June 11, 2025

Jordan

Country context (P3 lens)

Jordan is an upper-middle-income country with a well-structured and growing P3 market. P3s are used to mobilize private capital, accelerate infrastructure delivery, and transfer operational risk, particularly in transport, energy, water, and social infrastructure. The government has established national P3 legislation and a dedicated P3 unit to manage approvals, oversight, and project preparation.

Verified sources: World Bank PPP Knowledge Lab, Jordan Ministry of Finance, IMF, OECD.


Economic and infrastructure conditions

  • Economy: Diversified, with services, tourism, industry, and energy sectors; infrastructure investment is key to supporting urbanization, logistics, and renewable energy expansion.

  • Infrastructure priorities:

    • Roads, highways, and bridges

    • Ports, airports, and logistics infrastructure

    • Electricity generation and distribution, including renewables (solar, wind)

    • Water supply, wastewater, and municipal services

    • Hospitals, schools, and other social infrastructure

  • Private sector: Domestic and international investors participate in P3s, especially in revenue-generating projects or those backed by multilateral support.

Projects generally require government guarantees or blended financing to be bankable.


Public Private Partnerships framework

Legal and institutional setup

  • Jordan’s P3s are governed by the Public Private Partnership Law and overseen by the P3 Unit within the Ministry of Finance.

  • Project approval requires feasibility studies, value-for-money assessments, and fiscal risk evaluation.

  • Typical P3 structures:

    • Concessions for transport infrastructure (roads, bridges, ports, airports)

    • Build-Operate-Transfer (BOT) for energy and utilities

    • Availability-payment contracts for hospitals, schools, and municipal services

Market characteristics

  • Jordan has a structured P3 market, with project preparation often supported by multilateral institutions (World Bank, IFC).

  • Financing structures include revenue-sharing, availability payments, and government guarantees.

  • Investor participation includes domestic, regional, and international players, particularly in transport and energy.


Sector experience and opportunities

Transport

  • Toll roads, highways, bridges, and urban transit are primary P3 opportunities.

  • Airports and ports structured under concessions or BOT arrangements.

Energy and utilities

  • Renewable energy projects (solar, wind) delivered under BOT or concession models.

  • Transmission and distribution increasingly involve private participation.

Water and municipal services

  • Urban water supply, wastewater, and sanitation projects structured as service contracts or concessions.

Social infrastructure

  • Hospitals and schools delivered through availability-payment P3s, often with multilateral support.


Key P3 considerations

  • Fiscal risk management: Government guarantees or blended financing are often required to ensure bankability.

  • Institutional capacity: Centralized P3 unit provides oversight, project preparation support, and contract monitoring.

  • Market depth: Moderate domestic investor base; international participation is critical.

  • Project selection: Focus on revenue-generating or donor-supported projects for bankability.


Outlook

Jordan is a growing P3 market with strong opportunities in transport, energy, and water infrastructure:

  • Focus sectors: roads, ports, renewable energy, water, and social infrastructure

  • Projects are generally medium- to large-scale, government-backed, and structured for predictable returns

  • Multilateral advisory and financing support is key to successful implementation