In addition to providing assistance to the water, health, economic growth, education, and democracy & governance sectors in Jordan, USAID/Jordan implements a multi-year, policy-based balance of payment program. This assistance is provided in the form of a cash transfer, which has constituted a major portion of the U.S. assistance program since 1997.

This program provides the Government of Jordan with the required foreign currency to pay down its external non-military debt to help reduce the Government’s international debt burden and strengthen its foreign exchange position. In return, the Government of Jordan provides an equal amount of money in Jordanian dinars to support development programs in Jordan. These development programs, which are programmed jointly by the Ministry of Planning & International Cooperation and USAID, are made possible through the freeing-up of money that would have otherwise been used to pay off Jordan’s debt.

Each year, a series of policy reform objectives in the water, health, economic and social development sectors are linked to the disbursement of the Cash Transfer program funds.

During 1997 - 2004, USAID has provided over $800 million for the cash transfer program.

Fiscal Year 1997: $50 million
Fiscal Year 1998: $50 million
Fiscal Year 1999: $100 million
Fiscal Year 2000: $50 million
Fiscal Year 2001: $50 million
Fiscal Year 2002: $125 million
Fiscal Year 2003: $144.5 million
Fiscal Year 2004: $238.5 million

In addition, $700 million was provided in FY2003 to offset the economic effects of the war in Iraq.

In 2004, USAID will provide $238.5 million for the cash transfer program. A first tranche of $138.5 million will be provided in March 2004, and a second tranche of $100 million will be provided in June 2004.

As a result of the first tranche of the 2004 Cash Transfer program, 98 million Jordanian dinars will be made available by the Government of Jordan for programming to support development projects.

Of the 98 million Jordanian dinars, approximately 62.5 million Jordanian dinars will be used to support the Government of Jordan’s Social and Economic Transformation Plan (SETP). The remaining, 35.5 million Jordanian dinars will be programmed jointly by the Ministry of Planning & International Cooperation and USAID at a later stage.

Initiatives to be supported under the Social and Economic Transformation Plan (SETP) include:

• Renovating public school classrooms and introducing information technology through the Education Reform for Knowledge Economy (ERfKE) initiative (JD 18.6 million)



• Modernizing 11 vocational training centers and providing training to 12,000 citizens to combat poverty and unemployment (JD 3.3 million)



• Establishing and equipping 19 youth centers throughout Jordan (JD 0.5 million)



• Supporting various water projects, including the desalination plant at Abu Ezzeighan, rehabilitation of the Amman water network, construction of water conveyance system from Jordan River to Al-Karamah Dam, rehabilitation of Rass Al-Ein spring, improvement of sewage system in 7 governorates, improvement of King Abdullah Canal, and construction of Hisban Dam (JD 13.5 million)



• Supporting various health projects, including establishment and expansion of 62 health care centers, and establishment of food laboratory (JD 6.2 million)



• Supporting various rural development and poverty alleviation programs, including establishment of 12 solid waste transfer stations, development of tourism-related infrastructure, and enhance income-generation and employment generation in rural areas through the Enhanced Productivity Program (JD 20.2 million)