Ma ititse of 10,000 or more inhabitants, and those localities Of 5,00-9,3 inhabitants, and suburbs of Mesas and Je-oale in which two thirds or sore Of ecnnanically active ealo. are net engaged in agriculture2 / Five yrer and -ovr; Ir 12-59 yaars aId; Is Sapl ~suvy; t Males only; In Braen-iils; /v Govsring 4.5 slime h-etree of pATents land, ancluding 0.86Llio betares in pbin owership, and 2.1 emilli.n hecUZres of collective land; Is Covering 4.5 eh21lo Moctaree nf prints an; 96; Inoluding midivee but sat assistant nursea; In Ocve2et Only; /am Not incloding ocal heptala; /b1647; ac-- 1957-59; lad 1964-66; las Registered dea.ths; laf IncldingUINgA echools; /a Including over.-ag atudents; /ah 19651 _7Ai 1968; 7T.yeranov; /fl adndwis 1. 2 ersa avr; In Sample survey; may uWreetieate flhterny; an Psrentege Of be....bhlds witheut piped water inaide dweliga; 0a Poeretage of househalda With electric ltg2'Tog; lap Percen.tage ef heosing u.its with einrcllighting. a Pr dsengraphlc and labor farce in Jordon, most ef the figures f o 1960 co" fran the 1961 lCast and, for 1970, fine the 1971 bauseOhld survey (gaet Bank only) which probbhip undr-reprsasnte farming famiie and refugees. m l tbunen io ne tdAs an objective outry bscau.e the Jardania Sovernmsut ai.e to reach a Per .apit. isone shbet equal to the preat level io Lobanos avr the oat ten yeara, And bsooaus sine And clmatic conditions in the tee -cutriesae iiir 83 MYi 733, 1975  Page 2 of 3 pages ECONOMIC INDICATORS GROSS NATIONAL PRODU2T (US$ Mln) 2/ ANNUAL RATE OF GROWrH (%, constant prices) 1973 1974 e i % 1960 -65 1965 -70 1973 1974 - GNP at Market Prices 883.9 l00.0 1250.o 100.0 7.9 -4.5 -3.0 8 Gross Domestic Investment 215.7 24.4 .. - 6.9 -13.3 1.5 Gross National Saving 3/ 227.5 25.7 .. .. Current Account Balance 11.8 1.3 9.1 o.8 Exports of Goods, NFS 171.9 19.4 253.2 22.4 13.6 0.6 27.2 27 Imports of Goods, NFS 420.1 47.5 609.7 54.0 10.5 7.1 8.C 25 OUTPUT, LABOR FORCE AND PRODUCTIVITY IN 197 2/ 1/ Value Added Labor Force- V. A. Per Worker US$ Mln. min. %U$ Agriculture 118.9 18.9 0.105 29.2 Industry 106.4 16.9 0.057 15.8 Services 402.9 64.1 0.198 55.0 Unallocated . . Total/Average 628.2 100.0 0.360 100.0 GOVERNMENT FINANCE Central Government (J.D. Mln.) % of GDP 1974 197h 1972-74 Current Receipts 3 116.2 34.7 34.1 Current Expenditure 104.8 31.3 29.6 Current Surplus -4 ' 5 h Capital Expenditures 46.7 13.9 2 14.2 External Assistance (nr!t) / 61.9 18.5 20.L MONEY, CREDIT and PRICES 19 70 1971 1972 1973 1974 Uffllion outstanding end periodT Money and Quasi Money 129.1 135.1 146.5 176.1 216.7 Bank credit to Public Sector (net) 4.8 19.7 19.0 35.1 38.8 Bank Credit to Private Sector 43.6 44.9 47.9 59.3 80.3 (Percentages or Index Numbers) Money and Quasi Money as % of GDP 61.5 60.5 61.2 70.4 64.7 General Price Index (1963 - 100)5/ 114.8 119.7 129.4 142.9 171.5 Annual percentage' changes ins General Price Index 6.8 4.3 8.1 10.4 20.0 Bank credit to Public Sector .. 307.6 -3.6 84.? 10.5 Bank credit to Private Sector 0.3 3.0 6.7 23.7 35.4 NOTE: All conversions to dollars in this table are at the average exchange rate prevailing during the period covered. V Total labor force; unemployed are allocated to sector of their normal oCcupation. s'Unallocated" consists mainly of unemployed workers seeking their first job. 2/ Data refer to West Bank and East Bank, since separate accounts are not available. 3/ Includes foreign budget support (JD 53.0 million in 1974). 4/ Development expenditures. 5/ Annual average of A&Man Cost of Living Index. not available not applicable e estimate  Page 3 of 3 pages TRADE PAYMENTS AND CAPITAL FWWS BALANCE OF PAYMENTS MERCHANDISE EXPORTS (AVERAGE 1972-7b) 1971 1972 1973 1974 US $ Mln % (Millions US $) Phosphates 26.8 41.9 Exports of Goods, NFS 82.9 112.6 171.9 253.2 Tomatoes and Tomato Juice 3.-1 5.3 Imports of Goods, NFS -272.2 -335.5 -420.1 -609.7 Eggplants 1.1 1.8 Resource Gap (deficit = -) 189.3 -222.9 -248.2 - 6.3 Citrus Fruits 6.2 9.6 Cigarettes 1.6 2. Interest Payments (net) 1/ 13.5 9.2 15.7 20 8 Cement 6.9 10. 8 Workers' Remittances 13.7 20.7 45.3 75.0 All Other Commodities 18.1 28.2 Other Factor Payments (net) . . . Total 77 100.0 Net Transfers 102.5 191.3 199.0 269.8 Balance on Current Account -59.6 -1.7 11.8 9.1 Direct Foreign Investment 2/ -3.6 -1.1 -3.4 5.0 EXTERNAL DEBT, DECEMBER 31. 