Document of The World Bank Public Disclosure Authorized FOR OFFICIAL USE ONLY Report No: 28251-50 PROJECT APPRAISAL DOCUMENT Public Disclosure Authorized ON A PROPOSED LOAN IN THE AMOUNT OF US$38.0 MILLION TO THE HASHEMITE KINGDOM OF JORDAN FOR THE Public Disclosure Authorized AMMAN DEVELOPMENT CORRIDOR PROJECT April 30,2004 Finance, Private Sector and Infrastructure Mashreq Department Middle East and North Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective March 10,2004) Currency Unit = Jordanian Dinar Jordanian Dinar 0.709 = US$l.OO FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS ADC Amman Development Corridor ADCP Amman Development Corridor Project AFESD Arab Fund for Economic and Social Development AMA Amman Metropolitan Area ARC Aqaba Railway Corporation ARR Amman Ring Road ARR- 1 Amman Ring Road Phase 1 CRMP Cultural Resources Management Plan DoR Directorate ofRoads EIB European Investment Bank EMP Environmental Management Plan FMR Financial Monitoring Report GAM Greater Amman Municipality GCD General Customs Department GoJ Government of Jordan HJR Hedjazi Jordan Railway IRR Internal Rate of Retum JD Jordanian Dinar JPMC Jordan Phosphate Mines Corporation KP Kilometric Point LARP Land Acquisition and Resettlement Plan (also means the Resettlement Action Plan) LOS Level of Service MoE Ministry of Environment MoF Ministry of Finance MoPIC Ministry of Planning and International Cooperation MoPWH Ministry of Public Works and Housing MOT Ministry of Transport NPV Net Present Value PIP Project Implementation Plan PMT Project Management Team PTC Public Transport Corporation QIZ Qualified Industrial Zone RAP Resettlement Action Plan (also means the Land Acquisition and Resettlement Plan) RFP Request for Proposals RMF Road Maintenance Fund ROW Rights-of-way SA Special Account TOR Terms of Reference voc Vehicle Operating Costs VOT Value of Time Vice President: Christiaan J. Poortman Country ManagerDirector: Joseph P. Saba Sector Director: Emmanuel Forestier Sector Manager: Hedi Larbi Task Team Leader: Mohammed D. E. Feghoul FOR OFFICIAL USE ONLY JORDAN AMMAN DEVELOPMENT CORRIDOR Contents Page A . STRATEGIC CONTEXT AND RATIONALE................................................................................................... 7 1. Country and Sector Issues ......................................................................................................... 7 2 . Rationale for Bank Involvement.............................................................................................. 10 3. Higher Level Objectives to Which the Project Contributes..................................................... 11 B. PROJECT DESCRIPTION................................................................................................................................ 11 1. Lending Instrument.................................................................................................................. 11 2 . [IfApplicable] Program Objective and Phases ........................................................................ 11 3. Project Development Objective and Key Indicators................................................................ 11 4 . Project Components................................................................................................................. 12 5. Lessons Leamed and Reflected in the Project Design............................................................. 13 6. Altematives Considered and Reasons for Rejection................................................................ 13 C. IMPLEMENTATION............................................................................................................ 14 1. Partnership Arrangements (if applicable) ................................................................................ 14 2. Institutional and ImplementationArrangements ..................................................................... 14 3 . Monitoring and Evaluation ofOutcomeslResults .......................................... ....15 4. Sustainability ........................................................................................................................... 15 5 . Critical Risks and Possible Controversial Aspects ....... ........ 16 6 . Loan Conditions and Covenants .............................................................................................. 17 D . APPRAISAL SUMMARY . .......................................................................................... 17 1. Economic and Financial Analyses .......................................................... 2 . Technical.................................................................................................................................. 18 3 . Fiduciary .................................................................................................................................. 18 4 . Social ....................................................................................................................................... 20 5 . Environment ............................................................................................................................ 20 6 . Safeguard Policies ................................................................................................................... 21 7 . Policy Exceptions and Readiness ............................................................................................ 21 Annex 1: Country and Sector or Program Background . ............................................. 22 Annex 2: Major Related Projects Finan ............................................. 30 Annex 3: Results Framework and Monitoring ............................................. 31 Annex 4: Detailed Project Description .. ............................................. 33 Annex 4A: Detailed Description of Road Component ................................................................................................ 36 This document has a restricted distribution and may be used by recipients only in the performance of their official duties, Its contents may not be otherwise disclosed [without World Bank authorization. Annex 4B: Description of Inland Port Component ..................................................................................................... 44 Annex 4C: Restructuring ofTrucking Industry ........................................................................................................... 46 Annex 5: Project Costs . ................................................................................................................................... 48 Annex 5A: Financial Summary ................................................................................................. ........................... 49 Annex 6: Implementation Arrangements .................................................................................................................... 50 Annex 6A: Decision Establishing the Steering and Executive Committees. and the Technical Unit ......................... 53 Annex 7: Financial Management and Disbursement Arrangements ........................................................................... 55 Annex 8: Procurement . ................................................................................................................................ 63 Annex 9: Economic and Financial Analysis ................................................................................................................ 69 Annex 10: Safeguard Policy Issues ............................................................................................................................. 81 Annex 10.A: Environmental Management and Cultural Resources Management Plans ............................................. 81 Annex 10.B: Summary of the Land Acquisition and Resettlement Action Plan ....................................................... 116 Annex 11: Project Preparation and Supervision ........................................................................................................ 146 Annex 12: Documents in the Project File.................................................................................................................. 147 Annex 13: Statement of Loans and Credits ............................................................................................................... 148 Annex 14: Country at a Glance ................................................................................................................................. 149 Maps: IBRD No. 32998 IBRD No. 32999 JORDAN JO-AMMAN DEVELOPMENT CORRIDOR PROJECT APPRAISAL DOCUMENT MIDDLE EAST AND NORTH AFRICA MNSIF Date: April 30, 2004 Team Leader: Mohammed D. E. Feghoul Country Director: Joseph P. Saba Sectors: Roads and highways (100%) Sector Director: Emmanuel Forestier Themes: Other trade and integration (P) Sector Manager: Hedi Larbi Project ID: PO8 1505 Environmental screening category: Full Assessment Lending Instrument: Specific Investment Loan Safeguard screening category: Significant impact [XILoan [ ]Credit [ ]Grant [ 3 Guarantee [ ]Other: For Loans/Credits/Others: Total Bank Financing (US$ mil.): 38.00 Proposed Terms: Standard country terms for Jordan of 17 year maturity and five years grace. Commitment fees