JOINT STAFF WORKING PAPER Implementation of the European Neighbourhood Policy in 2010Country Report: Jordan  JOINT STAFF WORKING PAPER Implementation of the European Neighbourhood Policy in 2010Country Report: Jordan
Date: 2011-05-25
Institutions: European Commission, High Representative of the Union
Subjects: European neighbourhood policy, Jordan, State aid, association agreement, bilateral agreement, democracy, economic reform, human rights, political cooperation, political reform

EUROPEAN COMMISSION 

HIGH REPRESENTATIVE OF THE
EUROPEAN UNION FOR 
FOREIGN AFFAIRS AND 
SECURITY POLICY

Brussels, 25.5.2011 
SEC(2011) 648 final 

JOINT STAFF WORKING PAPER 

Implementation of the European Neighbourhood Policy in 2010 
Country Report: Jordan 

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JOINT STAFF WORKING PAPER 

Implementation of the European Neighbourhood Policy in 2010 
Country Report: Jordan 

1. 

OVERALL ASSESSMENT 

Jordan and the European Community first established contractual relations in 1977 by signing 
a Cooperation Agreement. An EU-Jordan Association Agreement (AA) entered into force in 
2002.  It  sets  out  in  more  detail  the  specific  areas  in  which  relations  can  be  developed 
bilaterally. On this basis, the EU-Jordan European Neighbourhood Policy Action Plan (ENP 
AP) was approved in January 2005, for a period of three to five years. It supports the national 
reform process articulated in Jordan’s ten-year national agenda and the initiative ‘We are all 
Jordan’  which  form  the  basis  for  Jordan’s  National  Social  and  Economic  Development 
Programme.  

In 2010 EU–Jordan meetings took place at the level of the Association Council (in October), 
and subcommittees. 

This  document  reports  on  progress  made  on  the  implementation  of  the  EU-Jordan  ENP  AP 
between 1 January and 31 December 2010, although developments outside this period are also 
taken into consideration when deemed relevant. It is not a general review of the political and 
economic situation in Jordan. In addition, for information on regional and multilateral sector 
processes, please refer to the sectoral report. 

The  ninth  EU-Jordan  Association  Council’s  meeting  announced  political  agreement  on  the 
‘advanced  status’  partnership  and  the  conclusion  of  technical  negotiations  on  the  new  EU-
Jordan  ENP  Action  Plan.  The  ‘advanced  status’  reflects  the  ambitious  character  of  the 
partnership  based  on  the  overarching  objective  of  promoting  peace,  stability  and  prosperity 
and on the core values shared by Jordan and the EU, i.e. the rule of law, good governance and 
respect for human rights. They constitute an essential element of the Association Agreement 
and  of  the  new  ENPAP.  Jordan  is  the  second  ENP  partner  country  (after  Morocco)  with 
whom  the  EU  has  agreed  an  ‘advanced  status’  partnership,  but  it  is  the  first  one  to  have 
concluded the negotiations for a new ENP AP. 

Towards  implementation  of  the  ENP  Action  Plan,  progress  included  the  adoption  of  the 
temporary ‘Personal Status’ Law, which strengthens women’s rights when divorcing, and the 
recent  amendment  of  the  Public  Gatherings  Law  (rallies  can  take  place  without  prior 
authorisation  of  a  governor).  In  other  areas,  two  concrete  achievements  of  the  EU-Jordan 
cooperation were the signing of a comprehensive air services agreement leading to a gradual 
opening-up  of  these  markets  (first  country  in  the  Near  East  to  reach  such  a  comprehensive 
Agreement  with  the  EU)  and  the  signing  in  February  2011  of  the  Protocol  for  Dispute 
Settlement in bilateral trade. 

Recurrent  postponements  in  the  implementation  of  key  reforms  have  undermined  the 
population's trust in the implementation capacity of the government and its true commitment 
for reform. Jordan needs to respond to the legitimate expectations of the population and meet 
the many challenges which lie ahead, notably in the areas of rule of law, good governance and 
human  rights.  One  of  the  urgent  issues  to  be  addressed  is  the  revision  of  the  temporary 

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electoral Law, which currently maintains an electoral system favouring tribal affiliations over 
political party development. The fight against corruption should also be enhanced in order to 
strengthen people’s trust in institutions, democracy and economic development. 

Outside the reporting period, the continuation of peaceful demonstrations at the beginning of 
2011 led to the resignation of the government.  In his Letter of Designation of the new price 
minister, King Abdullah asked the new government to launch political reforms which, if fully 
implemented, will go a long way in addressing the issues highlighted above and implementing 
core values of the ‘enhanced status’ partnership and key commitments of the EU-Jordan ENP 
Action Plan negotiated in 2010. 

Jordan’s economy has weathered the global economic crisis relatively well and its economic 
performance gained momentum in 2010, yet Jordan is confronted with important challenges 
in order to address the expectations of the population in the socio-economic area. Moreover, 
partly reflecting a narrow export base, Jordan faces persistently large current account deficits 
and  needs  to  place  public  finances  on  a  more  stable  footing  and  to  increase  private  sector 
activity to promote growth and raise employment, as reflected in the objectives of the AP. In 
2010,  the  authorities  maintained  a  broadly  satisfactory  track  record  in  policies  to  support 
macroeconomic  stability,  raise  sustainable  growth,  and  establish  a  fully  functioning  market 
economy. 

2. 

POLITICAL DIALOGUE AND REFORM 

Democracy and the rule of law 

Confronted with strong criticism from different strands of society, Prime Minister Samir Rifai 
reshuffled  his  government  in  July  2010,  affecting  the  ministries  of  education,  justice, 
agriculture, tourism and media affairs and communication.  

Parliamentary  elections  took  place  in  November  2010,  one  year  after  King  Abdullah  II 
dissolved the parliament. The elections were governed by a temporary election law adopted in 
May 2010. This law maintained the single-non-transferable-vote electoral system (known in 
Jordan  as  the  ‘one  man,  one  vote’  system)  which  favours  the  representation  of  sparsely 
populated  rural  areas  and  hampers  political  party  development.  The  new  temporary  Law 
increased  the  number  of  seats  in  the  Chamber  of  Deputies  (lower  house  of  the  parliament) 
from  110  to  120  and  additional  seats  were  allocated  to  large  urban  areas  such  as  Amman, 
Zarqa  and  Irbid.  The  number  of  seats  reserved  for  women  increased  from  six  to  twelve.  In 
addition  to  domestic  monitoring,  for  the  first  time,  the  government  accepted  international 
observers  (on  the  day  of  elections  only)  and  facilitated  electoral  observation  by  diplomatic 
missions.  The  Islamic  Action  Front,  the  main  opposition  party,  eventually  boycotted  the 
elections. Out of 120 members of the Chamber of Deputies, 83 are new and 13 are women. 

According to domestic and international NGOs, the elections were an improvement over the 
2007  polls,  but  structural  changes  are  needed  to  increase  voter  confidence  and  allow  fairer 
representation. 

Samir Rifai was re-appointed prime minister and his cabinet sworn in November 2010. At the 
opening  session  of  the  parliament,  King  Abdullah  emphasised  the  need  to  enhance  the 
relations  between  the  legislative  and  executive  authorities  and  asked  the  government  to 
submit to the parliament, as a matter of priority, a draft of the temporary Election Law and the 
Decentralisation  Law.  Peaceful  demonstrations  took  place  in  2010  and  continued  at  the 

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beginning  of  2011  asking  the  country’s  prime  minister to step down and the government to 
curb  rising  prices,  unemployment  and  corruption.  Samir  Rifai  resigned  on  1  February  2011 
and King Abdullah designated Dr Marouf Bakhit as new prime minister; the new government 
was  sworn  in  on  9  February.  In  the  Letter  of  Designation,  King  Abdullah  said  the  new 
government should ‘take practical, speedy and tangible steps to launch real political reform’, 
to  achieve  comprehensive  modernisation  and  development.  The  King  singled  out  a  new 
elections  law,  more  involvement  by  civil  society  institutions  in  public  life,  freedom  of 
expression, a more effective role for youths and strengthening the economy’s competitiveness 
as the major tasks of the new government. The full implementation of these reforms will go a 
long  way  in  implementing  core  values  of  the  ‘enhanced  status’  partnership  and  key 
commitments of the EU-Jordan ENP AP as negotiated in 2010. 

The  Judicial  Upgrading  Strategy  for  2010–2012  focuses  inter  alia  on  enhancing  the 
independence  and  integrity  of  the  judiciary,  attracting  distinguished  staff  to  develop  law 
courses  at  universities,  and  developing  the  criminal  justice  system.  As  part  of  the  positive 
discrimination policy, twenty  female judges were expected to join the judicial system before 
the end of the year. 

Corruption remains a serious matter of concern and a priority for the government. According 
to the Jordanian anti-Corruption Commission, 890 cases were dealt with in 2010 (compared 
with 834 in 2009). 

Human rights and fundamental freedoms 

In  October  2010,  the  UN  Human  Rights  Committee  reviewed  the  4th  periodic  report 
submitted  by  the  Government  of  Jordan  on  measures  taken  to  implement  the  International 
Covenant  on  Civil  and  Political  Rights.  In  its  concluding  observations,  the  Committee 
highlighted  some  positive  achievements  in  recent  years,  at  the  same  time  raising  some 
concerns about women’s rights, torture and ill-treatment in detention centres, child labour and 
freedom of the media. 

The  UN  Committee  against  torture  submitted  its  contribution  on  Jordan’s  2nd  periodic 
report,  while  the  UN  Special  Rapporteur  on  torture  and  other  cruel,  inhuman  or  degrading 
treatment  or  punishment  conducted  a  follow-up  to  the  implementation  of  recommendations 
formulated following his visit to Jordan in 2006. Both reports raised concerns about the right 
of detainees to prompt access to a lawyer, the absence of sufficient legal safeguards against 
torture, and the absence of compensation to victims of torture. 

Jordan has pending mandatory periodic reporting to be submitted to three UN treaty bodies. It 
has extended an open invitation to UN special rapporteurs, already provided in 2006. 

Jordan continues to apply a de facto moratorium on the application of the death penalty since 
May  2006,  but  five  death  sentences  were  issued  in  2010.  Jordan  did  not  ratify  the  2nd 
Optional  Protocol  to  the  International  Covenant  on  Civil  and  Political  rights.  A  third 
Resolution on a moratorium on the use of the death penalty was adopted in December 2010 
by the UN General Assembly. Jordan abstained. 

Five new correctional and rehabilitation centres are being built in 2010, which has helped to 
reduce  the  persistent  overcrowding  situation  of  previous  years  and  improved  the  living 
conditions of the inmates. 

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In March, the State Security Court banned news media from covering corruption allegations 
against  public  officials.  In  April,  the  cabinet  approved  the  temporary  law  on  ‘Press  and 
Publications’.  Cases  involving  journalists  accused  of  harming  the  internal  and  external 
security  of  the  state  are  now  transferred  from  the  State  Security  Court  to  the  exclusive 
competence  of  the  Amman  Court  of  First  Instance.  However,  the  law  still  authorises  the 
imprisonment of journalists for criticism of the King, the Royal Court or religious symbols, 
thereby encouraging self-censorship.  

In  August,  in  response  to  the  criticism  from  international  and  domestic  human  rights  and 
media  activists,  the  government  approved  a  temporary  Law  on  ‘Information  Systems 
Crimes’,  the  so-called  ‘Cyber  Crimes  Law’,  amending  several  provisions  of  the  legislation 
which  undermined  the  freedom  of  online  media  by  making  news  websites  vulnerable  to 
prosecutions and lawsuits. 

Regarding freedom of assembly, no progress was made in 2010. However, in February 2011, 
the new government endorsed an amendment to the Public Gatherings Law which no longer 
requires a prior written authorisation of the governor to stage rallies. Organisers of rallies will 
need  to  notify  the  ministry  of  interior  48  hours  in  advance  only.  Regarding  core  labour 
standards,  no  progress  can  be  reported  on  the  ratification  of  the  International  Labour 
Organisation  Convention  87  on  Freedom  of  Association  and  Protection  of  the  Right  to 
Organise. 

On rights of women, in July 2010 Jordan presented the 5th Convention on the Elimination of 
All Forms of Discrimination against Women (CEDAW) Report to the UN Committee as part 
of its commitments. It maintained its reservations related to the transmission of nationality to 
children  and  to  inheritance  rights.  Jordan  is  not  party  to  the  optional  protocol  of 
CEDAW.Progress can be reported, as in October the temporary Law on ‘Personal Status’ was 
adopted..  The  law  includes  the  establishment  of  an  alimony  fund  for  divorced  women,  the 
registration  of  property  in  the  name  of  female  inheritors,  an  increase  in  restrictions  on  the 
marriage of minors, the lessening of the burden of proof in the judicial process of divorce, and 
the consideration of psychological violence by the courts in cases of divorce. 

The National Centre for Human Rights and the Ombudsman’s Bureau signed a Memorandum 
of  Understanding  boosting  efforts  to  improve  information-sharing  and  protection  of 
citizens’  rights.  The  two  organisations  will  work  together  to  better  document  human  rights 
violations. 

In  the  field  of  foreign  domestic  workers’  rights,  Jordan  has  taken  significant  strides  in 
strengthening  their  legal  protection  through  the  amendment  of  Jordan  labour  law  in  2009, 
guaranteeing monthly  salary payment  into the worker’s bank account, a weekly day of rest, 
paid  annual  and  sick  leave,  and  a  10-hour  working  day.  The  government  should  further 
publicise  the  new  requirements  and  closely  monitor  the  enforcement  of  the  adopted 
legislation. 

The  65th  UN  General  Assembly  adopted  in  October  2010  a  resolution  proposed  by  King 
Abdullah on an annual ‘World Interfaith Harmony Week’ between all religions, faiths and 
beliefs. This initiative provides a platform for religious institutions worldwide to speak out in 
their communities for peace among religions. 

Cooperation  on  foreign  and  security  policy,  regional  and  international  issues,  conflict 
prevention and crisis management 

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The EU kept a regular dialogue with Jordan on CFSP-related matters and international issues. 
Jordan  remains  a  strong  supporter  of  a  comprehensive  solution  to  the  Middle  East  Peace 
Process (MEPP) and pursues efforts to resolve the Palestinian-Israeli conflict on the basis of 
the  two-state  solution.  Jordan  played  a  constructive  role  in  promoting  the  stability  of  the 
region, especially regarding the Holy Sites in Jerusalem. 

In 2010, Jordan continued to be the 7th largest contributor of police and military personnel to 
UN  international  peacekeeping  operations  worldwide  (3.977  participants  –  December  2010) 
in some 12 missions. 

Jordan is stillhosting a large number of Iraqi refugees, whose overall number is however still 
disputed. By the end of November 2010, the total number of Iraqi refugees registered by the 
United Nations High Commissioner for Refugees in Jordan was 31.476, down from 38.744 a 
year earlier (decrease by 18,8%). 

3. 

ECONOMIC AND SOCIAL REFORM  

Macroeconomic framework and functioning market economy  

The Jordanian economy gained momentum in 2010 but the recovery is set to be gradual. Real 
GDP  growth  rose  to  3.4%  in  2010  from  2.3 %  in  2009.  Investment  and  external  trade  both 
increased after contracting slightly in 2009. Private consumption continued to grow at a rate 
similar to that of 2009, helped by reductions in personal taxation and higher remittances, but 
constrained  by  tighter  government  finances.  While  demand  from  major  export  markets 
remained  subdued,  it  was  offset  by  rising  demand  from  Iraq.  Export  earnings  were  also 
boosted  by  strong  growth  in  the  tourism  sector.  Gross  fixed  investment  grew  marginally 
despite government cuts to capital expenditure as a part of a fiscal consolidation drive. FDI 
inflows increased slightly in 2010 to around 2.5 % of GDP, which is still well below pre-crisis 
levels. 

The current account deficit (including grant aid) widened to 7% of GDP in 2010 from 5 % of 
GDP in 2009. This was mainly on account of import growth that outpaced growth in exports, 
due  partly  to  reductions  in  government  expenditure  and  despite  rising  food  and  fuel  prices. 
Exports were led by the food, pharmaceuticals, and mining sectors. However, Jordan’s export 
base remains narrow with the trade deficit estimated at 24.6 % of GDP in 2010. The surplus in 
the services balance increased partly on account of rising tourism revenue.  

Inflation rose to 5.7 % by the end of 2010 due to the base effect of negative inflation through 
much  of  2009  and  the  rise  in  international  commodity  prices,  while  the  outlook  is  set  to 
remain moderate due to restrained lending and further fiscal consolidation. The Central Bank 
of  Jordan  (CBJ)  cut  its  benchmark  interest  rate  to  2.25 %  in  February  2010,  while  bank 
lending rates remained high at around 9 %. This continues to restrain business credit, which 
rose by an estimated 10 % in 2010.  

Employment and social policy 

In August 2010, the Department of statistics published poverty data. Between 2006 and 2008 
around 13 % of the population was living on less than 1 JOD (EUR 0.97) a day. Since 2006, 
11 new poverty pockets — areas where 25 % or more of the residents live under the poverty 
line  —  developed,  bringing  the  total  to  32,  of  which  13  are  in  Mafraq.  These  pockets  are 
mostly rural.  

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The  Social  Security  Corporation  (SSC)  postponed  the  implementation  of  the  maternity 
insurance scheme and unemployment insurance until September 2011 to allow full coverage 
from the outset. The extension of social security coverage is progressing in eight of the twelve 
governorates  of  the  country  with  a  plan  to  cover  around  909.000  workers  (or  55 %  of  those 
employed  in  the  formal  sector)  in  2010.  Moreover,  the  SSC  carried  out  studies  and  field 
surveys with the aim to extend coverage to additional governorates.  

Unemployment  continued  to  rise  in  2010  to  an  average  of  13.4 %  of  the  labour  force 
compared  with  12.9 %  for  the  year  2009.  The  unemployment  rate  of  women  is  more  than 
twice that of men and their participation in the labour force is the lowest worldwide (14.9%) 
despite  increase  in  education  levels  of  women.  19%  of  young  graduates  are  jobless.  The 
persistent unemployment can be attributed to a range of factors: a long-term decline in public 
sector  employment  (between  1979  and  2010,  employment  in  the  public  sector  decreased  by 
almost  half);  the  presence  of  a  large  number  of  foreign  workers  in  manufacturing, 
telecommunications and construction; a rapidly growing population with 60.000 new entrants 
to the labour market yearly, a geographical mismatch with most jobs (85 %) created in urban 
areas  whereas  the  majority  (60 %)  of  unemployed  is  in  rural  areas;  and  skills  mismatches 
between  young  educated  people  and  market  demand.  In  July  2010,  the  cabinet  approved 
amendments  to  the  labour  law  with  a  view  to  improving  labour  conditions.  These  include 
financial  compensation  in  cases  of  arbitrary  termination,  a  revision  of  the  calculation  of 
annual holidays and a ceiling on overtime. The law also stiffens penalties against offending 
employers and imposes a quota for the employment of persons with disabilities. 

In the area of social dialogue, the legislation establishing a tripartite committee dealing with 
the approval of labour union entered into force in May 2010. In January 2010, the Economic 
and  Social  Council  (ESC),  in  collaboration  with  the  University  of  Jordan  and  the  Public 
Security Directorate, organised a conference on the rule of law and social tension. The policy 
recommendations were submitted to the government in March 2010.  

In the area of social inclusion and social protection, Jordan approved the social security law 
in  April  2010  as  a  temporary  law.  Administrative  and  technical  arrangements  for 
implementing the new law are under preparation. 

4. 

TRADE-RELATED ISSUES, MARKET AND REGULATORY REFORM 

In  2010,  the  overall  bilateral  trade  between  Jordan  and  the  EU  increased  slightly,  but  the 
trade  balance  remained  strongly  in  favour  of  the  EU.  Compared  to  the  previous  year, 
Jordanian  exports  to  the  EU  increased  by  36.2 %  while  EU  exports  to  Jordan  increased  by 
6.9 %.  In  the  reporting  period  tariff  dismantling  continued  in  line  with  the  provisions 
contained in the EU-Jordan Association Agreement. 

The  Protocol  for  Dispute  Settlement  in  bilateral  trade  with  the  EU,  initialled  in  2009,  was 
signed  in  February  2011.  Before  its  entry  into  force  the  Protocol  needs  to  go  through  the 
ratification  process  in  the  Jordanian  parliament  and  the  assent  procedure  in  the  European 
Parliament.  In  order  to  promote  trade,  Jordan  adopted  in  2010  the  National  Foreign  Trade 
Strategy and the National Industrial Strategy for 2010–2013. Work is also ongoing to put into 
place  a  National  Export  Strategy  and  a  Services  Sector  Strategy.  In  October  2010,  Jordan 
approved a bylaw exempting from income tax companies’ income generated by the export of 
originating  goods,  except  for  phosphate  potash,  cement  and  fertilisers.  The  bylaw  also 
exempts  from  income  tax  income  generated  by  exporting  information  and  technology 
services.  

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The  Cabinet  approved  in  July  2010  a  temporary  law  amending  the  customs  law,  which 
includes new provisions on the enforcement of intellectual property rights and on simplified 
procedures  in  line  with  the  Kyoto  Convention.  The  new  law  abolishes  the  requirement  to 
certify import invoices in Jordanian consular missions and provides for simplified conditions 
to accede to the customs broker profession. The automation of the customs administration is 
proceeding:  more  than  75 %  of  all  export/import  transactions  are  dealt  with  through  the 
Automated  Single  Window  which,  at  the  end  of  the  reporting  period,  applied  in  nine  major 
customs  centres.  The  implementation  of  an  inter-agency  cooperation  between  the  Jordan 
Customs (JC), the ministry of agriculture, the Jordan Institution for Standards and Metrology 
Organisation  and  the  Jordanian  Food  and  Drugs  Administration  remained  difficult.  The 
number  of  companies  participating  in  the  ‘Golden  List’  programme,  facilitating  trade  for 
reliable  traders,  increased  in  the  reporting  period  to  reach  27  companies.  These  measures 
should improve trade efficiency and reduce customs’ red tape. As such, they were included as 
part of the results to be achieved by the ongoing EU Trade and Transport Facilitation budget 
support  programme,  started  in  2009.  Regarding  the  strengthening  of  cooperation  to  combat 
irregularities  and  fraud  in  customs,  Jordan  participated  in  the  ‘SIROCCO’  joint  customs 
operation carried out in June 2010. SIROCCO is a joint customs operation, coordinated by the 
European  Commission  (Anti-Fraud  Office  -OLAF)  and  carried  out  by  the  customs 
administration  of  the  EU  and  11  partner  countries  from  the  southern  rim  of  the 
Mediterranean1.  

Concerning free movement of goods and technical regulations, preparations to negotiate an 
Agreement  on  Conformity  Assessment  and  Acceptance  of  Industrial  Products  (ACAA) 
continued. Amendments to the law on standards and metrology as well as a draft accreditation 
law have been presented to the newly elected parliament. Their adoption is already pending 
for  years  and  is  indispensable  to  move  the  process  forward.  The  3rd  revision  of  the  draft 
technical  regulation  on  product  safety  is  ready  for  consultation  with  the  EU.  Jordan 
transposed several European standards and prepared draft regulations in some priority sectors 
(e.g.  electrical  products,  toys  and  gas  appliances)  for  approximation  with  the  relevant  EU 
directives. A draft consumer protection law is under preparation. A twinning project is due to 
start in 2011 in order to implement the Road Map for the conclusion of the ACAA, adopted in 
2009. 

Regarding sanitary and phyto-sanitary (SPS) issues, Jordan continued the preparation of a 
new  food  law  that  aims  at  approximation  with  EU  standards.  In  February  2010,  Jordan 
connected to the external window of the EU’s rapid alert system for food and feed (RASFF). 
In  the  same  month,  the  European  Commission  carried  out  a  mission  to  Jordan  on  animal 
health surveillance regarding horses. The mission did not report major shortcomings. 

Regarding the right of establishment, there are still no plans to adopt a regulation enabling 
100 % foreign ownership  in transport services, insurance agent services, travel agencies  and 
tour operators.  

The draft amendments to the company law have been finalised and are expected to be sent 
shortly  to  the  parliament.  The  proposed  amendments  include  lowering  the  minimum  capital 
requirement  to  1  JOD  (EUR  0.97)  for  a  Limited  Liability  Company.  To  strengthen  the 
legislative  framework,  the  government  developed  a  draft  ‘Bankruptcy  and  Re-organisation 
Law’, which is currently being reviewed by public and private sector stakeholders.  

1 

SIROCCO focused on deep sea containers loaded in China or the United Arab Emirates and arriving in 
countries  of  the  Union  for  the  Mediterranean.  Around  40  million  cigarettes,  1243  kg  of  hand-rolled 
tobacco, 7038 litres of alcohol and 8 million other counterfeits were seized during the operation. 

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In  2010  improvements  in  the  areas  of  starting  business  and  obtaining  a  construction  permit 
helped  to  improve  the  business  environment.  Nevertheless,  Jordan’s  competitiveness 
decreased in 2010, which is reflected by the loss of four positions in the World Bank ‘Doing 
Business’ study.  

No progress reported in the areas of accounting and auditing. 

Concerning  services,  Jordan  and  the  EU  held  preparatory  discussions  for  the  bilateral 
negotiations on the liberalisation of trade in services and the right of establishment.  

In the field of financial services, the Jordanian banking system remains sound and has proven 
resilient to the global financial crisis. Several measures were taken by CBJ to further enhance 
effective  banking  supervision  in  compliance  with  the  Basel  II  principles.  These  included 
guidelines for risk management (February 2010); introduction of an automated data collection 
system  to  improve  off-site  monitoring  of  banks  (June  2010);  enhanced  cross-border  bank 
regulation  through  regular  supervision  and  on-site  inspections  of  international  branches  and 
subsidiaries  of  Jordanian  banks,  and  improvements to  its early warning system. In addition, 
the authorities passed the law establishing a private credit bureau in June 2010, which should 
promote bank and non-bank private credit flows. 

Jordan Enterprise Development Corporation (JEDCO) worked with the European Investment 
Bank on establishing the first two venture capital funds in Jordan, a capital for growth fund 
and an early stage fund. The EU strongly supports JEDCO in its efforts to help SMEs in the 
services sectors to export, internationalise and access bank credits. This support is provided 
through  two  EU-funded  programmes:  “Services  Modernisation”  and  the  “Enterprise  and 
Export Development, both agreed in 2008-2009.  

Other key areas 

In  2010,  the  Income  and  Sales  Tax  Department  (ISTD)  adopted,  under  its  Strategic  Plan 
2010–2014, all the secondary legislation needed for the implementation of the income tax law 
and  the  general  tax  law,  which  entered  into  force  in  January  2010.  Moreover,  Jordan 
developed and tested the audit tracking system, which aims to enable the ISTD to have more 
accurate  information  on  arrears.  It  also  developed  and  tested  a  risk-based  audit  selection 
system. 