1973 Net MLT Borrowing Disbursements 26.9 30.5 39.1 4U.9 US $ Mln Amortization -4.8 -6.2 -16.0 -16.1 Subtotal 22.1 24 .3 19.7 33.7 Public Debt, incl. guaranteed 226 Capital Grants - - - - Non-Guaranteed Private Debt Other Capital (net) 0.6 0.3 - - Total outstanding & Disbursed Other items n.e.i 7.5 -2.8 7.1 -22.0 Increase in Reserves 0-) -33 0 19.0 38.6 20.9 DEBT SERVICE RATIO for 1974 3 Gross Off. Res. (end year) 2,3.3 2I7.0 312.4 349.7 Net Tot. Reser. (end year) 249.4 268.5 31h.2 359.3 Public Debt, incl: guaranteed 6.5 Non-Guaranteed Private Debt Total outstanding & Disbursed IBRD/IDA LENDING, larch 31. 1975 (Million US S): IBRD IDA RATE OF EXCHANGE outstanding & Disbursed 21.8 Through Since undisbursed 2. 3.0 Feb. 1973 Feb. 1973 Feb. 1975 Outstanding incl. Undisbursed 5 53.7 US $1.00 JD 0.357 -0.322 0.311 JD 1.00 = US$ 2.80 3.11 3.22 FOREIGN TRADE OF OIL (Million US $) 1965 1971 1972 1973 1974 Imports 9.05 13.56 12.78 12.81 15.93 (o/w Petrol.) (5.97) (11.58) (9.27) (10.27) (11.16) Exports - 0.09 - 0.52 o.43 Oil Transit 4.80 9.60 8.60 10.40 3.60 Fees 1/ Includes direct investment income. 2/ Includes loans to the private sector. 3/ Ratio of Debt Service to Exports and Goods (adjusted for transit goods and gold exports), Non-Factor Services and Workers' Remittances. not available not applicable e estimate Europe, Middle East and North Africa Region Country Programs Department II M-: 79 1 7'S  ANNEX II Page 1 of 3 STATUS OF BANK GROUP OPERATIONS IN JORDAN As of April 30, 1975 A. STATEMENT OF IDA CREDITS U.S. $ million Credit Amount (less cancellations) Number Year Borrower Purpose IDA Undisbursed Four credits fully disbursed 10.0 262 1971 Hashemite Highway 6.0 0.5 Kingdom of Jordan 285 1972 It Education I 5.4 .1 385 1973 Water Supply 8.7 5.3 386 1973 PoiPwer 10.2 8.o 498 1974 Irrigation 7.5 7.5 534 1975 Education II 6.0 6.0 TOTAL: 53.8 31.4 of wihich has been repaid 0.1 Total now held by IDA a/ 53.7 Total undisbursed 31.4 31.4 a/ Prior to exchange adjustments ($2.33) B. STATEMENT OF IFC INVESTMENTS Amount in US $ million Year Obligor Type of Business Loan Equity Total 1974 Jordan Ceramic Ind. Ltd. Ceramic Tiles 1.6 0.2 1.8 1075 Jordan Fertilizer Industry Co. Phosphatic Fertilizer - 3.2 3.2 Total Commitments 1.6 3.4 5.0 Less Commitments Repaid, Sold, or Cancelled .2 - .2 Total Commitments Now Held by IFC 1.4 3.4 1.8 Total Undisbursed 1.0 2.4 3.4  ANNEX II Page 2 of 3 PROJECTS IN EXECUTION - Cr. No. 262 Highway Project; US$6 Million Credit of June 28, 1971: Closing Date: December 31, 1975 This project includes the construction of a highway from Amman to Zarka and the financing of a study to identify the most suitable means of dis- tributing traffic from this new road within Amman. Completion of the road construction works has been delayed by about two years (to about August 1975), due mainly to management problems of the Contractor. Construction costs have increased by about 20 percent due to this delay, extra works, and higher prices. The Closing Date, originally December 31, 1974, has been extended to December 31, 1975. Cr. No. 285 Education Project; US$5.4 Million Credit of February 11, 1972: Closing Date: April 30, 1976 The project includes construction and equipment of two comprehen- sive secondary schools, a polytechnic and trade training center, a teacher's training college for preparatory and secondary schools, and extension of an agricultural teacher training college and related technical assistance. All contracts for civil works were awarded to local firms on the basis of inter- national competitive bidding. Contracts were signed in May 1974, and con- struction started in early June 1974. Bids for about half of the equipment and all of the furniture were received in May 1974, and contracts have been awarded. Cost overruns are expected to be about 35 percent for the total project and will be met by the Government. After initial delays of about five months, physical implementation is proceeding satisfactorily and is expected to be completed by April 30, 1976 closing date. However, an ex- tension of the Closing Date by one year will be required for the completion of the technical assistance