Conditions Precedent

Key Conditions Precedent
Key Compact Component(s)	Major Condition Precedent or Policy Reform Required	Rating
	All Projects As a CP to the compact, the Government of Jordan is required to develop and implement a cost recovery plan, which may include tariff reforms, to achieve full cost recovery of the O&M operations. (b) Prior to the first Disbursement of Program Funding after the second anniversary of the entry into force of the compact, the Government will have submitted an update to the plan originally submitted to MCC in November 2011. (c) Prior to the first Disbursement of Program Funding after the third anniversary of the entry into force of the compact, the Government will have submitted to the Council of Ministers a proposal, in form and substance satisfactory to MCC, requesting the tariff index adjustments identified in the plan.	1st Update Plan Submitted on April 1, 2014. The agreed tariff adjustments outlined in the Plan were implemented on May 7, 2014 when the Government of Jordan increased the wastewater tariffs by 15% and these changes became effective on July 1, 2014.
As-Samra Wastewater Treatment Plant Expansion Project	Cost recovery plan, to achieve cost recovery of the projected Treatment Charges as a result of the As-Samra Expansion Project. As a CP to the compact, the Government of Jordan is required to develop and implement a cost recovery plan, which may include tariff reforms, to achieve full cost recovery of the projected Treatment Charges as a result of the As-Samra Expansion Project. (2) Prior to the first Disbursement of Program Funding after the second anniversary of the entry into force of the compact, the Government will have submitted an update to the plan originally submitted to MCC in November 2011. (3) Prior to the first Disbursement of Program Funding after the third anniversary of the entry into force of the compact, the Government will have submitted to the Council of Ministers a proposal, in form and substance satisfactory to MCC, requesting the tariff index adjustments identified in the plan.	1st Update Plan Submitted on April 1, 2014. The agreed tariff adjustments outlined in the Plan were implemented on May 7, 2014 when the Government of Jordan increased the wastewater tariffs by 15% and these changes became effective on July 1, 2014.
As-Samra Wastewater Treatment Plant Expansion Project	Establish an improved regime for storage, reuse and/or disposal of sludge according to international best practices Prior to the first Disbursement of Program Funding after June 30, 2013 the Government will have provided a duly signed contract for the feasibility study for a facility or facilities for the permanent disposal of sludge from the As-Samra Expansion Plant. Prior to the first Disbursement of Program Funding after December 31, 2014, the Government will have provided evidence satisfactory to MCC, that the Government has committed sufficient funds for the construction of the facility or facilities for the permanent disposal of sludge from the As-Samra Expansion Plant.	Met Feasibility Plan CP met June 2013. Financing for final disposal facility secured by WAJ from KfW on Dec 04, 2014.