World Bank loan supports Jordan's economic recovery — experts

AMMAN — Economists agreed that the World Bank (WB) provided a $500 million loan to Jordan came because it is convinced that Jordan is making significant progress in implementing an inclusive, transparent and climate-friendly investment programme that supports economic recovery.

Experts said that the programme has achieved positive results in several key areas in particular in green procurement, investment facilitation, issuance of sovereign green bonds, in addition to enhancing job opportunities for women in the tourism sector, and improving the management of public investments, as reported on Tuesday by Al-Rai Newspaper.

Economist Hussam Ayesh said that last year, Jordan and the WB concluded a new partnership with the aim of contributing to the implementation of the Economic Modernisation Vision (EMV) and the procedural programme for the Public Sector Modernisation, as well as increasing and improving job opportunities in the private sector, focusing reforms; that support investment and improve human capital results, and also guarantee improving the health sector and sustainability of resources with regard to climate sustainability projects or programmes.

Economist Wajdi Makharmeh pointed out, that according to a recent World Bank bulletin, the programme's disbursement rate reached 55.6, exceeding the schedule set for disbursement when calculating the advance payment, as $500 million of the total funding of $900 million was disbursed, reflecting a largely satisfactory pace of implementation.

He added that the World Bank's loan has enhanced the achievement of outstanding results in several areas during the past months, including the adoption of the policy framework for green procurement, which enhances the trend towards environmentally friendly investments, in addition to the operation of the electronic services for investors, which contributed to improving the business environment and attracting more investments.

He noted that in the context of promoting sustainable financing, preparations are underway to issue a sovereign green bond after the adoption of its financing framework, to support environmental investments.

Nearly 800 women have been trained in various professions in the tourism sector, thus contributing to enhancing their economic participation, he added.

Makhamra also said the need for Jordan to strengthen its capacity to cope with climate shocks and to address the interconnected needs for water, energy and food security. Jordan has been a climate leader by adopting a green growth strategy, and this measure is necessary, as Jordan's population has doubled from 5million to 11million over the past two decades, putting pressure on limited natural resources.