Fiscal Reform and Public Financial Management (FRPFM) Activity

The project is funded by the United States Agency for International Development (USAID) and is implemented by the Ministry of Water and Irrigation (MWI). The project's main objective is to enhance the efficiency and effectiveness of public financial management in Jordan, with a focus on improving the management of public-private partnerships (PPPs). The project's financing strategy involves a combination of public and private sector funding. The project is being implemented through a build-operate-transfer (BOT) contract, which involves the construction and operation of a wastewater treatment plant at As-Samra. The project's financing plan includes a 50% grant from USAID, 20% private sector equity, and 30% private sector commercial loans. The project's development process began in 1997 with the Greater Amman Wastewater Master Plan, which called for advanced wastewater treatment and effluent reuse for irrigation purposes. A feasibility study was conducted in 1999, which analyzed different financial scenarios and implementation options. The BOT scheme was selected due to financial limitations, and the best case scenario for an estimated required 18% internal rate of return (IRR) was achieved through a combination of a 12% increase in wastewater tariffs, 50% grant funds, 20% private sector equity, and 30% private sector commercial loans. The project's pre-qualification process involved the publication of a notice for pre-qualification on April 2, 2000, followed by the submission of pre-qualification documents by eight consortiums on April 23, 2000. Five pre-qualified consortiums were announced on June 12, 2000, and a draft request for proposals (RFP) was issued to pre-qualified firms on September 7, 2000, for comments. The formal issuance of the RFP to pre-qualified firms took place on March 1, 2001, and the deadline for the submission of proposals was July 23, 2001. Two consortia withdrew before the deadline, and the announcement of the preferred bidder took place on November 10, 2001. Contract negotiations and project agreement signing occurred on July 28, 2002, and financial closing and effective date took place on December 10, 2003. The project's pre-qualification document contents included a project description, financing requirements, duration of the contract, indicative contractual structure, and agreements. An indicative time schedule was set for the selection of eligible bidders, draft request for proposals, final request for proposals, latest date for the submission of proposals, evaluation of proposals, announcement of a preferred bidder, signing of agreements, and financial close/effective date. A data room was established to provide each candidate with equal access to information and uniform data regarding the project. The bid evaluation and selection criteria involved a two-envelope system, with separate evaluation of technical proposals and financial proposals. The technical proposals were evaluated based on a scoring system, with a maximum of 240 points. The evaluation of technical proposals involved the examination of technical proposals and bid letters, determination of substantial responsiveness, and award of non-price score. The non-price score was awarded based on technical approach, organizational approach, and time schedule.