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W o r l d B a n k G r o u p
Mashreq MaxiMizing Finance For DevelopMent (MFD) strategy2 0 1 9 – 2 0 2 1
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stanDarD DisclaiMerThis volume is a product of the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.
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Cover photos: © World Bank
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TABlE OF CONTENT
Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
I. THE PRIORITY OF MFD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
II. RATIONALE AND KEY ELEMENTS OF THE MFD APPROACH IN THE MASHREQ . . . . . . . . . . . . . . . . . . 12
III. MASHREQ MFD STRATEGY - OBJECTIVES, PRINCIPLES AND RESULTS . . . . . . . . . . . . . . . . . . . . . . . . . . 16A. Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17B. The Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17C. The Results Targeted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
IV. COUNTRY STATUS FOR MFD READINESS AND WBG PRIORITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24A. JORDAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25B. lEBANON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27C. IRAQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
V. ORGANISING FOR DELIVERY – JOINT IMPLEMENTATION PLANS, INSTITUTIONAL ARRANGEMENTS AND RISK FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
A. JOINT IMPlEMENTATION PlANS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33B. INSTITUTIONAl ARRANGEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35C. STRATEGY RISKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
VI. ANNEX I – KEY INDICATORS FOR MFD READINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
VII. ANNEX II – MASHREQ MFD STRATEGY - RESULTS FRAMEWORK MATRIX . . . . . . . . . . . . . . . . . . . . . 42
VIII. ANNEX III – MFD PIPELINE FY18-20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44A. IBRD pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45B. IFC Projects Pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51C. MIGA Exposures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
IX. ANNEX IV – KEY REFORMS BY SECTOR AND COUNTRY - MASHREQ MFD REFORM MATRICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
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ACKNOWlEDGMENTS
This document was co-authored by Peter Mousley (Program leader, Equitable Growth, Finance and Institutions Global Practices – World Bank), Dalia Wahba (Country Manager, levant – IFC), and Mena Cammett (Risk Management Officer - Multilateral Investment Guarantee Agency) with the support of Patricia Haydamous (Consultant, Finance, Competitiveness and Innovation Global Practice, World Bank) who worked closely with the team gathering data and coordinating the input from across the World Bank Group. The other core member of the team is Clive Harris (Head, Maximizing Finance for Development, World Bank) who provided invaluable advice and institutional support in the preparation of the Strategy.
The Strategy benefited also from the support generously provided by World Bank, IFC and MIGA managers and their teams. This includes: from the World Bank - Erik Magnus Fernstrom (Practice Manager, Energy); Olivier le Ber (Practice Manager, Transport); Carmen Nonay (Practice Manager, Water); Julian A. lampietti (Practice Manager, Agriculture); Ayat Soliman (Practice Manager, Urban); Kevin Carey (Practice Manager, Macro-economics, Trade and Investment); Nabila Assaf (Practice Manager, Finance, Competitiveness and Innovation); Renaud Seligmann (Practice Manager, Governance); Yolanda Tayler (Practice Manager, Procurement); Hana Brixi (Practice Manager, Social Protection and Jobs); Ernest E. Massiah (Practice Manager, Health); Safaa El Tayeb El-Kogali (Practice Manager, Education); Benu Bidani (Practice Manager, Poverty Reduction); from IFC - Kudret Akgun (Manager, Finance), Erik Becker (Manager, Infrastructure), lukas Casey (Manager, Manufacturing, Agriculture and Services); and from MIGA - Nabil Fawaz (Sector Manager, Infrastructure), Marcus William (Sector Manager, Energy).
Extensive technical input was also provided from a wide range of colleagues from across the World Bank Group and the co-authors extend their sincere thanks for these contributions. Too many to but this includes Aijaz Ahmad; Abdulhamid Azad; Arnaud Dornel; Bjorn Philipp; Carlos Alberto lopez; Haocong Ren; Ibrahim Dajani; Joel Kolker; Juan Manuel Moreno; Kanthan Shankar; layali Abdeen; luis Prada; Mazen Alsad; Mohammed Thabet Audah; Muneer Ferozie; Marcel Rached; Matthew Wai-Poi; Omer Karasapan; Piers Merrick; Rajesh Advani; Rapti Goonesekere; Sajjad Ali Shah; Syed Mehdi Hassan; Stephan Massing; Saad Sabrah; Ziad Badr; Christos Kostopoulos; Paul Welton; Ziad Nakat; luca Bandiera; Paul Baringanire; Mikul Bhatia; Bekzod Shamsiev; Sameh Mobarek; Emmanuel Cuvillier; Amal Talbi; Sally Zgheib.
The team has worked closely with Zeina El Khalil (Communications Officer), Anne Njuguna and Nada Abou-Rizk (Senior Program Assistants).
This work was carried out under the leadership and highly supportive guidance of Saroj Kumar Jha (WB Regional Director, Mashreq Department), Mouayed Makhlouf (IFC Regional Director, MENA), and Merli Baroudi (MIGA Director, Economics and Sustainability Department).
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FOREWORD
Inclusive growth and job creation remain urgent and central objectives for Mashreq countries striving to offer sufficient economic opportunity - particularly to youth and women – and quality social services essential to societal stability. In a difficult regional security context and constrained fiscal space with high debt to GDP ratios in some of the Mashreq countries, financing the investments needed to deliver economic opportunity and social services will be a significant challenge. It is beyond the capacity of public finance alone.
The World Bank Group (WBG) – comprising its sister institutions of the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) – shares the development commitment of its partner countries in the Mashreq region. But the WBG also recognizes, notwithstanding the record capital increase recently approved for the IBRD and IFC by shareholders, that it needs to leverage its financing capacity if it is to be able to meet the global needs of its member states.
To this end, the WBG – together with other International Financial Institutions – is committed to the Maximizing Finance for Development (MFD) initiative that was launched at the 2017 G-20 Meeting in Hamburg. MFD is an approach designed to crowd in, through innovative financing and policy initiatives, the much-needed private financing and expertise necessary to support equitable growth and sustainable job-centric development. This Mashreq MFD strategy is a first step in bringing a systemic and fully coordinated WBG engagement to the implementation of the MFD approach. It is also the first time that the WBG has sought to implement MFD at a regional level –- leveraging joint IFC, MIGA and IBRD teams working across institutional boundaries and with other international partners and the private sector – to address specific country and sector challenges within a regional framework.
This Strategy – while adaptive to change and subject to agile implementation principles to ensure development relevance and efficiency in delivery – also sets out a defined investment pipeline. This pipeline, based on initial and subject to continuing consultations with counterparts, will be both enabled by an MFD approach and serve to expand the potential for MFD financing. The Strategy also sets out clear results objectives for the three-year period of the Strategy.
We look forward to working with our partner governments, private sector and civil society organizations to implement this Strategy and leverage urgently needed financing and expertise to meet their priority development needs.
saroj Kumar Jha Regional Director Mashreq
Department World Bank
Mouayed Makhlouf Regional Director MENA
IFC
Merli Baroudi Director
Economics and Sustainability MIGA
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ACRONYMS
ASA Advisory Services and Analytics BRT Bus Rapid TransitCIP Capital Investment PlanCPF Country Partnership FrameworkCPSD Country Private Sector DiagnosticDFI Development Finance InstitutionDlI Disbursement linked IndicatorDPF Development Policy FinancingECE Early Childhood EducationFCCl Fiscal Commitment and Contingent liabilityFCI Finance Competitiveness and InnovationFCV Fragile Conflict and ViolenceGCR Global Competitiveness Report GDP Gross Domestic ProductIBRD International Bank for Development and ReconstructionIFC International Finance CorporationIFRS International Financial Reporting StandardsInfraSAP Infrastructure Sector Assessment ProgramIPF Investment Project FinancingJIP Joint Implementation PlanKPI Key Performance IndicatorMAF MFD “know-how” Accelerator FacilityMAP MFD Accelerator ProgramMCPP Managed Co-lending Portfolio ProgramsMDB Multilateral Development BanksMENA Middle East and North AfricaMFD Maximizing Finance for DevelopmentMIGA Multilateral Investment Guarantee AgencyMPA Multiphase Programmatic ApproachMSME Micro Small and Medium EnterprisesNBFI Non-Bank Financial InstitutionsNGMF Natural Gas Market FrameworkNRW Non-Revenue WaterOPE Overall Performance EvaluationPCB Performance Based ContractsPFM Public Financial ManagementPforR Program for ResultsPlI Policy legal and InstitutionalPPIAF Public – Private Infrastructure Advisory FacilityPPD Public Private DialoguePPP Public-Private PartnershipsPRI Political Risk InsuranceRF Results FrameworkS&P Standard and PoorSOE State Owned EnterprisesTTl Task Team leaderTSEZ Tripoli Special Economic ZoneVfM Value for MoneyWBG World Bank Group
I. THE PRIORITY OF MFD
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1. the Mashreq region – and in particular the countries of Jordan, iraq and lebanon - are facing major policy and fiscal challenges to growth and job creation. Accentuating the challenge are over-arching regional security vulnerabilities and deep-seated political economy and social cohesion uncertainties that threaten national stability. A vital part of the solution to these different challenges and threats and the consequences they can give rise to is an equitable growth trajectory that can bring quality jobs and essential services more broadly to the populations of these countries.
2. the Maximizing Finance for Development (MFD) approach aims to optimize the relationship between the public and private sectors. It will achieve this in two major ways: (i) maximizing the volume of investment and commercial finance that can be crowded in by effective reforms coupled with targeted deployment of scarce domestic and international public funds; (ii) efficiency gains from the more extensive involvement of the private sector to expand and improve public services while minimizing the burden on the national budget and tax resources.
3. the objective of the Mashreq MFD strategy is to outline the following: (i) rationale for prioritizing MFD in the Mashreq region, given the operational context (macro-economic, political economy and regional security); (ii) approach, instruments and implementation arrangements to be adopted and; (iii) results to be targeted over the period from FY2018-2021 for a World Bank Group (WBG) MFD initiative to make a measurable contribution to the goals of equitable growth and job creation.
4. this is a joint iBrD-iFc-Miga strategy. Only with the combined know-how of the three institutions - encompassing: (i) the extensive and trusted relationships with the private and public sectors and associated convening power; (ii) the expertise that exists to identify challenges and propose solutions and; (iii) the diverse products that can collectively be deployed to implement solutions - will it be possible to effectively implement the MFD approach.
5. this Mashreq strategy approach represents the first time the WBg has sought to develop and implement the MFD agenda based on a standardized regional framework. As such it is also an iterative and learning process and will be subject to adaptation and change as implementation proceeds, based on feedback from clients, WBG teams and management. What has been evident - even in the preparation of this strategy and before its implementation commences in FY19 starting with country stakeholder consultations - is that much has been gained already from the process alone. The extensive dialogue and cooperation to date - across the WBG institutions, the different IBRD GPs, IFC investment and MIGA underwriter teams and with WBG management – has allowed for an increased understanding and ownership of roles, processes, priorities and the results to be targeted.
II. RATIONALE AND KEY ELEMENTS OF THE MFD APPROACH IN THE MASHREQ
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6. the priority of growth and Job creation: Growth and employment creation across the Mashreq region is at levels that are insufficient to meet the demands of a growing labor force seeking improved economic well-being. Reforms to both the demand and supply sides of factor markets are a key part to any long-term strengthening of the growth potential in these countries and an increased role for the private sector that is the only long-term source of significant job creation in the region. Policy actions that need to be taken encompass national and sectoral challenges, addressing a range of domestic market (e.g. State-Owned Enterprises - SOEs, competition and investment policies, prices and subsidies), institutional (e.g. budget and debt management, procurement) and governance (in both public and private sector realms) and wider business, trade and financial sector enabling environment challenges, to name the principal areas for attention.
7. on capital investment performance and Macro-Fiscal constraints: A key indicator of sustainable growth is the levels of saving and consequently capital investment that an economy is achieving. To date – in the region – the level of new capital investment is low. As highlighted in the 2008 flagship “Growth Report” prepared by the Commission on Growth and Development, examples of countries that achieved sustained high levels of growth all entailed public investment levels of 5-7% in infrastructure and in some specific cases – such as China, Vietnam and Thailand – exceeded even these levels. A more recent Mckinsey Global Institute1 estimates that at a global level, the world economy needs to invest an average of 3.8% of GDP annually to maintain the currently expected growth rates. As shown in Annex I, none of the Mashreq countries met this level of investment. The bulk of government expenditures in the Mashreq countries (for infrastructure and social sectors) is for recurrent costs (85-90%) and
1 McKinsey Global Institute (2016) - Bridging global infrastructure gaps.
this is largely for employee remuneration and not for non-salary working capital. This implies insufficient funding of operation and maintenance (O&M) and an accelerated depreciation of existing capital stock. There is, additionally, the low efficiency of capital expenditures by the public sector in the Mashreq region generally, relative to regional\international comparator countries. This reflects both inefficient procurement and implementation management.
8. The macro-economic circumstances of these three Mashreq countries are weak, although Iraq has greater short-term potential to address imbalances as a result of improving hydrocarbon revenues. In the face of the fiscal consolidations that all three countries are pursuing in the coming years, there is limited potential for a significant program of public sector led financing of key capital investments. Faced with this constraint and the limited capacity (given country risk profiles) that IFIs alone can make up the financing gaps facing the countries, leveraging these constrained domestic and international public sources of funding to crowd in commercial financing and private investment offers an important route to the increased volumes of investment. This is needed to finance the public services – in infrastructure and social sectors - that are foundational to a competitive, sustainable and equitable growth path. And a growing economy offers far greater scope to drive for improved distributional outcomes that address the marginal groups and regions of these countries. Another favorable feature of PPP financing is the scope it provides for government to build in appropriate incentives to ensure adequate operation and maintenance on core assets, contrary to trends experienced in region under fiscally constrained public financing.
9. the current MFD enabling environment: Existing conditions for MFD in the Mashreq countries offers a limited basis for a significant increase in private financing of sector investments. The summary of some key indicators reveals (refer to Annex I) overall macro-economic and
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risk profiles in these countries - together with performance to date in attracting private investment including for PPPs - that pose significant obstacles to any efforts to attract the desired levels of private investment required to achieve the equitable growth and job outcomes sought. Improvements in “rule of law” and the efficiency of courts to enforce contracts are also long-term goals, particularly in the case of lebanon which, according to the Global Competitiveness Report (GCR), ranks in the fourth quintile of countries (Jordan is better placed in the second quintile and Iraq is not included in the GCR 137 countries). This adds to the urgency to pursue the key reforms needed to better position their institutions, investment climates and markets to leverage scarce international and domestic private sector finance. It also puts a significant premium of more effective coordination across Development Finance Institutions (DFIs) to avoid duplication of effort and ensure optimal use of the limited resources of these institutions. Two considerations of significance:» On Governance and Implementation:
Achieving success in MFD will require improved levels of trust and readiness to work together across government agencies and between these public agencies and business. Trust comes with transparency and accountability. It will be essential for an MFD initiative to meet the bar in terms of these measures for any improvements in resultant economic effectiveness to also achieve the political sustainability and social legitimacy that will lead to the long-term solutions required for growth and job creation.
» On Coordination Failure and the Public-Private Divide: For the foundations to be concretely put in place for MFD, a step-change in the effectiveness of policy implementation across the region will also be required. Implementation improvements require correction to coordination failures within government, improved political will, and capacity to deliver complex reform actions - that frequently require
complementary actions from across Ministries and Agencies and highly effective outreach and communications with citizens on the merits of reform. There is also a significant task to address between the public and private sectors. Too often these two parties are trapped in an inertia that comes with a lack of trust that either are acting in the public interest. This, allied to a mutual complicity with elite capture, reinforces the mistrust that a better outcome is politically feasible. What is compromised is the belief that there is scope for developing more effective partnerships that could better serve the public good. However, with the advent of new governments in all three Mashreq countries and an increasing political acknowledgement that the status quo is not sustainable, there is a window of opportunity to change this negative narrative between the public and private sectors.
10. MFD can be an important driver in this change. There are two distinguishing aspects to this “change-driver” role. The first is the incentive MFD can provide for policy reforms and new financing tools to address market failures that impede the mobilization of new sources of financing and capital investment for growth and jobs. The second is the impact that MFD can have towards improved governance and partnerships for policy implementation. This can be further enhanced by improved collaboration between development partners. This is all the more critical given the regional insecurity impacting these countries, which further complicates the challenges of growth and private sector job creation.
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III. MASHREQ MFD STRATEGY - OBJECTIVES, PRINCIPLES AND RESULTS
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A. OBJECTIVES
11. The objectives of this MFD strategy are twofold:a. Support the achievement of the core
development outcomes as set out on the Country Partnership Frameworks (CPF) agreed between the WBG and Jordan, lebanon and Iraq (in process);
b. Increase the leverage and effectiveness of WBG’s engagement through the catalyzation2 and mobilization3 of private sector investment, expertise and finance in support of these development outcomes.
B. THE PRINCIPlES
12. An MFD strategy, in line with the overall WBG “cascade” approach entails a “step-wise” process to identify reforms and financial enhancements that can unlock increased private investment and expertise in given sectors. In line with the “MFD – Leveraging the Private Sector for Growth and Sustainable Development” Development Committee paper of September 7, 2017, the Mashreq MFD Strategy will be anchored on the G-20 “Hamburg Principles” and seek to deploy IBRD, IFC and MIGA financing, guarantees and expertise in collaboration with partner governments, the private sector and other international partners to increase the levels of private investment in support of development through the following channels: » Recognizing and supporting country
ownership;» Strengthen policy frameworks and
investment capacity at national, sector and sub-national levels;
2 “Catalyzation” refers to policy actions that can open up new space for private investment.
3 “Mobilisation” refers to financial enhancements that can crowd-in private investment.
» Enhancing private sector involvement and prioritizing sustainable commercial borrowing and sources of finance;
» Enhancing the catalytic role of MDBs themselves.
13. Fulfilling the Hamburg Principles will have implications for both how the WBG and partner countries work together. First and foremost, there is a need to ensure country ownership and client demand to pursue an MFD agenda. The current context in the Mashreq is propitious. In 2017, the Government of Jordan signaled its strong intent to pilot an MFD approach to the new equitable growth and jobs strategy it is developing. In 2018 at the Iraq Investors Conference in Kuwait, the Government of Iraq drew over 2000 private sector participants to discuss its Reconstruction and Development Framework. This included a call to action to both the government itself and the private sector to embark on reforms and actions to crowd in much needed additional private investment. In April 2018 the Government of lebanon presented its $18 billion Capital Investment Plan to the CEDRE Investor Conference in Paris. To an important degree, the government outlined a macro-economic measures and reform agenda to leverage substantial flows of non-sovereign borrowing from commercial finance sources to contribute to the funding of this Plan.
14. The commitment of these governments to work with the WBG to pursue an MFD agenda will require also a cogent advocacy of the additional benefits of MFD and for incentives to be put in place to effectively pursue this additionality. This will require also the design and implementation of an effective communications plan – not just for the various and diverse decision makers involved – but also to the wider population. This in turn requires effective, purposeful diagnostic work, careful policy dialogue across the spectrum of stakeholders and tangible results achievable within a meaningful period.
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15. the cascade algorithm: This is a step-wise diagnostic process to determine the MFD potential – constraints and opportunities - in a given country and\or a given sector. Where commercial finance and private investment is not forthcoming where otherwise this would be the case, the first step in the cascade assessment is identifying the policy, legal and institutional (PlI) reforms that are needed to create the enabling environment that is conducive to private financing flows. These reforms – to be identified within each specific country context – will often need to encompass broad economy wide factors such as those highlighted in Annex I. Beyond this there will be sector specific PlIs that need to be tackled that can hinder private participation at the sector level.
the policy agenda:16. a sectoral MFD-pli assessment (most
often in the form of either an infrasap and\or in context of a country private sector Diagnostic – cpsD) will ordinarily proceed along the following stages: (i) stock-taking - status of the sector and experience to date attracting private investment into that sector, the overall sector performance and the importance of the sector to the twin goals and the MENA Region Strategy; (ii) analysis of sector structure including legal and regulatory environment, competition
policy issues (market structure and conduct), governance arrangements, generation of revenue and cashflow, existence of credit-worthy entities under transparent management, and; (iii) identification of reform initiatives, based on (i) and (ii).
the Financing agenda:17. the MFD agenda requires an ecosystem
that facilitates commercial investment and financing. This ecosystem encompasses (i) sound sector economics underpinned by sustainable cashflow, and creditworthy obligors (e.g. infrastructure SOEs/public off-takers) with strong governance, financial management and transparency, (ii) a pipeline of well-structured projects with viable economics and proper allocation of risks between private and public parties, and risk-return acceptable to investors, (iii) effective channeling of savings/long-term funds through a well-functioning financial system, together with (iv) public policies that enable a conducive business environment, and (v) bespoke state interventions and instruments when needed to address market failures.
18. Key considerations in determining financing MFD revenue and financing options include the following:
stylizeD MFD ecosysteM
Sector Economics,
Value Chains
Obligors (projects,
corporates)Domestic financiers
(banks, investors)
LT funding (deposits)
International financiers (agencies, banks, investors)
Transactions(commercial
finance)
cashflow
financing
Enabling policy reforms + enhancement instruments
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» infrastructure financing – and specifically – ppps, requires of large amounts of long-tenor credit and equity and complex structuring of transactions that generate socio-economic returns in excess of financial returns. Other sectors where MFD can play a role – such as agriculture and social service sectors - have their own specific requirements. This assessment needs to be done in context of the revenue flows that can come from the service and/or product delivery. Three sets of assessment are required to complement the PlI work:
о stable revenue source that is expected to cover the costs of constructing (if applicable), operating and maintaining the asset(s), and servicing the financing, over time. This could include revenue generated from user charges, other asset uses, or government transfers—provided that there is a credible mechanism by which those revenues can be allocated to the project to create a bankable revenue stream (including considering whether government or third-party guarantee mechanisms may be required). Also, important to address in the context of infrastructure utilities are revenue collection and recovery rates and the reforms and innovations required to sustainably improve performance in these areas.
о Financial and capital market capacity to finance MFD activities (domestically and internationally) over sufficiently long tenors and at a cost that could constitute value for money for the government and service users. This includes potential funding sources that could be accessed through capital and financial markets, together with a measure of the appetite and project finance expertise in commercial financing through Banks and DFIs.
