Amman Water Corporatization / Commercialization Project

09/2005 to 9/2009

Program Goal / