BACKGROUND
	PROJECT OBJECTIVES
	CURRENT STATUS

In 1997 the Government of Jordan raised the national water and wastewater tariffs in order to recover some of its operating costs. Subsequently in 2001 the wastewater tariffs for Amman and Zarqa were further raised. The tariff increases were aimed at achieving improved cost recovery ratios while staying sensitive to social needs and providing acceptable water and wastewater services for basic health needs.

In 1997, USAID/Jordan commissioned FORWARD to develop three cost/tariff models for water, wastewater, and irrigation services. The models integrate multi-dimensional issues into straightforward analysis that enable managers and planners to look at multiple scenarios projecting varying levels of many variables, including incomes, expenditures, employment levels, water sales and unaccounted for water.

In 2001, USAID responded to MWI request to expand the models to cover the Kingdom's water and wastewater utilities in the 12 governorates. FORWARD prepared a nation-wide model that accrues costs and revenues from each governorate. This model was used by the Ministry in the discussions with the USAID and the German Government for support to the water sector. Some scenarios were also generated which formed the basis for discussions between various government institutions and the MWI.

As when this work was commissioned, FORWARD had already reached its contract ceiling and no money could be added to the project to cover the costs of developing the user manual, training MWI and WAJ personnel on the model, providing needed Technical Assistance to develop future possible scenarios, or generating an endorsed action plan for future cost recovery.