Announcement of Jordan Continues Development of Municipalities, Villages on August 29, 1985

FOR IMMEDIATE RELEASE INTERNATIONAL MO':ETARY FUND JOWT u::::.,·Jw SEP OLl 1985 BANK NEWS RELEASE NO. 86/17 Contact: Fawzi Rihane August 29, 1985 (202) 477-5325 JORDAN CONTINUES DEVELOPMENT OF MUNICIPALITIES, VILLAGES Jordan will continue efforts to improve living standards in its outer regions by financing development projects in these areas. A World Bank loan of $15 million will provide a line of credit to be re-lent by the Cities and Villages Development Bank (CVDB) to municipalities and villages to help finance about 120 infrastructure and revenue-earning subprojects during the period from mid-1985 to end-1987. Infrastructure projects will include roads, footpaths, school buildings, libraries, health centers and electricity distribution networks. Revenue-earning projects include markets, commercial and trade centers, workshops, and slaughterhouses. Projects to be supported have been estimated to have a value of $33 million. Funds will be provided to CVDB to buy microcomputers to help rationalize the compiling of data and vehicles to improve the bank's outreach and supervision of project sites. Technical assistance also will be provided to help CVDB appraise and supervise projects better. And CVDB will organize programs to train local officials in project preparation and follow-up and in financial management. CVDB was developed in 1979 with World Bank assistance to assist villages and municipalities to identify, prepare, and implement development projects. In 1980 the World Bank provided a loan of $10 million to help CVDB increase its capacity to help local governments provide urban services. Under this loan, CVDB evolved into an independent bank that is growing in administrative and operational ability. Other financing for the new project will be provided by CVDB, $18.2 million, and the Government of Jordan, $900,000. The World Bank loan is for 15 years, including three years of grace, with a variable interest rate, currently 8.82 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances. NOTE: Money figures are expressed in U.S. dollar equivalents.