BACKGROUND
	PROJECT OBJECTIVES
	CURRENT STATUS
	PHOTOS

The WAJ was created in 1984 as an independent body under the Prime Minister. It is responsible for municipal and industrial water supplies and wastewater. In 1988, the Ministry of Water and Irrigation (MWI) was created, combining WAJ and JVA under one umbrella. MWI operates under a set of bylaws approved by the executive branch and is responsible for analyzing and formulating water policies and water allocation options, as well as undertaking strategic planning.

Jordan's overall water strategy and policy statements emphasize the achievement of the highest possible efficiency in the conveyance, distribution, application and use of the Kingdom's water supplies. These policies emphasize recovering the operation and maintenance and service costs of utilities, while being sensitive to the social impact of increased tariffs.

Senior management at the MWI has committed itself to better financial performance by operating on a more commercial footing, with the aim to ultimately decrease government subsidies. In 1997, USAID/Jordan commissioned FORWARD to develop three cost/tariff models for JVA and WAJ. 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.

Subsequently, in 1998, USAID commissioned FORWARD to develop, implement and institutionalize an accrual FAS for the (JVA). This activity is currently in the last stages of the implementation phase and its achievements to date have prompted the inception of this new WAJ initiative.

The recommended FAS creates the ability to segregate production of supply, transmission, treatment, and distribution functions and thus achieve greater clarity about the components of costs. This information is essential to establishing accurate prices for the resource and to valuing the system as a whole and its and its various components.