Jordan Times
Monday, August 14, 2006

US extends $247.3m in grants to Jordan

By Mohammad Ghazal

AMMAN — The US and Jordan signed four grant agreements on Sunday for a total amount of $247.3 million that represent the overall US regular economic assistance package for the fiscal year 2006.

According to sources at the Ministry of Planning and International Cooperation, the US also agreed recently to grant the country an additional $50 million, raising the US economic assistance to some $297.3 million.

The agreements, signed by US Ambassador in Amman David Hale and USAID Mission Director Anne Aarnes and Planning and International Cooperation Minister Suhair Al-Ali, will support the programmes the government seeks to implement in the fields of water, health, education, governance and economy.

The first $117.5 million grant agreement will be used to enable the government reduce its foreign debt burden and strengthen its foreign exchange reserves.

It will make available an equal amount of local currency to support the country’s economic and political reform initiatives to improve the lives of citizens, especially the needy, according to a statement received by The Jordan Times.

Under the second deal, the US will provide the country with $37.722 million to be used for financing several USAID programmes to enhance economic growth and create more job opportunities.

It will also assist the country’s small and medium enterprises, capitalise on bilateral and multilateral trade agreements signed with Jordan to spur trade and increase exports.

The funds will also be used to provide broader Jordan-wide access to information and communications technologies service, as well as upgrade tourist facilities and strengthen private investment in the tourism industry, the statement said.

Other activities to be carried out under the deal include working with universities to offer entrepreneurship and leadership development courses and improve their links with the private sector.

Under the third grant agreement, the US will provide $45.095 million to support the government’s initiatives to increase the water supply, improve management of water resources and increase residential access to better sanitation.

Construction projects to benefit from this grant include the northern governorates’ freshwater carrier, a wastewater treatment plant in Tafileh Governorate and wastewater treatment plants for small communities in Shobak and North Shuneh.

In addition, the grant will help promote water demand management in small villages, improve management of municipal water supplies in the southern governorates and promote the use of treated wastewater for agricultural and industrial purposes.

The fourth $46.955 million grant deal will be used to finance projects in the fields of health, education and governance.

The grant includes $16.985 million for improving primary and reproductive health services in public clinics and hospitals, encouraging family planning and promoting healthy behaviour.

Moreover, it allocates $14.985 million to fund projects in the educational field, with special emphasis on encouraging the use of IT in teaching and learning.

In this regard, the funds will be used for constructing and equipping new schools, renovating and equipping kindergarten classrooms to improve early childhood education, improving secondary school education to provide students with the skills needed to compete today’s job market and training teachers.

Finally, $14.985 million will be used to support initiatives aimed at strengthening civil society to promote philanthropy and encourage civil participation, strengthening journalism and improving the legal system, the statement indicated.

After signing the deals, Al- Ali thanked the US for the grants, saying it will help enhance the living standards of Jordanians and advance the socio-economic development in the country.

Hale highlighted the importance of Jordan’s experience in leading ambitious reform efforts to improve the lives of its citizens. He stressed the strong and lasting commitment of the US to continue supporting the country’s efforts for building a better future for citizens.

According to figures from the ministry, Jordan received $348.5 million in aid from the US last year.


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