Announcement of Jordan to Provide Low-Cost Housing and Infrastructure to Poor Families on June 18, 1987

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 87/90 Contact: Fawzi Rihane (202) 477-5325 JORDAN TO PROVIDE LOW-COST HOUSING, INFRASTRUCTURE TO POOR FAMILIES WASHINGTON, June 18 -- Jordan is launching a project to provide affordable housing, urban infrastructure, and social services to low-income families in slum and squatter areas. The project is being supported by a $26.4 million loan from the World Bank. The project will extend the use of improved planning and design standards for urban development, which were introduced and proved successful during two earlier Bank-assisted projects in Amman, to smaller towns and cities. Financing for land development, as well as individual mortgage and construction loans, will be structured to involve private developers more in low-cost housing construction and make housing more affordable to poor families. The three main agencies involved in the project -- the Jordan Urban Development Department (UDD), Housing Bank (HB), and Cities and Villages Development Bank (CVDB) -- will be strengthened so they can deal more effectively with low-cost housing development. Training will be provided to UDD and HB staff. Existing slum and squatter areas with a population of about 40,000 will be provided with infrastructure, such as electricity, water and sewerage facilities, adequate drainage and paved roads. Land titles will also be issued to residents. In addition, new sites will be developed and provided with infrastructure and some basic housing for about 14,000 people. Areas will be developed for workshops and trade establishments. Schools, clinics, community buildings and centers, as well as ambulances and fire-fighting vehicles, will be provided. The quality of life for some 8,000 low-income families in poorly serviced areas is expected to improve with the provision of adequate social services and basic urban infrastructure. The project will also encourage private savings which may be used in house construction and improvements for poor families. The full cost of infrastructure is expected to be recovered through land sales and tariffs. The total cost of the project is $93.3 million. Additional financing will be provided by HB ($29.3 million), the government ($20.3 million), and households ($17.3 million). The World Bank loan is for 17 years, including four years of grace, at the standard variable rate, currently 7.92 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balances. Note: Money figures are expressed in U.S. dollar equivalents.