1. Millennium Challenge Program Arab Water Week 27-31 Jan, 2013 Prepared by Eng. Kamal Zoubi – MCA-Jordan, CEO Mr. Alex Russin – MCC, RCD in Jordan

2. 2 MCC The Millennium Challenge Corporation (MCC) is a United States Government corporation designated to work with some poor countries in the world. Who is MCC? To reduce global poverty through the promotion of sustainable economic growth. What is MCC’s mission?

3. 3 MCA-Jordan The Millennium Challenge Account – Jordan (MCA-Jordan) is a company fully owned by the Government of Jordan. Founded in June 2010. GoJ has delegated to MCA-Jordan the responsibility of implementing the program projects. MCA-Jordan is the Accountable Entity. The Millennium Challenge Account – Jordan (MCA-Jordan) is a company fully owned by the Government of Jordan. Founded in June 2010. GoJ has delegated to MCA-Jordan the responsibility of implementing the program projects. MCA-Jordan is the Accountable Entity. Who is MCA-Jordan?

4. 4 MCC Compacts -MCC funding is provided to the beneficiary country through an international agreement called Compact Agreement. -Eligibility is limited to countries with a per capita GDP of $4,035 or less. -Value of Compact is sufficient to implement a project/projects (program) as agreed between MCC and beneficiary country (range $150-750 million). -Compact term is 5 years with no extension. -Two Arab countries (out of 26 countries) have benefited from MCC Compact funding so far: Jordan and Morocco. -Compact projects NOT finishing in 5 years will force host country to accomplish rest at its own expense. -MCC funding is provided to the beneficiary country through an international agreement called Compact Agreement. -Eligibility is limited to countries with a per capita GDP of $4,035 or less. -Value of Compact is sufficient to implement a project/projects (program) as agreed between MCC and beneficiary country (range $150-750 million). -Compact term is 5 years with no extension. -Two Arab countries (out of 26 countries) have benefited from MCC Compact funding so far: Jordan and Morocco. -Compact projects NOT finishing in 5 years will force host country to accomplish rest at its own expense.

5. 5 Compact Eligibility Compact Eligibility Transparency & Accountability Transparency & Accountability Environment, Social, and Gender Country Ownership What Makes MCC Different? KEY PRINCIPLES OF MCC - MCC eligibility criteria for beneficiary countries are based on: 1. Ruling Justly 2. Investing in people 3. economic freedom - 17 indicators derived from above main criteria are defined with eligibility score card is prepared every year. - Jordan qualified in 2006 for Compact funding. Results Oriented Model

6. 6 Country Ownership Country Ownership Transparency & Accountability Transparency & Accountability Environment, Social, and Gender Compact Eligibility What Makes MCC Different? KEY PRINCIPLES OF MCC - Procurement is done in the country by the accountable entity. MCC provides “No Objections” only. - Implementation executed by the accountable entity/other entities (Implementing Entities). - No source or origin covenants for consultants, contractors, vendors, manufacturers (any country except those banned by U.S.A) Results Oriented Model

7. 7 Transparency & Accountability Transparency & Accountability Compact Eligibility Environment, Social, and Gender Country Ownership What Makes MCC Different? KEY PRINCIPLES OF MCC - Transparent practices, segregation of powers through contracting independent procurement and fiscal agents. - Fraud and corruption policy, risk analysis and action plan to mitigate against risks. Results Oriented Model

8. 8 Environment, Social & Gender Environment, Social & Gender Compact Eligibility Country Ownership What Makes MCC Different? KEY PRINCIPLES OF MCC - Environment and Social Impact Assessment and Detailed Environment and Social Impact Assessment are conditions prior to tendering any project. - Detailed Contractors Environmental and Social Management Plan is required from each contractor. - A Gender Integration Plan for each project. - Trafficking in persons prevention is an important issue with zero tolerance. Transparency & Accountability Transparency & Accountability Results Oriented Model

9. Health and Safety Measures 9 Some of health & safety measures at Wastewater Project

10. 10 Compact Eligibility Country Ownership What Makes MCC Different? KEY PRINCIPLES OF MCC - Overall Compact objective is to reduce poverty through economic growth. - Performance indicators are set for each project. - Strong Monitoring and Evaluation program to ensure projects objectives are met (E.g.: ERR as a measurement tool). Transparency & Accountability Transparency & Accountability Results Oriented Model Results Oriented Model Environment, Social, and Gender

11. 11 Compact Milestones 5 year, $275 million Compact (2011-2016) signed between US Government and Government of Jordan in October 2010 in Washington D.C. The Compact entered into force on Dec 13, 2011 (Official ceremony in Zarqa on Dec 18, 2011)

12. 12 Compact aims to… The Jordan Compact is to reduce poverty and stimulate economic growth for the people of Zarqa Governorate Increase the effective supply of water to the inhabitants of Zarqa Governorate via improvements in water delivery, the extent of wastewater collection and the capacity of wastewater treatment

13. Compact Projects WATER PROJECT (P1) Restructure and rehabilitate water networks in Zarqa and Russaifa WATER PROJECT (P1) Restructure and rehabilitate water networks in Zarqa and Russaifa $102.5 Million WASTEWATER PROJECT (P2) Wastewater networks in Zarqa and Russeifa WASTEWATER PROJECT (P2) Wastewater networks in Zarqa and Russeifa AS-SAMRA PROJECT (P3) Expand existing wastewater treatment plant AS-SAMRA PROJECT (P3) Expand existing wastewater treatment plant 1 2 $55 Million $97.5 Million 13 3 WATER SMART HOME ACTIVITY

14. Beneficiaries 14 302,000 households, a total of 1,600,000 individuals, over twenty years will benefit. This figure includes 110,000 households a total of 600,000 people who will benefit directly from the works. Together with the Wastewater Network Project, the As-Samra Expansion Project will benefit 375,000 households, a total of 2,020,000 people, in Amman and Zarqa Governorates, and 8,500 households in the Jordan Valley will benefit from the additional water. Water Network Project Wastewater Network Project As-Samra Water Expansion Project 19,000 households, a total of 100,000 people, will connect to new lateral sewer lines, by that avoid maintenance and potential health risks associated with septic tanks.

15. Thank You