о suitability and effectiveness of long-term financing schemes (including viability gap and liquidity facilities). This is part of a broader
challenge as to how to widen and deepen financial sector capacity to provide the different forms of financing needed for MFD – including for MSMEs or agriculture and in terms of municipal finance. This would also be a key consideration in the PlI assessment. This can include also strengthened regulatory frameworks for lending including at the municipal level as well as more widely in terms of credit infrastructure (secured transactions, collateral registries, credit reporting, insolvency and debt resolution etc.).
» specialized Financial instruments for transactions: Policy reforms can entail a lag before becoming effective and producing an impact in a given sector. Even with policy actions in place and where equity and debt financing is available, commercial viability objectives may need to be balanced with other social equity considerations. Also, implementation can be weak (lack of experience, expertise etc.) and\or there can be lingering reservations towards governments with a poor track record in its dealing with the private sector. There are also additional fragility and conflict (FCV) factors that can result in lost opportunities, particularly over the shorter term. Where these factors are at play, there is a strong public good case to be made for providing more tailored funding which, if foregone, also represents a lost opportunity to reverse track record perceptions, or not deliver that demonstration effect that can signal to the private investor the wider potential the sector offers for its involvement.
» “First mover” MFD transactions: A specific case for deployment of specialized instruments can occur with initiatives that have a higher probability of success over the shorter-term and can create demonstration effects. This can be especially valuable where there are significant FCV or socio-economic returns at stake - including inclusion (of the poor and bottom 40
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percent), environmental and gender-related - and where the investments are fundamentally commercial in nature but may require additional enhancements to be brought to financial close. This can entail a range of potential targeted financial instruments ranging from risk mitigation (guarantees, insurance etc.) to blended finance to targeted government support (climate funds, viability gap facilities, impact bonds). These products can serve wider government policy objectives as well as offset the more extreme risk premiums attached to commercial initiatives that can arise in FCV settings which more traditional de-risking instruments cannot adequately address.
19. Over the long-term additional significant solutions can be achieved through capital market development, including in sub-national bond markets which can be a key factor in mobilizing municipal finance. A primary pre-condition for these solutions to be feasible and sustainable is a more robust macro-economic environment where budget deficits and government paper are not crowding out private investment opportunities.
20. Key cross-cutting issues: There are four cross-cutting issues that will need to be addressed across all countries and whatever sectors are being targeted – that of governance, of financial sector development, the impact that MFD can have on poverty, vulnerability, equity and inclusion, and the implications of the fragility and conflicted-affected setting facing these Mashreq countries.
21. The MFD agenda requires a focus on a key set of policy and governance issues – from government budget and debt management, to procurement to SOE governance, to elite capture. Actions in this sphere have significant implications for countries’ overall sovereign credit-worthiness and risk profile to private investors. Effectively tackling these challenges will be paramount to ensuring a transparent, accountable and socially acceptable MFD program. Assessment of MFD readiness will pay particular attention
to: (i) improvements in a government’s public investment management, budget and fiscal commitment and contingent liability debt management; (ii) the quality and transparency of procurement practices and the need to improve standards for qualifying contractors to bid on public and PPP procurements and capacity of governments to develop these tenders; (iii) the impact of SOEs on private participation – addressing privileged market and procurement preferences; (iv) the transparency, accountability and absorptive capacity of private companies bidding on PPP contracts and the related policies and procedures in place to regulate against conflicts of interest and ensure sound company financial practices. These are recurrent key considerations in ensuring Value for Money is achieved in the public interest. Attention also needs to be given to improving broader investment climate and competition policy to enable private sector participation. Underpinning these core governance and policy issues will be a need to ensure adequate participatory processes and access to information to maintain wide societal support for the MFD agenda.
22. The financial sector holds the key to the feasibility of MFD over the long term - the World Bank Group will always stand ready to support first mover and transformational investments and retain a longer-term role in FCV-affected settings. IFC is a key player in providing and mobilizing financing, particularly with its B-loans, parallel loans and Managed Co-lending Portfolio Programs (MCPP). However, a strong domestic financial sector with diverse financial products to meet the different transactions needs - drawing on commercial banking systems, other NBFI and capital market products - is key to the growth and sustainability of private sector financing for development. This includes not just the large ticket financing needed for most PPPs, but also the capacity of the financial sector to finance the smaller firms involved in the outsourcing that comes with these large projects. MFD “fully implemented” should support the entire value chain associated
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with the investments that the approach can generate. Realizing the full potential of MFD requires the understanding of the macro and financial sector context, assessment and mobilization of long-term funding sources, and policy interventions that can facilitate commercial investment and finance, ranging from the improvement of credit infrastructure (credit information system, insolvency framework, etc.) to facilitation schemes for risk mitigation and credit enhancement. As such the WBG will maintain a strong focus on supporting the policy requirements needed, over the longer term, to bring about the sustainable growth and deepening of these different sources of financing.
23. The sustainability of an MFD agenda in a given country will require attention to the distributional impact this agenda has on vested interests and the more vulnerable members of the society, as well as its perceived fairness and inclusion. Assessment of an MFD agenda will need to take into consideration the “winners and losers”. In the case of the more vulnerable groups, the implications of pricing and subsidy reforms on the poor and specific demographic groups such as women and youth will need to be addressed. Fostering competition, commercialization and privatization in the SOE sectors will also impact specific segments of the labor force and these impacts will need to be understood and, as needed, mitigated. More generally, an effective assessment of the distributional impact of MFD will not only help identify the potential impact in terms of perceived fairness and inclusion, but also the potential pain points, mitigation strategies . Such an assessment will also contribute to the development of the wider societal communication that would be required to highlight the positive welfare effects of private investment in the infrastructure and social sectors and of measures to mitigate societal risks. Effectively tackling these distributional factors will be essential to the success of the new model of social contract that MFD offers.
24. The fragility and conflict-affected dimension - An additional broad consideration are the ways in which countries that are FCV-affected - such as those in the Mashreq - are confronted with risks that may require exceptional mitigating interventions, over and above what would be entailed in more conventional reform packages.
25. SMEs may play a key MFD role in the FCV context. In fragile and related scenarios, SMEs can be mobilized to fill gaps in the delivery of essential infrastructure services to underserved populations, possibly also including not only operation but also reconstruction and rehabilitation of small-scale networks (in particular in the water and energy sectors). In some such cases, SMEs may be the primary or the only available private sector actors as neither government nor large private companies may be on the scene or capable of providing such infrastructure services. The identification and the implementation of such inclusive SME-based MFD initiatives, which could help address factors fueling fragility, may utilize guidance prepared by the World Bank; “Providing Essential Infrastructure in Fragility, Conflict and Violence-Affected States: A Toolkit for enabling SME participation”.
26. engaging with the private sector: Critical to successful MFD activity - implied throughout this Strategy but meriting clear statement - is the need, when conducting any InfraSAP or CPSD or developing a specific operation, to engage upstream and on a continuous basis with both domestic and international investors and financial intermediaries. Establishing effective MFD-focused Public-Private Dialogue (PPD) exercises will enable the WBG teams to more promptly identify the principal PlI constraints, structure operations accordingly and put in place the most relevant financial instruments to partner with the private sector. The dialogue with the private sector further deepens as specific pipelines of transactions are developed and projects get taken to market. This relationship moves from policy level dialogue to
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investor conferences and roadshows and then to procurement, negotiation and implementation oversight as projects move from identification, feasibility, transaction advisory, structuring, financing through commencement of operations and beyond. It is a long-term partnership that requires high quality technical and relationship management.
C. THE RESUlTS TARGETED
27. the results Framework: The Mashreq MFD Strategy for the FY19-21 period will be targeting the following results areas and Key Performance Indicators (KPI): (i) levels of commercial financing and private investment mobilized; (ii) MFD-enabling PlIs implemented; (iii) improvements in access to and quality of services; (iv) Jobs created by MFD-enabling PlI reforms and investments. The results framework (RF) and related indicators and metrics for these indicators are set out in Annex II, to be populated as the MFD pipeline projects are prepared.
28. The RF will necessarily be a “living” and evolving exercise. KPI targeted outcomes will be updated as the preparation of pipeline projects proceeds and these KPI outcomes are determined and quantified. It is not expected that all MFD-enabling projects will necessarily target and register outcomes for all four of the KPIs established for the Strategy. However, the Mashreq MFD Program will require all teams to determine and justify – as part of project preparation – the extent to which the proposed MFD-enabling project does target these KPI outcomes. The approved outcomes will be monitored during implementation and aggregated across all IBRD, IFC and MIGA projects to be able to present an integrated WBG set of MFD results achieved against the targets established. These results can then be benchmarked also against similar KPIs from wider regional and WBG portfolio performances.
29. In further support of the overall strategy, the World Bank (Poverty GP) will assist develop and/or modify existing tools for the ex-ante analysis and ex-post monitoring of project impacts related to key results areas (iii) and (iv) above. This can also entail the development of baseline values for chosen indicators at the project level. This monitoring and baseline framework would be reflected in the proposed Joint Implementation Plans. Other methodological approaches would also be deployed where feasible. This can involve, for instance, the use of CGE modelling, as has already be done to estimate job creation outcomes in the context of lebanon’s National Jobs Program.
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IV. COUNTRY STATUS FOR MFD READINESS AND WBG PRIORITIES
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30. MFD Activities in the three Mashreq countries are at different stages across the WBG programs. A summary by country of: (i) context; (ii) MFD reforms in place; (iii) current WBG MFD engagement in country, including current WBG operations in the FY19-21 pipeline that are MFD-enabling ( see Annex III) . Currently the target pipeline only extends through FY20 deliverables. This table will be updated as concept reviews are concluded and MFD criteria of the projects are assessed; (iv) key areas of policy priority and focus by sector (further details in Annex IV). What follows is a summary of these three areas of reference.
31. The MFD reform framework comprises four dimensions (see Annex IV), as following:» strategy, policy, and legal gaps: legal,
market and pricing policies and fiscal management issues;
» governance gaps: institutional, regulatory, processes and practices and capacity issues;
» Financing gaps: financial products, facilities and wider financial sector development and sustainability requirements to support MFD outcomes across sectors;
» Fcv\political economy: identification of the equity, vulnerable group and other key political economy issues to be addressed for sustainability of the MFD reform action.
A. JORDAN
i. context32. Key features include:
» Debt to GDP level at 93.5% (2017), budget deficit of 0.4% of GDP and sovereign credit rating of B+ Standard and Poor (S&P);
» Government efficiency of spending 3.4/7 (GCR);
» Challenging context with subdued economic growth aggravated by regional conflict and associated spill
overs and growing societal pressures for growth that brings jobs and improved services;
» Slowdown is broad-based and the influx of Syrian refugees has placed acute pressures on services and resources;
» High unemployment (18.5%) particularly among youth (36%) and women (35%);
» Current number of PPP projects – 42 as recorded in the WBG PPPI database.
ii. Key MFD reforms in place33. Jordan has made some important
progress in developing an MFD enabling environment. More specifically:» 2014 enactment of PPP law, 2015
approval of implementing regulations; establishment of the PPP Unit in the Ministry of Finance and the PPP Council and development of fiscal commitment and contingent liability (FCCl) risk management capacity;
» launch of IPPs in early 2000, including introduction of renewable energy IPPs in 2012/13;
» Privatization of power distribution in 2009;
» Reforms to address financial viability and operational effectiveness of utilities in electricity and water sectors;
» Strengthening of the role of the Jordan Investment Board;
» Establishment of a PIM unit in MOPIC;» Fast expansion of digital payments
facilities;» Credit infrastructure – enhanced
credit reporting system and expanding guarantee schemes.
iii. status of WBg engagement in Key sectors and portfolio activities
34. MFD portfolio engagement in Jordan is most advanced across the World Bank, IFC and MIGA within the Mashreq. More specifically:
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a. iBrD: MFD support has focused on national and key sector development through lending operations and trust funds in following areas:» Passage of PPP law, regulations
and capacity building to the PPP Unit in the Ministry of Finance to strengthen overall enabling environment for PPPs (Development Policy Financing (DPFs) and Public- Private Infrastructure Advisory Facility (PPIAF) financing);
» Development of a PPP/PIM functionality to strengthen government investment prioritization and value for money (VfM) deployment of government and private sector funds (MENA Transition Fund and PPIAF);
» Support to the identification of a pipeline of PPP projects, with primary focus on potential of tolling key trade corridors trunk roads (PPIAF);
» Under the Education Program for Results - PforR, technical assistance is being provided to develop a PPP model to deliver infrastructure and services for Early Childhood Education (ECE);
» Strengthening of the financial sustainability and operational efficiency of energy and water sectors (last programmatic DPF series) and ongoing work to address Non-Revenue Water (NRW) issues, together with IFC.
b. iFc: MFD investments focused on following investments and advisory services:» Regular large-scale investments
in the power sector since 2009, initially on the distribution side, followed by numerous investments on the thermal power side and in the renewable energy sector;
» PPP advisory and financing of Queen Alia airport;
» Credit infrastructure and MSME financing;
» Advisory work in support of PPPs for Amman Ring Road and King Hussein Bridge;
» Support to IBRD teams on the PPP project pipeline identification (e.g. trade corridor tolling);
» Working with the MOF PPP Unit to initiate future PPP (e.g. Swaqa hazardous waste);
» IFC advisory with European Bank for Reconstruction and Development (EBRD) is in discussion with Ministry of Education (MOE) on the construction of 15-20 new schools as a PPP project, as part of the Jordan Schools Program. Some concessional financing could be envisioned depending on private sector appetite.
c. Miga: Political risk insurance guarantees for cross-border investment and lending in the context of MFD:» Guarantees in thermal and
renewable energy.» Guarantees for PPPs in infrastructure
(wastewater treatment and Queen Alia Airport);
» Guarantees for expansion of a bromine plant.
iv. critical areas for sector progress35. Building on and continuing to support the
MFD agenda in the current energy and water sector, the WBG is currently collaborating with government to identify MFD-enabling initiatives to improve transport services - including toll roads, border crossing and public transport. This WBG strategic initiative will support the transport sector reforms, potential capital stock upgrade and O&M improvements through advisory and IBRD investment and DPF operations and potential IFC financing, including through provision of enhancement measures where needed to mobilize the private investment. MIGA support would be available for foreign investors seeking risk mitigation for their equity and loans into such projects through political risk insurance.
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36. Going forward, there is potential to bring a significant MFD engagement into the education sector which will be a priority initiative for the World Bank Group with initial attention on areas of school building, early childhood education and technical and vocational training. This undertaking would be building on the current IBRD Education Reform Support PforR program and IFC advisory work on PPP approaches to school building and maintenance (often referred to as Private Finance Initiatives – PFI). Additional joint IBRD/IFC initiatives to address NRW challenges at a municipal level are also under consideration.
37. A summary of the leading sector issues is included in table 1.
B. lEBANON
i. context38. Key features include:
» Debt to GDP 157.3% (2017), budget deficit of 10.6% of GDP, Sovereign credit rating B- (S&P);
» Efficiency of government spending (1.8/7 – GCR);
» Economic vulnerabilities persist in absence of reforms, exacerbated by refugee influx. Growth stagnating around 1-1.5% in 2016-17;
» Unemployment at 7% but the problem is acute among youth (21%) and women (25%);
» Fiscal position deteriorated with rising expenditures and interest payment obligations and government debt among highest globally;
» Current number of PPPs – 9 as recorded in the World Bank Group PPPI database;
table 1: Jordan sector priorities
sEcTor KEy arEas for fuTurE wBg aTTEnTionCross-cutting (enabling policies, governance, finance)
» Governance and financial management of infrastructure SOEs (e.g. NEPCO) » Procurement – including modernization of legal and procedural framework, procurement policy and oversight mechanisms, and independent complaint review mechanisms
» Business environment (investment climate, credit infrastructure etc.) » Developing a robust pipeline of bankable PPP projects, which requires capacity building and optimized facilitation schemes (project preparation facility, viability gap funding etc.)
» Implementation of PIM/FCCL initiatives » Long-term finance capacity (incl. development finance, capital markets)
Power » Transmission, tariff structure and storage
Water » PPPs and municipal finance and NRW
Transport » Trade corridors, tolling options and urban transport
Agriculture » Enhancing the value chain and competitiveness of exporters
Education » Schools (PPP and private schools) » Assessment of role private sector can play in respect of: (i) increased ECE access; (ii) improved outcomes, increased system efficiency, greater equity; (iii) vocational and technical training (TechVoc)
Services » Tourism (including health) and ICT
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» Key part of evolving growth strategy is the Capital Investment Plan (CIP) which was presented at the CEDRE conference in Paris on 6 April to attract investments/FDI.
ii. Key MFD reforms in place39. lebanon has made limited progress in
developing an MFD enabling environment. More specifically:» 2017 enactment of PPP law to give
legal authority for the High Council for Privatization and Partnership (HCP-P) to implement at PPP mandate;
» Tripoli Special Economic Zone (TSEZ) legislation of 2008 that empowers the TSEZ Authority to pursue a PPP development model;
» Business environment legislative package submitted for Parliamentary approval (includes reform of equity shares, commercial code, secured transactions, insolvency and insolvency practitioners, judiciary mediation).
iii. status of WBg engagement in Key sectors and portfolio activities
40. MFD engagement in lebanon by the World Bank, IFC and MIGA entails the following:a. iBrD: Currently focused on the
following advisory and upcoming operations:» Advisory services in support of the
recently enacted PPP law and capital market development;
» Strengthening of the Ministry of Finance capacity to manage PPP-related FCCl risks;
» Introduction of operator and private investment in the BRT through targeted PPPs financing of the project;
» Establishment of the Tripoli Special Economic Zone through a Developer\Operator PPP;
» Core support to the High Council of Privatization and PPPs for institutional development and PPP pipeline development;
» Advice on the development of financing facilities to leverage private investment in support of the Capital Investment Plan.
b. iFc: MFD investments focused on following investments and advisory services:» PPP Advisory services for two 400-
500 MW IPPs (Zahrani and Salata IPP) as part of a 1500 MW IPP program (potential also for PRG/PRI cover);
» Upstream work for development and potential financing of 3 wind projects in Akkar (200MW);
» Potential financing of solar PV projects;
» PPP advisory services for key transport and economic projects (Beirut BRT, Beirut Rafic Hariri International Airport, and potentially Tripoli Special Economic Zone and Ports);
» Advisory on credit infrastructure, commercial registry and Tripoli Special Economic Zone.
c. Miga: Political risk insurance guarantees for cross-border investment and lending in the context of MFD:» Guarantees for an electricity
distribution service provider.
iv. critical areas for sector progress41. A comprehensive Power Sector reform
initiative to bring reliable and sustainable 24/7 power to households and businesses across lebanon is a major priority. This WBG strategic intervention will support the reform agenda with IBRD, IFC and MIGA financing and enhancement measures (e.g. guarantees, blended finance) and advisory and technical assistance as needed for eligible projects to mobilize private investment into the sector. MFD-enhancing initiatives are also underway in terms of
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the expansion of private participation in the water sector, including addressing key NRW issues.
42. Also, in the pipeline is the further development of the international airport under a PPP contract, including key reforms to the Civil Aviation authority to enhance its role in creating the enabling environment for increased private participation in the aviation sector.
43. The other leading sector issues are summarized in table 2.
C. IRAQ
i. context:44. Key features include:
» Iraq is the most oil dependent country in world. Accordingly, oil price slump/production cuts had severe implication on economy;
» Debt to GDP 54.7%, budget surplus of 0.3% of GDP, sovereign rating B- (S&P)
» Slow economic growth projected to contract by 0.4% in 2017. There is a great need to diversify the economy;
» Unemployment at 16% but the problem is acute among youth (33%) and women (24%);
» Current number of PPPs – 2, as recorded in the WBG PPPI database;
table 2: lebanon sector priorities
sEcTor KEy arEas for fuTurE wBg aTTEnTionCross-cutting (enabling policies, governance, finance)
» Improvements in governance and financial management of infrastructure SOEs (e.g. EdL)
» Further PFM/FCCL, procurement reforms; corporate governance (firms) » Business environment (investment climate, credit infrastructure etc.) » Developing a robust pipeline of bankable PPP projects, which requires institutional capacity building and early-stage advisory for project origination; and optimized facilitation schemes (project preparation facility, viability gap funding, guarantees, liquidity facility)
» Long-term finance and financial institution capacity
Power » IPPs (thermal and renewable energy) and fuel sourcing infrastructure (FSRU) allied to institutional and pricing reforms to establish commercially sound value chain and quality service to households and businesses
Water » Municipal water and Non-Revenue Water (NRW)
Transport » Airport, SEZ and Port, urban transport, logistics
Telecommunications » Fiber optic development, digital infrastructure, including focus on lagging regions
Education » Higher education, including technical and vocational training
Services » Retail and tourism
Municipal » Strengthening municipal finance for PPPs
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» Failure to implement fiscal adjustments could spur a depletion of foreign exchange reserves and an accumulation of short-term domestic debt.
ii. Key MFD reforms in place45. Iraq has made limited progress in
developing an MFD enabling environment. More specifically:» launch of the Reconstruction and
Development Framework that highlights a new priority to mobilize private financing to support capital investment needs;
» Draft PPP law under consideration at Parliament;
» New contractual and regulatory private-sector-enabling framework for private investment in flaring reduction and gas-to-power (Natural Gas Market Framework - NGMF) formally adopted and introduced in January 2018;
» KRG new public procurement regulation in effect including transparency, safeguards and complaint review mechanism and 2017 annex to the regulation on PPP procurement and capacity building.
iii. status of WBg engagement in Key sectors and portfolio activities
46. MFD engagement in Iraq by the World Bank, IFC and MIGA entails the following:a. iBrD: Currently focused on the
following upcoming operations:» Reduction Gas Flaring, Gas-to-
Power and mobilization of private investment electricity; ASA Technical Assistance for implementation of private-investment-enabling gas sector reform
» Introduction of PPP under the Baghdad Water and Wastewater project; This will include PPP arrangement for the Wastewater treatment plant in Baghdad.
» Systems upgrades and potential PPP options at the distribution and transmission level under the Basra Electricity Services reconstruction;
» Development of central agency capacity to manage PPP-related FCCl risks;
» PPP annex introduced to the KRG procurement regulation;
» Private sector reform agenda prepared for implementation from the February 2018 Kuwait Conference;
» InfraSAP under consideration in targeted sectors (from power, water and wastewater, transport/airports, housing, agriculture and banking. To be determined).
b. iFc: MFD investments focused on following investments and advisory services:» Investment in the Suliymaniya
IPP and potential investment in Besmayah IPP and Basra Gas Company;
» Investments in port development, thermal and solar PV (scaling solar);
» Assess PPP options for O&M of Baghdad Water and Wastewater, where IBRD is funding core infrastructure;
» Advisory feasibility work in support of private investments in targeted projects under MOU with the Ministry of Planning, in preparation for the Kuwait Reconstruction Conference;
» Investment climate/doing business.» Financial sector development
including: privatization of the banking sector to be taken in to the agenda of reforms; Rationalization of competition from public sector banks; Corporate governance and adoption of international accounting standards (IFRS)
c. Miga: Political risk insurance guarantees for cross-border investment and lending in the context of MFD:
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» Guarantees for port logistics (Umm Qasr).
iv. critical areas for sector progress47. The critical challenges in Iraq over
the foreseeable future for which the mobilization of private financing will be at a premium is the delivery of services including in liberated areas and those where there are urgent reconstruction needs to be met.
