benefiting over other groups. Working conditions may be poorly regulated; however, job opportunities are likely to be substantially increased for all, particularly the vulnerable through homebased work scheme reforms. PforR Objective 2: Improving Investment Climate Low Low PforR Objective 3: Attracting and Retaining Investments Substantial due to legacy issues associated with SEZ employment, fear/misperception of economic migrants to be replaced, poor labor conditions with weak enforcement. Moderate due to the potential for increased investments in SEZs, especially in manufacturing, to lead to increased pollution and increased numbers of workers at OSH risk Overall Risk Rating Substantial Moderate Assessment of Borrower Systems The applicable federal and Governorate environmental and social management systems in Jordan, from a legal, regulatory and institutional perspective, are considered generally appropriate and comprehensive, with only a few gaps in relation to the principles of the ESSA. The scope of the legal and regulatory systems is adequate to address underlying environmental and social risks, therefore, no significant changes to the overall structure of these management systems are required or proposed. The systems, on paper, are in many respects consistent with the principles and attributes of a well-functioning system as defined by Bank policy. However, the institutions, processes, and procedures at the Governorate level are not supported by adequate human and/or financial capacity to operate as designed. Enforcement of the legal framework governing compliance on labor and environmental standards is weak. Several policy gaps exist between Bank policies and Jordanian laws regarding land acquisition, compensation, and resettlement. To begin to address these capacity constraints and to close these important implementation gaps, an incremental step-by-step, risk-based approach is recommended throughout the life of the proposed operation. Stakeholder Consultations The preparation of the ESSA has been carried out in a participatory manner involving feedback and inputs from a number of key stakeholders working in government, private sector, and nongovernmental organizations (NGOs) and other sectoral experts, donor agencies, and international partners. The Bank team has used informal interviews and stakeholder dialogue in combination with more formal and structured focus groups and other public meetings to solicit information relevant to the analysis as well as to verify judgments made in the course of
Supplying and/or distributing fuel and gas. Permitting entities in this case are the Ministry of Energy and Mineral Resources (MEMR), as well as the Jordan Petroleum Refinery Company; Generating and/or distributing electricity. Permitting entity is the Jordanian Electricity Regulatory Commission; Generating renewable and non-renewable energies. Permitting entities are MEMR and EMRC; and Construction services. Permitting entities are Ministry of Public Works and Housing (MPWH) and Jordanians Constructions Contractors Association (JCCA) Legacy of Free Trade Agreements and Compliance In May of 2002, Jordan entered a Free Trade Agreement with the European Union, which calls for the elimination of all tariffs, to be phased in over a 12 year period. Jordan became a member of the World Trade Organization in April 2000. It is interesting to note that as a condition of WTO admission, Jordan had to pass several new laws to improve the protection of intellectual property rights and trademark. Each must desire to promote higher labor standards by building on their respective international commitments and strengthening their cooperation on labor matters; and wishing to promote effective enforcement of their respective environmental and labor laws. Labor obligations as members of the International Labor Organization (“ILO”) and their commitments under the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up. Labor rights must be recognized and protected by domestic law. Discourage trade that may result by relaxing domestic labor laws. Effectively enforce labor laws, through a sustained or recurring course of action or inaction. Allow the WB and EU the right to exercise discretion with respect to investigatory compliance while maintaining national prosecutorial, regulatory, and compliance matters and to make decisions regarding the allocation of resources to enforcement with respect to other labor matters determined to have higher priorities. The U.S.-Jordan Free Agreement demanded even stronger enforcement of intellectual property rights. Article 6: has clauses related to labor issues as follows: The Parties reaffirm their obligations as members of the International Labor Organization ("ILO") and their commitments under the ILO Declaration on Fundamental Principles and Rights at Work and it’s follow-up. The Parties shall strive to ensure that such labor principles and the internationally recognized labor rights set forth in paragraph 6 are recognized and protected by domestic law. The Parties recognize that cooperation between them provides enhanced opportunities to improve labor standards. The Joint Committee established under Article 15 shall, during its regular sessions, consider any such opportunity identified by a Party.
Includes appropriate measures for early identification and screening of potentially important biodiversity and cultural resource areas The of EIA adequately covers potentially important biodiversity and cultural/historical resource areas (through extensive baseline data collection stage for comprehensive studies). Archaeological conservation measures are covered through instructions of the Ministry of Tourism and Antiquities (MOTA) Provisions for this area are foreseen enough at this In the long run, risk of damaging biological and cultural heritage increases as developments sweep qualifying zones. Enough attention is paid by relevant authorities, with a much closer oversight from international environmental/cultural protection agencies No SOPs are available to share with construction companies/projects. However, under the law, chance finds should be promptly reported to the Department of antiquities (MOTA), which could result in work suspension until issue resolved. Strategic Environmental Assessment (including biological and cultural aspects) Strengthening capacities for monitoring biological environment Inventory of archeologically significant sites needs to be prepared for the areas of development zones by the Archeological Department (or a consultant) and shared with all the line departments of the government of Jordan. SOPs should be prepared for project execution parties regarding chance find of archeologically significant sites not mentioned in the inventory of archeologically significant sites. Supports and promotes the conservation, maintenance, and rehabilitation of natural habitats; avoids the significant conversion or degradation of critical natural habitats and if avoiding the significant conversion of natural habitats is not technically feasible, includes measures to mitigate or offset impacts or program activities. This aspect is covered EMP of EIA Regulation, as well as in the EIA Guidance issued by the MoEnv, in line with the best international practices and protocols. This is of low significance given that necessary follow-ups are undertaken (throughout the lifecycle of the Program). Strengthening monitoring capacity across the lifecycle of the Program Restoration evidence to be attached to, and considered one of the Program’s Results Takes into account potential adverse impacts on physical cultural property and, as warranted, provides adequate measures to avoid, minimize, or mitigate such effects. Some requirements are covered the “Instructions for site selection of the development projects for the year 2012” However, the EMP of EIA Regulation covers how adverse impacts to be managed As spelled out in the Jordanian Law of Precautionary measures, such as consulting relevant Departments of Antiquities, in the planning phase are not a common practice. No SOPs are available to share Any proposed site for a new development should be screened for possible impact on sites of archeological significance. Without proper screening damage can be caused during construction Increase awareness about the Jordanian
EIA Regulation requires the formulation of an Environmental Management Plan to control and manage different hazards to workers and public health (construction and operation phases of a development). Promotes the use of recognized good practice in the production, management, storage, transport, and disposal of hazardous materials generated through program construction or operations; promotes the use of integrated pest management practices to manage or reduce pests or disease vectors; and provides training for workers involved in the production, procurement, storage, transport, use, and disposal of hazardous chemicals in accordance with international guidelines and conventions. Construction and manufacturing standards are provided through building codes of MPWH and technical quality standards of JSMO. Also the MoEnv has issued a number of regulations and instructions to deal with hazardous effluents and materials (handling, storage, transporting, storage, disposal, etc.). These standards and instructions are mandatory to all related industries and developments and are applicable to the Program. Available standards and codes are not tailored enough to the Program EMPs (via EIA) of individual projects are not sufficient throughout the lifecycle of the development No strategic assessment is practiced in the country Further analysis should be done to diagnose the deficit Capabilities of best practices should be strengthened at the local level (mainstreamed within industries to match the industry line) Includes measures to avoid, minimize, or mitigate community, individual, and worker risks when program activities are located within areas prone to natural hazards such as floods, hurricanes, earthquakes, or other severe weather or climate events. These aspects of the proposed projects are covered by the Civil Defense Law, which already has put appropriate response plans in case of natural