Jordan’s economy revived  following the economic crisis of the late 1980s and the dislocation resulting from the 1990 Gulf War. However, growth has flattened in recent years with the GOJ revising the GDP growth rate downward to only 1% in 1996 and 2-3% in 1997.  While structural reforms are proceeding slowly, Jordan is taking steps to privatize some state entities and reduce the size of the public sector.  The peace treaty with Israel opened new possibilities for growth, although the Jordanian business community has been disappointed that trading opportunities, particularly with the West Bank and Gaza, continue to be limited by Israeli trade barriers and security concerns. 

ENVIRONMENTAL PROBLEMS

Jordan is a country with meager natural resources and a high population growth rate.  This combination renders Jordan vulnerable to a broad spectrum of environmental challenges, chief among them the problem of water scarcity.  Progress in formulating environmental policy has been slow so far, but the government acknowledges the importance of reconciling environmental concerns and developmental needs.  Environmental issues are handled through various ministries, often with competing interests, although nominally they continue to be coordinated by the Ministry of Municipalities, Rural Affairs and Environment.  In 1995 the General Corporation for Environmental Protection was granted quasi-independent status in a sweeping new environmental protection law.  However, many of the implementing regulations have not been drafted and enforcement remains lax.  Outside the government, NGOs are increasingly active in enhancing environmental awareness in the public at large. 

Water
Water scarcity in Jordan is by far the most serious environmental challenge facing the country.  Current per capita consumption, estimated at 170 cubic meters per annum, is one of the lowest in the world.  Projections suggest this could fall to 91 cubic meters per annum by the year 2025.  The problem is attributed to limited water resources, reduced water quality due to pollution and overpumping of groundwater, leaky water distribution networks, illegal connections, and inefficient water management practices.  Population increases due to natural growth, as well as the influx of refugees during periods of regional political unrest, compound these problems.  In 1994, barely 25% of all households in Jordan were connected to wastewater systems (serving 60% of the total population) but the government has been working to increase this proportion. 

Air
The degradation of air quality is an emerging problem, especially in downtown Amman where surrounding hills trap emissions.  Two thirds of Jordan’s 300,000 registered vehicles are located in Amman, and almost all use leaded gasoline or high sulfur content diesel oil.  Jordan is not a highly industrialized country, but several major industries contribute to the pollution problem.  These include the cement industry in Fuheis and the oil refinery and power generation station near Zerka.  Additionally, port and industrial activities in the Aqaba region, particularly the loading of phosphate for export, generate pollution that can be expected to increase as Aqaba grows further. 

Solid Waste
Solid waste management is a growing concern in Jordan.  The collection system is adequate in urban centers, but services tend to be poor or nonexistent in rural areas and small towns.  Collected waste is not separated, and Jordan lacks a hazardous waste site.  Current estimates suggest there are 13,000 tons of untreated hazardous wastes, a figure expected to reach 17,400 by the year 2000.  Some hospitals have their own incinerators, but most medical wastes are still collected and disposed of with municipal waste.  With NGO leadership, modest recycling programs for aluminum cans and paper have been launched in Amman. 

Land
Land degradation in Jordan is caused by uncontrolled urban expansion, desertification due to overgrazing, rising soil salinity due to inefficient irrigation measures, deforestation, mining spoils, and the absence of land use planning.  Much of Jordan is desert, causing most of the population to be concentrated in the Western margin where most of the rainfall occurs, thereby subjecting this land to further pressure. 

ENVIRONMENTAL BUSINESS OPPORTUNITIES

Jordan lacks resources for major environmental projects and generally seeks donor funding for these, particularly in the critical water and wastewater sector where it has considerable unmet needs.  Recognizing the extent of this problem, the donor community has been generous.  USAID, for example, currently contributes some $50 million per year in development assistance to this sector.  These donor-funded projects, particularly in water collection, storage and transport, municipal waste water treatment, industrial waste water treatment, water purification, and conservation, represent the greatest potential market in Jordan.  Other environmental business opportunities in Jordan include:  municipal and hazardous waste collection and disposal, waste recycling, pollution control and remediation, and environmental consulting. 

