The Ministry of Water and Irrigation,Hashemite Kingdom of Jordan, invited the Bank to assist inupdating the Water Sector Review of 1997 as an input intothe formulation of a five-year action plan for the watersector. Jordan faces three critical challenges: a) theresource challenge, b) the financing challenge, and c) theinstitutional challenge. In terms of resource challenge, thechallenge of water deficits is compounded by the need toensure water quality and environmental protection. Asystematic action plan for reuse of treated wastewater needsto be formulated in view of the projected increase in thequantity of treated wastewater available for use in theJordan Valley. In terms of financial challenge, Jordan willhave to redouble its efforts at generating significantadditional operating income from drinking water supply andirrigation services. Urban water and irrigation tariffs havenot increased since 1997. Urgent action is needed on tariffsto ensure full recovery of operating costs and periodicadjustments for inflation. Self-financing of water supplyand irrigation services must be a high priority. In terms ofinstitutional challenge, reforming the Water Authority ofJordan and Jordan Valley Authority to focus on essentialstrategic and bulk water management tasks while divestingretail water services to user or private sector entities isa high priority.
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