Jordan - Cities and Villages Development Bank Project

Document of The World Bank FILE COPY FOR OMCIAL USE ONLY Report No. P-2738-JO REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE HASHEMITE KINGDOM OF JORDAN FOR A CITIES AND VILLAGES DEVELOPMENT BANK PROJECT March 10, 1980 Tis doeuent hs a rstrited disribton and may be used by reciplents only in the performnce of their offcil dt. Its eonteots may ot otherwise be discsed without World Bank authoriatfon.  Currency Equivalents (as of mid-December 1979) US$ 1.00 JD 0.294 JD 1.00 US$ 3.40 Financial Year = Calendar Year Glossary of Abbreviations CVDB - Cities and Villages Development Bank JEA - Jordan Electricity Authority JVA - Jordan Valley Authority MMRA - Ministry of Municipal and Rural Affairs MOE - Ministry of Education MOH - Ministry of Health MOPW - Ministry of Public Works MVLF - Municipal and Village Loan Fund NPC - National Planning Council NRA - Natural Resources Authority WSC - Water Supply Corporation  FOR OFFICIAL USE ONLY JORDAN CITIES AND VILLAGES DEVELOPMENT BANK PROJECT LOAN AND PROJECT SUMMARY Borrower: The Hashemite Kingdom of Jordan Beneficiary: Cities and Villages Development Bank (CVDB) Amount: US$10.0 million Terms: 17 years, including 4 years of grace at an interest rate of 8.25 percent per annum. Relending Terms: The Borrower would relend the entire loan proceeds to CVDB on the same terms as the Bank loan, and bear the foreign exchange risk. The CVDB would on-lend the funds at the following interest rates: Municipalities Villages --------Percent--------- Productive Projects 8.0 6.5 Public Utility Projects 7.5 6.0 Social Infrastructure Projects 7.0 5.5 Project Description: The project would help to establish CVDB as a development bank for municipalities and villages, and provide a line of credit to finance eligible subprojects over a two year period. It also includes a technical assistance component to (i) train CVDB staff; (ii) undertake a study of the ways and means of increasing productive projects in local communities; and (iii) provide an advisor to assist CVDB's management. The project would result in improved public services to meet basic needs in water supply, health, and education and improved economic infrastructure in villages and municipalities, thus reaching some of the poorer segments of Jordan's population. The main project risk is the complexity of coordination between the large number of institutions and sectors involved. Specific actions have been included in the project implementation plan to minimize substantially this risk. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii. - Calendar Year 1980 1981 1982 1983 -------