disasters. These are considered of responsive measures rather than preventative. The Jordan National Building Codes establishes design principles and minimum requirements needed to ensure public safety of structures, provide sound and efficient electro-mechanical services and to safeguard against earthquake risks. The Jordanian Institute of Standards and Meteorology is charged with the duty of issuing The contingency/emergency response plans are adequate at the Program level (national). Industries are weakly adaptive to climate change issue Strengthening more emergency plans at the local scale as much as at the national scale Best practices and adaptive measures should be inherent in industries daily practices (more stringent control measures are recommended)
standard specifications according to Article 5 of the Standards and Specifications Law No.22 of 2000. Disaster Management Plans (DMPs), are normally partially covered in the environmental management plans included in the IZE/EIA reports while implementation is mostly partial unless an actual disaster occurs then GDCD takes effective action. Core Principle 4: Land acquisition and loss of access to natural resources are managed in a way that avoids or minimizes displacement, and affected people are assisted in improving, or at restoring, their livelihoods and living standards. Key Elements System Requirements Key Findings Recommendations Avoids or minimizes land acquisition and related adverse impacts The main tools used for land acquisition in Jordan is the Land Acquisition Law No. (12) of 1987 provides the Government of Jordan the right to acquire any piece of land or property to develop a project for public benefit. However, the government has to compensate the owner(s) fairly. In case the owner(s) are not satisfied with the compensation, they can take it to court. Such matters are considered of high urgency and will be handled by the court system as quickly as possible. The law outlines all the related specifics. Management of Government Property Law / Leasing and Authorization of Government Property By-law Under the provisions of the Management of Government Law No 17 of 1974 and the Leasing and Authorization of Government Land Acquisition Rules examines feasibility taking into consideration the genuineness of the public purpose involved, the minimum requirements of the acquiring agency, and suitability of the area proposed for requisition keeping in view its alternative uses if any.” However, performance in this regard varies and needs significant improvement. The PforR shall not support projects/programs that involves resettlement. When limited involuntary resettlement is unavoidable-for activities occurring in parallel of the PforR- due process should be observed so that displaced persons shall be informed of their rights, consulted on their options, and offered technically, economically, and socially feasible resettlement alternatives or fair and adequate compensation.
Key Elements System Requirements Key Findings Recommendations Undertakes free, prior, and informed consultations if indigenous peoples are potentially affected (positively or negatively) to determine whether there is broad community support for the program. Indigenous peoples are found in Jordan; they are protected under the National Tribal Law of Jordan. The United Nations Development Fund for Women (UNIFEM) indicated that tribal law in Jordan was abolished in 1975 (UN 2006, 17) where as far as the role of the state is concerned it should be noted that Jordan tends to respect tribal law and customs and allows much autonomy to its tribes in conducting their own internal affairs. In fact, the Jordanian legal system informally recognizes the existence of tribal law side by side with civil law. For instance, a conflict between two families would be dealt with in court but at the same time the families would try to solve their case through tribal processes of conflict resolution (temporary truce, mediation, arbitration, compensation, reconciliation, etc.). Therefore, this aspect is applicable to the program. Jordan is signatory to UN Human Rights Declarations and has active NGOs and civil society programs that monitor human rights as well as international organizations doing that this compact will continue to adhere and monitor social changes and be sensitive to the marginalized and vulnerable groups such as the Bedouins and the expatriate labor force in the SEZs, refugees in camps and host communities, as well as women and children. Exhaustive legal provisions on labor have been enacted in Jordan and adopted by the government as discussed elsewhere in this report. There is a need to enhance the participation of women as workers in IZs, which is only possible if positive measures are taken to provide a secure environment and safe transport. For Jordan to adhere to the allowances acquired under the status of EU’s FTA which allows increased access for some categories of Jordanian products by allowing duty-free exports to EU markets which requires ratification and compliance with international conventions including core labor standards of the ILO. The PforR shall not support projects/programs that are inconsistent with the rights and responsibilities set forth in the UN Declaration on the Rights of Indigenous Peoples and other applicable international instruments relating to indigenous peoples. Ensures that indigenous peoples can participate in devising opportunities to benefit from exploitation of customary resources or indigenous knowledge, the latter (indigenous knowledge) to include the consent of the indigenous peoples. Not applicable N/A N/A
