Foreign Assistance

The Ministry of Planning and International Cooperation (MoPIC) is "the focal point for all ministries and government institutions, and foreign grants from donating countries and international funding institutions, etc.” in accordance with Planning Law no. (68) for the year 1971.

MoPIC is therefore the exclusive governmental body authorized to contract for foreign assistance and allocate it to development programs and priority projects, in accordance with adopted development programs. Assistance is also allocated to the Jordan Response Plans to the Syrian crisis (renewed annually for a three year period) that are prepared in close coordination with various sector ministries, and Government institutions and directorates, in consultation with the international community and based on Needs Assessment Reports prepared by the United Nations.

Over the years, Jordan has qualified to receive Official Development Assistance (ODA) from countries, donor agencies, international financing institutions, multilateral financial institutions and international organizations in appreciation of the pivotal role Jordan plays with regards to regional stability, and as a result of the continuous efforts of his Majesty King Abdullah II. This support recognizes Jordan’s ongoing reform process and the achievements that have been made across various sectors, as well as the exemplary role Jordan has played in hosting refugees despite the overwhelming challenges it has and continues to face.

Types of Foreign Assistance

The Ministry receives different types of foreign assistance to fund ongoing development efforts in accordance with priorities that have been adopted as per national programs and plans. Jordan’s most significant bilateral development partners are: (the United States of America, the European Union, Japan, Germany, the United Kingdom, France, Norway, Denmark, Sweden, South Korea, Saudi Arabia, the United Arab Emirates and Kuwait). International Financial Institutions that support Jordan include the World Bank, the European Investment Bank, the European Bank for Reconstruction and Development, Arab Funds, the Islamic Bank for Development, and the Investment Asian Bank for Infrastructure. Assistance is also provided to Jordan through various United Nations’ organizations.

The Kingdom receives different types of assistance through (MoPIC) as follows:

Ordinary and Supplemental Grants

Grants Supporting the General Budget:

Grants that provided directly to the Budget and spent on specific development programs and projects within as per the Budget Law, or as supplemental allocations within the General Budget made to a specific Ministry’s budget for a specific project. Such grants are transferred in installments to the treasury and linked to funding agreements and agreed upon contractual benchmarks. The US, the EU, some countries within the GCC and Canada are examples of countries that offer this type of budget assistance.

This assistance is subject to Jordanian public oversight mechanisms including the Ministry of Finance, the Audit Bureau and the Parliament, as well as oversight by the donors themselves. Donor oversight usually takes place in the form of specialized technical and financial missions, and/or separate auditing firms hired specifically for this purpose.

Grants Directed to Development Priorities:

Grants directed to fund priority development programs and projects within ongoing development plans that are managed and implemented directly by donors. The general framework for this support is agreed upon through a medium term framework/ Memorandum of Understanding (MoU) that includes financial ceilings, support areas, priorities and the form of assistance, whilst also taking into consideration sector priorities of the donors themselves.

The technical details of these projects and programs are agreed upon in coordination with relevant ministries, and implementation is carried out through a competitive open bidding process that is open to local and foreign companies in accordance with Jordanian laws and regulations and/or the laws and regulations of the implementing donor entity. This assistance is typically monitored by a Project Steering Committee that includes members from the related government institutions as well as the implementing donor entity to ensure that the project achieves desired outcomes and results. It is also subject to oversight by donors which usually takes place in the form of specialized technical and financial missions and/or separate auditing firms hired specifically for this purpose. Once the project or program concludes, handover documentation is signed.

Additional Grants to Support the Jordan Response Plans to the Syrian Crisis:

Jordan Response Plans have been described as the first national plans of their kind. They have been used as model examples to show beset practice response to refugee crisis situations. They are unique in that they not only include response needs that are required to meet the humanitarian needs of refugees, but also Jordan’s holistic development needs under one comprehensive framework. Funding for the response plan is additional support that targets three tracks within the Plan; Refugee Support, Host Community Support (Resilience), and Budget Support.

The Jordan Response Plan sets a three year comprehensive vision for funding and development needs in response to the Syrian crisis, to help ensure that there is an integrated response mechanism to the critical humanitarian needs of refugees alongside medium-term interventions, and that short-term interventions that are harmonious with long-term development strategies and increase reliance and strengthen response. For further information on the Jordan Response Plans to the Syrian Crisis please visit: http://www.jrp.gov.jo

Soft Loans

Financing provided to the government in the form of loans with favorable financing terms, to implement priority development and capital expenditure projects. (MoPIC) coordinates closely with the Ministry of Finance (MoF) and implementing ministries to get the approval of the Higher Ministerial Committee for Public Debt Management, which is followed with a Cabinet of Ministers approval in accordance with financing plans for the General Budget, that are approved by Parliament in the General Budget Law.

Soft Loans are given at a below-market rate of interest (zero-4%), a grant component of no less than 35%, a (15-35) payment year period, including grace period that can reach up to (5-7) years. Soft loans are subject to public oversight mechanisms including the Ministry of Finance, the Audit Bureau and the Parliament, as well as oversight by the donors themselves. Donor oversight usually takes place in the form of specialized technical and financial missions and/or separate auditing firms hired specifically for this purpose.

Technical Support and Capacity Building

States, donors and financing institutions provide technical assistance programs aimed at institutional and human resource capacity building for Government institutions and ministries, as well as to help the Government implement targeted reforms in accordance with international best practices. Most technical assistance and capacity building programs that take place in Jordan cover experts and volunteers, feasibility studies, twining programs, as well as device and equipment. The field of human resource capacity building covers training programs, courses, scholarships, university fellowships and cultural exchange programs.

Sectors Financed by Foreign Assistance:

Foreign Assistance is directed to fund priority development programs and projects in order to strengthen resilience and create growth. It also funds the provision of services, achievement of SDG’s and sector support including for example,: water, sanitation, health, education, energy, infrastructure, youth, labor, livelihoods, financial inclusion, justice and good governance, small and medium – sized enterprises, municipalities services, trade, investment, employment, training, and vocational and technical education, social protection, information and communication technology and innovation, transportation and tourism and public sector development, in addition to support provided to the General Budget and to support refugees.

Foreign Assistance provided to the Kingdom between (2009-2019)

The foreign assistance (grants and soft loans), obligated from different countries and donors and agreements signed during (2009-2019) amount to US$(26) Billion, a total of which US$ (16.5) Billion was provided in the form grants, and US$(9.5) Billion in soft loans to support development projects in priority sectors, as well as to support to the general budget. The following figure shows foreign assistance that has been committed between 2009-2019: