Current institutional and policy framework

75. The PPP institutional framework in Jordan is in transition, and there are still a number of specialist bodies with a strong role in the PPP process. The law gave the Executive Privatisation Commission (EPC) a leading role in the PPP programme in 2006 - to design the national policy for PPPs, including developing a draft PPP Law. EPC is a public body with financial and administrative independence, but reporting directly to the Prime Minister. It is not affiliated to any particular ministry and its budget is approved by the Privatisation Council and by the Council of Ministers. EPC responsibilities have been further expanded to include becoming a centre for PPP expertise and knowledge, and providing clear follow-up on PPP procedures. It has also become the point of contact for international organisations and other stakeholders in coordinating and facilitating the PPP process.

76. The Privatisation Council is a high-level body chaired by the Prime Minister, set up initially as part of the general privatisation initiative. It has an advisory role and also approves proposals for PPP projects. Its membership comprises the Minister of Finance, the Minister of Industry and Trade, the Minister of Planning, the Minister of Justice, the Governor of the Central Bank, the Chairman of the EPC, the minister relevant to the project, and four experienced specialists appointed by the Council of Ministers.

77. The PPP Committee was established in September 2008 pursuant to a Council of Ministers decision. Its role is to identify projects suitable for PPPs and to supervise feasibility studies. However, it has had limited involvement in PPP projects to date.

78. The draft PPP Law prepared by EPC proposes the creation of two new organisations: the PPP Commission and the PPP Council replacing the commissions that are currently responsible for PPP. The government has not yet endorsed any particular institutional framework but the roles and responsibilities of both new organisations to be created by the PPP Law should be clarified shortly. Better coordination among relevant government agencies to make large infrastructure projects successful in Jordan seems essential, as it has been reported that investors have to deal with an excessive number of government agencies in a dispersed decision-making process. Jordan might consider accelerating and streamlining the drafting of the new PPP law and the implementation of a functional PPP unit to ensure better coordination among government agencies involved in projects.