The Hashemite Kingdom of Jordan : Water Sector Review Update, Main Report
The Ministry of Water and Irrigation, Hashemite Kingdom of Jordan, invited the Bank to assist in updating the Water Sector Review of 1997 as an input into the formulation of a five-year action plan for the water sector. Jordan faces three critical challenges: a) the resource challenge, b) the financing challenge, and c) the institutional challenge. In terms of resource challenge, the challenge of water deficits is compounded by the need to ensure water quality and environmental protection. A systematic action plan for reuse of treated wastewater needs to be formulated in view of the projected increase in the quantity of treated wastewater available for use in the Jordan Valley. In terms of financial challenge, Jordan will have to redouble its efforts at generating significant additional operating income from drinking water supply and irrigation services. Urban water and irrigation tariffs have not increased since 1997. Urgent action is needed on tariffs to ensure full recovery of operating costs and periodic adjustments for inflation. Self-financing of water supply and irrigation services must be a high priority. In terms of institutional challenge, reforming the Water Authority of Jordan and Jordan Valley Authority to focus on essential strategic and bulk water management tasks while divesting retail water services to user or private sector entities is a high priority.