In the field of competition, no progress was made.  

Little  progress  can  be  reported  in  the  field  of  intellectual  property  rights  (IPR).  In  May 
2010, the ministry of trade and industry amended the trademarks fees schedule. The ministry 
conducted  —  along  with  international  organisations  such  as  World  Intellectual  Property 
Organisation  and International Development Law Organisation — several workshops to raise 
awareness  of  intellectual  property  rights  in  various  sectors  in  Jordan.  National  research 
institutes and universities are adopting new IPR policies and new administrative instructions 
for  the  offices  managing  their  IPRs.  A  technology  transfer  network  was  established,  with  a 
centralised  Intellectual  Property  Commercialisation  Office  at  El  Hassan  Science  City.  In 
2010,  the  network  registered  16  patents.  According  to  an  independent  study,  Jordan  has 
steadily improved on software piracy since 2006. The piracy rate was 57 % in 2010. 

The  ministry  of  public  sector  development  drafted  a  revision  of  the  bylaw  on  public 
procurement. The draft is under review by a SIGMA expert mission and by the World Bank. 
Jordan  continued  to  negotiate  the  accession  to  the  World  Trade  Organisation’s  (WTO) 
Agreement  on  Government  Procurement.  It  also  continued  to  implement  the  e-procurement 

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programme,  with  an  overall  objective  to  increase  the  efficiency  and  transparency  of  the 
procurement process and to improve services at lower costs.  

The Department of Statistics continued to implement the National Statistical Strategy 2008–
2012,  to  introduce  international  standards  and  best  practices.  The  Department  has 
progressively  reached  a  sound  level  of  statistical  capacity,  thanks  to  improvement  of  IT 
infrastructure and human resources. The Department is building a national statistical system 
in  collaboration  with  other  stakeholders.  Three  pilot  stakeholders’  databases  have  been 
identified: the ministry of labour, the Social Security Corporation and the Department of Civil 
Status Bureau.  

With regard to public internal financial control, the ministry of finance continued to prepare 
a reform strategy for the period 2010–13. Effective reform will require improved coordination 
with  the  Jordanian  Audit  Bureau,  including  definition  of  respective  roles  in  the  internal 
control  system  and  public  external  audit.  This  is  one  of  the  areas  of  work  that  the  EU  is 
funding through its “Public Financial Management” budget support programme, signed at the 
end of 2010. This programme, a continuation of the first one launched in 2007, among other 
measures,  is  also  supporting  the  implementation  of  the  mentioned  ISTD  audit-tracking 
system. 

On  enterprise  policy,  Jordan  participated  in  industrial  policy  activities,  including  the 
implementation  of  the  Euro-Mediterranean  Charter  for  Enterprise  at  a  country  level.  The 
cabinet  approved  the  Industrial  Policy  strategy  in  September  2010.  It  aims  to  create  an 
industry-friendly  environment,  to  protect  sensitive  and  vulnerable  industries  in  both  private 
and  public  sectors  and  to  encourage  foreign  and  local  investment  partnership  initiatives.  It 
also  proposes  to  develop  special  economic  zones  in  two  regions.  The  same  public-private 
partnership  approach  is  being  followed  in  the  ongoing  development  of  a  comprehensive 
Jordan Export Promotion Strategy. 

5. 

COOPERATION ON JUSTICE, FREEDOM AND SECURITY 

Cooperation  with  Jordan  on  border  management  progressed  further.  Thanks  to  earlier  EU 
assistance, border management has become more efficient, especially in relation to document 
examination, profiling and counter-trafficking measures.  

Despite  severe  strains  on  its  economy  and  infrastructure,  Jordan  continues  to  host  a  large 
number of migrants and refugees from neighbouring countries.  

With regard to the fight against organised crime, the National Committee for the Prevention 
of  Human  Trafficking  officially  launched  its  National  Strategy  and  Action  Plan  for  2010–
2012 to combat human trafficking in March 2010. The ministry of labour drafted a plan and 
guidelines for opening a long-term shelter for those affected by human trafficking and plans 
to establish a trafficking unit under joint jurisdiction with the Public Security Directorate.  

With  regard  to  counter-terrorism,  Jordan  benefited  from  exchanging  information  and  best 
practices  in  the  regional  EUROMED  Police  programme.  In  addition,  the  investigation  and 
analysis capacity of the Public Security Directorate was improved up to EU and international 
standards (ISO 17025), following a twinning programme in March 2010. 

Jordan continued to implement the National Strategy on the fight against drugs, focusing on 
law enforcement, prevention, harm-reduction and rehabilitation measures. The Anti-Narcotics 

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Department of the Public Security Directorate continued to take measures to increase public 
awareness about drugs in cooperation with other government agencies, universities and civil 
society  groups.  Jordan  joined  the  Mediterranean  Network  for  cooperation  on  drugs  and 
addictions  (MedNet)  in  May  2010  and  hosted  a  regional  seminar  in  September  2010  to 
prepare  the  ground  for  a  school  survey  and  the  establishment  of  a  drug  treatment  reporting 
system. Jordan pursued its interest in joining the Council of Europe’s Pompidou Group. 

With  regard  to  the  fight  against  money  laundering  and  the  financing  of  terrorism,  the 
government  approved  two  temporary  laws  amending  the  2007  Anti-money  Laundering  law 
and the Terrorism Funding law, in May and September 2010 respectively. It also tasked the 
Anti-Money  Laundering  Unit,  located  in  the  Central  Bank,  with  following  up  on  crimes 
related  to  the  financing  of  terrorism  and  with  adopting  a  cash  declaration  system  at  the 
borders.  However,  the  work  of  lawyers  and  accountants  is  not  subject  to  the  reporting 
provisions of the 2007 law. Due diligence, ‘Know Your Customer’ (KYC) and ‘Know Your 
Business’  (KYB)  practices  continued  to  be  implemented  within  financial  institutions  in  line 
with statutory obligations, alongside customised training for judges, prosecutors and lawyers 
on the applicable legal framework. Jordan signed a Memorandum of Understanding with the 
UK Serious Organised Crime Agency on information and intelligence exchange in December 
2010. 

Jordan  participated  actively  in  Euro-Med  regional  programmes  on  police  and  justice 
(EUROMED Justice II, EUROMED Police II and EUROMED Migration III). The Jordanian 
Gendarmerie  joined  the  Association  of  the  European  and  Mediterranean  Police  Forces  and 
Gendarmeries with Military Status in October 2010. 

No  progress  can  be  registered  regarding  the  accession  of  Jordan  to  some  important 
international  Conventions  such  as  the  1980  Hague  Convention  on  the  Civil  Aspects  of 
International  Child  Abduction;  the  1996  Convention  on  Parental  Responsibility  and  the 
Protection  of  Children;  the  1965  Hague  Convention  on  the  Service  Abroad  of  Judicial  and 
Extrajudicial  Documents  in  Civil  or  Commercial  Matters;  the  1970  Hague  Convention  on 
Taking  of  Evidence  Abroad  in  Civil  or  Commercial  Matters.  The  dialogue  on  international 
child protection and family law issues in the context of Jordan’s participation in the Judicial 
Conference on Cross-Frontier Family Issues, the ‘Malta Process’, has continued in 2010. 

6. 

TRANSPORT, ENERGY, ENVIRONMENT, THE INFORMATION SOCIETY, RESEARCH AND 
DEVELOPMENT 

In  2010,  the  ministry  of  transport  continued  to  implement  the  National  Transport  Strategy 
2009–2011. Jordan adopted three temporary laws in the course of 2010; the Law on Railroads 
establishing the Jordan Railway Corporation, the Law on Passenger Public Transportation and 
the  Law  on  Land  Transport  Regulatory  Commission.  The  latter  establishes  an  independent 
Commission mandated to regulate public transportation, land freight and railway transport. To 
promote renewal of the road haulage fleet, as of April 2010 only trucks that are less than five 
years old can be imported and registered in Jordan.  

The ministry is being restructured. Four main departments (Railway Transport, Planning and 
Studies,  Transport  Monitoring,  and  Human  Resources)  and  one  unit  for  Accident 
Investigation were created and are operational. In the rail sector, Jordan prepared the railway 
network  project  inter-connecting  the  railway  network  of  the  Gulf  Cooperation  Council 
countries with the Middle East ports. 

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In  December  2010,  Jordan  and  the  EU  signed  a  comprehensive  air  services  agreement.  The 
agreement will open these markets and integrate Jordan into a Common Aviation Area with 
the  EU.  As  a  result  of  the  agreement,  Jordan  will  harmonise  its  legislation  with  European 
standards  and  implement  EU  aviation  rules  in  areas  such  as  aviation  safety,  security, 
environment,  consumer  protection,  air  traffic  management,  competition  issues  and  social 
aspects.  The  agreement  will  enable  all  EU  airlines  to  operate  direct  flights  to  Jordan  from 
anywhere  in  the  EU  and  give  reciprocal  rights  to  Jordanian  carriers.  Cross-investments 
between Jordan and Europe will be encouraged, allowing EU carriers to set up a subsidiary in 
Jordan and vice-versa. The agreement will remove all restrictions on prices, routes and quotas 
of flights between Jordan and the EU. 

In  the  maritime  sector,  in  2010  the  main  challenge  remained  the  improvement  of  port 
efficiency and the integration of maritime transport into the multi-modal logistics chains. In 
April 2010 a memorandum of cooperation has been signed, establishing a ‘Motorways of the 
Sea’ between the ports of Aqaba and Trieste.  

The  EU  and  Jordan  stepped  up  energy  cooperation.  Jordan  is  highly  dependent  on  (costly) 
energy  imports  and  therefore  aims  increasingly  at  energy  efficiency,  the  use  of  renewables 
and  other  domestic  energy  sources  including  oil  shale,  gas  and  uranium.  Jordan  signed  oil 
shale  related  agreements  with  an  Estonian  Company  in  May,  with  a  view  to  electricity 
generation  and  oil  production.  In  February  2010,  Jordan  agreed  with  a  French  company  to 
mine domestic uranium. Jordan explored further options for gas imports from the Caspian and 
the Middle East. In 2010, Jordan, Lebanon, Syria and Turkey decided to establish a free trade 
area and expressed the wish to enhance regional energy cooperation. Jordan wishes to become 
a regional energy hub.  

The draft energy sector law, which includes the establishment of a regulator, awaits adoption 
by  parliament.  After  the  commissioning,  in  the  autumn  of  2009,  of  the  country’s  first 
independent power plant (IPP), a second IPP is under construction. Jordan decided to privatise 
an  electricity  generating  company.  In  October  2010,  the  government  moved  towards  the 
liberalisation of the oil sector by 2015. Jordan further developed its electricity network as well 
as international interconnections (e.g. plans for a further link with the West Bank).  

In  February  2010,  Jordan  adopted  the  law  on  renewable  energy  and  energy  efficiency.  It 
includes  the  establishment  of  a  fund  to  support  projects.  Jordan  has  prepared  implementing 
legislation for this law. Several wind and solar power projects are in progress, some as part of 
the  Mediterranean  Solar  Plan.  The  EU  expects  to  provide  strong  support  in  this  area  and  is 
already funding the construction of a wind and solar power pilot site, as signed in May 2010. 
Jordan  also  assesses  possibilities  to  exploit  geothermal  energy  and  to  use  more  bio-fuel.  It 
continued  also  with  the  development  of  its  first  nuclear  power  plant.  In  November  2010, 
Jordan  shortlisted  three  companies  for  constructing  the  plant.  Jordan  launched  the 
construction  of  a  5  MW  nuclear  research  reactor  that  will  produce  radioisotopes  for  the 
medical sector.  

In the field of climate change, the inter-ministerial committee on climate change followed up 
on  the  implementation  of  the  Second  National  communication  to  the  UN  Framework 
convention  on  Climate  Change,  submitted  in  2009.  Preparation  of  a  National  Adaptation 
Action Plan is under way with the identification of priority projects, in particular in the water 
sector. 

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Jordan  continued  to  prepare  Clean  Development  Mechanism  Projects.  One  new  project  was 
registered at the UN level, bringing the overall number of registered projects to two.  

Jordan is encouraged to fully implement the Cancun agreement and in particular devise a low 
carbon  development  strategy  including  update  information  on  target  or  actions  that  it  will 
implement.  

The ministry of environment continued to implement the strategic plan for 2007–2010, with 
a  focus  on  awareness-raising  and  green  economy  opportunities.  The  legislative  framework 
still requires further development, especially as regards implementing legislation. A revision 
of  the  Environment  Framework  Law  started  in  December  2010  with  EU  support.  New 
instructions on environmental audit were approved. Jordan continued with the preparation of 
new  legislation  on  air  quality,  water  and  waste  management  and  environmental  liability. 
Work  continued  on  the  regulation  of  waste  streams.  The  phasing  out  of  plastic  bags  is 
ongoing.  

On  industrial  pollution,  Jordan  took  measures  regarding  inspection  at  industrial  sites. 
Continued  attention  is  required  to  implement  existing  strategies  and  plans  and  to  further 
enhance monitoring and enforcement. Jordan took further steps to pursue the decentralisation 
of  environmental  responsibilities.  Further  strengthening  of  administrative  capacity  is  still  a 
major challenge, and coordination between authorities also requires attention.  