The Water Sector
Donor spending makes this the dominant environmental sector in Jordan.  Funded projects in the pipeline include the multi-million dollar municipal network rehabilitation of Amman, water supply projects, privatization of water management, upgrading water systems, and wastewater treatment plants.  The Ministry of Water and Irrigation has nearly $5 billion in potential projects for which it is seeking funding, of which the largest are the Disi-Amman conveyor system ($625 million) and regulation of the Yarmouk River ($390 million).  In addition, opportunities for residential water saving devices, recycling, and purification systems exist in the Jordanian market. 

Solid Waste
While some donors have worked in this field, notably the Japanese, much remains to be done.  In particular, Jordan will need appropriate technology and management techniques for proper sorting, treatment and disposal of hazardous and medical wastes in the near future.  Privatization of this sector is possible, with concurrent opportunities in composting technology as well as recycling of plastics and other reusable wastes.  Opportunities may also exist for the management and rehabilitation of existing waste disposal sites. 

Pollution Remediation
Enforcement of pollution controls has been lax, but is likely to improve as environmental awareness increases among Jordanian decisionmakers.  End-of-pipe technologies, particularly for the refinery and the cement industry, may find a market, as will dust reduction devices for phosphate loading.  While Jordan has so far had access to cheap energy from Iraq, political uncertainties may provide an opportunity for the sale of energy efficiency devices and management techniques.  Pollution monitoring equipment will be a high priority once the implementing regulations for the environmental law are promulgated and enforced. 

Environmental Consulting
By law all substantial future commercial development requires an environmental impact assessment and most donors require EIAs for project funding.  With the tourism and infrastructure sectors expected to expand, this will be a growing market.  To date this has also been a competitive market, with the best approach likely to be through partnership with a local firm. 

LIST OF CONTACTS

Government Agencies

The Ministry Of Water And Irrigation 
PO Box 2412 
Amman-Jordan 
Tel: (962-6)-568-0100 
Fax:  (962-6)-568-0871 

Contact:  Dr. Hazem Al-Nasser,  Secretary General, Ministry of Water & Irrigation. 

General Corporation For Environmental Protection (GCEP) 
PO Box 1408 
Amman 11941, Jordan 
Tel: (962-6)-5350-791, (962-6)-53530-149 
Fax: (962-6)-53530-084 

Contact: Dr. Suleiman Jafari, Director. 

The Greater Amman Municipality 
PO Box 132 
Amman 11110-Jordan 

Tel: (962-6)-5359-970/1 
Fax: (962-6)- 4649-420 

Contact: Dr. Hussein Zaki, Advisor to Mayor of Amman. 

The Ministry Of Planning 

Tel: (962-6)-464-4466 
Fax: (962-6)- 464-9341 
Contact: Mr. Boulus Kefaya, Head of Environmental Division 
 

The Aqaba Regional Authority 
PO Box 21 
Aqaba, Jordan 
Tel: (962-3)-201-4200/5 
Fax: (962-3)-201-4206 

Contact: H.E. Yousef Dalabeeh (President) 

The Jordan Environment Society 
67 Abdul Hameed Badees Str. 
Shemisani 
PO Box 922821 
Amman 11192, Jordan 
Tel: (962-6)-569-9844 
Fax: (962-6)-569-5857 

United States Embassy Amman 
PO Box 354 
Amman, 11118, Jordan 
Tel: (962-6)-592-0101 
Fax: (962-6)-592-7653 

Contact: Mr. George Sibley, Regional Environmental Officer 
Tel Ext.: 2621, Email: gs-hub@usembassy-amman.org.jo

Contact: Ms. Rana Safadi, Environmental Development Assistant 
Tel Ext.: 2356,  E-mail: rs-hub@usembassy-amman.org.jo

Contact: Ms. Marcia Macomber, Environmental Development Associate 
Tel Ext.: 2412,  E-mail: mm-hub@usembassy-amman.org.jo

The American Business Center 
Contact: Ms. Andrew Shaw, Commercial Officer 
Tel Ext.: 2632,  Fax: (962-6)-592-0146 

USAID 
Contact: Ms. Cecily Mango, Water Resources and Environment Office 
Tel Ext.: 2677,  Fax: (962-6)-592-0143