48. Particular attention will be paid to foster MFD solutions to the development of the oil, gas and electricity sectors, including critical SOE and institutional reforms and to the financial sector that is a cross-cutting requirement for the success of MFD in any specific sector. This will include complementary IBRD operations and IFC investments, including in Basra. Additional support to non-oil sector development – with a specific focus on the agriculture - will also be a priority.
49. Based on planned InfraSAP work to be done in close coordination by IBRD and IFC, additional key sector(s) for potential sector-wide reform effort will be identified with a view supporting this through the next generation of WBG operations and
through the design and mobilization of funding for different commercial financing and private investment enabling financing facilities.
50. The other leading sector issues are summarized in table 3.
table 3: iraq sector priorities
sEcTor KEy arEas for fuTurE wBg aTTEnTionCross-cutting (enabling policies, governance, finance)
PPP and Procurement policy and legislation reform; sector reform roadmaps including SOE reforms (corporatization and regulation).FCCL risk management.
Power IPPs, thermal and renewal energy, distribution
Water Waste Water Treatment
Transport Port and Logistics (IS) – Airports: PPP Advisory
Telecommunications Fiber Optics
Agriculture Development of the agriculture value chain, SOE reform and opening input markets for private sector.
Manufacturing and Services Refineries/Petrochemicals
Financial Sector Banking sector reforms, credit infrastructure, and firm/sector level capacity building, specialized development finance (e.g. housing finance, agriculture finance) while exploring potential for commercial finance.
V. ORGANISING FOR DELIVERY – JOINT IMPLEMENTATION PLANS, INSTITUTIONAL ARRANGEMENTS AND RISK FACTORS
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A. JOINT IMPlEMENTATION PlANS
51. Joint country implementation plans: Based on preliminary consultations with the Governments of Jordan, lebanon and Iraq – drawing on this Strategy - FY19 will see the commencement/continuation of detailed dialogue with government and then private sector across the key sectors highlighted in the preceding section with a view to determining what specific issues are to be addressed in each country to best forward a broad, policy-based MFD strategy and through what means the WBG can assist in this effort.
52. These Joint Implementation Plans (JIP) – will be living documents prepared in consultation with governments by joint IBRD/IFC/MIGA teams. These JIPs will set out the policy, governance/institutional and other key determinants to enable investment priorities to be addressed in a way that leverages private financing. Based on this cascade assessment, the WBG team can identify the optimal combination of support that can be provided through lending (DPF, IPF, PforR, PRGs etc) additional technical assistance and ASA support, and with IFC and MIGA financing/guarantees and advisory.
53. Each institution of the WBG brings its comparative advantages to the challenges of implementing an MFD solution to the development challenges to be tackled in these different Mashreq countries. Given the range of areas where key initiatives could be pursued it will be critical, in developing a JIP, to be selective about where the focus of effort should be targeted. This does not imply a narrow, project focus nor overlooking specific opportunities, but it does require clear choices about sectors and issues of focus, and the pursuit of a systematic policy, programming and investment agenda to which all three WBG institutions commit to dedicate staff, resources and financing. To this end, MFD work in each country will prioritize staff and resources for two levels of MFD engagement;
» targeted transactional engagement (Type I) where IBRD\IFC\MIGA teams collaborate on more targeted actions related also to specific transaction development and financing.
» Full “cascade” engagement (Type II) where well-defined joint IBRD/IFC/MIGA teams will be established with the full backing of respective managements to undertake a comprehensive engagement in a sector encompassing a broad upstream policy agenda in line with priorities set out in Annex IV as well as downstream project finance and PPP opportunities.
54. Based on consultations to date, the following priority Type I and II areas of focus have been identified for further consultation with government counterparts. A full list of currently tagged cascade enabling Type I and II projects in the pipeline for FY19 and 20 are detailed in Annex 3-A. Adjustments may be made based on the outcome of these consultations with government counterparts and other progress in project preparation.
Mas
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| M
axim
izin
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t (M
FD) S
trat
egy
34
table 4: initial list of candidate Mashreq activities by type i and ii
counTry sEcTor ProjEcTs commEnTsTyPE ii iniTiaTiVEs
Jordan Education PforR and IFC PFI initiative in Schools;ECE potential.
Would represent a first MFD agile initiative in a non-infrastructure sector
Water IBRD prior DPF engagement. IFC priority. Type II initiative under development with focus on addressing NRW and tariff policy reform.
Lebanon Energy Lebanon Energy Reform and Development Project
Shared IBRD/IFC priority under an MPA initiative with policy and governance actions allied to MFD investments along the value chain.
Transport Civil Aviation Reform and Airport extension.
Transaction to be developed, to include policy and governance change to civil aviation sector.
Water Water and Sanitation Services Transaction to be developed on NRW as a Type II – key policy action is a move from fee to volumetric tariff.
Iraq Energy Major focus of current DPF series;IFC active in IPP and gas-to-power (Basra Gas Co);Initial Type II IBRD engagement focused on Basra.
Remains a priority economic driver for the country and key factor in budget targets under the IMF SBA.
Banking Currently TA and DPF based activities, with project preparation for FY20 delivery.
Key sector priority foundational for all other sectors and for growth and job creation.
Agriculture Agriculture Transformation project. Key new sector which is high government priority
TyPE i iniTiaTiVEsJordan Transport Amman Ring Road;
King Hussein bridge;InfraSap being undertaken in the roads sub-sector;Competition issues in this sector being addressed in new DPF series.
Considerable collaboration already ongoing across IBRD regional/IFC and the IPG team.
Energy IBRD prior DPF engagement and follow-up under new DPF series.
Substantial progress already achieved in this sector.
Lebanon Transport Beirut Urban Transit Project (BRT) PPP transaction involving private provision of feeder bus service.
Iraq Water Baghdad Water Shared IBRD/IFC priority including Waste Water Treatment through PPP arrangement.
Transportation Airports/Ports/Transport Corridors. (early phases)
ORG
ANIS
ING
FOR
DELI
VERY
– JO
INT
IMPL
EMEN
TATI
ON
PLAN
S, IN
STIT
UTIO
NAL
ARRA
NGEM
ENTS
AND
RIS
K FA
CTO
RS
35
B. INSTITUTIONAl ARRANGEMENTS
55. institutional arrangements: There are five essential aspects to an effective institutional arrangement: (i) identification of priorities and required joint engagement; (ii) delivery organization and process; (iii) incentives and training; (iv) agile; (v) monitoring and evaluation. Each in turn.
56. Priority Setting and Joint Engagement: This will be set out at a country level with counterparts through the JIP dialogue in line with this Strategy. These JIPs will set out the specific objectives, areas of priority for reforms, investments and technical assistance requirements, additional diagnostics that may be required. They will also include a workplan and timeline for delivery and country-specific results to be achieved.
57. Management and Teams: Three aspects to this: (i) MFD management committees; (ii) team composition; (iii) process for project preparation:» Management committee: Existing
IBRD/IFC/MIGA management teams will meet together in special sessions to review and revise progress against the MFD Strategy and Workplan on a semi-annual basis;
» team composition: For all Type II engagements, it would be mandatory to establish a joint IFC-MIGA-IBRD team. WBG Directors will meet with Type II teams on bimonthly basis to review the progress. for Type 1 operations and standalone ASAs, WBG reviews will be determined on a case-by-case basis;
» process for project preparation: For IBRD projects initiated in Type 1 category, cascade analysis will be required as part of the preparation of all lending operations. Peer Reviewers will, unless authorized otherwise by practice management, include an IFC and/or MIGA staff member. All project concept notes will need to address
how the project would anticipate contributing to the four Results Areas set out in the Strategy.
58. Going forward, as part of a coordinated team, IBRD would anchor the policy and wider programming engagement, with IFC anchoring key private sector consultations and transactions within the MFD program. MIGA’s involvement – as the most specialized of the WBG institutions – would be calibrated to the specifics of the engagement to optimize private sector participation; for example, advising on the eligibility of PPP projects.
59. Incentives and Training: OPEs will make specific reference to staff performance in terms of MFD mainstreaming plus additional budget (BB) support to finance specialized expertise and MFD-related training will be prioritized in Mashreq region. This includes:» An awards program will be launched to
recognize exceptional efforts by staff and teams across the WBG delivering on the MFD objectives and results set out in this Strategy;
» Establishment of a MFD Know How Accelerator facility (MAF) – managed by FCI – that will consist of a funding envelope for specific expertise to assist project teams in addressing key MFD issues in project design and implementation. This funding will be additional to allocated lEN and SPN BB funds;
» Targeted training sessions in areas of specific priority to the Mashreq region. This will be underpinned by the MFD Accelerator Program (MAP - in collaboration with Ferrazzi Greenlight) where joint IBRD\IFC\MIGA teams will be supported over the coming FY to address key business and institutional culture, behavior, incentives and other obstacles to team and client engagement effectiveness. This initiative was launched in July with a first round of WBG staff engaged in priority “Type II” MFD activities including Jordan Education and Iraq and lebanon energy.
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t (M
FD) S
trat
egy
36
60. Agile Dimension: The Mashreq MFD Strategy will be implemented working closely with the Agile team who will be looking to support teams specifically in the following areas, where details will be developed and tailored to each MFD team requirements:» Improve processes and documentation:
This entails piloting streamlined processes and deliverables across the three organization to avoid work duplication and save on time;
» Supporting MFD for delivery: Ensuring teams get the right support and expertise at the right time to efficiently deliver MFD project (such as technical, legal, procurement, E&S). This is being delivered through the establishment of the MAF which will provide additional resources – both financial and technical - to ensure teams have the right expertise in a timely manner to ensure robust project preparation work is completed in line with the cascade algorithm. the MaF will prioritize type ii project preparation.
61. Monitoring and Evaluation: Quarterly progress reports will be prepared detailing progress on the workplan and any results achieved to date. These reports will also be input for the management committee reviews. These reports will be prepared based on inputs from the relevant TTls. A template for information required will be prepared and distributed to TTls.
62. An evaluation plan will be developed for this MFD Strategy. It will cover efficiency, effectiveness and impact outcomes and be designed based on consultations across the World Bank GPs, IFC, MIGA and IEG. Of importance will be the determination of the baseline of WBG projects/investments on which specifically effectiveness and impact-type outcomes will be assessed. Currently the plan would be to include all projects/investments approved over the next two fiscal years (FY19 and FY20) with Annex III providing the current baseline.
63. Considering current MFD guidelines - specifically that private financing mobilized within a period up to three years
after project approval is to be included in results assessment – it is recognized that the timeframe over which this Strategy is to be assessed would be FY19-FY28. This would allow for 5-year projects approved in FY20 to assessed three years after project closure. Further guidance and consultation on the design of this evaluation plan will be undertaken and presented to the first semi-annual review by senior management of the Strategy.
C. STRATEGY RISKS
64. The successful implementation of the Strategy will require effective management and/or mitigation of a range of specific types of risks, including:» Regional: The ongoing conflicts
and political uncertainties in the region – and specifically the wider consequences of the Syrian crisis on neighboring countries – remains a significant impediment to private sector participation in the Mashreq countries, as most evidenced in the current declining FDI trends in lebanon and Jordan.
» Political: This includes (i) the political will to implement the key policy (e.g. pricing/subsidy/tariff) and legislative actions that are a sine qua non for private sector participation and risk-taking with government and (ii) the challenges faced by policy makers to ensure wider citizen buy-in for the reform actions required;
» Macro-Economic: Addressing the high debt burden faced by lebanon and Jordan and ensuring that an adequate framework to manage the fiscal commitment and contingent liabilities that can be associated with PPPs is in place;
» Governance: This includes risks associated with elite capture, weak procurement, financial management processes and poor contract management practices that can compromise level playing fields and
ORG
ANIS
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FOR
DELI
VERY
– JO
INT
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EMEN
TATI
ON
PLAN
S, IN
STIT
UTIO
NAL
ARRA
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ENTS
AND
RIS
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CTO
RS
37
competition that, in turn, can lead to adverse pricing and poor service delivery not in the public interest;
» Absorptive Capacity: MFD requires different institutional, technical/political economy and behavioral capacities for policy making and program implementation that are often not in place in client countries. Attention will need to be paid to capacity building required to address these dimensions of the MFD agenda.
65. As operations are prepared, this range of key risk factors will be systematically addressed, revised and updated as needed and collated and tracked at the Strategic level, including in the Quarterly Progress Reports.
VI. ANNEX I KEY INDICATORS FOR MFD READINESS (2017 DATA - uNlESS INDICATED OThERwISE)
ANNE
X IK
EY IN
DICA
TORS
FO
R M
FD R
EADI
NESS
(201
7 da
ta -
unle
ss in
dica
ted
othe
rwis
e)
39
jo
rdan
lEBa
non
iraq
com
Para
Tor
coun
Try
mal
aysi
aTh
aila
ndm
Exic
oar
gEnT
ina
TurK
Eym
acro
-Eco
nom
ic, i
nsTi
TuTi
onal
and
inVE
sTm
EnT c
limaT
E ind
icaT
ors
Debt
/GDP
493
.5%
157.3
%54
.7%
53.6
%41
.6%
53.5
%54
.1%27
.8%
Budg
et D
efici
t5-0
.4%
-10.6
%0.
3%-2
.7%
-0.9
%-2
.5%
-5.5
%-2
.9%
Gros
s fixe
d Ca
pita
l For
mat
ion,
pr
ivate
sect
or (%
GDP)
617
%20
%N/
A17
%N/
A19
%N/
AN/
A
Gros
s fixe
d ca
pita
l for
mat
ion
(%GD
P)7
20%
22%
17%
25%
N/A
22%
15%
30%
Publ
ic ca
pita
l for
mat
ion
(%GD
P)8
3%2%
N/A
8%N/
A3%
N/A
N/A
Capi
tal e
xpen
ditu
res o
f tot
al p
ublic
ex
pend
iture
s 10
.2%
14.1%
--32
.6%
16.6
%13
.7%
----
Fore
ign
Dire
ct In
vest
men
t, ne
t in
flows
(%GD
P)
4.2%
N/A
N/A
3.0%
2.0%
2.80
%1.
9%1.
30%
Claim
s on
cent
ral g
over
nmen
t (%
GDP)
9 (201
6)30
.5%
102.
3%NA
10.2
%16
%16
.3%
23.%
9.2%
Budg
et Ef
ficien
cy (W
EF) `
effic
iency
of
gove
rnm
ent s
pend
ing
1- 7
) bes
t) (2
017-2
018)
3.4
1.8
N/A
4.8
3.6
2.2
2.7
n/a
4 IM
F Dat
aMap
per;
Gene
ral g
over
nmen
t net
lend
ing/
borr
owin
g; a
cces
sed
on 7
/8/2
018
5 IM
F Dat
aMap
per;
Gene
ral g
over
nmen
t net
lend
ing/
borr
owin
g; a
cces
sed
on 7
/8/2
018
6 Pr
ivat
e in
vest
men
t cov
ers
gros
s ou
tlays
by
the
priv
ate
sect
or (i
nclu
ding
priv
ate
nonp
rofit
age
ncie
s) o
n ad
ditio
ns to
its
fixed
dom
estic
ass
ets.
(WDI
dat
abas
e)
7 Gr
oss
fixed
cap
ital f
orm
atio
n (fo
rmer
ly g
ross
dom
estic
fixe
d in
vest
men
t) in
clud
es la
nd im
prov
emen
ts (f
ence
s, d
itche
s, d
rain
s, a
nd s
o on
); pl
ant,
mac
hine
ry, a
nd
equi
pmen
t pur
chas
es; a
nd th
e co
nstr
uctio
n of
road
s, ra
ilway
s, a
nd th
e lik
e, in
clud
ing
scho
ols,
off
ices
, hos
pita
ls, p
rivat
e re
side
ntia
l dw
ellin
gs, a
nd c
omm
erci
al
and
indu
stria
l bui
ldin
gs. A
ccor
ding
to th
e 19
93 S
NA, n
et a
cqui
sitio
ns o
f val
uabl
es a
re a
lso
cons
ider
ed c
apita
l for
mat
ion.
8 Ca
lcul
ated
by
subt
ract
ing
priv
ate
sect
or fi
xed
capi
tal f
orm
atio
n fr
om th
e gr
oss
fixed
cap
ital f
orm
atio
n.
9 Cl
aim
s on
cen
tral
gov
ernm
ent i
nclu
de lo
ans
to c
entr
al g
over
nmen
t ins
titut
ions
net
of d
epos
its. (
WDI
)
Mas
hreq
| M
axim
izin
g Fi
nanc
e fo
r De
velo
pmen
t (M
FD) S
trat
egy
40
jo
rdan
lEBa
non
iraq
com
Para
Tor
coun
Try
mal
aysi
aTh
aila
ndm
Exic
oar
gEnT
ina
TurK
EyQu
ality
of P
ublic
Inst
itutio
ns (W
EF)
publ
ic se
ctor
per
form
ance
(1-7
) be
st (2
017
-201
8)
3.8
2.7
N/A
4.9
3.7
2.9
2.9
3.4
Coup
on R
ate o
f 5-ye
ar B
ond
5.39
76.
746.
73.
61.
967.1
5.62
54.
875
Sove
reig
n Ra
ting (
S&P)
(201
8)B+
B-B-
A-BB
B+BB
B+B+
BB
Inve
stor
Pro
tect
ion
(DB
- DTF
) (2
018)
40.0
041
.67
46.6
780
73.3
358
.33
63.3
371
.67
Cour
ts (D
B - D
TF) (
2018
)53
.71
49.8
548
.02
66.6
167
.91
67.0
155
.66
68.8
7
finan
cial
sEc
Tor
and
sToc
K m
arKE
TDo
mes
tic cr
edit
to p
rivat
e sec
tor
by b
anks
(% of
GDP
) 1070
.2 (2
016)
104.
5%8.
5%12
5.1%
(201
6)11
1.6%
27.1%
15.5
%66
.5%
Dom
estic
cred
it pr
ovid
ed b
y fin
ancia
l sec
tor (
% of
GDP
)1110
8.3
(201
6)20
9.6
(201
6)14
5.3(
2016
)16
4.7%
55.2
%39
.2%
77.9
%
# of
liste
d co
mpa
nies
on S
tock
Ex
chan
ge19
410
84* (
coun
try
sour
ces)
894
688
141
9637
4
Mar
ket c
apita
lizat
ion
of lis
ted
dom
estic
com
pani
es (%
of G
DP)
59.8
%22
.2%
N/A
144.
9%12
0.6%
36.3
%17
.1%26
.7%
Stoc
ks tr
aded
, tot
al va
lue
(% of
GDP
)5.
58%
1.2%
43.7
%74
.6%
9.9%
1%44
.3%
10 D
omes
tic c
redi
t to
priv
ate
sect
or b
y ba
nks
refe
rs to
fina
ncia
l res
ourc
es p
rovi
ded
to th
e pr
ivat
e se
ctor
by
othe
r dep
osito
ry c
orpo
ratio
ns (d
epos
it ta
king
co
rpor
atio
ns e
xcep
t cen
tral
ban
ks),
such
as
thro
ugh
loan
s, p
urch
ases
of n
oneq
uity
sec
uriti
es, a
nd tr
ade
cred
its a
nd o
ther
acc
ount
s re
ceiv
able
, tha
t est
ablis
h a
clai
m fo
r rep
aym
ent.
11 D
omes
tic c
redi
t pro
vide
d by
the
finan
cial
sec
tor i
nclu
des
all c
redi
t to
vario
us s
ecto
rs o
n a
gros
s ba
sis,
with
the
exce
ptio
n of
cre
dit t
o th
e ce
ntra
l gov
ernm
ent,
whi
ch is
net
ANNE
X IK
EY IN
DICA
TORS
FO
R M
FD R
EADI
NESS
(201
7 da
ta -
unle
ss in
dica
ted
othe
rwis
e)
41
jo
rdan
lEBa
non
iraq
com
Para
Tor
coun
Try
mal
aysi
aTh
aila
ndm
Exic
oar
gEnT
ina
TurK
EyPP
P sT
aTus
12
Num
ber o
f PPP
pro
ject
s42
9 (2
016)
210
816
729
621
721
4
PPP
inve
stm
ents
(US
milli
on)
10,3
2438
32,
950
51,7
1439
,456
82.8
8755
,374
136,
020
PPP
proj
ects
canc
elled
or u
nder
di
stre
ss1
proj
ect
38%
of to
tal
inve
stm
ents
3 pr
ojec
ts
200%
of to
tal
inve
stm
ents
--22
pro
ject
s
346%
of to
tal
inve
stm
ents
3 pr
ojec
ts
107%
of to
tal
inve
stm
ents
23 p
roje
cts
318%
of to
tal
inve
stm
ents
41 p
roje
cts
423%
of to
tal
inve
stm
ents
2 pr
ojec
ts
9% of
tota
l in
vest
men
ts
PPP
Legis
latio
nLa
w No
. 31
of 2
014
conc
erni
ng
Publ
ic-Pr
ivate
Pa
rtner
ship
2017
- Pu
blic
Priva
te
Partn
ersh
ip
law
No P
PP la
w –
2014
- Ord
er
87 on
Pub
lic
Cont
ract
s
Inst
ruct
ions
No
. 1/2
014
on
Gove
rnm
ent
Cont
ract
Im
plem
enta
tion
1991
- la
w on
pr
ivatiz
atio
n in
clude
s PPP
2013
- Pr
ivate
In
vest
men
t in
Sta
te
Unde
rtaki
ng
Act
DOF 0
5-11
-20
12: L
aw on
Pu
blic
Priva
te
Partn
ersh
ip
Law
27,3
28 on
Pu
blic-
Priva
te
Partn
ersh
ip
Cont
ract
s
No P
PP
law;
mix
of
conc
essio
ns,
built
oper
ate
lease
and
trans
fer
mod
els
Quali
ty of
pre
para
tion
of P
PP
proj
ects
(0-10
0)29
04
4654
7517
46
Proc
urem
ent o
f PPP
(0 –
100)
7830
4843
6387
7363
PPP
cont
ract
man
agem
ent (
0 -10
0)43
1740
2457
8758
49
12 S
ourc
es: P
PI D
atab
ase
and
WBG
201
7; B
ench
mar
king
Pub
lic P
rivat
e Pa
rtne
rshi
ps P
rocu
rem
ent:
Asse
ssin
g Go
vern
men
t Cap
abili
ty to
Pre
pare
, Pro
cure
and
M
anag
e PP
Ps ,
2017
VII. ANNEX II MAShREQ MFD STRATEGY - RESulTS FRAMEwORK MATRIX
ANNE
X IIM
ASHR
EQ M
FD S
TRAT
EGY
- RES
ULTS
FRA
MEW
ORK
MAT
RIX
43
rEsulT rEsulTs indicaTors Proj
EcT T
iTlE
uniT
of m
Eas.
BasE
linE (
2018
)
y1 (2
019)
y2 (2
020)
y3 (2
021)
y4 (2
022)
y5 En
d Ta
rgET
(2
023)
y6 (2
024)
y7 (2
025)
y8 (2
026)
1. Private capital mobilized13 Results Indicator 1.2:
Private investment and commercial finance mobilized
2. MFD-enabling policies implemented14
Results Indicator 2.2: Number of MFD-Enabling Reforms achieved
3. Improve-ments in access and Quality of services as a result of MFD
Results Indicator 3.1: Improvement in access to services
Result Indicator 3.2: Improvements in Quality of Service –
4. Jobs Created by MFD enabled policies and investments
Results Indicator 4.1: number of direct and indirect jobs created as a result of project investments
13 According to the Core Sectors and Indicators Definition report by the Results Platforms, World Bank (2014), “Mobilized private capital” is private capital that has been fully committed. For projects where private capital comes from debt, equity, or both, private capital is mobilized when it is fully committed and all conditions precedent to the first drawdown are fulfilled or waived. Therefore, loan funds are available for drawdown. For projects where private capital comes from equity only, private capital is mobilized when the contract under which private equity will be provided is signed and becomes effective.
14 MFD-enabling reforms will require that private investment is catalyzed within three years after closure of project that supported the reform initiative
VIII. ANNEX III MFD PIPElINE FY18-20
ANNE
X III
MFD
PIP
ELIN
E FY
18-2
0
45
A. IB
RD P
IPEl
INE
P#na
mE
insT
rum
EnT
will
oPE
raTi
on
EnaB
lE Th
E “c
asca
dE”?
(y
Es o
r no
, Ty
PE i a
nd ii
)
if yE
s, h
ow w
ill Th
E oPE
raTi
on En
aBlE
ThE “
mfd
”?
iraq
P162
094
(TTL
: Abd
ulha
mid
Az
ad
Nafie
Moh
amm
ed
Mof
id)
Bagh
dad
Wat
er
& Se
wera
ge(F
Y18)
IPF
Yes –
Type
IPr
ojec
t sup
ports
the c
orpo
ratiz
atio
n of
wat
er u
tility
and
mun
icipa
lity o
f Bag
hdad
and
the
stre
ngth
enin
g of b
illing
s and
colle
ctio
ns so
as to
enab
le th
e inv
olve
men
t of t
he p
rivat
e sec
tor i
n op
erat
ion
and
main
tena
nce.
The p
roje
ct al
so fi
nanc
es p
umpi
ng st
atio
n an
d ne
twor
k inf
rast
ruct
ure
which
will
conn
ect t
o a n
ew w
aste
wate
r tre
atm
ent p
lant
with
a ca
pacit
y of 2
00,0
00 m
3/da
y tha
t is
unde
r con
sider
atio
n wi
th IF
C PP
P Ad
visor
y sup
port
for p
rivat
e sec
tor i
nvol
vem
ent (
per I
FC’s
rece
ntly
signe
d M
OU w
ith th
e Min
istry
of P
lann
ing)
. Thi
s IBR
D pr
ojec
t will
com
plem
ent w
ork
plan
ned
by IF
C by
fina
ncin
g the
feas
ibili
ty st
udy o
f the
Was
te W
ater
Trea
tmen
t Pla
nt (W
WTP
), ta
riff a
nd in
stitu
tiona
l ref
orm
as w
ell as
esse
ntial
infra
stru
ctur
e con
nect
ivity.
It is
estim
ated
that
US
$140
milli
on B
OT of
the A
l Kha
nsaa
was
te w
ater
trea
tmen
t pla
nt.
P164
676
(TTL
: Luc
a Ba
ndier
a, P
aul
Barin
gani
re)
3rd
Expe
nditu
re
Ratio
naliz
atio
n,
Ener
gy Ef
ficien
cy
and
SOE
Gove
rnan
ce
(FY1
9)
DPF
Yes –
Type
IITh
e DPF
pla
ys a
vital
role
in se
tting
the p
olicy
fram
ewor
k and
iden
tifyin
g crit
ical p
rior a
ctio
ns
to en
able
priva
te se
ctor
invo
lvem
ent i
n po
wer d
istrib
utio
n as
well
as p
rodu
ctio
n. Th
e ong
oing
re
form
s of t
he ga
s sec
tor f
or ex
ampl
e, w
here
in th
e con
tract
ual f
ram
ewor
ks fo
r priv
ate s
ecto
r in
volve
men
t are
bein
g res
truct
ured
, are
likel
y to a
ttrac
t the
priv
ate s
ecto
r int
o the
gas s
ecto
r de
mon
stra
bly i
n th
e sho
rt te
rm. T
he d
istrib
utio
n an
d ut
ility
leve
l ref
orm
s in
the e
nerg
y sec
tor
(inclu
ding
tarif
f ref
orm
) will
also
dire
ctly
supp
ort t
he en
hanc
ed p
erfo
rman
ce of
the e
nerg
y sec
tor
as a
whol
e and
com
plem
ents
IFC’
s ong
oing
invo
lvem
ent i
n th
e pro
duct
ion
end
wher
e sev
eral
IPP’
s ar
e und
erwa
y (in
KRG
and
Bagh
dad)
. Im
prov
ed go
vern
ance
in th
e SOE
sect
or w
ill op
en u
p sp
ace
for i
ncre
ased
priv
ate s
ecto
r inv
estm
ent.
P162
454
(TTL
: Pau
l Ba
ringa
nire
, M
oham
med
W
afaa
Al-A
ni)
Elect
ricity
Se
rvice
s Re
cons
truct
ion
and
Enha
ncem
ent
(FY1
9)
IPF
Yes –
Type
IIPr
ojec
ts su
ppor
ts th
e im
plem
enta
tion
of th
e rec
ently
appr
oved
elec
tricit
y law
whi
ch al
loca
tes
fisca
l and
tech
nica
l aut
onom
y to t
he B
asra
dire
ctor
ate o
f ele
ctric
ity. S
uppo
rts st
reng
then
ing
of d
istrib
utio
n an
d tra
nsm
issio
n ne
twor
k so a
s to e
nabl
e inv
olve
men
t of t
he p
rivat
e sec
tor
invo
lvem
ent i
n op
erat
ions
in th
e med
ium
term
. Thi
s inc
lude
s fea
sibili
ty st
udie
s for
viab
ility
of
pros
pect
ive sh
orte
r ter
m “d
emon
stra
tion
effe
ct” P
PP so
lutio
ns (e
.g. c
olle
ctio
ns) a
nd su
bseq
uent
im
plem
enta
tion
unde
r the
pro
ject
. Thi
s ini
tiativ
e is p
art o
f a w
ider
WBG
enga
gem
ent i
n th
e Bas
ra
regi
on an
d re
st of
the c
ount
ry co
verin
g also
pow
er ge
nera
tion
and
gas-
to-p
ower
(See
IFC
pipe
line
belo
w in
Ann
ex II
I-B).
Mas
hreq
| M
axim
izin
g Fi
nanc
e fo
r De
velo
pmen
t (M
FD) S
trat
egy
46
P#na
mE
insT
rum
EnT
will
oPE
raTi
on
EnaB
lE Th
E “c
asca
dE”?
(y
Es o
r no
, Ty
PE i a
nd ii
)
if yE
s, h
ow w
ill Th
E oPE
raTi
on En
aBlE
ThE “
mfd
”?
P163
871
(TTL
: Car
los A
. Lo
pez)
Gas S
ecto
r Re
form
/Fla
ring
Redu
ctio
n an
d Ga
s-to
-Pow
er(C
ompl
eted
)
ASA
Yes –
Sup
porti
ng
Type
IIPr
ojec
t des
igne
d to
Sup
port
GoI/M
oO to
adop
t and
intro
duce
priv
ate-
sect
or-e
nabl
ing c
ontra
ctua
l an
d re
gula
tory
fram
ewor
k for
inve
stm
ent i
n na
tura
l gas
capt
ure,
pro
cess
ing,
tran
spor
t and
co
mm
ercia
lizat
ion.
New
Nat
ural
Gas
Mar
ket F
ram
ewor
k (NG
MF)
form
ally a
dopt
ed b
y Cou
ncil
of M
inist
ers i
n Ja
nuar
y 201
8; im
plem
enta
tion
phas
e in
proc
ess w
ith W
B te
chni
cal a
ssist
ance
su
ppor
t.
P166
229
(TTL
: Bek
zod
Sham
siev)
Natio
nal
Agric
ultu
ral
Reco
very
and
Com
petit
ivene
ss(F
Y19)
IPF
Yes –
Type
IIPr
ojec
t will
focu
s on
mar
ket r
efor
ms t
o stre
ngth
en p
rivat
e inv
estm
ent i
n in
put a
nd d
owns
tream
ag
ri-bu
sines
s seg
men
ts of
the v
alue c
hain
.
P131
550
(TTL
: Ibr
ahim
Da
jani)
AF -
Tran
spor
t Co
rrido
rs(in
cludi
ng
Bagh
dad
Inte
rnat
iona
l Ai
rpor
t)
IPF/
PPP
Yes –
Type
IPr
ojec
t will
focu
s on
upgr
adin
g, m
oder
nizin
g and
com
mer
cializ
ing B
aghd
ad In
tern
atio
nal A
irpor
t (B
IA).
A co
mbi
natio
n of
pub
lic an
d pr
ivate
inve
stm
ents
is fo
rese
en. P
ossib
ly via
addi
tiona
l fin
ancin
g to T
rans
port
Corri
dors
Pro
ject
.
TBC
(TTL
: TBC
)Ba
nkin
g Sec
tor
Tran
sfor
mat
ion
Proj
ect
Pfor
R/IP
F with
DL
IsYe
s – Ty
pe II
Build
ing o
n on
goin
g tec
hnica
l ass
istan
ce a
nd re
cent
pol
icy ac
tions
achi
eved
in ov
er re
cent
DPF
op
erat
ions
, thi
s Pfo
rR/IP
F ini
tiativ
e wou
ld su
ppor
t the
rest
ruct
urin
g of t
he fi
nanc
ial se
ctor
SOE
s an
d im
plem
enta
tion
of ke
y pol
icy re
form
s/re
gula
tions
requ
ired
to op
en u
p th
e ban
king
and
NBFI
to
incr
ease
d pr
ivate
sect
or p
artic
ipat
ion.
ANNE
X III
MFD
PIP
ELIN
E FY
18-2
0
47
P#na
mE
insT
rum
EnT
will
oPE
raTi
on
EnaB
lE Th
E “c
asca
dE”?
(y
Es o
r no
, Ty
PE i a
nd ii
)
if yE
s, h
ow w
ill Th
E oPE
raTi
on En
aBlE
ThE “
mfd
”?
jord
an**
P166
577
(TTL
: Bjo
rn P
hilip
p,
Lina A
bdall
ah
Saee
d Ab
dalla
h)
Jord
an U
rban
an
d M
unici
pal
Prog
ram
for
Bala
nced
and
Inclu
sive G
rowt
h(F
Y19)
Pfor
R/IP
FYe
s – Ty
pe I
The P
rogr
am w
ould
supp
ort J
orda
n’s u
rban
grow
th ce
nter
s in
iden
tifyin
g and
appl
ying p
rivat
e se
ctor
par
ticip
atio
n op
portu
nitie
s in
the d
elive
ry of
pub
lic se
rvice
s. Th
is m
ay in
clude
inve
stm
ent
in st
ruct
ured
tran
spor
t sol
utio
ns in
Zarq
a, Ir
bid
and
Russ
eifa,
bui
ldin
g on
the e
xper
ience
with
the
Bus R
apid
Tran
sit (B
RT) s
yste
m cu
rrent
ly un
der d
evelo
pmen
t in
the G
reat
er A
mm
an M
unici
palit
y. Th
e pot
entia
l for
small
er-s
cale
serv
ice an
d op
erat
ion
cont
ract
s for
priv
ate s
ecto
r pro
visio
n of
m
unici
pal s
ervic
es. T
he P
rogr
am w
ould
also
supp
ort b
ette
r int
egra
tion
of ‘l
aggin
g reg
ions
’ int
o the
ec
onom
y, su
ppor
ting i
nves
tmen
ts an
d Pu
blic-
Priva
te D
ialog
ue al
ong t
he m
ain tr
ansp
ort c
orrid
ors
conn
ectin
g to A
mm
an in
the N
orth
and
Aqab
a in
the S
outh
will
also
be i
nves
tigat
ed. F
inall
y, po
tent
ial u
pstre
am re
form
s to t
he su
b-na
tiona
l fin
ance
syst
em, i
nclu
ding
a pr
opos
ed re
stru
ctur
ing
of th
e Citi
es an
d Vi
llage
s Dev
elopm
ent B
ank (
CVDB
), wo
uld
have
the p
oten
tial t
o mob
ilize
co
mm
ercia
l fin
ancin
g to d
evelo
p a f
unct
ioni
ng m
unici
pal c
redi
t mar
ket.
P153
441
(TTL
: Ale
xand
er A
. M
cPha
il)
Red
Sea-
Dead
Se
a Pha
se 1
PRG
(FY2
0)
IPF/
Guar
ante
esYe
s – Ty
pe I
Prov
ides
guar
ante
es, p
ossib
ly in
cludi
ng M
IGA
and
IFC p
rovid
ing i
nves
tmen
t sup
port
to th
e awa
rd-
winn
ing c
ontra
ctor
/con
sorti
um.
TBC
(TTL
: Suh
ail
Jme’A
n)
Wat
er R
esou
rces
Proj
ect
(TBC
)
IPF (
TBC)
Ye
s – Ty
pe II
The p
roje
ct in
tend
s to s
uppo
rt th
e red
uctio
n of
NRW
in Jo
rdan
. Und
er th
is pr
ojec
t, th
e Wor
ld B
ank
is wo
rkin
g clo
sely
with
IFC
unde
rtook
an as
sess
men
t of N
RW in
Miya
houn
a, an
d in
itial
resu
lts w
as
well r
ecei
ved.
Give
n th
e lev
el of
wat
er sc
arcit
y, th
e NRW
is a
prio
rity w
ater
reso
urce
s man
agem
ent
issue
. Fin
ancia
l loss
es in
the w
ater
sect
or n
eed
to b
e red
uced
in or
der t
o pos
ition
the s
ecto
r for
po
tent
ial in
crea
sed
priva
te se
ctor
par
ticip
atio
n
Mas
hreq
| M
axim
izin
g Fi
nanc
e fo
r De
velo
pmen
t (M
FD) S
trat
egy
48
P#na
mE
insT
rum
EnT
will
oPE
raTi
on
EnaB
lE Th
E “c
asca
dE”?
(y
Es o
r no
, Ty
PE i a
nd ii
)
if yE
s, h
ow w
ill Th
E oPE
raTi
on En
aBlE
ThE “
mfd
”?
P16
6360
(TTL
: Chr
istos
Ko
stop
oulo
s, A
lan
Andr
ew M
oody
, Al
varo
S. G
onza
lez)
P168
130
(TTL
: Chr
istos
Ko
stop
oulo
s, A
lan
Andr
ew M
oody
)
Jord
an Fi
rst
Grow
th an
d Jo
bs
DPF
(FY1
8)
Jord
an S
econ
d Gr
owth
and
Jobs
DP
F(F
Y19)
DPF
DPF
Yes –
Type
IIDP
O Pr
ogra
mm
atic
polic
y mat
rix w
ill b
e add
ress
ing k
ey M
FD co
nstra
ints
at n
atio
nal le
vel a
nd in
ta
rget
ed m
arke
ts.
P162
407
(TTL
: Kar
ine
Pezz
ani,
Juan
M
anue
l Mor
eno)
AF -
Educ
atio
n Re
form
Sup
port
Pfor
RYe
s – Ty
pe II
Build
ing o
n th
e tec
hnica
l ass
istan
ce w
ork t
o be u
nder
take
n un
der t
he cu
rrent
Pfo
rR, t
his p
oten
tial
Addi
tiona
l Fin
ancin
g wou
ld in
trodu
ce n
ew m
easu
res i
nclu
ding
pol
icy ac
tions
- as
det
erm
ined
fu
rther
to th
e TA
work
- to
impl
emen
t an
MFD
appr
oach
to th
e fin
ancin
g and
deli
very
of Ea
rly
Child
hood
Educ
atio
n (E
CE) s
ervic
es in
Jord
an.
lEBa
non
P160
224
(TTL
: Ziad
Sali
m EL
Na
kat)
Grea
ter B
eirut
Ur
ban
Tran
spor
t (F
Y18)
IPF
Yes –
Type
IGr
eate
r Beir
ut U
rban
Tran
spor
t (BR
T) w
ill m
obili
ze p
rivat
e sec
tor p
artic
ipat
ion
and
inve
stm
ents
in
syst
em op
erat
ions
and
main
tena
nce,
espe
cially
thro
ugh
priva
te se
ctor
co-fi
nanc
ing f
or th
e pu
rcha
se of
the b
us fl
eet a
nd it
s ope
ratio
n. Th
e pro
ject
is ex
pect
ed to
mob
ilize
bet
ween
US$
50 to
$U
S80
milli
on.
P163
576
(TTL
: Pet
er
Mou
sley,
Hane
en
Saye
d, Th
omas
Fa
role)
Crea
ting E
con
Oppo
rtuni
ties
in S
uppo
rt of
Leba
non
Natio
nal
Job
Crea
tion
Prog
ram
(FY1
8)
P4R
Yes –
Type
IITh
e pro
ject
supp
orts
the i
mpl
emen
tatio
n of
the n
ew P
PP la
w, in
cludi
ng tr
ansa
ctio
n ad
visor
y wor
k ne
eded
to b
ring v
iable
PPPs
to m
arke
t in
supp
ort o
f inv
estm
ents
soug
ht b
y the
gove
rnm
ent f
or
the C
apita
l Inve
stm
ent P
lan.
The p
roje
ct al
so co
-fina
nces
PPP
inve
stm
ent i
nitia
tives
spec
ifica
lly
in th
e Trip
oli S
pecia
l Eco
nom
ic Zo
ne (T
SEZ)
and
addr
esse
s pol
icy co
nstra
ints
to p
rivat
e sec
tor
inve
stm
ent,
inclu
ding
in d
owns
tream
dat
a ser
vice p
rovis
ion
arisi
ng fr
om th
e fib
er op
tic
inve
stm
ents
bein
g und
erta
ken
by th
e gov
ernm
ent.
The p
roje
ct al
so su
ppor
ts im
plem
enta
tion
of
new
laws
that
will
incr
ease
SM
E acc
ess t
o fin
ance
.
ANNE
X III
MFD
PIP
ELIN
E FY
18-2
0
49
P#na
mE
insT
rum
EnT
will
oPE
raTi
on
EnaB
lE Th
E “c
asca
dE”?
(y
Es o
r no
, Ty
PE i a
nd ii
)
if yE
s, h
ow w
ill Th
E oPE
raTi
on En
aBlE
ThE “
mfd
”?
P165
324
(TTL
: Pau
l Welt
on,
Mon
a El-C
ham
i)
Stre
ngth
enin
g Fis
cal
Gove
rnan
ce(F
Y20)
IPF\
PPF
Yes –
Type
IISu
ppor
t und
er th
is PP
F pro
ject
to st
reng
then
MOF
deb
t dep
artm
ent c
apac
ity to
asse
ss an
d m
onito
r pot
entia
l con
tinge
nt lia
bilit
y and
long
er-te
rm fi
scal
com
mitm
ents
(FCC
L) ar
ising
from
PPP
s.
P166
580
(TTL
: Sat
eh C
hafic
El
-Arn
aout
)
Leba
non
Mun
icipa
l In
vest
men
t Pr
ojec
t(F
Y20)
IPF
Yes –
Type
ISu
ppor
t mun
icipa
l dev
elopm
ent,
inclu
ding
priv
ate p
rovis
ion
of p
ublic
serv
ices.
P166
423
(TTL
: Sam
eh I.
M
obar
ek)
Leba
non
Ener
gy
Refo
rm an
d De
velo
pmen
t Pr
ojec
t(F
Y19)
IPF/
MPA
Yes –
Type
II B
ased
on a
sect
or-w
ide M
FD-e
nabl
ing r
efor
m ag
enda
agre
ed w
ith th
e GOL
that
addr
esse
s key
iss
ues i
nclu
ding
corp
orat
izatio
n, fi
nanc
ial vi
abili
ty (t
ariff
and
subs
idy r
efor
m, c
olle
ctio
ns et
c.),
ener
gy ef
ficien
cy al
ongs
ide s
yste
m u
pgra
ding
(gen
erat
ion,
tran
smiss
ion
and
dist
ribut
ion)
, WBG
su
ppor
t can
pot
entia
lly en
com
pass
: (i)
furth
er d
evelo
pmen
t of I
PP w
ith IF
C PP
P Ad
visor
y on
Zahr
ani a
nd S
alaa
ta t
rans
actio
ns (r
efer
to IF
C Pr
ojec
t “15
00M
W IP
P pr
ogra
m);
(ii) t
rans
miss
ion
line d
evelo
pmen
t to
incr
ease
the n
atio
nal g
rid’s
capa
city t
o abs
orb
this
new
gene
ratio
n an
d in
crea
se re
liabi
lity o
f ele
ctric
ity se
rvice
and
supp
ort t
o im
plem
ent s
ome o
f the
pro
ject
s on
a PPP
ba
sis (e
.g. c
olle
ctio
ns);
(iii)
inst
allat
ion
of fl
oatin
g sto
rage
rega
sifica
tion
units
(FSR
Us) a
nd th
eir
asso
ciate
d in
frast
ruct
ure t
o im
port
natu
ral g
as su
pplie
s for
IPPs
. WBG
supp
ort w
ill lik
ely f
ocus
on
parti
al ri
sk an
d po
tent
ial M
IGA
guar
ante
es on
non
-com
mer
cial r
isks,
IFC
finan
cing i
n su
ppor
t of
the t
rans
actio
ns an
d po
tent
ial P
forR
will
supp
ort t
he re
form
pro
gram
, inc
ludi
ng IB
RD P
artia
l Risk
Gu
aran
tees
(PRG
s).