The  reform  of  the  water  sector  policy  and  institutional  set-up  continued.  In  line  with  the 
2009–2020 Jordan Water Strategy, adopted in 2009, the decentralisation of water supply and 
sanitation  services  continued,  with  the  establishment  of  a  new  regional  water  utility  in  the 
Northern  region.  Jordan  is  also  revising  the  relevant  legislation.  A  tariffs  revision  was 
approved  and  water  subsidies  were  decreased.  A  draft  law  enabling  the  establishment  of  a 
regulatory  commission  has  been  in  discussion  for  some  time  and  the  commission  was 
expected to be in place in 2011. However, its establishment is now postponed for at least three 
more years, according to recent information. 

Jordan  took  some  steps  to  integrate  environmental  considerations  into  other  policy  sectors, 
such  as  energy.  Jordan  took  further  steps  to  revise  the  permits  system.  The  state-of-the-
environment report, finalised in 2009, was published and Jordan continued to carry out some 
activities to inform and involve the public. A pilot strategic environmental impact assessment 
was launched. 

Implementation  of  ratified  international  and  regional  conventions  and  protocols  requires 
particular  attention.  Jordan  still  needs  to  clarify  its  next  intended  steps  with  regard  to  the 
ratification  of  the  Gaborone  amendment  to  the  Convention  on  International  Trade  in 
Endangered Species (CITES).  

Jordan continued to participate in the Horizon 2020 Initiative and in the EU Water Initiative. 
Cooperation and information exchange took place between the EU and Jordan, including on 
water, de-pollution and management of environmental information. 

In  the  field  of  civil  protection,  Jordan  was  actively  involved  in  the  Euro-Mediterranean 
Programme  for  the  Prevention,  Preparedness  and  Response  to  natural  and  man-made 
Disasters, which reached mid-term implementation.  

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In  the  reporting  period  the  ministry  of  information  and  communications  technology 
(MoICT)  identified  the  necessary  steps  to  implement  its  six  priorities  for  the  promotion  of 
Information and Communication Technology (ICT) in the years 2010–2012. The MoICT and 
the ministry of interior launched the Civil Status and Passports e-service which allows display 
of  and  access  to  the  required  civil  records.  This  e-service  is  part  of  a  group  of  e-services 
introduced by the Tax, Land and Surveys departments, the ministry of trade and industry and 
the ministry of foreign affairs. Furthermore, the ministry of justice in cooperation with the e-
government program at MoICT launched in October 2010 the non-criminal record certificate 
issuance e-service. Internet usage reached 27.2 % of the population in June 2010. 

On  the  regulatory  side,  the  Telecommunication  Regulatory  Commission  (TRC)  adopted  its 
Strategic Plan 2010–2013. The main objectives of the plan are to ensure effective regulations 
and fair competition in the ICT and postal sectors, and the affordability and timely access to 
broadband  internet  services.  TRC  also  initiated  a  market  review  process  in  order  to  define 
relevant  markets  susceptible  to  ex-ante  regulation,  to  analyse  those  markets  to  determine 
whether any operator and/or service provider enjoys a position of ‘dominance’ in a relevant 
market, and to  develop and  introduce specific regulatory  remedies  to  mitigate  the effects of 
dominance.  In  March  2010,  the  first  private  provider  launched  the  first  phase  of  the  third 
generation  (3G)  services,  which  covered  many  areas  in  west  Amman,  Irbid  and  Zarqa.  The 
MoICT  continued  implementing  the  National  Broadband  Network  programme,  aiming  at 
connecting  schools,  government  departments,  hospitals  and  health  centres  via  high-capacity 
fibre  optic  cables.  At  the  end  of  2010  there  were  178  stations  covering  the  different 
governorates of Jordan. 

As  regards  the  audiovisual  sector,  the  two  regulatory  bodies,  responsible  respectively  for 
telecom  (TRC)  and  audiovisual  sectors  (Audiovisual  Commission),  were  planned  to  be 
merged,  but  no  progress  has  been  made  towards  guaranteeing  the  independence  of  new 
regulator. 

In the area of research, the first meeting of the Joint Committee under the EU-Jordan 2009 
Science  and  Technology  Agreement  took  place  in  November  2010.  Jordan  intends  to 
restructure its research centres by reducing the fragmentation of the centres of excellence and 
improving  their  quality.  The  High  Council  for  Science  and  Technology  (HCST)  worked 
during  2010  on  setting  the  national  Research  and  Development  (R&D)  priorities  in  all 
scientific research fields.  

The participation of Jordan in the seventh Framework Programme (FP7) could be improved. 
Pp to March 2011, Jordan had - 216 applicants of which 35 were successful. There is a strong 
potential  to  increase  Jordanian  participation  in  the  FP7  themes  ‘Food-Agriculture-
Biotechnologies’ and ‘Environment’. HCST established Jordan’s Information Point to provide 
advice  and  individual  assistance  about  EU-funded  R&D  activities,  to  enhance  Jordanian 
participation  in  FP7  and  to  improve  cooperation  and  networking  with  European  research 
teams.  

7. 

PEOPLE-TO-PEOPLE CONTACTS, EDUCATION AND HEALTH 

In  the  area  of  education,  the  second  phase  of  the  Education  Reform  for  the  Knowledge 
Economy  commenced  in  March  2010,  prioritising  school-based  development,  improving 
teaching and learning methods, special education and revision of monitoring and evaluation 
systems.  The  ministry  of  education  extended  the  timeframe  of  its  five  year  strategic 

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development plan to 2014 while securing an increase in its overall budget. Renewed emphasis 
is  given  to  improving  educational  infrastructure,  the  learning  environment  and  human 
resource development. The ministry prepared proposals for reform of governance structures in 
higher education to improve efficiency, equity and quality of public expenditure. 

In  vocational  training,  sector  reform  advanced  at  a  reduced  pace  due  to  understaffing  and 
lack  of  coordination  between  stakeholders  including  the  ministries  of  labour,  education  and 
higher  education.  The  social  partners  remained  committed  to  playing  an  active  role  in 
defining  and  implementing  demand-driven  training  provision.  The  Centre  for  Accreditation 
and Quality Assurance was not formally established; continuing fragmentation of information 
sources on the labour market and human resources is hampering inclusive work on reform and 
development of continuing training and lifelong learning. To try to improve this situation, the 
EU  and  Jordan  have  signed  a  Financing  Agreement  in  October  2010  for  a  budget  support 
programme  that  will  try  to  address  the  shortcomings  mentioned  above  and  provide  a  new 
momentum to the sector reform process.  

Jordan  participated  actively  in  Tempus,  benefiting  from  five  projects  under  the  3rd  call  for 
proposals for Tempus IV for the academic year 2010–11. One Jordanian student was awarded 
an Erasmus Mundus Masters scholarship, while student and academic mobility was further 
enhanced  with  the  expected  award  of  49  grants  under  Erasmus  Mundus  Action  2  for  the 
academic  year  2010–11.  Jordanian  universities  are  encouraged  to  submit  high-quality 
applications under the Jean Monnet programme, as to date none has emerged.  

