Announcement of World Bank Approves Twenty-One Million Dollars for Urban Development Project in Jordan on July 17, 1980

• 0 - FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433 1 U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 81/5 ,Ju 1y 17, 1980 WORLD BANK APPROVES $21 MILLION FOR URBAN DEVELOPMENT PROJECT IN JORDAN The World Bank has approved a $21 million loan to help Jordan provide housing and related infrastructure and community facilities to low-Income fam i 1 i es. The $57.6 mill ion Urban Development Project, the first Bank-assisted urban project in Jordan, will also help to improve the productivity of low- income urban residents. Subsidies have been kept to a minimum to ensure that the project may be duplicated in other areas in the country. The project includes provision of about 5,000 plots under three sites • and services schemes at North Ruseifa, Marka, and Quweismeh, affecting about 41,000 persons who are mostly in the low-income sector. In addition, about 15,000 residents in four low-income settlements in the city of Amman at Jofeh, Wadi Haddadah, East Wahdat, and Wadi Umi): er Rimam wi 11 benefit from the upgrading of their areas. Also included in the project are loans, technical assistance, and training programs for small businesses. Consultant services for project management, design and supervision, as well as studies to pinpoint new areas for urban development will be carried out. To keep the facilities in good working order, provisions have been made for maintenance services and purchase of equipment. The project is a significant step in the development of a new urban strategy in Jordan which emphas.izes the housing, service, and employment- related needs of the urban poor. It also serves to strengthen the local, organizational, and institutional capability of the urban sector~ The World Bank loan is for 17 years, including 4 years of grace, with an annual interest rate of 8.25%. The Government of Jordan and the Housing Bank of Jordan will contribute $11 .9 mill ion and $24.7 million, respectively, to the project cost. tJ NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1.121 (5-76) T EC HN I CAL DAT A PROJECT: COUNTRY: TOTAL COST: Urban Development Jordan $57. 6 mi 11 ion • BANK FINANCING: $21 mill ion for 17 years, including 4 years of grace, at an annual interest rate of 8.25% OTHER FINANCING: Government of Jordan, $11 .9 mill ion; Housing Bank of Jordan, $24.7 mill Ion IMPLEMENTING ORGANIZATION: The Municipality of Amman P.O. Box 132 Amman, Jordan Cable Address: Amman Municipality, Amman PROJECT DESCRIPTION: It includes: a) provision of about 5,000 serviced plots under three sites and services schemes at North Ruseifa, Marka, and Quweismeh; b) upgrading of four low-income settlements in the citv of Amman at Jofeh, Wadi Haddadah, East Wahdat, and Wadi Umm er Rimam; c) loans, technical assistance,and training for small businesses; d) consultant servi~es for ~ project management, design and supervision, and studies; and e) provision of equipment for municipal maintenance services. PROCUREMENT: Civil works for the sites and services component, and municipal services' community facilities' equipment will be procured through international competitive bidding. Contracts for civil works to upgrade areas will be awarded after local competitive bidding as the areas are small and scattered. CONSULTANTS: About 238 man-months of expatriate consultant services and 350 man-months of local consulta~t services will be required under the project. ECONOMIC RATE OF RETURN: 20% on sites and services, and upgrading components. EST IMATED COMP LET ION DATE: 1985 - 0 - •