P166
956
(TTL
: Ziad
Nak
at)
Leba
non
Econ
omic
Corri
dors
(FY1
9)
IPF/
MPP
Yes –
Type
IITh
e pro
ject
is ai
med
at a
mul
ti-ph
ased
supp
ort t
o the
dev
elopm
ent o
f key
econ
omic
corri
dors
wi
thin
Leba
non
linki
ng al
so to
wid
er re
gion
al an
d gl
obal
mar
kets
, com
men
cing w
ith n
orth
ern
Leba
non
thro
ugh
inve
stm
ents
in cr
itica
l infra
stru
ctur
e and
asso
ciate
d ec
onom
ic ac
tiviti
es as
we
ll as t
o pre
pare
Leba
non
as a
hub
for i
ncre
ased
loca
l eco
nom
ic de
velo
pmen
t and
regi
onal
co
nnec
tivity
. The
pro
ject
is ex
pect
ed to
attra
ct su
bsta
ntial
priv
ate s
ecto
r inv
estm
ents
in p
lann
ed
econ
omic
activ
ities
arou
nd th
e cor
ridor
, suc
h as
in lo
gistic
al an
d/or
agrib
usin
ess z
ones
, the
fu
rther
mod
erni
zatio
n an
d ex
pans
ion
of Tr
ipol
i por
t, as
well
as th
e dev
elopm
ent o
f oth
er
asso
ciate
d fa
ciliti
es.
Mas
hreq
| M
axim
izin
g Fi
nanc
e fo
r De
velo
pmen
t (M
FD) S
trat
egy
50
P#na
mE
insT
rum
EnT
will
oPE
raTi
on
EnaB
lE Th
E “c
asca
dE”?
(y
Es o
r no
, Ty
PE i a
nd ii
)
if yE
s, h
ow w
ill Th
E oPE
raTi
on En
aBlE
ThE “
mfd
”?
P165
711
(TTL
: Am
al Ta
lbi,
Sally
Zghe
ib,
Nish
tha M
ehta
)
AF -
Grea
ter
Beiru
t Wat
er
Supp
ly Pr
ojec
t(F
Y18)
IPF
Yes –
Type
IFo
r the
wat
er su
pply
and
sani
tatio
n se
ctor
s, p
erfo
rman
ce b
ased
cont
ract
s (PB
C) to
oper
ate a
nd
man
age w
ould
hav
e two
adva
ntag
es: (
i) to
impr
ove t
he ac
coun
tabi
lity a
nd th
e per
form
ance
by
way o
f a la
rger
priv
ate s
ecto
r rol
e; an
d (ii
) cre
ate j
obs f
or n
atio
nal o
pera
tors
(dev
elop
small
and
med
ium
ente
rpris
es in
the w
ater
supp
ly an
d sa
nita
tion
sect
ors).
In th
e med
ium
term
, it w
ould
also
im
prov
e the
oper
atio
ns of
util
ities
and,
med
ium
to lo
ng te
rm th
eir ab
ility
to ac
cess
com
mer
cial
finan
cing a
nd re
ly le
ss on
the p
ublic
fund
s.As
a pa
rt of
the a
dditi
onal
fina
ncin
g of t
he G
reat
er B
eirut
Wat
er S
uppl
y Pro
ject
PBC
will
be
impl
emen
ted.
Und
er th
e par
ent P
roje
ct (P
1030
63),
the w
ater
util
ity B
eirut
and
Mou
nt Le
bano
n W
ater
Esta
blish
men
t (BM
LWE)
has
bee
n ab
le to
alre
ady e
nhan
ce it
s ope
ratio
ns, t
hrou
gh th
e im
plem
enta
tion
of fl
ow m
eter
s and
the S
CADA
syst
em. T
hese
inte
rven
tions
coup
led
with
tech
nica
l as
sista
nce f
or u
tility
capa
city b
uild
ing a
re al
lowi
ng th
e BM
LWE t
o par
tner
with
the p
rivat
e sec
tor i
n its
oper
atio
ns to
deli
ver b
ette
r ser
vices
to it
s cus
tom
ers.
TBC
(TTL
: L A
mal
Talb
i, Sa
lly Zg
heib
, and
Ni
shth
a Meh
ta
Wat
er an
d Sa
nita
tion
Serv
ices
(FY2
0 TB
C)
IPF (
TBC)
Ye
s - Ty
pe II
The p
roje
ct w
ould
scale
up
the N
RW w
ater
and
PBC
at n
atio
nal le
vel.
Durin
g the
pre
para
tion
the
Wor
ld B
ank t
eam
will
wor
k clo
sely
with
IFC.
The d
ialog
ue w
ill in
clude
the t
rans
ition
from
fee t
o vo
lum
etric
tarif
f whe
re th
e ser
vice s
hifts
from
inte
rmitt
ent w
ater
supp
ly to
cont
inuo
us w
ater
su
pply.
On
the s
anita
tion,
the p
roje
ct w
ill ta
ke st
ock o
n th
e cur
rent
stat
us of
the w
aste
wate
r tre
atm
ent p
lant
and
asse
ss w
ay to
reha
bilit
ate (
as n
eede
d) an
d in
crea
se th
e use
of th
e cur
rent
as
set.
The p
roje
ct w
ill al
so su
ppor
t as p
art o
f a m
ediu
m to
long
-term
visio
n, op
tions
for f
inan
cing
and
ways
to at
tract
priv
ate s
ecto
r par
ticip
atio
n go
ing b
eyon
d co
ntra
ct m
anag
emen
t to p
rivat
e or
com
mer
cial f
inan
cing.
P167
765
(TTL
: Ziad
Nak
at)
Civil
Avia
tion
Refo
rms
and
Airp
ort
Expa
nsio
n P4
R (F
Y20)
Pfor
RYe
s – Ty
pe II
The p
roje
ct is
follo
wing
the M
FD ap
proa
ch w
ith go
al of
mob
ilizin
g pub
lic se
ctor
viab
ility
gap
finan
cing f
or B
eirut
airp
ort e
xpan
sion
as w
ell as
setti
ng th
e pol
icy an
d re
gula
tory
fram
ewor
k to
attra
ct p
rivat
e sec
tor i
nves
tmen
ts in
the B
eirut
airp
ort T
erm
inal
expa
nsio
n (u
p to
US$
500
milli
on
of p
rivat
e sec
tor i
nves
tmen
ts ar
e tar
gete
d) . T
he p
roje
ct is
bein
g pre
pare
d in
clos
e col
labo
ratio
n wi
th IF
C wh
o are
also
in th
e pro
cess
of si
gnin
g an
advis
ory m
anda
te w
ith H
CP to
pre
pare
for t
he
term
inal
expa
nsio
n.
ANNE
X III
MFD
PIP
ELIN
E FY
18-2
0
51
P#na
mE
insT
rum
EnT
will
oPE
raTi
on
EnaB
lE Th
E “c
asca
dE”?
(y
Es o
r no
, Ty
PE i a
nd ii
)
if yE
s, h
ow w
ill Th
E oPE
raTi
on En
aBlE
ThE “
mfd
”?
P167
643
(TTL
: Pau
l Welt
on,
Sam
ia M
elham
, Pe
ter M
cCon
aghy
)
Leba
non
Digi
tal
Econ
omy
(FY2
0)
IPF/
MPA
Yes –
Type
IITh
is pr
ojec
t will
pro
mot
e the
intro
duct
ion
of d
igita
l sol
utio
ns an
d di
srup
tive t
echn
olog
ies t
o m
axim
ize fi
nanc
e for
bet
ter s
ervic
e deli
very
thro
ugh
the d
evelo
pmen
t of d
igita
l pla
tform
s. Th
is in
clude
s ini
tiativ
es in
dig
ital f
inan
cial s
ervic
es an
d e-
proc
urem
ent t
hat w
ill fo
ster
incr
ease
d pu
blic-
priva
te p
artic
ipat
ion
and
inclu
sive f
inan
ce.
B. IF
C PR
OJEC
TS P
IPEl
INE
Proj
EcT/
acTi
ViTy
Proj
EcT
dEsc
riPT
ion
will
oPE
raTi
on
EnaB
lE Th
E “c
asca
dE”?
(y
Es o
r no
)
if yE
s, h
ow w
ill Th
E oPE
raTi
on En
aBlE
ThE “
casc
adE”
?
iraq
Pre-
feas
ibili
ty st
udie
s whi
ch
are e
xpec
ted
to le
ad to
futu
re
trans
actio
n ad
visor
y man
date
Inve
stm
ent S
ervic
es
Seve
ral S
olar
Ph
otov
olta
ic pl
ants
(re
newa
ble e
nerg
y)
TBD
Cons
truct
ion
and
oper
atio
n of
sola
r PV
plan
ts u
p to
100
MW
. Pro
ject
s are
expe
cted
to b
e ide
ntifi
ed
as p
art o
f the
sign
ed M
oU w
ith th
e MoP
or th
roug
h di
rect
dev
elopm
ent w
ith sp
onso
rs.
Pre-
feas
ibili
ty st
udy w
hich
is
expe
cted
to le
ad to
futu
re
trans
actio
n ad
visor
y man
date
Cons
truct
ion
of A
l Kh
ansa
a Was
te
Wat
er Tr
eatm
ent
Plan
t (wa
ter)
TBD
Proj
ect i
s exp
ecte
d to
be i
dent
ified
as p
art o
f the
sign
ed M
oU w
ith th
e MoP
. Wor
k will
be i
n co
llabo
ratio
n wi
th th
e WB
unde
r the
casc
ade.
Plea
se re
fer t
o WB
FY 1
8 Pr
ojec
t “Ba
ghda
d W
ater
&
Sewe
rage
”.
Inve
stm
ent S
ervic
esTh
erm
al p
ower
ge
nera
tion
in
Bagh
dad
Yes
Deve
lopm
ent o
f 300
0 M
W ga
s fire
d IP
P in
Bag
hdad
. Con
tract
alre
ady a
ward
ed. T
his i
s a ty
pe I M
FD
initi
ative
Inve
stm
ent S
ervic
esZa
in Te
leco
mYe
sEx
pans
ion
of th
e mob
ile n
etwo
rk in
the n
orth
. Thi
s is a
type
I MFD
initi
ative
Mas
hreq
| M
axim
izin
g Fi
nanc
e fo
r De
velo
pmen
t (M
FD) S
trat
egy
52
Proj
EcT/
acTi
ViTy
Proj
EcT
dEsc
riPT
ion
will
oPE
raTi
on
EnaB
lE Th
E “c
asca
dE”?
(y
Es o
r no
)
if yE
s, h
ow w
ill Th
E oPE
raTi
on En
aBlE
ThE “
casc
adE”
?
Inve
stm
ent/A
dviso
ry S
ervic
esEs
tabl
ishm
ent o
f th
e firs
t com
mer
cial
Micr
ofin
ance
co
mpa
ny
Yes
Conv
ertin
g an
exist
ing N
GO to
a fo
rmal
com
pany
wor
king
with
one o
f the
exist
ing p
laye
rs. T
his i
s a
type
I MFD
initi
ative
.
Inve
stm
ent S
ervic
esEs
tabl
ishm
ent
of a
pre-
expo
rt fa
cility
to B
asra
Gas
Co
mpa
ny
Yes
This
is a s
pecif
ic tra
nsac
tion
that
will
serv
e to m
obili
ze ad
ditio
nal f
inan
ce th
roug
h M
CPP,
B lo
ans
and
para
llel f
inan
cing.
And
coor
dina
ted
with
IBRD
initi
ative
s in
Basr
a (se
e abo
ve A
nnex
III-A
).
jord
anTr
ansa
ctio
n ad
visor
yW
aste
Disp
osal
Tre
atm
ent i
n Al
Sw
aqa a
rea
TBD
Pion
eerin
g sys
tem
for h
azar
dous
med
ical &
indu
stria
l was
te d
ispos
al an
d tre
atm
ent,
in
colla
bora
tion
with
Min
istry
of En
viron
men
t. Si
te cl
ean-
up/re
med
iatio
n (d
onor
fund
ed) t
o be
follo
wed
by P
PP.
Tran
sact
ion
advis
ory
King
Hus
sein
Brid
geYe
sEx
pans
ion
of ke
y lan
d cr
ossin
g bet
ween
Jord
an an
d W
est B
ank.
Pot
entia
l MIG
A gu
aran
tees
and
conc
essio
nal f
undi
ng.
Tran
sact
ion
advis
ory
Amm
an R
ing R
oad
TBD
Phas
ed d
evelo
pmen
t of 7
1km
of to
lled
ring-
road
arou
nd A
mm
an, f
ollo
wed
by O
&M ov
er ex
istin
g po
rtion
of ri
ng-ro
ad (4
1km
) as w
ell as
the n
ew ex
tens
ion.
Clo
se co
ordi
natio
n wi
th W
B wh
o will
al
so b
e inv
olve
d in
road
safe
ty an
d m
ainte
nanc
e wor
k. P
lease
refe
r to W
B FY
18 P
roje
ct “A
mm
an
Deve
lopm
ent C
orrid
or P
h2”.
Tran
sact
ion
advis
ory
New
scho
ols
Yes
Supp
ortin
g the
Jord
an S
choo
ls Pr
ogra
m co
nsist
of b
uild
ing 6
00 sc
hool
s ove
r the
nex
t dec
ade
mos
tly u
nder
a PP
P sc
hem
e. P
ilot p
roje
ct co
nsist
s of 1
5 –
20 sc
hool
s in
an id
entif
ied
regi
on.
Plea
se re
fer t
o WB
FY19
Pro
ject
“Edu
catio
n Re
form
”.
Inve
stm
ent S
ervic
esM
iyaha
una N
RW
Wat
erYe
s$6
00 m
illion
pro
ject
to u
pgra
de th
e wat
er n
etwo
rk in
Am
man
give
n cu
rrent
loss
es of
50%
. The
re
will b
e a n
eed
for c
once
ssio
nal f
inan
cing a
s well
as co
ordi
natio
n wi
th ot
her D
FIs.
Inve
stm
ent S
ervic
esRe
ad D
ead
Yes
ANNE
X III
MFD
PIP
ELIN
E FY
18-2
0
53
Proj
EcT/
acTi
ViTy
Proj
EcT
dEsc
riPT
ion
will
oPE
raTi
on
EnaB
lE Th
E “c
asca
dE”?
(y
Es o
r no
)
if yE
s, h
ow w
ill Th
E oPE
raTi
on En
aBlE
ThE “
casc
adE”
?
lEBa
non
Pre-
feas
ibili
ty st
udy
Scali
ng so
lar
Yes
Cons
truct
ion
and
oper
atio
n of
a so
lar P
V pr
ojec
t up
to 3
0MW
to 4
0MW
.
Tran
sact
ion
advis
ory
1500
MW
IPP
prog
ram
Yes
Pilo
t IPP
s in
Zahr
ni an
d Sa
laat
a (45
0-55
0MW
each
), CA
PEX e
stim
ated
to am
ount
to ca
. US$
400
milli
on fo
r eac
h pr
ojec
t. Cl
ose c
oord
inat
ion
with
IBRD
will
be i
nvol
ved
in se
ctor
refo
rms,
FSRU
an
d po
tent
ial P
RG/ P
RI co
ver f
or th
e IPP
s. Pl
ease
refe
r to t
he W
B FY
18 P
roje
ct “P
ower
Sec
tor
Deve
lopm
ent (
IPP)
”.
Tran
sact
ion
Advis
ory
Expa
nsio
n of
Beir
ut
Airp
ort
Yes
Expa
nsio
n of
Beir
ut ai
rpor
t by o
ptim
izing
the e
xistin
g ter
min
al fa
ciliti
es an
d co
nstru
ctin
g new
te
rmin
al(s)
. Clo
se co
ordi
natio
n wi
th W
B wh
o will
be i
nvol
ved
in se
ctor
refo
rms a
nd re
gula
tory
fra
mew
ork i
n ad
ditio
n to
pot
entia
l PRG
/ PRI
cove
r for
the e
xpan
sion.
Plea
se re
fer t
o WB
FY18
Pr
ojec
t “ C
ivil A
viatio
n Re
form
s P4R
“.
Tran
sact
ion
advis
ory
Beiru
t BRT
Yes
Pote
ntial
PPP
for b
us p
rovis
ion
and
O&M
in co
llabo
ratio
n wi
th W
B. P
lease
refe
r to W
B FY
18
“Gre
ater
Beir
ut U
rban
Tran
spor
t (BR
T)”.
Inve
stm
ent S
ervic
esAk
kar W
ind
IPPs
Yes
Deve
lopm
ent o
f 3 w
ind
IPPs
with
tota
l cap
acity
of 2
00 M
W in
Akk
ar. P
roje
cts a
lread
y awa
rded
. IFC
is
work
ing w
ith th
e gov
ernm
ent o
n th
e pro
ject
doc
umen
ts. T
here
coul
d be
a ne
ed to
enha
nce t
he
paym
ent r
isk of
GoL
.
Mas
hreq
| M
axim
izin
g Fi
nanc
e fo
r De
velo
pmen
t (M
FD) S
trat
egy
54
Proj
EcT/
acTi
ViTy
Proj
EcT
dEsc
riPT
ion
will
oPE
raTi
on
EnaB
lE Th
E “c
asca
dE”?
(y
Es o
r no
)
if yE
s, h
ow w
ill Th
E oPE
raTi
on En
aBlE
ThE “
casc
adE”
?
Diag
nost
icLo
gistic
s Sec
tor
Asse
ssm
ent
TBD
Iden
tify o
ppor
tuni
ties i
n th
e log
istics
sect
or ac
ross
the v
alue c
hain
Tran
sact
ion
Advis
ory
Trip
oli S
EZYe
sPo
tent
ial P
PP fo
r anc
horin
g the
oper
atio
n an
d m
anag
emen
t of t
he TS
EZ.
C. M
IGA
ExPO
SURE
S
Proj
EcT/
acTi
ViTy
Proj
EcT
dEsc
riPT
ion
will
oPE
raTi
on
EnaB
lE Th
E “c
asca
dE”?
(y
Es o
r no
)
if yE
s, h
ow w
ill Th
E oPE
raTi
on En
aBlE
“mfd
”?
iraq
Guar
ante
e - P
RINa
fith
Logis
tics
FZ: g
uara
ntee
of
an in
vest
men
t in
por
t log
istics
un
der a
PPP
with
Ira
q’s s
tate
-own
ed
Gene
ral C
ompa
ny
for P
orts
Yes
The p
roje
ct in
volve
s bui
ldin
g and
man
agin
g a tr
uck-
cont
rol s
yste
m th
at re
gula
tes t
he en
try an
d flo
w of
truc
ks en
terin
g and
exiti
ng U
mm
Qas
r Por
t, tw
o sm
aller
por
ts (K
hor Z
ubair
and
Abu
Floos
), an
d th
e Saf
wan
bord
er cr
ossin
g with
Kuw
ait.
The P
PP st
ruct
ure e
nabl
es p
rivat
e inv
estm
ent i
n th
e lo
gistic
s sec
tor,
supp
ortin
g eco
nom
ic di
vers
ifica
tion
and
job
crea
tion
in Ir
aq’s
non-
oil e
cono
my.
ANNE
X III
MFD
PIP
ELIN
E FY
18-2
0
55
Proj
EcT/
acTi
ViTy
Proj
EcT
dEsc
riPT
ion
will
oPE
raTi
on
EnaB
lE Th
E “c
asca
dE”?
(y
Es o
r no
)
if yE
s, h
ow w
ill Th
E oPE
raTi
on En
aBlE
“mfd
”?
jord
anGu
aran
tee -
PRI
Jord
an B
rom
ine
Com
pany
: gu
aran
tee o
f an
inve
stm
ent i
n th
e exp
ansio
n of
ex
istin
g bro
min
e m
anuf
actu
ring
plan
ts
Yes
The p
roje
ct co
nsist
s of A
lbem
arle
Hold
ings
’ equ
ity in
vest
men
t in
Jord
an B
rom
ine C
ompa
ny
(JBC)
, for
min
g a jo
int v
entu
re w
ith JB
C ow
ner A
rab
Pota
sh C
ompa
ny (A
PC).
As A
PC is
a st
ate-
owne
d en
terp
rise (
co-o
wned
by v
ario
us A
rab
gove
rnm
ents
), th
e inv
estm
ent r
epre
sent
s a p
artia
l pr
ivatiz
atio
n of
JBC.
The p
rivat
e inv
estm
ent e
nabl
es ex
pans
ion
and
addi
tiona
l job
crea
tion.
Guar
ante
e - P
RIAd
eniu
m Jo
rdan
–
1: gu
aran
tee o
f an
inve
stm
ent i
n th
ree
sola
r pow
er p
lant
s
Yes
The p
roje
ct in
volve
s the
dev
elopm
ent,
cons
truct
ion,
oper
atio
n, an
d m
ainte
nanc
e of t
hree
10M
W
phot
ovol
taic
powe
r pla
nts i
n th
e Ma’a
n De
velo
pmen
t Are
a (M
DA) i
n So
uthe
rn Jo
rdan
. The
IPP
stru
ctur
e ena
bles
priv
ate s
ecto
r pow
er ge
nera
tion
with
offta
ke b
y Jor
dan’s
Nat
iona
l Ele
ctric
Pow
er
Com
pany
.
Guar
ante
e - P
RIJo
rdan
Sol
ar O
ne:
guar
ante
e of a
n in
vest
men
t in
a so
lar p
lant
Yes
The p
roje
ct in
volve
s the
dev
elopm
ent,
cons
truct
ion,
oper
atio
n, an
d m
ainte
nanc
e of a
sing
le 20
-meg
awat
t pho
tovo
ltaic
powe
r pro
ject
loca
ted
in M
afra
q, Jo
rdan
. The
IPP
stru
ctur
e ena
bles
pr
ivate
sect
or p
ower
gene
ratio
n wi
th of
ftake
by J
orda
n’s N
atio
nal E
lect
ric P
ower
Com
pany
.
Guar
ante
e - P
RIAl
Zarq
a Pow
er
Plan
t for
Ener
gy
Gene
ratio
n PS
C
Yes
The p
roje
ct in
volve
s the
des
ign,
cons
truct
ion,
owne
rshi
p, op
erat
ion
and
main
tena
nce o
f a 4
85M
W
com
bine
d cy
cle d
ual f
uel t
herm
al p
ower
gene
ratin
g fac
ility
in Za
rqa,
Jord
an. T
he IP
P st
ruct
ure
enab
les p
rivat
e sec
tor p
ower
gene
ratio
n wi
th of
ftake
by J
orda
n’s N
atio
nal E
lect
ric P
ower
Com
pany
.
Guar
ante
e - P
RIAs
Sam
ra:
guar
ante
e of a
n in
vest
men
t in
a was
tewa
ter
treat
men
t pla
nt
Yes
The p
roje
ct in
volve
s the
expa
nsio
n of
the e
xistin
g was
tewa
ter t
reat
men
t pla
nt S
amra
Was
tewa
ter
Treat
men
t Pla
nt C
ompa
ny, L
td, o
n an
exte
nded
25-
year
bui
ld-o
pera
te-tr
ansfe
r (BO
T) b
asis.
The
PPP
stru
ctur
e ena
bles
priv
ate s
ecto
r par
ticip
atio
n in
serv
ice d
elive
ry in
Jord
an, o
ne of
the w
orld
’s m
ost w
ater
-poo
r cou
ntrie
s.
Mas
hreq
| M
axim
izin
g Fi
nanc
e fo
r De
velo
pmen
t (M
FD) S
trat
egy
56
Proj
EcT/
acTi
ViTy
Proj
EcT
dEsc
riPT
ion
will
oPE
raTi
on
EnaB
lE Th
E “c
asca
dE”?
(y
Es o
r no
)
if yE
s, h
ow w
ill Th
E oPE
raTi
on En
aBlE
“mfd
”?
Guar
ante
e - P
RIQu
een
Alia
Airp
ort:
guar
ante
e of a
n in
vest
men
t in
an
airpo
rt co
nces
sion
Yes
The p
roje
ct co
nsist
s of t
he ac
quisi
tion
of an
equi
ty st
ake i
n AI
G, w
hich
ente
red
a 25-
year
co
nces
sion
agre
emen
t with
the G
over
nmen
t of J
orda
n in
200
7 to
reha
bilit
ate,
expa
nd an
d op
erat
e Qu
een
Alia
Inte
rnat
iona
l Airp
ort.
The P
PP st
ruct
ure e
nabl
es p
rivat
e inv
estm
ent i
n on
e of J
orda
n’s
mos
t im
porta
nt in
frast
ruct
ure a
sset
s.
lEBa
non
Guar
ante
e - P
RIBu
tec L
eban
on:
guar
ante
e of
an el
ectri
city
dist
ribut
ion
serv
ices p
rovid
er
cont
ract
with
Le
bano
n’s p
ower
ut
ility
Yes
The p
roje
ct co
nsist
s of B
utec
’s ele
ctric
ity d
istrib
utio
n se
rvice
pro
vider
(DSP
) con
tract
for t
he
North
ern
Leba
non
regi
on se
rvin
g 350
,000
hou
seho
lds.
The D
SP co
ntra
cts w
ere t
he fi
rst P
PPs
in Le
bano
n, an
d th
e int
rodu
ctio
n of
priv
ate s
ecto
r par
ticip
atio
n se
rves
to im
prov
e effi
cienc
y, re
liabi
lity,
and
quali
ty of
serv
ice d
elive
ry.
ANNE
X III
MFD
PIP
ELIN
E FY
18-2
0
57
IX. ANNEX IV KEY REFORMS BY SECTOR AND COuNTRY - MAShREQ MFD REFORM MATRICES
ANNE
X IV
KEY
REF
ORM
S BY
SEC
TOR
AND
COUN
TRY
- MAS
HREQ
MFD
REF
ORM
MAT
RICE
S
59
cros
s-cu
TTin
g ar
Eas15
sTra
TEgy
, Pol
icy a
nd
lEga
l go
VErn
ancE
finan
cEfc
V/Po
liTic
s
jordan
»Bu
sines
s env
ironm
ent
refo
rms.
»Co
nsol
idat
ion
of th
e leg
al
fram
ewor
k by a
dopt
ion
of a
proc
urem
ent B
y-La
w (o
r Law
) cov
erin
g pr
ocur
emen
t of g
oods
, wo
rks a
nd se
rvice
s (in
cludi
ng co
nsul
tanc
y se
rvice
in an
d ap
art
from
cons
truct
ion)
, and
su
ppor
ting d
ocum
ents
(in
cludi
ng a
full r
ange
of
stan
dard
bid
ding
and
cont
ract
doc
umen
ts).
»De
velo
pmen
t of a
Fisc
al
Com
mitm
ents
and
Cont
inge
nt Li
abili
ties
fram
ewor
k and
deb
t m
anag
emen
t stra
tegy
.
»M
oder
niza
tion
of p
rocu
rem
ent m
etho
ds an
d pr
oced
ures
16.
»De
velo
pmen
t of s
tand
ardi
zed
docu
men
ts, t
ools
and
tem
plat
es to
supp
ort
prep
arat
ion
of h
igh
quali
ty p
roje
cts.
»De
velo
pmen
t of p
olicy
and
over
sight
func
tions
, ind
epen
dent
from
pro
cure
men
t op
erat
ions
, to m
onito
r and
guid
e the
dev
elopm
ent o
f the
pro
cure
men
t sys
tem
. »Pr
epar
atio
n of
Mun
icipa
l PPP
Reg
ulat
ion
to fa
cilita
te d
evelo
pmen
t of m
unici
pal-
leve
l pro
ject
s. »De
velo
pmen
t of:
–ac
coun
ting a
nd b
udge
t tre
atm
ent o
f PPP
s to p
rovid
e com
fort
on G
oJ ab
ility
to
deliv
er lo
ng-te
rm fi
nanc
ial co
mm
itmen
ts to
PPP
s; –po
licy o
n di
sclo
sure
to th
e gen
eral
pub
lic of
info
rmat
ion
on P
PP p
roje
cts.
–De
velo
pmen
t of a
sim
plifi
ed “P
IM-P
PP G
over
nanc
e Fra
mew
ork”
to im
prov
e th
e effi
cienc
y and
effic
acy o
f cap
ital e
xpen
ditu
res a
nd en
sure
rigo
rous
pr
ojec
t ide
ntifi
catio
n an
d se
lect
ion
syst
ems.
–Se
t up
of a
“Cen
tral P
IM U
nit”
at th
e Min
istry
of P
lann
ing a
nd In
tern
atio
nal
Coop
erat
ion
(MoP
IC) t
o sup
port
the a
lloca
tion
of p
ublic
fund
s thr
ough
the
cent
raliz
atio
n of
seve
ral c
oord
inat
ion
func
tions
and
to as
sist l
ine m
inist
ries.
–Se
t up
of th
e “In
ter-A
genc
y PIM
-PPP
Com
mitt
ee” t
o be m
anda
ted
as a
tech
nica
l sec
reta
riat c
harg
ed w
ith p
repa
ring t
he se
lect
ion
of P
IP an
d PP
P pr
ojec
ts.
–De
velo
ping
a ro
bust
PPP
pip
eline
(cap
acity
bui
ldin
g of P
PP u
nits
and
cont
ract
ing a
genc
ies,
pro
ject
pre
para
tion
fund
, tra
nsac
tion
advis
ory).
–Im
prov
e the
effic
iency
and
cred
it-wo
rthin
ess o
f inf
rast
ruct
ure S
OEs (
e.g.
NE
PCO)
, by i
mpr
ovin
g gov
erna
nce a
nd fi
nanc
ial m
anag
emen
t (in
tand
em w
ith
sect
or re
form
s).
»De
sign
and
oper
atio
naliz
atio
n of
a Vi
abili
ty G
ap Fi
nanc
ing
Facil
ity; a
sses
sing t
he
need
for o
ther
form
s of
finan
cing f
acili
tatio
n (e
.g. g
uara
ntee
s). »As
sess
and
impr
ove
long
-term
fina
nce
capa
city (
inclu
ding
de
velo
pmen
t fin
ance
, ca
pita
l mar
kets
).
»De
velo
pmen
t of
the a
rrang
emen
ts
and
proc
edur
es
for i
ndep
ende
nt
revie
w of
com
plain
ts
from
bid
ders
abou
t th
e con
duct
of
proc
urem
ent c
ontra
ct
awar
d pr
oces
ses.
15 A
ll of
the
actio
n ar
eas
will
requ
ire d
iffer
ent t
echn
ical
ass
ista
nce
supp
ort a
nd c
apac
ity b
uild
ing
incl
udin
g a
focu
s on
gov
ernm
ent i
nstit
utio
ns s
uch
line
min
istr
ies/
cont
ract
ing
agen
cies
, PPP
uni
ts, P
ublic
Pro
cure
men
t Age
ncie
s, a
nd p
rivat
e se
ctor
and
con
trac
ters
and
oth
er s
take
hold
ers.
16 M
oder
niza
tion
of p
rocu
rem
ent i
nclu
des:
add
ing
prov
isio
ns o
n fr
amew
ork
agre
emen
ts, o
utpu
t bas
ed s
peci
ficat
ions
, life
-cyc
le c
ostin
g an
d us
e of
rate
d cr
iteria
in
eval
uatio
n of
bid
s, p
rocu
rem
ent m
etho
d fo
r con
sulta
ncy
serv
ices
(not
mer
ely
for c
onst
ruct
ion-
rela
ted
cons
ulta
ncy
serv
ices
) and
fram
ewor
k ag
reem
ents
.
Mas
hreq
| M
axim
izin
g Fi
nanc
e fo
r De
velo
pmen
t (M
FD) S
trat
egy
60
cros
s-cu
TTin
g ar
Eas15
sTra
TEgy
, Pol
icy a
nd
lEga
l go
VErn
ancE
finan
cEfc
V/Po
liTic
s
lebanon
»Bu
sines
s env
ironm
ent
refo
rms.
»En
act r
evise
d Pr
ocur
emen
t La
w.
»De
velo
p Fis
cal
Com
mitm
ents
and
Cont
inge
nt Li
abili
ties
Fram
ewor
k.
»De
velo
p an
d de
liver
com
mun
icatio
ns st
rate
gy to
dem
onst
rate
GoL
com
mitm
ent
and
owne
rshi
p of
PPP
pro
gram
. »De
velo
p ef
fect
ivene
ss an
d ac
coun
tabi
lity o
f pro
cure
men
t by S
OEs,
in lin
e with
pu
blic
proc
urem
ent p
rincip
les a
nd p
roce
dure
s, an
d es
tabl
ish co
mpe
titive
ne
utra
lity w
hen
SOEs
are b
idde
rs.
»M
oder
niza
tion
of p
rocu
rem
ent m
etho
ds an
d pr
oced
ures
inclu
ding
issu
ance
of a
rang
e of u
pdat
ed st
anda
rd b
iddi
ng an
d co
ntra
ct d
ocum
ents
. »Fin
alize
and
issue
a co
nsol
idat
ed se
t of r
egul
atio
ns an
d gu
ideli
nes o
f a n
ew
Proc
urem
ent l
aw, a
nd en
sure
cons
isten
cy of
pro
cure
men
t asp
ects
with
the
rece
ntly
pass
ed P
PP la
w an
d its
regu
latio
ns.
»Es
tabl
ishm
ent o
f ins
titut
iona
l and
oper
atio
nal a
rrang
emen
ts fo
r the
im
plem
enta
tion
of th
e FCC
L fra
mew
ork.
»En
sure
a na
tionw
ide a
ppro
ach
to m
unici
pal le
vel P
PP p
roje
cts t
hrou
gh th
e pr
epar
atio
ns of
spec
ific M
unici
pal P
PP G
uide
lines
. »In
stitu
tiona
l cap
acity
-bui
ldin
g and
supp
ort t
o ear
ly-st
age a
dviso
ry fo
r PPP
pro
ject
or
igin
atio
n at
HCP
and
sect
or m
inist
ries.
»Im
prov
e the
effic
iency
and
cred
it-wo
rthin
ess o
f EdL
and
othe
r inf
rast
ruct
ure
SOEs
, by i
mpr
ovin
g gov
erna
nce a
nd fi
nanc
ial m
anag
emen
t (in
tand
em w
ith
sect
or re
form
s).
»De
velo
p an
in
frast
ruct
ure
finan
cing f
acili
tatio
n fra
mew
ork (
inclu
ding
via
bilit
y gap
fund
ing,
gu
aran
tees
, liq
uidi
ty
facil
ity) s
uppo
rted
by th
e pro
pose
d Le
bano
n In
frast
ruct
ure
Facil
itatio
n Fu
nd (L
IFF).
»Co
nduc
t a d
iagn
ostic
of
the f
inan
cial s
yste
m’s
capa
city f
or M
FD (m
acro
co
nstra
ints
inclu
ding
cr
owdi
ng-o
ut b
y the
pu
blic
sect
or, a
nd th
e ba
lanc
e of p
aym
ent
situa
tion;
dom
estic
ba
nkin
g sec
tor c
apac
ity
and
cred
it as
sess
men
t/ris
k man
agem
ent
capa
city;
and
capi
tal
mar
ket p
oten
tial).
»Re
visit
the d
evelo
pmen
t fin
ance
fram
ewor
k (p
oten
tial s
ucce
ssor
op
tions
to th
e sub
sidize
d liq
uidi
ty w
indo
ws ru
n by
th
e BdL
).
ANNE
X IV
KEY
REF
ORM
S BY
SEC
TOR
AND
COUN
TRY
- MAS
HREQ
MFD
REF
ORM
MAT
RICE
S
61
cros
s-cu
TTin
g ar
Eas15
sTra
TEgy
, Pol
icy a
nd
lEga
l go
VErn
ancE
finan
cEfc
V/Po
liTic
s
iraq
»Bu
sines
s env
ironm
ent
refo
rms.
»En
actm
ent o
f rob
ust
PPP
Law
and
furth
er
deve
lopm
ent o
f leg
al an
d re
gula
tory
fram
ewor
k fo
r con
duct
ing t
he
PPP
proj
ect c
ycle
proc
ess (
iden
tifica
tion,
de
velo
pmen
t, pr
ocur
emen
t and
cont
ract
m
anag
emen
t). »De
velo
pmen
t of a
Fisc
al
Com
mitm
ents
and
Cont
inge
nt Li
abili
ties
fram
ewor
k. »De
velo
pmen
t and
ad
optio
n of
a cle
ar an
d co
nsol
idat
ed, m
oder
n le
gal f
ram
ewor
k for
pub
lic
proc
urem
ent a
t the
Fede
ral
leve
l.
»De
velo
pmen
t of r
egul
ator
y fun
ctio
ns fo
r the
pro
cure
men
t sys
tem
(in
the f
orm
of
a cen
tral p
olicy
and
over
sight
offic
e to m
onito
r and
guid
e the
dev
elopm
ent o
f the
pu
blic
proc
urem
ent s
yste
m).
»Im
prov
ed co
rpor
ate g
over
nanc
e of S
OEs,
inclu
ding
mod
erni
zing a
nd h
arm
onizi
ng
proc
urem
ent p
ract
ices,
in lin
e with
bas
ic pu
blic
proc
urem
ent p
rincip
les a
nd
acco
unta
bilit
y saf
egua
rds,
and
esta
blish
com
petit
ive n
eutra
lity w
hen
SOEs
are
bidd
ers.
»De
velo
pmen
t of a
sim
plifi
ed “P
IM-P
PP G
over
nanc
e Fra
mew
ork”
to im
prov
e the
ef
ficien
cy an
d ef
ficac
y of c
apita
l exp
endi
ture
s. Ri
goro
us p
roje
ct id
entif
icatio
n an
d se
lect
ion
syst
ems t
o ser
ve as
a sc
reen
ing m
echa
nism
. »Es
tabl
ishm
ent o
f ins
titut
iona
l and
oper
atio
nal a
rrang
emen
ts fo
r the
im
plem
enta
tion
of th
e FCC
L fra
mew
ork.
»Fu
nctio
nal R
evie
w an
d PI
M C
apac
ity N
eeds
Ass
essm
ent f
or fe
dera
l Min
istry
of
Plan
ning
Kur
dist
an R
egio
nal G
over
nmen
t (KR
G) M
inist
ry of
Pla
nnin
g to r
evie
w th
e cu
rrent
Fede
ral M
oP an
d KR
G M
oP ar
rang
emen
ts an
d ca
pacit
y cap
abili
ty ag
ainst
th
e fut
ure P
IM-P
PP G
over
nanc
e Fra
mew
ork.
»Up
grad
e of I
raqi
Dev
elopm
ent M
anag
emen
t Sys
tem
(IDM
S) an
d Ku
rdist
an
Deve
lopm
ent M
anag
emen
t Sys
tem
(KDM
S) to
capt
ure a
ll the
stag
es of
the P
IM-
PPP
Gove
rnan
ce Fr
amew
ork.
»De
velo
p se
ctor
refo
rm ro
adm
aps (
e.g.
elec
tricit
y), in
cludi
ng co
rpor
atiza
tion
and
impr
ovin
g cre
ditw
orth
ines
s of i
nfra
stru
ctur
e ent
ities
;
»Pu
rsue
ban
king
sect
or
refo
rm (g
over
nanc
e,
oper
atio
nal a
nd
finan
cial r
estru
ctur
ing
of st
ate-
owne
d ba
nks
and
stre
ngth
enin
g of
priva
te b
anks
) to s
tart
layin
g the
foun
datio
n of
so
und
finan
cial s
ecto
r de
velo
pmen
t to p
rovid
e m
eani
ngfu
l sup
port
for M
FD (s
ee b
anki
ng
sect
or m
atrix
). »Im
prov
e spe
cializ
ed
deve
lopm
ent f
inan
ce
(e.g
. hou
sing f
inan
ce,
agric
ultu
ral f
inan
ce),
and
expl
ore t
he p
oten
tial f
or
leve
ragin
g com
mer
cial
finan
ce.
»Es
tabl
ishm
ent
of m
echa
nism
fo
r exp
edite
d,
inde
pend
ent r
evie
w of
com
plain
ts
from
bid
ders
with
m
eani
ngfu
l rem
edie
s av
ailab
le.
Mas
hreq
| M
axim
izin
g Fi
nanc
e fo
r De
velo
pmen
t (M
FD) S
trat
egy
62
Pow
Er s
EcTo
rsT
raTE
gy, P
olic
y and
lEga
l go
VErn
ancE
finan
cEfc
V/Po
liTic
s
jordan
»Ra
tiona
lize t
ariff
cros
s-sub
sidie
s and
in
trodu
ce co
st-re
flect
ive ta
riffs
for a
ll co
nsum
er ca
tego
ries.
»M
ove t
o a m
ulti-
year
tarif
f fra
mew
ork.
»Im
prov
e effi
cient
use
of en
ergy
to
min
imize
(cro
ss) s
ubsid
y im
pact
as
well a
s cos
t to t
he ov
erall
econ
omy
– fo
ster
priv
ate i
nves
tmen
t in
Ener
gy
Effic
iency
at re
siden
tial a
nd p
ublic
le
vels
(e.g
. pub
lic lig
htin
g).
»Un
bund
le ta
riff s
truct
ure t
o allo
w im
plem
enta
tion
of sm
art-m
eter
ing.
»Re
view
and
ratio
naliz
e cus
tom
s and
sa
les t
axes
for R
E and
EE eq
uipm
ent.
»De
velo
p a s
trate
gic p
lan
on
inte
rnat
iona
l ene
rgy a
nd en
ergy
tra
de, i
nclu
ding
cons
truct
ion
of
pipe
lines
to im
port
gas.
»De
velo
p po
licy,
inst
itutio
nal a
nd
tech
nica
l fra
mew
orks
for i
nsta
lling
en
ergy
stor
age t
echn
olog
ies t
o en
able
grea
ter i
nteg
ratio
n of
do
mes
tic re
newa
ble e
nerg
y in
the
natio
nal g
rid. T
his w
ould
enco
mpa
ss
batte
ry, h
ydro
and
ther
mal
stor
age
(CSP
) sys
tem
s.
»Un
derta
ke st
ruct
ural
refo
rms a
t NEP
CO b
y fun
ctio
nal
and
acco
untin
g sep
arat
ion
of b
usin
ess l
ines
such
as
: (i)
Tran
smiss
ion
oper
ator
, (ii)
Sys
tem
and
Mar
ket
Oper
ator
, (iii
) Fue
l pur
chas
er an
d Su
pplie
r, an
d (iv
) Si
ngle
Buye
r, in
pre
para
tion
for e
vent
ual u
nbun
dlin
g in
to d
augh
ter e
ntiti
es.
»In
stitu
tiona
lize t
he p
roce
ss of
pre
parin
g and
im
plem
entin
g a n
atio
nal e
nerg
y stra
tegy
to
com
plem
ent t
he p
erio
dic p
rovis
ion
of an
elec
tricit
y m
aste
r pla
n. S
treng
then
leas
t-cos
t and
risk
-re
spon
sive e
nerg
y pla
nnin
g cap
abili
ty an
d ap
ply t
o all
futu
re p
roje
cts.
»St
reng
then
ed co
nsul
tativ
e pro
cess
and
mor
e pr
edict
abili
ty b
etwe
en re
gula
tor (
EMRC
- En
ergy
and
Min
eral
s Reg
ulat
ory C
omm
issio
n), c
onsu
mer
s and
ke
y sta
keho
lder
s reg
ardi
ng ra
tiona
le an
d pr
oces
s for
ta
riff s
ettin
g\ad
just
men
ts.
»De
ploy
ing c
redi
t enh
ance
men
ts
with
WBG
guar
ante
es fo
r the
de
velo
pmen
t and
adop
tion
of a
Liqui
datio
n Pl
an fo
r ou
tsta
ndin
g leg
acy d
ebt,
with
su
itabl
e mec
hani
sms b
y: – le
vera
ging f
oreig
n an
d do
mes
tic d
ebt m
arke
ts;
–cr
eatin
g tar
iff sp
ace f
or d
ebt
repa
ymen
t; –he
dgin
g fue
l cos
t risk
goin
g fo
rwar
d. –De
velo
p a g
ener
atio
n an
d tra
nsm
issio
n pl
an w
ith
finan
cial m
odell
ing c
apac
ity.
