Current PPP legal framework

73.  Privatisation Law No. 25 of 2000, and Regulation No.80 of 2008 implementing the Privatisation Transaction are currently the main texts governing PPPs; they allow for all types of private sector participation in several sectors, other than mining, under various contractual structures, including BOT, BOO and BOOT.

74.  New PPP legislation was recently approved by the Senate's Financial and Economic Committee and will be submitted to the Lower House of Parliament, then ratified by royal decree. It will become the exclusive legal regime for the procurement of PPPs in Jordan covering all economic infrastructure sectors - water, energy, transport, and information technology and concession, lease and management contracts. The draft PPP Law includes the following key provisions: (a) unified tender procedures applicable to PPPs to ensure a consistent approach across sectors and ministries; (b) develop an institutional framework by creating a PPP Commission to support line ministries during the procurement stage; (c) set out objectives for PPP development - including improvement of public infrastructure; mobilisation of private finance; and recognition of risk allocation between state and private sector; and (d) make provision for terms that are required in PPP contracts. The law will apply to all sectors except national defence, police and justice, core areas of health care and other identified activities. Jordan is expected to clarify its framework by explicitly excluding the application of the Privatisation Law and Privatisation Regulations to PPPs.