program. Cr. No. 385 Amman Water Supply and Sewerage Project, US$8.7 Million Credit of May 24, 1973; Closing Date:December 31, 1977 The project aims at alleviating serious water shortages and insuffi- ciency of sewerage services in Amman, reducing the high percentage of unac- counted for water, and developing the administrative structure of the entity responsible for Amman's water supply and sewerage systems. The project is progressing satisfactorily, and procurement is on schedule. Financial results are better than appraisal projections, and progress has been made on improving the organizational and financial systems. However, unaccounted water losses are still high at about 50 percent, and a leak detection survey has been ini- tiated in November 1974. A draft water tariff study has been completed. 1/ These notes are designed to inform the Executive Directors regarding the progress of projects in execution and, in particular, to report any prob- lems which are being encountered, and the action being taken to remedy them. They should be read in this sense and with the understanding that they do not purport to present a balanced evaluation of strengths and weaknesses in project execution.  ANNEX II Page 3 of 3 Cr. No. 386 Power Project, US$10.2 Million Credit of May 24, 1973: Closing Date: March 31, 1977 The project is the first Bank Group power project in Jordan and would help the power sector to change over from diesel to steam power generation, add- ing 78 megawatts to present total generating capacity, and helping meet rapidly rising demand through 1977. The project will also provide a reliable and cen- tralized source of power. Progress in executing the project is satisfactory, although the commissioning of the gas turbine was delayed by about one year mainly due to civil works difficulties. Cr. No. 498 Northeast Ghor Irrigation and Rural Development Project; US$7.5 Million Credit of July 25, 1974: Closing Date: June 30, 1979 The project is part of an overall development scheme for the East Bank of the Jordan Valley, other parts of which will be financed by the German Federal Republic, USAID, and the Kuwait Fund. The project consists of the agri- cultural development of 7,700 ha net, of which 6,660 ha are already under irri- gation, and the provision of rural development facilities for domestic water supply, health, education, roads, and community development for a population of about 25,000. The project is a year behind schedule and progress in implement- ing it has been unsatisfactory; the cost of the project has increased by about 40%. The Government has taken steps to speed up the implementation of the project, and the next supervision mission has been scheduled for July 1975 to review progress in project execution. Cr. No. 534 Second Education Project; US$6.0 Million Credit of March 12, 1975: Closing Date: December 31, 1981 The project is designed to expand vocational and technical education, to promote quality improvements in secondary education by replacing uneconomic- ally small rented school buildings and providing schools with adequate work- shops, and to support integrated rural development projects in the Jordan Val- ley through a pilot scheme of non-formal basic education. The project would include construction, furniture and equipment for the following institutions: a polytechnic at Irbid; a training complex at Aqaba; a Hotel Training School at Amman; three comprehensive secondary schools; extension of preparatory and secondary schools (seven pre-vocational workshops, five science laboratories, four women's craft centers); and a rural development center.  ANNEX III Page 1 JORDAN SECOND HUSSEIN THERMAL POWER PROJECT CREDIT AND PROJECT SUMMARY Borrower: The Hashemite Kingdom of Jordan Beneficiary_ Jordan Electricity Authority (JEA) Amount: US$5.0 million equivalent. The Government has asked the Arab Fund to finance the $12.5 million balance of the foreign exchange cost of the project, and this request is presently under consideration. Terms: Standard Relending Terms: Government to JEA: 8-1/2 percent per annum interest; repayment over 25 years, including a 3-1/2 year period of grace. Project Description: Together with the first IDA project, the Project would, as its main objective, seek to prepare JEA to be an efficient public bulk supply utility, providing economic and reliable service, and removing capacity shortages. It includes: a. A third 33-MW steam-electric unit to be installed at the Hussein Power Station at Zarqa; b. Reconditioning of the diesel-electric power station at Marqa, presently owned by JEPCO; and c. A Power Development Study for southern Jordan.  