VZCZCXYZ0005
RR RUEHWEB

DE RUEHAM #8401/01 3180743
ZNR UUUUU ZZH
R 140743Z NOV 06
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC 5517
INFO RUEHDOI/DEPT OF INTERIOR WASHDC
RUEHEG/AMEMBASSY CAIRO 2725
RUEHTV/AMEMBASSY TEL AVIV 0248
RUEHJM/AMCONSUL JERUSALEM 4134
RUEHDM/AMEMBASSY DAMASCUS 3421
RUEHRH/AMEMBASSY RIYADH 1678
RUEHJI/AMCONSUL JEDDAH 0732

UNCLAS AMMAN 008401 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
State for OES/PCI - Salzberg and Blaine 
State also for NEA/ELA and NEA/RA - Lawson 
USAID for Miller and Deely and for ANE 
Cairo for USAID - David Barth 
 
E.O. 12958: N/A 
TAGS: SENV EAID PGOV EAGR JO
SUBJECT: Jordan's Water and Sanitation Sector 
 
Ref: A) State 128229 
     B) Amman 2108 
 
¶1.  (SBU) Summary: Jordan is a country that is critically and 
chronically short of water.  It has immense needs in its water and 
sanitation sector.  There is much potential for enhancing the 
already significant USG engagement in this sector.  A coordinated, 
multi-agency approach within the USG will promote a proper balance 
between infrastructure and a focus on water policy.  Improvements 
are under way, but are sometimes slowed or thwarted by bureaucratic 
obstacles.  Jordan is an excellent base for regional water 
initiatives.  End summary. 
 
 
------------------- 
USAID Water Program 
------------------- 
 
¶2. (U) The USG began helping Jordan cope with water and sanitation 
problems 50 years ago.  USAID is by far the largest donor in 
Jordan's water sector, and is currently supporting approximately 30 
projects.  The annual USAID/Jordan budget for water and environment 
activities is $45 million, with another $20 million equivalent of 
local currency.  When completed, these activities will benefit more 
than three million Jordanians.  Potable water supplies will have 
increased by more than 40 percent in Amman, 15 percent in Aqaba, and 
20 percent in the Northern Governorates.  About 62.6 million gallons 
per day of reclaimed water will be made available from new and 
upgraded wastewater treatment plants.  Additional activities with 
the GOJ help to improve water policy and enforcement.  Industrial 
collaboration helps reduce water demand and improves the quality of 
wastewater discharges.  At the local level, efforts focus on 
in-house management of water and increased productivity per unit of 
on-farm water used. 
 
¶3. (U) The commitment to partner with the U.S. is documented by 
these 50 years of collaboration and the many important achievements 
reached over that time.  The majority of investment has been in 
infrastructure improvements that have resulted in better services to 
millions of Jordanians.  Over the past decade, USAID has supported 
the GOJ in water sector policy development, planning, and resource 
management.  The focus has been on water resources monitoring, 
laboratory analysis, and information systems.  USAID work has helped 
develop Jordan's first National Water Strategy, as well as a series 
of policy statements on groundwater, wastewater, irrigation, and 
utility management.  There is still much to be done.  A balanced 
program between additional infrastructure improvements and policy 
focus will remain the Mission's goal. 
 
 
------------------------ 
Assessing Jordan's Needs 
------------------------ 
 
¶4.  (U) In spite of the significant, continuing bilateral 
cooperation, Jordan is still one of the ten driest countries in the 
world, and the needs in water and sanitation are huge.  Total 
projected gross water demand is expected to reach about 1,610 
million cubic meters (MCM) per year by 2020, but the annual 
long-term average volume of usable water is about 683 MCM per year. 
The GOJ estimates that groundwater is being used at twice the 
replenishment rate.  Only about 55% of the Jordan population is 
connected to a wastewater collector network.  Those not connected to 
wastewater disposal systems rely on cesspits and other on-site 
facilities.  Up to half of the water pumped for urban use is lost 
within distribution systems.  Water rationing is common due to 
shortages. 
 
--------------------------------------------- ----- 
Jordan's Commitment to Water and Sanitation Issues 
--------------------------------------------- ----- 
 
¶5.  (SBU) To address its water issues, the GOJ has developed a 
National Water Master Plan (NWMP).  The NWMP proposes to satisfy 
water demand with stringent water conservation policies and 
programs, and with new water from identified and yet-to-be 
identified sources.  The GOJ often looks to donors, and particularly 
USAID, where there has been a long and productive relationship, to 
construct new infrastructure and to rehabilitate existing 
infrastructure. 
 