»M
itiga
ting i
mpa
cts o
n vu
lner
able
sect
ions
with
a d
irect
ben
efit
trans
fer
sche
me,
thro
ugh
the
ratio
naliz
atio
n of
tarif
f cro
ss-
subs
idie
s and
intro
duct
ion
of (c
lose
r to)
cost
-refle
ctive
ta
riffs
for a
ll con
sum
er
cate
gorie
s. »In
crea
sed
cons
ulta
tion
with
pu
blic
rega
rdin
g tar
iff se
tting
pr
oces
s.
ANNE
X IV
KEY
REF
ORM
S BY
SEC
TOR
AND
COUN
TRY
- MAS
HREQ
MFD
REF
ORM
MAT
RICE
S
63
Pow
Er s
EcTo
rsT
raTE
gy, P
olic
y and
lEga
l go
VErn
ancE
finan
cEfc
V/Po
liTic
s
lebanon
»Se
quen
ce co
mm
ercia
l tar
iff re
form
lin
ked
to m
itiga
tion
of te
chni
cal
and
non-
tech
nica
l loss
es an
d in
crea
sed
cost
-effi
cient
supp
ly (in
cludi
ng su
ppor
ting i
nves
tmen
ts
in fu
el su
pply,
tran
smiss
ion
netw
ork
impr
ovem
ents
). »De
velo
p fra
mew
ork f
or p
rivat
e sec
tor
parti
cipat
ion
in ge
nera
tion
in lin
e wi
th n
atio
nal P
PP la
w. »Im
plem
ent r
efor
ms i
n Hy
drop
ower
se
ctor
for I
PPs.
»Es
tabl
ish a
regu
lato
ry au
thor
ity in
ac
cord
ance
with
law
462
(200
2).
»Co
rpor
atize
EdL b
ased
on co
mm
ercia
l pra
ctice
s with
a l
onge
r-ter
m vi
ew of
pur
suin
g a st
aged
pro
cess
to
unbu
ndlin
g acr
oss g
ener
atio
n, tr
ansm
issio
n an
d di
strib
utio
n un
its.
»De
velo
p ac
coun
ting f
ram
ewor
k and
pro
cedu
res t
o fa
cilita
te M
inist
ry of
Ener
gy an
d W
ater
over
sight
of
EdL f
inan
cial s
usta
inab
ility
. »St
anda
rdize
pro
cure
men
t and
dev
elop
mod
el co
ntra
ctua
l agr
eem
ents
for I
PPs.
»De
velo
p th
e fol
lowi
ng op
erat
iona
l initi
ative
s: –te
chni
cal s
tand
ards
for s
olar
and
wind
IPPs
. –co
des f
or p
ilotin
g net
met
erin
g pilo
ts.
»De
velo
p, d
eplo
y/ac
cess
cr
edit
enha
ncem
ent f
acili
ties
inclu
ding
: –Ri
sk gu
aran
tees
and
insu
ranc
es;
–Do
mes
tic lo
ng-te
rm liq
uidi
ty
inst
rum
ents
; –Ca
pita
l mar
kets
(ove
r lon
ger
term
). »De
velo
p, d
eplo
y/ac
cess
te
chni
cal a
ssist
ance
facil
ities
to
supp
ort p
olicy
and
trans
actio
n en
gage
men
ts.
»Ad
dres
s the
bur
den
of
powe
r ser
vices
to S
yrian
s (a
ccou
ntab
le fo
r hig
h pe
rcent
age o
f non
-tech
nica
l lo
sses
); »De
sign
prog
ram
to en
sure
ea
rly an
d m
easu
rabl
e win
s th
at re
flect
coun
try w
ide
refo
rm d
ivide
nd in
term
s,
inte
r alia
, of:
(i) ac
cess
and
quali
ty of
serv
ice; (
ii) jo
bs
crea
ted.
»As
sess
and
addr
ess s
ocial
im
plica
tions
of re
form
actio
ns
on m
argin
al gr
oups
(poo
r, wo
men
, lag
ging r
egio
ns et
c.,)
on th
e ref
orm
“los
ers”
, e.g
. pu
blic
sect
or/S
OE em
ploy
ees
impa
cted
by E
dL co
rpor
atio
n,
polit
ical in
tere
sts.
Mas
hreq
| M
axim
izin
g Fi
nanc
e fo
r De
velo
pmen
t (M
FD) S
trat
egy
64
Pow
Er s
EcTo
rsT
raTE
gy, P
olic
y and
lEga
l go
VErn
ancE
finan
cEfc
V/Po
liTic
s
iraq
»Ap
prov
al an
d im
plem
enta
tion
of
a roa
dmap
for e
lect
ricity
sect
or
which
aim
s at f
ull c
ost r
ecov
ery a
nd
impr
oved
serv
ice d
elive
ry.
»De
sign
of a
tarif
f rat
iona
lizat
ion
proc
ess t
hat l
eads
to co
st re
flect
ive
tarif
f stru
ctur
es.
»De
velo
p st
rate
gy to
fram
e de
regu
latio
n pr
oces
s.
»Re
stru
ctur
e gov
erna
nce a
nd op
erat
ion
of en
ergy
se
ctor
acro
ss fe
dera
l/gov
erno
rate
auth
oriti
es to
im
prov
e sup
ply d
elive
ry in
acco
rdan
ce w
ith th
e Ira
q In
tegr
ated
Nat
iona
l Ene
rgy S
trate
gy an
d th
e new
ele
ctric
ity la
w.
»De
fined
ring
-fenc
ed ro
les o
f ele
ctric
ity b
usin
ess
units
(Gen
erat
ion,
Tran
smiss
ion
and
Dist
ribut
ion)
for
enha
nced
acco
unta
bilit
y and
even
tual
unb
undl
ing a
s au
tono
mou
s com
mer
cial e
ntiti
es.
»Im
prov
e com
mer
cial o
pera
ting f
ound
atio
n of
di
strib
utio
n se
gmen
t (to
inclu
de a
com
mer
cial
man
agem
ent s
yste
m) t
o ach
ieve
: –Fin
ancia
l sus
tain
abili
ty;
–Re
duce
subs
idie
s tow
ards
cost
reco
very
tarif
fs.
»De
ploy
addi
tiona
l cre
dit
supp
ort t
o im
prov
e pe
rform
ance
of se
ctor
(thr
ough
co
nstru
ctio
n of
new
gene
ratio
n pl
ants
, and
reha
bilit
atio
n of
ex
istin
g pla
nts).
»De
velo
p a v
iable
finan
cing
plan
and
busin
ess p
lan
in
supp
ort t
o the
corp
orat
izatio
n of
the s
ecto
r. Th
is wi
ll inc
lude
m
itiga
tion
of sy
stem
tech
nica
l an
d fin
ancia
l loss
es to
attra
ct
priva
te se
ctor
inve
stm
ents
via
impr
ovem
ents
to tr
ansm
issio
n an
d di
strib
utio
n sy
stem
s.
»As
sess
and
addr
ess s
ocial
im
plica
tions
of re
form
ac
tions
on m
argin
al gr
oups
(p
oor,
wom
en, l
iber
ated
and
disa
dvan
tage
d re
gion
s etc)
on
the r
efor
m “l
oser
s”, e
.g.
publ
ic se
ctor
/SOE
empl
oyee
s im
pact
ed b
y ref
orm
s.
ANNE
X IV
KEY
REF
ORM
S BY
SEC
TOR
AND
COUN
TRY
- MAS
HREQ
MFD
REF
ORM
MAT
RICE
S
65
gas
sEcT
orsT
raTE
gy, P
olic
y and
lEga
l go
VErn
ancE
finan
cEfc
V/Po
liTic
s
iraq
»Es
tabl
ish p
olicy
guid
eline
s re
gard
ing n
atur
al ga
s de
velo
pmen
t and
use
, in
cludi
ng p
ublic
/priv
ate
sect
or p
artic
ipat
ion,
reso
urce
/pr
oduc
tion
owne
rshi
p, ga
s pr
icing
, gas
tran
spor
t, ga
s m
arke
ting r
ight
s, ga
s fla
ring,
and
prio
rity o
f res
ource
use
s. »Pr
ivate
sect
or p
artic
ipat
ion
(PSP
) fra
mew
ork:
crea
te a
valu
e pr
opos
ition
and
asso
ciate
d re
gula
tory
, con
tract
ual a
nd
com
mer
cial f
ram
ewor
ks to
enab
le pr
ivate
sect
or p
artic
ipat
ion
alon
g th
e gas
valu
e cha
in.
»Re
duce
inve
stor
unc
erta
inty
and
risk b
y pro
vidin
g clea
r gui
danc
e an
d ec
onom
ic in
cent
ives t
o pr
ivate
inve
stor
s, in
cludi
ng a
com
petit
ive la
ndsc
ape f
or p
ublic
/pr
ivate
pro
ject
dev
elopm
ent a
nd
right
s to a
cces
s exis
ting o
r bui
ld
new
gas-
rela
ted
infra
stru
ctur
e an
d m
arke
t nat
ural
gas
dom
estic
ally a
nd fo
r exp
ort.
»In
trodu
ce in
tern
atio
nally
be
nchm
arke
d, tr
ansp
aren
t and
st
able
gas p
ricin
g (up
stre
am)
and
tarif
f set
ting (
mid
stre
am an
d do
wnst
ream
) mec
hani
sms f
or
inve
stm
ent a
long
the n
atur
al ga
s va
lue c
hain
.
»Go
vern
ance
and
capa
city b
uild
ing:
esta
blish
and
incr
emen
tally
cons
olid
ate g
as-sp
ecifi
c gov
erna
nce c
apac
ity
(Pol
icy &
Pla
nnin
g, R
egul
ator
y, Op
erat
iona
l), in
cludi
ng ro
les
and
func
tions
of ke
y ins
titut
ions
and
priva
te se
ctor
acto
rs:
–Se
ctor
Min
istry
(pol
icy, l
aw an
d re
gula
tions
); –Re
gula
tory
auth
ority
(reg
ulat
ion,
over
sight
& FD
I); –SO
Es (s
tate
inve
stm
ent a
nd re
pres
enta
tion
in op
erat
ions
al
ong v
alue c
hain
); –IO
Cs (i
nves
tmen
t and
oper
atio
ns al
ong v
alue c
hain
). »Cl
early
stip
ulat
e leg
al in
stru
men
ts an
d to
ols (
laws
, re
gula
tions
, reg
ulat
ory r
esol
utio
ns an
d co
des,
cont
ract
s an
d lic
ense
s, re
spec
tivel
y) by
whi
ch th
eir fu
nctio
ns ar
e to b
e di
scha
rged
. »Im
prov
e inv
esto
r attr
activ
enes
s by e
stab
lishi
ng an
ef
fect
ive, e
vent
ually
inde
pend
ent r
egul
ator
y cap
acity
and
cons
olid
atin
g gas
-sec
tor-s
pecif
ic pl
anni
ng ca
pacit
y. »Ga
s sec
tor S
OEs:
cons
olid
ate a
nd m
oder
nize
exist
ing
gas-
rela
ted
stat
e-ow
ned
ente
rpris
es (S
OEs)
into
a ba
nkab
le, i
nter
natio
nally
com
petit
ive, f
or p
rofit
nat
iona
l ga
s com
pany
to co
mpe
titive
ly pa
rticip
ate i
n th
e mid
stre
am
and
down
stre
am of
the n
atur
al ga
s valu
e cha
in, i
nclu
ding
pr
oces
sing,
tran
spor
t, st
orag
e and
dist
ribut
ion
of n
atur
al
gas a
nd n
atur
al ga
s liq
uids
. »Pr
ogre
ssive
ly de
velo
p a t
rans
pare
nt, c
ompe
titive
and
sust
ainab
le le
gal f
ram
ewor
k of m
utua
lly in
terre
late
d an
d in
terd
epen
dent
regu
latio
ns an
d co
ntra
cts w
hich
late
r, wh
enev
er th
e int
erna
l pol
itica
l eco
nom
y con
sider
atio
ns
allow
, be c
appe
d by
an en
com
pass
ing P
etro
leum
Law.
»Co
ntra
ctua
l fra
mew
ork:
Intro
duce
inte
rnat
iona
lly
benc
hmar
ked
cont
ract
ual f
ram
ewor
k for
priv
ate i
nves
tmen
t in
nat
ural
gas d
evelo
pmen
t alo
ng th
e nat
ural
gas v
alue
chain
.
»Cr
edit
enha
ncem
ent
and
fund
ing:
Dep
loy
cred
it en
hanc
emen
t m
echa
nism
s thr
ough
W
BG gu
aran
tees
on
paym
ents
for d
ry ga
s de
liver
ies b
y sta
te of
f-ta
kers
. »Le
vera
ge IF
C lo
an,
equi
ty an
d gu
aran
tee
inst
rum
ents
to d
e-ris
k priv
ate s
ecto
r in
vest
men
t in
upst
ream
(fl
arin
g red
uctio
n an
d pr
oces
sing)
, m
idst
ream
(tra
nspo
rt)
and
down
stre
am (l
arge
of
ftake
and
dist
ribut
ion
for i
ndus
trial
, co
mm
ercia
l and
re
siden
tial u
ses).
»St
ress
risk
, cos
t and
fisc
al
adva
ntag
es st
emm
ing f
rom
shift
aw
ay fr
om st
ate-
led,
stat
e-de
pend
ent a
nd st
ate-
fund
ed,
fisca
lly-d
epen
dent
sect
or
deve
lopm
ent t
owar
ds a
priva
te-
sect
or-le
d in
vest
men
t fra
mew
ork.
»Hi
ghlig
ht b
enef
its in
term
s of
inve
stor
risk
per
cept
ion
and
attra
ctive
ness
from
pro
pose
d sh
ift fr
om tr
aditi
onal
regu
latio
n-by
-con
tract
pra
ctice
s of o
ne-o
n-on
e neg
otia
tions
of in
divid
ual
cont
ract
s beh
ind
close
d do
ors
with
pre
-des
igna
ted
inve
stor
s to
ward
s the
intro
duct
ion
of op
en,
trans
pare
nt an
d co
mpe
titive
co
ntra
ct aw
ard
proc
esse
s bas
ed
on C
oM-a
ppro
ved
tem
plat
es.
Mas
hreq
| M
axim
izin
g Fi
nanc
e fo
r De
velo
pmen
t (M
FD) S
trat
egy
66
Tran
sPor
TsT
raTE
gy, P
olic
y and
lEga
l go
VErn
ancE
finan
cEfc
V/Po
liTic
s
jordan
»Pr
epar
e a d
etail
ed A
ctio
n Pl
an to
: (i)
iden
tify a
ll reg
ulat
ions
and
prac
tices
th
at n
eed
to b
e mod
ified
to m
itiga
te
mar
ket d
istor
tions
; (ii)
def
ine a
n in
cent
ive
mec
hani
sm to
redu
ce, r
enew
or co
nsol
idat
e fle
et in
orde
r to e
nhan
ce th
e effi
cienc
y of
carg
o tra
nspo
rt fo
r the
Aqa
ba-A
mm
an
corri
dor.
»Id
entif
y and
addr
ess a
ny le
gisla
tive
cons
train
ts to
impl
emen
ting a
toll r
oad,
an
d pr
opos
e pot
entia
l sol
utio
ns.
»Re
view
the p
ublic
tran
spor
t tar
iff p
olicy
and
prep
are a
pla
n fo
r res
truct
urin
g the
tarif
f po
licy (
fare
stru
ctur
e).
»Pr
epar
e an
anal
ysis/
reco
mm
enda
tion
of op
tions
for t
he in
volve
men
t of t
he
priva
te se
ctor
: –es
tabl
ish an
appr
opria
te lis
t of
optio
ns fo
r priv
ate s
ecto
r inv
olve
men
t in
toll c
olle
ctio
n;
–un
derta
ke a
deta
iled
asse
ssm
ent o
f th
e opt
ions
for p
rivat
e inv
estm
ent
in to
ll col
lect
ion
and
prov
ision
of
main
tena
nce s
ervic
es, i
nclu
ding
fin
ancia
l and
risk
s ass
essm
ent.
»Op
timiza
tion
plan
for b
us
rout
es, b
us st
op lo
catio
n, p
ublic
tra
nspo
rt sc
hedu
le lic
ensin
g an
d in
tero
pera
bilit
y to i
mpr
ove
quali
ty of
serv
ices a
nd re
gion
al
conn
ectiv
ity.
»A
key c
onsid
erat
ion
when
re
viewi
ng th
e pub
lic tr
ansp
ort
tarif
f pol
icy w
ill b
e to e
nsur
e tha
t an
y res
truct
urin
g of t
he ta
riff
polic
y (fa
re st
ruct
ure)
addr
esse
s ac
cess
ibili
ty is
sues
for d
iffer
ent
socie
tal g
roup
s.
lebanon
»Re
view
civil a
viatio
n la
w an
d its
im
plem
entin
g dec
rees
. »Ad
opt a
com
preh
ensiv
e tra
nspo
rt se
ctor
st
rate
gy an
d pl
an en
cour
ages
priv
ate
sect
or p
artic
ipat
ion.
»Es
tabl
ishm
ent o
f civi
l avia
tion
auth
ority
. »Re
view
and
rein
force
gove
rnan
ce
stru
ctur
es of
SOE
s (e.
g. ra
ilway
and
publ
ic tra
nspo
rt au
thor
ity, T
ripol
i and
Be
irut P
ort A
utho
ritie
s). »Im
plem
enta
tion
of th
e tra
ffic l
aw.
» U
se p
ublic
fina
nce t
o mob
ilize
an
d le
vera
ge p
rivat
e fin
ancin
g (e
.g. B
eirut
BRT
). »Es
tabl
ish V
iabili
ty G
ap Fi
nanc
ing
for p
lann
ed P
PPs t
rans
actio
ns
(e.g
. Beir
ut A
irpor
t). »M
obili
ze as
nee
ded
guar
ante
es.
»Ad
dres
s mar
ginal
grou
p, re
fuge
e an
d ho
st co
mm
unity
impa
cts/
bene
fits f
rom
the r
efor
m.
»Ai
m at
lowe
r tra
nspo
rt co
sts
prov
ing f
inan
cing a
cces
sibili
ty of
th
e mos
t vul
nera
ble.
»In
frast
ruct
ure t
o cre
ate
loca
l em
ploy
men
t, im
prov
e re
gion
al co
nnec
tivity
, and
pr
epar
e Leb
anon
for S
yrian
re
cons
truct
ion.
iraq
»Re
view
and
upda
te in
line w
ith
inte
rnat
iona
l goo
d pr
actic
es th
e civi
l av
iatio
n la
w an
d im
plem
entin
g dec
rees
. »Up
date
the C
ivil A
viatio
n Se
ctor
in lin
e with
th
e 201
4 Tr
ansp
ort S
ecto
r Mas
terp
lan.
»Re
gula
tory
refo
rm in
the a
viatio
n se
ctor
, inc
ludi
ng th
e est
ablis
hmen
t of a
st
anda
lone
Civi
l Avia
tion
Auth
ority
.
»M
obili
ze as
nee
ded
inclu
ding
re
align
ing r
even
ues f
rom
the a
ir sp
ace r
even
ues.
»En
cour
age s
hift
from
priv
ate-
sect
or-e
nabl
ing r
heto
ric to
co
ncre
te p
rivat
e-se
ctor
-ena
blin
g ac
tion.
ANNE
X IV
KEY
REF
ORM
S BY
SEC
TOR
AND
COUN
TRY
- MAS
HREQ
MFD
REF
ORM
MAT
RICE
S
67
urBa
n sE
cTor
sTra
TEgy
, Pol
icy a
nd lE
gal
goVE
rnan
cEfin
ancE
fcV/
PoliT
ics
jordan
»Pr
iorit
ize id
entif
icatio
n an
d st
ruct
urin
g su
ppor
t for
priv
ate s
ecto
r par
ticip
atio
n in
m
unici
pal s
ervic
e deli
very
. »Ad
opt r
efor
m p
acka
ge to
rest
ruct
ure
Citie
s and
Vill
ages
Dev
elopm
ent B
ank
(CVD
B) an
d de
velo
p a f
unct
ioni
ng
mun
icipa
l cre
dit m
arke
t. »Re
vise f
iscal
tran
sfer f
orm
ula t
o ful
ly ap
ply p
erfo
rman
ce cr
iteria
to p
rovid
e in
cent
ives f
or m
unici
pal f
inan
cial
man
agem
ent r
efor
m to
enha
nce
cred
itwor
thin
ess.
»St
reng
then
mun
icipa
l own
-sou
rce
reve
nues
to re
duce
over
-dep
ende
nce o
n gr
ants
from
the c
entra
l leve
l. »In
trodu
ce h
ard
budg
et co
nstra
int.
»Re
stru
ctur
e CVD
B, in
cludi
ng to
revis
e com
posit
ion
and
votin
g rig
hts a
t CVD
B Bo
ard
of D
irect
ors,
to
incr
ease
inst
itutio
nal in
depe
nden
ce an
d en
able
mor
e com
mer
cial r
isk/ r
etur
n-ba
sed
lendi
ng
decis
ions
for m
unici
pal f
inan
ce.
»St
reng
then
cros
s-sec
tora
l pla
nnin
g and
inve
stm
ent
prio
ritiza
tion
amon
g lin
e age
ncie
s (e.
g., w
ater
, sa
nita
tion,
tran
spor
t, pu
blic
work
s and
ener
gy)
unde
r the
chair
man
ship
of lo
cal a
utho
ritie
s to o
pen
oppo
rtuni
ties f
or p
rivat
e sec
tor a
t the
sub-
natio
nal
leve
l. »In
crea
se tr
ansp
aren
cy of
mun
icipa
l fin
ance
, in
cludi
ng re
venu
e and
expe
nditu
re co
mpo
sitio
n to
bu
ild tr
ust b
etwe
en p
ublic
and
priva
te se
ctor
. »In
trodu
ce co
mm
ercia
l prin
ciple
s for
oper
atio
n of
re
venu
e-ge
nera
ting m
unici
pal s
ervic
es.
»Pr
ovid
e inc
entiv
es, i
nclu
ding
in
crea
sed
use o
f blen
ded
finan
ce an
d in
vest
men
t co
-fina
ncin
g ins
trum
ents
in
sele
cted
mun
icipa
litie
s to
mob
ilize
com
mer
cial
finan
cing f
or su
b-na
tiona
l in
vest
men
ts.
»Pr
ovid
e tar
gete
d te
chni
cal
assis
tanc
e to i
dent
ify an
d st
ruct
ure p
roje
ct fi
nanc
e op
portu
nitie
s in
mun
icipa
l in
vest
men
t and
serv
ice
prov
ision
.