ANNEX III Page 2 Estimated Cost and Categories of Expenditures: % of Project Local Foreign Total Cost (US$ 000's) 33-MW Steam Electric Plant 2,400 11,500 13,900 63 Engineering and Administration 250 1,000 1,250 6 Reconditioning Marqa 300 1,000 1,300 6 Southern Jordan Power Development Study 50 200 250 1 Contingencies: Physical (Local 12%, Foreign 7.2% p.a.) 480 800 1,280 6 Price (Local 47%, Foreign 22x) 1,260 _2,790 4,050 18 TOTAL 4,740 17,290 22,030 100 Financing Plan: In addition to the above project costs to be incurred from 1974 through 1978 (the project period), JEA will have ongoing expenditures on other construction items. Total investment expenditures for this period are esti- mated at about $99.7 million, which will be financed as follows:  ANNEX III Page 3 JEA's Financing Plan for 1974-1978 (US$ 000's) Source of Funds: From Relending Operations 11,145 Net Internal Cash Generation 4,389 Government Equity 16,771 IDA: 386-JO 9,365 Proposed 4,678 Kuwait Fund: Hussein I 9,356 Co-financer Proposed 10,187 Other Long-Term Borrowing 41,806 Suppliers Credit (Marqa Reconditioning) 1,100 108,797 Application of Funds: The Project 22,032 Other Electricity Construction 78,656 Marqa Purchase 8,109 Total Application of Funds 108,797 Disbursement Arrangements: Disbursements would be against the c.i.f. costs of equip- ment and related services and the foreign exchange cost of civil works and for engineering and consulting services. IDA would finance 30 percent exchange costs of equipment for the Hussein Thermal Station, 10 percent of the cost of its civil works, and 15 percent of the foreign exchange cost of related consulting services. IDA would also fi- nance 25 percent of the foreign exchange cost of the Southern Jordan Power Development Study. Retroactive fi- nancing is proposed for foreign expenditure required before credit signing for the Southern Jordan Power Dev- elopment Study which is expected to be initiated as soon as possible, and engineering services estimated not to exceed US$100,000. Calendar Year Cumulative 1975 1976 1977 1978 1979 Total (US$ millions) 0.39 0.95 1.76 1.52 0.38 5.00  ANNEX III Page 4 Procurement Arrangements: All contracts to be financed from the proposed Credit (except for consulting services) would be awarded on the basis of international competitive bidding, consistent with the Bank/IDA Guidelines for Procurement. JEA is exempt from paying import duties. A preference of 15 percent or customs duty applicable to non-exempt importers, whichever is less, would be granted to Jordanian manu- facturers. Project Administration: The Jordan Electricity Authority (JEA), a Government entity, will be responsible for the execution of the project. Consultants: About 14 man-years of consultants' services will be needed for the design and supervision of the project and for a power development study for southern Jordan. Estimated Project Completion Date: June 30, 1978 Appraisal Report: Report No. 733-JO dated May 23, 1975 Power and Energy Development Division. EMENA Region.  IBRD -10290R1 3 , S r o Dama560 s S Y R I A APRIL 1975 To Naza eth r a V 0 , qh h,. SameR S A T. t,a , eai El- T. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ . 1- , ' -x 0 DeiAbSAi UN 7 .7t t 5Ya .,... .... . MAIN POWER SYSTEMS TuIkNo,// Tuba >*. Jaea Husi.-.-lPwr -t SoelCedt36O Nol, s lo Dee oe tto QIqihys To! ,,< Do,, -llah -320 Salt nll Ey/ 320z - - , , 132 hV Overheod Line to be Constructed forEl A-rjc Toa Gaa MIooTsqq. rV Mt. Neb S ' '- --h i t---- - _ rucOeLie, 14 j BeMalehem t Suweima -- -- Oasernlol 801 Kh ries ,6- b ,,-- ,,, h . .. , To Gaza" Hebr!ons e Nabtio ;,Rves/3 i v J , ~H . : ',-^ - 7 eo4'Hu \ | S / k , >SAUDI To B-/vb JORDAN A MAIN POWER SYSTEMS EXISTING AND FUTURE POWER LINES AND STATIONS 0 13/ Hussein Thermal Power Station Stage I (Credit 386 JO) _ Mal. '-36