Jordan  continued  to  promote  the  benefits  of  youth  exchanges,  voluntary  service  and  inter-
cultural  dialogue  as  part  of  regional  cooperation.  Jordanian  young  people  and  youth 
organisations participated in youth exchanges, voluntary service and cooperation activities in 
youth  work  and  informal  education  under  the  Youth  in  Action  programme.  The  ministry  of 
youth and sport confirmed participation in the EUROMED Youth IV programme.  

In the area of culture, Jordanian cultural organisations participated in four projects under the 
Call for Proposals of the 2010 ENP Special Action under the Culture Programme. Jordan also 
participated actively in the regional EUROMED Heritage IV programme. For the first time, 
three  Jordanian  cultural  organisations  applied  to  Phase  III  of  the  EUROMED  Audiovisual 
programme.  

Jordan pursued the implementation of its Strategic Plan 2008-2012 for health sector reform. 
Jordan sustained its participation in the ‘Episouth’ network on communicable diseases for the 
EU, Mediterranean and Balkan countries. 

8. 

FINANCIAL COOPERATION — 2010 KEY FACTS AND FIGURES 

Cooperation framework 

The  Mid-Term  Review  of  the  programming  document  confirmed  that  the  Country  Strategy 
Paper  adopted  in  2007  remains  a  valid  framework  for  cooperation  with  Jordan.  The  new 
National Indicative Programme (NIP) 2011–13 for Jordan was adopted in May 2010 and has a 
budget of EUR 223 million. The programme is geared towards supporting the achievement of 
key policy objectives as outlined in the EU-Jordan Action Plan and pursues four priorities: (1) 
supporting  Jordan’s  reform  in  the  areas  of  democracy,  human  rights,  media  and  justice;  
(2) trade, enterprise and investment development; (3) sustainability of growth; (4) support for 
implementation of the action plan. 

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Implementation 

The implementation of the measures covered by the Annual Action Programmes (AAP) 2007, 
2008 and 2009 is under way. Substantial results have already been achieved in the reform of 
the  public  finances  management  system.  In  the  area  of  education,  significant  progress  has 
been made in the education system reform through strong budget support from the EU to this 
sector  in  2006  and  2007.  Another  programme  will  improve  the  provision  of  vocational 
education and training that is targeted to the needs of the population and the economy. In the 
trade  and  investment  area,  three  large  programmes,  aimed  at  facilitating  the  investment 
climate and the competitiveness of the Jordanian economy, are now under way. The first EU-
Jordan  programme  on  capacity  building  in  the  area  of  renewable  energies  has  just  started. 
Other  programmes  that  are  currently  being  implemented  include  overall  support  for  the 
implementation of the Action Plan and for justice reform and good governance.  

In  2010,  the  EU  continued  to  support  Jordan’s  national  reform  efforts  and  committed 
assistance for a total amount of EUR 70 million under the bilateral envelope of the European 
Neighbourhood  and  Partnership  Instrument  (ENPI).  Under  the  new  NIP,  the  2010  AAP 
covered  three  of  the  four  priorities  mentioned  above.  Within  this  envelope,  EUR 10  million 
was  allocated  to  the  water  sector,  and  another  EUR  10  million  to  the  improvement  of 
democratic  governance.  The  2010  AAP  also  included  a  sector  budget  support  operation  of 
EUR  45  million  on  Public  Financial  Management  reform,  to  continue  the  support  provided 
under  the  2007  programme.  Additionally,  support  to  the  decentralisation  process  continued 
through a EUR 5 million programme aimed at promoting local economic development.  

Twinning  is  an  extensively  used  tool  in  EU  cooperation  with  Jordan.  Six  new  twinning 
projects  have  been  identified  in  2010,  covering  very  diverse  sectors,  from  agriculture  to 
management  of  the  police  force.  Recent  projects  support  the  work  of  the  Anti-Corruption 
Commission,  the  Telecommunications  Regulatory  Commission  and  the  agreement  on 
Conformity Assessment and Acceptance of Industrial Products.  

In  addition  to  the  bilateral  allocation,  Jordan  also  benefited  from  cooperation  activities 
financed  under  the  ENPI  cross-border,  inter-regional  and  regional  programmes.  Jordan 
participated  in  the  ENPI  Cross-Border  Cooperation  (CBC)  programme  Mediterranean  Sea 
Basin  (EUR  173.6  million  for  the  whole  programme  in  the  period  2007–13).  The  main 
priorities of the Programme are four-fold (i) promotion of socio-economic development and 
enhancement  of  territories,  (ii)  promotion  of  environmental  sustainability  at  the  basin  level, 
(iii) promotion of better conditions and modalities for ensuring the mobility of persons, goods 
and capital and (iv) promotion of cultural dialogue and local governance.  

Under the ENPI-financed Neighbourhood Investment Facility (NIF) contributions, one project 
in Jordan was approved in 20102, committing EUR 2.2 million in grants, expected to leverage 
EUR 150 million in loans from European Finance Institutions in the energy sector. 

Other  EU  Instruments  supplement  the  ENPI  assistance  package.  Jordan  benefited  from 
cooperation activities financed under horizontal instruments such as the European Instrument 
for  Democracy  and  Human  Rights  (EIDHR)  and  the  Development  Cooperation  Instrument 
(DCI)  thematic  programmes,  including  the  Non-State  Actors  and  Local  Authorities  in 
Development (NSA-LA). Furthermore, a programme under the Instrument for Nuclear Safety 
Cooperation (INSC) was started in Jordan in early 2010, financed under the 2008 AAP of this 

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Jordan Electricity Transmission. 

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instrument. The project has a budget of EUR 1 million and is dedicated to the development 
and the strengthening of the Nuclear Safety Authority of Jordan. A second project of EUR 1.2 
million was approved under the 2010 AAP, in order to provide the necessary follow-up in this 
area.  Under  the  Instrument  for  Stability,  Jordan  is  engaged  in  a  regional  cooperation 
programme  to  create  Centres  of  Excellence  in  CBRN  risk  mitigation  (chemical,  biological, 
radiological and nuclear incidents). This large project is expected to receive global support in 
the range of EUR 7 million from the EU. Over the period 2012–2013 significant funds will be 
channelled for capacity building in this area. 

Jordan also received support from the European Commission’s humanitarian aid budget line 
in  the  range  of  EUR  2  million  per  year  for  the  Iraqi  refugees  in  Jordan.  Operations  were 
implemented  by  international  organisations,  notably  UNHCR,  in  the  sectors  of  protection, 
health care, Non-Food Items and psychosocial support.  

Donor coordination 

In  2010,  the  EU  Delegation  in  Jordan  ensured  the  coordination  of  assistance  activities, 
through close contacts and joint work with other donors and with the ministry of planning and 
international  cooperation.  The  Delegation,  together  with  the  EU  member  states,  has  been 
instrumental in establishing the Donors and Lenders Consultation Group already in 2000, for 
which UNDP provides the Secretariat. The Delegation chaired several of the sector working 
groups which report to the main Group.  

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