»En
hanc
e soc
ial in
clusio
n an
d en
sure
mea
ning
ful
parti
cipat
ion
of Jo
rdan
ian
and
non-
Jord
anian
resid
ents
in
mun
icipa
l inve
stm
ent
plan
ning
and
serv
ice
deliv
ery.
»Es
tabl
ish st
rong
citiz
en
enga
gem
ent a
nd fe
edba
ck
mec
hani
sms,
inclu
ding
gr
ieva
nce r
edre
ss
mec
hani
sms,
to fo
ster
gr
eate
r pop
ular
supp
ort f
or
enha
nced
priv
ate s
ecto
r pa
rticip
atio
n an
d en
hanc
ed
cost
-reco
very
targ
ets f
or
loca
l pub
lic se
rvice
s.
lebanon
»Es
tabl
ish th
e ena
blin
g fra
mew
ork f
or
proj
ect f
inan
ce to
the m
unici
pal s
ecto
r in
Leba
non.
»De
velo
p th
e sec
onda
ry le
gisla
tion
(PPP
re
gula
tory
guid
eline
s and
fram
ewor
k)
to co
mpl
emen
t the
PPP
Law
pass
ed in
Se
ptem
ber 2
017,
inclu
ding
fram
ewor
k an
d gu
ideli
nes f
or cu
stom
ized
mun
icipa
l PP
P to
ols,
stan
dard
ized
proc
edur
es,
cont
ract
clau
se/te
mpl
ates
.
»De
fine t
he in
stitu
tiona
l and
regu
lato
ry ro
les o
f pu
blic
and
priva
te st
akeh
olde
rs in
volve
d in
pro
ject
fin
ance
at m
unici
pal le
vel (
i.e. B
dL, H
CP, M
inist
ry of
In
terio
r and
Mun
icipa
l Affa
irs, B
anki
ng se
ctor
, etc.
). »Id
entif
y and
dev
elop
a pip
eline
of m
unici
pal P
PP
trans
actio
ns at
the m
unici
pal le
vel.
»St
reng
then
ing c
apac
ity of
sele
cted
mun
icipa
litie
s in
the a
reas
of fi
nanc
ial m
anag
emen
t and
cr
editw
orth
ines
s. »In
stitu
ting a
cred
it ra
ting s
yste
m fo
r mun
icipa
litie
s. »De
velo
p th
e ena
blin
g env
ironm
ent t
o miti
gate
cred
it de
faul
t risk
s to t
he go
vern
men
t, th
e ban
king
sect
or
and
to m
unici
palit
ies.
»Us
e pub
lic fi
nanc
e (e.
g.
viabi
lity g
ap fa
ciliti
es)
and
guar
ante
e fac
ilitie
s wh
ere f
easib
le to
mob
ilize
co
mm
ercia
lly so
und
proj
ect
finan
ce to
the m
unici
pal
sect
or.
»Ex
plor
e the
pro
spec
ts fo
r in
trodu
cing s
ecur
itiza
tion
mea
sure
s aga
inst
land
as
sets
and/
or fu
ture
fisc
al
trans
fer s
tream
s to e
nsur
e pr
icing
of m
unici
pal lo
an
prod
ucts
is co
mpe
titive
.
»Ca
talyt
ic in
vest
men
ts to
cr
eate
loca
l em
ploy
men
t in
terti
ary M
unici
palit
ies
with
bac
kwar
d an
d fo
rwar
d lin
kage
s to S
econ
dary
M
unici
palit
ies.
Mas
hreq
| M
axim
izin
g Fi
nanc
e fo
r De
velo
pmen
t (M
FD) S
trat
egy
68
BanK
ing
sEcT
orsT
raTE
gy, P
olic
y and
lEga
l go
VErn
ancE
finan
cEfc
V/Po
liTic
s
iraq
Stat
e Own
ed B
ank R
efor
m:
»Re
stru
ctur
e and
priv
atiza
tion
of th
e two
larg
est
stat
e-ow
ned
bank
s (Ra
shee
d an
d Ra
fidai
n) to
un
lock
their
lend
ing p
oten
tial t
hrou
gh ad
ditio
nal
capi
taliz
atio
n an
d di
vest
men
t of M
OF ow
ners
hip
to st
rate
gic i
nves
tors
.
Deve
lopm
ent o
f Priv
ate B
anks
: »
Ensu
re im
plem
enta
tion
of th
e rec
ently
issu
ed
regu
latio
n th
at le
vels
the p
layin
g fiel
d fo
r Priv
ate
Sect
or B
anks
allo
wing
stat
e own
ed en
terp
rises
(S
OE) t
o do b
usin
ess w
ith th
em.
»Re
view
Licen
sing c
riter
ia an
d en
act m
easu
res t
o co
nsol
idat
e the
ban
king
sect
or (m
ore t
han
73
licen
sed
bank
s) th
roug
h hi
gher
pai
d up
capi
tal
and
othe
r pru
dent
ial r
equi
rem
ents
. »
Phas
e out
the d
ual f
oreig
n ex
chan
ge re
gim
e tha
t is
dist
ortin
g the
reve
nue s
tream
s of p
rivat
e sec
tor
bank
s and
ince
ntivi
ze p
rivat
e sec
tor b
anks
to
incr
ease
their
loan
por
tfolio
s. »
Issue
regu
latio
ns on
Ser
vice Q
ualit
y Sta
ndar
ds
and
Cons
umer
Pro
tect
ion
to en
hanc
e the
co
nfid
ence
of Ir
aqi p
ublic
in th
e ban
king
sect
or.
Stre
ngth
enin
g of R
egul
ator
y and
Sup
ervis
ory
Fram
ewor
k: »
Impr
ove r
egul
ator
y and
supe
rviso
ry fr
amew
ork t
o al
ign
with
inte
rnat
iona
l sta
ndar
ds (B
asel
/Fin
ancia
l St
abili
ty B
oard
(FSB
)/Fin
ancia
l Act
ion
Task
Forc
e (FA
TF)/I
FRS)
.
Cred
it In
frast
ruct
ure:
»
Impr
ove c
redi
t/fin
ancia
l infra
stru
ctur
e and
fra
mew
orks
by e
nact
ing r
egul
atio
ns (a
ccou
ntin
g/au
ditin
g, cr
edit
info
rmat
ion,
secu
red
trans
actio
ns,
inso
lvenc
y fra
mew
orks
, con
sum
er p
rote
ctio
n et
c);
Stat
e Own
ed B
ank R
efor
m:
»Fin
ancia
l and
oper
atio
nal r
estru
ctur
ing o
f the
two l
arge
st st
ate-
owne
d ba
nks (
Rash
eed
and
Rafid
ain
“R&R
”) in
cludi
ng co
rpor
ate
gove
rnan
ce, a
sset
qua
lity r
evie
ws le
adin
g to a
ccur
ate v
alua
tion
of as
sets
and
liabi
litie
s and
capi
tal s
hortf
alls,
reca
pita
lizat
ion,
op
erat
iona
l res
truct
urin
g inc
ludi
ng in
stal
latio
n of
core
ban
king
sy
stem
s, p
olici
es an
d pr
oced
ures
inclu
ding
risk
man
agem
ent a
nd
cont
rols.
»As
sess
oper
atio
nal a
nd ef
fect
ive ca
pacit
y of o
ther
Sta
te-O
wned
Ba
nks i
nclu
ding
the T
rade
Ban
k, A
gricu
lture
Ban
k, In
dust
rial B
ank,
Re
al Es
tate
Ban
k to p
rovid
e nee
ded
supp
ort t
o the
ir re
spec
tive
sect
ors.
Deve
lopm
ent o
f Priv
ate B
anks
: »
Augm
ent p
rivat
e fin
ancia
l sec
tor d
evel
opm
ent p
lans
, inc
ludi
ng
dom
estic
ban
ks’ c
apac
ity st
reng
then
ing r
e: –ba
lanc
e she
et st
ruct
ure,
conc
entra
tion,
–ca
pita
l ade
quac
y, cr
edit
qual
ity, m
atur
ity m
ismat
ch,
–cr
edit
asse
ssm
ent a
nd ri
sk.
Stre
ngth
enin
g of R
egul
ator
y and
Sup
ervis
ory F
ram
ewor
k: »
Stre
ngth
en th
e ind
epen
denc
e and
over
sight
capa
bilit
ies o
f CB
I inclu
ding
capa
city b
uild
ing s
uppo
rt fo
r offs
ite an
d on
-site
su
perv
ision
inclu
ding
risk
bas
ed su
perv
ision
and
deve
lopm
ent o
f hu
man
capi
tal.
»Im
plem
ent A
nti-M
oney
Laun
derin
g (AM
L)/Co
mba
ting t
he Fi
nanc
ing
of Te
rroris
m (C
FT) r
egul
atio
ns in
cludi
ng st
rong
Kno
w Yo
ur
Cust
omer
(KYC
) con
trols
to en
sure
cont
inue
d co
mpl
ianc
e with
FATF
re
quire
men
ts w
ith in
tern
atio
nal c
orre
spon
dent
s and
pay
men
t sy
stem
s, in
cludi
ng a
Natio
nal R
isk A
sses
smen
t to i
dent
ify ke
y are
as
of d
efici
encie
s in
AML/
CFT.
»Co
nsum
er p
rote
ctio
n m
easu
res t
o pro
vide c
onfid
ence
to co
nsum
er in
Ira
qi B
anki
ng S
yste
m.
Paym
ent S
yste
m R
efor
m:
»Im
prov
emen
t in
the p
aym
ent i
nfra
stru
ctur
e with
pol
icies
on
ePay
men
ts/M
obile
pay
men
ts in
cludi
ng d
igiti
zatio
n of
Gov
ernm
ent
sala
ry p
aym
ents
. »
Enac
tmen
t and
roll o
ut of
a bi
omet
ric N
atio
nal I
D sy
stem
.
»St
rip of
f/disp
ose
of th
e bad
asse
ts
of R
ashe
ed an
d Ra
fidai
n; re
capi
taliz
e th
e ban
ks b
ased
on
the a
ppra
isal a
nd
valu
atio
n of
asse
ts
and
liabi
litie
s. »
Deve
lop
spec
ializ
ed
finan
ce, e
.g. h
ousin
g,
agric
ultu
re.
»De
velo
p pa
rtial
cred
it gu
aran
tee s
chem
es to
su
ppor
t the
ban
ks.
»De
velo
p th
e Non
-Ba
nkin
g Fin
ancia
l In
stitu
tions
(Lea
sing,
M
icro F
inan
ce et
c) »
Deve
lop
early
stag
e fin
ancin
g for
SM
Es.
»Ex
plor
e pot
entia
l ca
pita
l mar
ket
inst
rum
ents
for S
MEs
. »
Stre
ngth
en an
d pr
omot
e the
av
ailab
ility
of cr
edit
insu
ranc
e mec
hani
sm
to p
rovid
e risk
m
itiga
tion
to b
anks
.
»M
itiga
ting
impa
cts o
n vu
lner
able
se
gmen
ts of
so
ciety
such
as
wom
en, a
nd yo
uth
thro
ugh
targ
eted
re
form
s. »
Ensu
re eq
uity
in
acce
ss to
go
vern
men
t su
ppor
t, e.
g.
subs
idie
s in
hou
sing
reco
nstru
ctio
n.
ANNE
X IV
KEY
REF
ORM
S BY
SEC
TOR
AND
COUN
TRY
- MAS
HREQ
MFD
REF
ORM
MAT
RICE
S
69
agri
culT
urE s
EcTo
rsT
raTE
gy, P
olic
y and
lEga
l go
VErn
ancE
finan
cEfc
V/Po
liTic
s
iraq
»Es
tabl
ish a
polic
y and
inve
stm
ent u
nit
with
in th
e Min
istry
of A
gricu
lture
. The
ob
ject
ive b
eing t
o ide
ntify
and
sequ
ence
re
gula
tory
and
polic
y ref
orm
s. »As
sess
and
impl
emen
t SOE
gove
rnan
ce
refo
rms i
n pa
rtner
ship
with
Min
istrie
s of
Agric
ultu
re, P
lann
ing a
nd Fi
nanc
e.
»Cr
eate
mar
ket-d
riven
pro
cure
men
t pr
efer
ence
s with
in in
put s
uppl
y valu
e ch
ains.
»Re
view
and
rest
ruct
ure g
over
nanc
e fed
eral
/gov
erno
rate
au
thor
ities
to fo
cus e
fforts
to im
prov
e the
effic
iency
and
effe
ctive
ness
of ag
ricul
tura
l sec
tor p
ublic
serv
ices.
»Id
entif
y and
enga
ge w
ith en
try p
oint
s tha
t will
enab
le a t
rans
form
atio
n of
exist
ing p
ublic
serv
ices t
owar
ds
sust
ainab
le pr
ivate
sect
or op
erat
ions
in ag
ricul
tura
l se
ctor
. An
initi
al fo
cus o
n in
put S
OEs a
nd ov
er lo
nger
ru
n th
ose S
OEs r
espo
nsib
le fo
r the
Pub
lic D
istrib
utio
n Sy
stem
(PDS
). »Im
prov
e com
mer
cial o
pera
ting f
ound
atio
n of
hig
h va
lue
prod
uct c
hain
s by i
nves
ting i
n:
–Fin
ancia
l sus
tain
abili
ty;
–Re
ducin
g/re
dire
ctin
g sub
sidie
s.
»Pi
lot a
nd sc
ale u
p m
echa
nism
s tha
t will
all
ow in
crea
sed
acce
ss to
fin
ance
in th
e sec
tor.
»De
velo
p a v
iable
finan
cing
plan
and
busin
ess p
lan
in su
ppor
t to i
ncre
ased
co
mm
ercia
l fin
ancin
g in
the s
ecto
r.
»En
sure
all in
terv
entio
ns/
actio
ns ar
e inc
lusiv
e an
d re
spon
sive t
o th
e circ
umst
ance
s of
mar
ginal
grou
ps (p
oor,
wom
en, l
iber
ated
and
disa
dvan
tage
d re
gion
s et
c).
waT
Er s
EcTo
rsT
raTE
gy, P
olic
y and
lEga
l go
VErn
ancE
finan
cEfc
V/Po
liTic
s
jordan
»In
crea
se ta
riff t
o red
uce f
inan
cial lo
sses
and
refle
ct th
e valu
e of t
he sc
arce
wat
er re
sour
ce.
»Im
prov
e effi
cient
use
of w
ater
(mun
icipa
l and
ag
ricul
ture
wat
er).
»Im
plem
ent c
usto
mer
met
ers t
o mea
sure
wat
er
effic
iency
and
allow
tran
sitio
n fro
m in
term
itten
t wa
ter t
o con
tinuo
us w
ater
supp
ly. »Re
duce
the o
veru
se of
grou
ndwa
ter (
impr
ove
effic
iency
in m
unici
pal a
nd ag
ricul
ture
wat
er,
non-
conv
entio
nal w
ater
sour
ces,
intro
duce
m
arke
t-bas
ed ec
onom
ic po
licie
s/in
cent
ives).
»Co
rrect
hig
h se
ctor
-wid
e NRW
leve
ls, w
hich
are a
roun
d 50
% ag
greg
ate a
t the
nat
iona
l leve
l. »Tr
ansit
ion
Amm
an’s
wate
r sup
ply s
yste
m to
deli
ver
cont
inuo
us su
pply
with
exist
ing w
ater
reso
urce
s –
achi
evab
le wi
th N
RW re
duct
ions
. »Im
prov
e com
mun
icatio
n on
the n
eed
to fo
rmali
ze
conn
ectio
ns (r
educ
e the
illeg
al co
nnec
tions
and
com
mer
cial lo
sses
) and
the i
ncre
ase o
f tar
iff d
ue to
in
crea
se of
ener
gy co
st an
d th
e nee
d to
redu
ce th
e fin
ancia
l loss
of th
e wat
er se
ctor
. Com
mun
icatio
n sh
ould
al
so b
e clea
r on
the w
ays g
over
nmen
t red
uces
the
impa
ct on
the m
ost v
ulne
rabl
e.
»Jo
int w
ork o
n NR
W in
Le
bano
n to
mob
ilize
pr
ivate
deb
t fin
ance
on
oper
ator
s’ ba
lanc
e she
ets f
or
inve
stm
ent i
n sy
stem
im
prov
emen
ts.
»St
ruct
ure P
PP fo
r pr
ivate
sect
or to
inve
st
in an
d m
anag
e a N
RW
redu
ctio
n in
itiat
ive fo
r Am
man
.
»M
itiga
ting i
mpa
cts o
n vu
lner
able
sect
ions
of
the p
opul
atio
n po
ssib
ly wi
th a
dire
ct
bene
fit tr
ansfe
r sc
hem
e.
Mas
hreq
| M
axim
izin
g Fi
nanc
e fo
r De
velo
pmen
t (M
FD) S
trat
egy
70
waT
Er s
EcTo
rsT
raTE
gy, P
olic
y and
lEga
l go
VErn
ancE
finan
cEfc
V/Po
liTic
s
lebanon
»Im
plem
enta
tion
of La
w 22
1 to
achi
eve
auto
nom
y of t
he fo
ur W
ater
Esta
blish
men
ts an
d su
bseq
uent
tran
sfer o
f ope
ratio
nal f
unct
ions
. »De
signi
ng a
tarif
f stru
ctur
e for
wat
er su
pply
and
wast
ewat
er se
rvice
s with
the o
bjec
tive o
f co
verin
g at l
east
oper
atio
n an
d m
ainte
nanc
e co
sts i
n th
e med
ium
to lo
ng-te
rm, w
hile
cons
ider
ing a
fford
abili
ty an
d ot
her s
ocial
as
pect
s. »Sc
ale u
p th
e use
cust
omer
met
ers,
SCA
DA
and
esta
blish
men
ts of
Dist
ricts
Met
erd
Area
s (P
roje
cts P
1030
63 an
d P1
6571
1 bo
th su
ppor
t th
ese a
ctio
ns in
par
ts of
Gre
ater
Beir
ut M
ount
Le
bano
n Ar
ea).
»In
itiat
e PSP
in w
ater
loss
redu
ctio
n in
Beir
ut th
roug
h fir
st-ti
me P
BC.
»Im
prov
e util
ity op
erat
iona
l and
fina
ncial
per
form
ance
th
roug
h wa
ter l
oss r
educ
tion
ther
eby c
ontri
butin
g to
impr
oved
cred
itwor
thin
ess.
»Co
mm
unica
tion
activ
ities
to se
nsiti
ze co
nsum
ers o
n th
e nee
d to
form
alize
conn
ectio
ns an
d ra
tiona
le fo
r tra
nsiti
on to
volu
met
ric ta
riff i
n a f
irst p
hase
, and
in
a sec
ond
phas
e, b
ased
impa
ct of
hig
her t
ariff
s on
econ
omic,
hea
lth an
d ot
her b
enef
its of
impr
oved
serv
ice
deliv
ery.
»Jo
int w
ork o
n NR
W in
Le
bano
n to
mob
ilize
pr
ivate
deb
t fin
ance
on
oper
ator
s’ ba
lanc
e she
ets f
or
inve
stm
ent i
n sy
stem
im
prov
emen
ts.
»M
itiga
ting i
mpa
cts o
n vu
lner
able
sect
ions
of
the p
opul
atio
n. »To
effe
ctive
ly m
anag
e co
nsum
er su
pppo
rt fo
r the
fee r
efor
ms,
se
quen
ce th
e tra
nsiti
on fr
om fl
at
user
fee t
o vol
umet
ric
tarif
f in
area
s whe
re
cons
umer
s hav
e st
arte
d to
ben
efit
from
cont
inuo
us
wate
r sup
ply a
s is
bein
g don
e by B
eirut
wa
ter u
tility
.
iraq
»As
sess
laws
and
regu
latio
n wi
th re
gard
s to
suita
bilit
y to a
ttrac
t priv
ate i
nves
tmen
t. Th
ese
are p
rese
ntly
com
plex
and
are n
ot co
nduc
ive to
at
tract
ing p
rivat
e sec
tor p
artic
ipat
ion.
»Gr
adua
l tar
iff in
crea
ses,
star
ting w
ith a
5%
acro
ss th
e boa
rd ta
riff i
ncre
ase e
very
3 ye
ars.
Cons
ider
atio
n of
hig
her t
ariff
incr
ease
s in
area
s re
ceivi
ng b
ette
r ser
vices
and
wher
e affo
rdab
le.
»St
reng
then
util
ity fi
nanc
ial m
anag
emen
t, in
cludi
ng
reve
nue m
anag
emen
t and
acco
untin
g, to
esta
blish
a ba
se fo
r attr
actin
g priv
ate i
nves
tmen
t in
the f
utur
e. »Di
gitiz
atio
n of
cons
umer
reco
rds a
nd co
mpu
teriz
atio
n of
billi
ng an
d co
llect
ion
syst
ems t
o stre
ngth
en re
venu
e st
ream
s of w
ater
util
ities
. »In
trodu
ctio
n of
per
form
ance
bas
ed op
erat
ions
and
main
tena
nce c
ontra
cts f
or se
wera
ge p
umpi
ng st
atio
ns.
»M
inist
ry of
Pla
nnin
g to u
pdat
e and
impr
ove t
he cu
rrent
re
gula
tion
(201
4) go
vern
ing g
over
nmen
t con
tract
s, to
m
eet i
nter
natio
nal s
tand
ards
. »St
reng
then
the M
inist
ry of
Pla
nnin
g’s p
rocu
rem
ent
capa
city b
y con
duct
ing j
oint
wor
ksho
ps w
ith th
e In
tern
atio
nal F
eder
atio
n of
Con
sulti
ng En
ginee
rs (F
IDIC
), co
nsul
tant
s and
the p
rivat
e sec
tor.
»Ex
plor
e use
of
ince
ntive
s, in
cludi
ng
blen
ded
finan
ce,
guar
ante
es, a
nd
othe
r risk
miti
gatin
g in
stru
men
ts, s
uch
as
curre
ncy h
edge
s in
the
case
of in
tern
atio
nal
finan
ce, t
o mob
ilize
co
mm
ercia
l fin
ancin
g fo
r inv
estm
ent i
n wa
stew
ater
serv
ices.
»Gu
aran
tees
for p
rivat
e in
vest
ors t
o cov
er
gove
rnm
ent p
aym
ent
oblig
atio
ns u
nder
PPP
co
ntra
cts.
»As
sess
viab
ility
of
attra
ctin
g in
tern
atio
nal
inve
stor
s in
the
cont
ext o
f the
curre
nt
polit
ical in
stab
ility
in
Iraq
.