86071
                                             Jordan

                      Second Programmatic Development Policy Loan

                                       Chair Summary*

                                        March 13, 2014

       The Executive Directors approved a loan for the Hashemite Kingdom of Jordan for the
Second Programmatic Development Policy Loan (DPL) in the amount of US$250 million on the
terms and conditions set out in the President’s Memorandum.

        Directors expressed broad support for the World Bank’s continuing support to the
Government’s Executive Development Plan and the medium-term Work Plan FY2013-16. They
welcomed the three pillars of the operation, namely: (i) increasing transparency and
accountability; (ii) improving debt and the efficiency of government spending; and (iii)
promoting private sector-driven growth. Directors stressed the importance of building on the
lessons learned from the first DPL, especially on accountability in public policy making, fiscal
policies, and private sector development and job creation.

        Directors appreciated the increased focus of this second operation on the implementation
of policy and institutional reforms and enhancing citizen trust through public consultation and
participation in policy making. They cautioned about the heavy reliance on foreign grants and
the impact of external shocks that may threaten the country’s short-term stability. Directors took
note of the risks associated with the implementation of these reforms, notably, political and
governance, macroeconomic, fiduciary, and geopolitical risks, particularly the massive impact of
the Syrian conflict and displaced people in Jordan. They encouraged the Bank to pursue and
strengthen technical assistance and capacity building activities and underlined the importance of
effective donor coordination among the Bank, IMF and other development partners to continue
supporting the implementation of reforms.




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*This summary is not an approved record.