 
¶6.  (U) The GOJ's preferred solution to drinking water shortages in 
Amman is the construction of three mega-projects.  The first is the 
USAID-supported $104 million Zara Ma'in project to design and 
construct a desalination plant and water conveyance system.  Zara 
Ma'in will provide over 40 million cubic meters (MCM) of water per 
year to the Greater Amman area.  The plant is in start-up mode, and 
is currently operating at 25% capacity.  It should be completed 
within a year. 
 
 
¶7.  (SBU) The second large water supply project is a proposed 
Build-Own-Transfer system to deliver 100 MCM per year of groundwater 
to Amman from the Disi Aquifer near Aqaba (ref B).  Since the Disi 
project is designed to tap into a non-renewable fossil aquifer, the 
project needs to ensure that the water is used only for high value 
uses.  The third proposed GOJ mega-solution is the multi-billion 
dollar Red Sea - Dead Sea Conveyance project, which would produce 
about 800 MCM per year of desalinated water for Jordan, the 
Palestinian areas, and Israel (ref B).  Note:  It remains to be seen 
whether these latter two projects make environmental and economic 
sense.  On Red-Dead, the USG has not taken a position on the project 
itself, but has committed to a $1.5 million contribution to a 
feasibility study that will address the technical, economic, 
environmental, and social aspects of the project. End note. 
 
----------------------- 
Successful Models Exist 
----------------------- 
 
¶8. (U) Over the years, there has been a great deal of success in 
improving water and wastewater infrastructure through USG-Jordan 
collaboration.  There is also a fledgling reform movement in the 
water sector.  Public sector utilities are beginning to move towards 
commercialization.  There is an interest in business-like approaches 
to water management, such as the Aqaba Water Company's initial 
success (supported by USAID).  USAID is supporting the Greater Amman 
Municipality's move in this direction.  Commercialization has 
sparked a host of benefits, including greater employee satisfaction, 
more efficient procurement of goods and services, faster consumer 
response time, and improved system efficiency. 
 
 
------------------------------------------- 
Many Opportunities for Continued Engagement 
------------------------------------------- 
 
¶9. (U) The USAID Jordan Water Resources and Environment (WRE) 
program is a blend of activities to help the GOJ meet current and 
projected near-term future water demand, while encouraging the 
government to make the changes needed for long-term sustainable 
management of water resources.  USAID has been collaborating with 
other USG agencies in this effort.  State, through its Environmental 
Hub Office in Amman, is a constant and regular strategic partner in 
these efforts.  USAID collaborates with the U.S. Geological Survey 
to improve groundwater management in Jordan.  Collaboration with EPA 
has improved understanding of industrial wastewater management and 
areas for additional investment.  The U.S. Forest Service has 
provided training to key GOJ staff in improved watershed management. 
 This multi-agency approach is productive and should continue. 
 
 
¶10.  (SBU) Given the likelihood that smaller, decentralized, 
demand-based approaches will be more cost effective and successful 
in the long run than some of the mega projects like Disi and 
Red-Dead, Post interlocutors of key GoJ water policy and other 
officials will continue ongoing efforts at emphasizing these 
priorities to the GoJ.  USAID is trying to work with the GOJ towards 
improving the inefficient water distribution network, and on 
charging consumers - especially in agriculture - what the water 
really costs.  The ultimate goal of USG assistance is to promote 
sustainable and efficient use of water in different sectors 
(agriculture, industry, domestic, environment) which maximize 
economic return.  Post will continue to emphasize to the GOJ the 
need for careful consideration of the long-term economic and 
environmental impacts of proposed solutions. 
 
 
¶11.  (SBU) To help mitigate the resistance in some quarters to 
institutional change in the Jordanian water sector and the 
administrative inefficiencies that hamper reform, greater 
involvement of stakeholders - particularly consumers - in water 
sector planning and decision-making is needed.  As in the case of 
many developing and developed countries, although there is some 
urban planning in Jordan, initial development plans are often 
ignored.  Plans are often changed at the will of large investors, 
with little thought for utility infrastructure or resource 
availability.  The politically influential, particularly wealthy 
farmers, often are able to flout government water use plans. 
Another area for ongoing and future water policy dialogue is that of 
subsidized delivery of water and its negative impact on balanced 
economic development, utility revenues, maintenance and customer 
service.  Mission officers will continue engaging the GoJ on these 
issues, with appropriate involvement of Post leadership with senior 
GoJ officials. 
 