Issues Discussed The Forum provided an open debate on the following topics: (i) labor compliance issues, aspects that are working and its challenges; (ii) integration of Syrian refugees into the labor market, (iii) industry expansion and access to the EU market The below table summarizes the issues raised during the Forum: Topic Stakeholder Perspectives and Questions Increased incentives to business JGATE (representatives of investors) asked for more incentives in order to provide 2000 more jobs for Syrians once the infrastructure is ready. Establishment of Satellite MOL is supporting some directorates establish Satellite Sites with 3000 workers, 90% females, only Huge incentives given to those who want to establish such units and can be expanded Employing Syrians International company to see the Syrians are engaged but should be done in proper way and to learn from Turkey (BWJ went on mission to turkey). Strengthening Business Owners and Labor Union Collaboration Based on review of the labor agreements signed under the garment sector; labor agreement includes all (Jordanians and migrant) and stipulates establishing a joint council of labor union and business owners Inspection Gaps The representatives indicated that there are gaps in the inspection process and there is a need for a more coordinated effort. The Ministry of Health is solely responsible of inspection and the Ministry of Labor only inspects firms. Job Numbers Concerns over sufficient job creation for Jordanians; and about competition in labor market between Jordanians and Migrants Preference Concerns MOL representatives indicated that the small number of employed Syrian refugees won’t affect the Jordanians taking into account that 75% of workers under the garment industry are Migrants. Additionally there are specific professions and industries that neither the Syrians not the migrant worker are able to work in. Need for Training and Employment MOL stressed importance of the focus on training and employing Jordanians in rural area so that the migrant workers will not affect the Jordanian labor force. Capacity Building of Inspectors The gap is the lack of training and awareness of the newly hired inspectors (around 230). Disclosure and Transparency of Compliance Broad support from stakeholders for transparency measures and self-reporting of the factories. The union is willing to publish the violating firms through ads and negations with buyers as well as take legal actions against the violating firms.
Annex 3: Jordanian Labor Tables Number of Employees by Sub-Industrial Sectors, 2015 Sector HS Code Total Industrial Handcraft Textile and garment industries 50 - 63 55,556 50,748 4,808 Food, agricultural and animal stock industries 01 – 24, 41- 43 44,924 37,913 7,011 Engineering, electrical and information technology industries 99 42,237 29,691 12,546 Chemical industries and cosmetic preparations 28 – 29, 31 - 38 14,716 13,155 1,561 Packaging, paper, carton, and office equipment 48 - 49 13,731 10,996 2,725 Mining industries 25 - 27 10,630 10,489 141 Construction industry 981 16,935 9,254 7,681 Therapeutic industries and medical supplies 30, 90 8,586 8,429 157 Plastic and rubber industries 39 - 40 8,397 7,231 1,166 Wood and furniture industries 44 - 49, 94 9,973 4,108 5,865 Total 225,675 182,014 43,661 Labor-Capital Intensity by Sub-Industrial Sectors, 2015 Number of Employees Sub-Industrial Sectors (2015) HS Code / Capital Ratio* Total Industrial Handcraft Textile and garment industries 50 – 63 374.1 55,556 50,748 4,808 Food, agricultural and animal stock industries 01 – 24, 41- 43 63.5 44,924 37,913 7,011 Engineering, electrical and information technology industries 99 28.1 42,237 29,691 12,546 Chemical industries and cosmetic preparations 28 – 29, 31 – 38 20.8 14,716 13,155 1,561 Packaging, carton, and office equipment 48 – 49 74.5 13,731 10,996 2,725 Mining industries 25 – 27 21.5 10,630 10,489 141
Construction industry 981 54.1 16,935 9,254 7,681 Therapeutic industries and medical supplies 30, 90 31.9 8,586 8,429 157 Plastic and rubber industries 39 – 40 73.3 8,397 7,231 1,166 Wood and furniture industries 44 - 49, 94 152.7 9,973 4,108 5,865 Total 225,675 182,014 43,661 *Ratio of total number of employees by sub-industrial sector to registered capital by sectors for 2015.