 
----------------------------------------- 
Opportunities to Strengthen US Engagement 
----------------------------------------- 
 
¶12.  (SBU) Because of both Jordan's pressing needs and the obstacles 
that impede solutions, there are many additional opportunities for 
USG engagement in water.  Policy-level recognition within the GOJ of 
good water management practices is paramount and a goal to be 
pursued vigorously by Post.  Many of these opportunities build on 
past success or current activities, and include economic, political 
and technical changes, such as: 
 
 
ECONOMIC AND ADMINISTRATIVE CHANGES 
-- Encouraging water to be properly valued so that its uses in 
agriculture, households, industry and the environment can be 
properly compared; 
-- Regulatory reform in agriculture to encourage water 
conservation; 
-- Improving demand side management (reduction strategies) and 
pollution prevention in industry; 
-- Promoting water conservation and reuse; 
-- Improved water utility business practices (use of information 
technology, better metering, billing, and collection systems; cost 
recovery; establishment of corporate structures; encouraging 
adoption of water-conserving fixtures). 
 
GOVERNANCE 
-- Encouraging stronger implementation of existing water laws; 
-- Improved governance structures such as water user groups. 
 
TECHNICAL 
-- Supporting sound science for calculating the quantity of 
available surface water and groundwater; 
-- Loss reduction programs (to address leaks and unaccounted-for 
water); 
-- Wastewater treatment assessment and targeted investments in 
treatment infrastructure; 
-- Assistance to rural communities for water harvesting, 
landscaping, and aquifer recharge; 
-- Promotion of brackish water desalination; 
-- Promotion of use of treated wastewater, especially in 
agriculture. 
 
¶13.  (SBU) Post has developed a series of specific suggestions that 
address water policy issues.  These are currently being shared among 
multiple offices at Post.  The challenges facing Jordan's water 
sector are many, serious, and often deeply entrenched.  They will 
not be resolved easily.  However, a coordinated USG approach led by 
the Ambassador and drawing on the extensive and successful track 
record established by USAID represents a viable approach towards 
assisting the GoJ to meet these challenges. 
 
 
--------------------------- 
Leveraging Off Other Donors 
--------------------------- 
 
¶14.  (U) USAID is by far the largest donor in Jordan's water sector, 
giving the USG good leverage to implement water sector activities. 
Other significant donors include Japan, Germany, and the European 
Union, who are working to improve water distribution and wastewater 
systems, provide GOJ staff training, and support project 
administration.  Several other donors have activities in the water 
sector, and USAID coordinates with them through regular meetings. 
As a result of this coordination, USAID water programs complement 
many individual programs undertaken by the Japanese, the Germans, 
the EU, the French, the Swedes, the Swiss, the GOJ, and the 
Jordanian private sector.  The World Bank supports the Red Sea-Dead 
Sea Conveyance project by organizing donors and managing a trust 
fund for the feasibility study, to which the USG is contributing 
$1.5 million.  There is broad consensus in the donor community about 
the shortcomings and needs of Jordan's water sector.  The Mission 
will continue to coordinate with donors and share specific water 
policy suggestions. 
 
--------------------------------------------- -- 
Opportunities to Leverage Work in Other Sectors 
--------------------------------------------- -- 
 
¶15.  (U) Several opportunities exist for collaboration between 
USAID's Water Resources and Environment (WRE), Economic 
Opportunities (EO), and Social Sectors (democracy, governance, 
health) programs.  WRE training programs can integrate with 
vocational training efforts from EO.  Collaboration between USAID 
programs to improve business and environmental practices is 
possible, including industrial recycling and treatment of wastewater 
within the Qualifying Industrial Zones (QIZs).  Environmentally 
friendly disposal of industrial effluents is another cross-cutting 
topic.  A current WRE community-level program supports good 
governance, sound environmental practices, and promotion of public 
health.  Management of medical waste supports good health practices 
(Health Office) and good environmental practices (WRE). 
 
 
--------------------------------------------- ---- 
Specific Programs that Might Support Post Efforts 
--------------------------------------------- ---- 
 
¶16. (U) The USG, primarily through USAID, has made many significant 
investments in Jordan's water sector over the years.  These include 
building infrastructure, assisting with policy and planning, and 
promoting alternative technologies and approaches.  The USG has 
pushed a reform movement that could enhance efficiency, economic 
rationality, service delivery and system performance.  Post suggests 
that Washington support for regionally based technical programs in 
water would promote better stewardship of water resources and 
political goodwill.  NEA's EXACT Water Data Banks project, the 
Middle East Regional Cooperation (MERC) grants program, and MEPI 
funding for FTA-related environmental training are all good examples 
of modest investments promoting multiple goals: political 
engagement, environmental protection and sustainable economic 
development. 
 
¶17. (U) The USG contributes in many ways to address the daunting 
challenges in Jordan's water sector.  USG engagement at the 
pragmatic and the policy levels promotes economic development and 
improves the quality of life. 
 
HALE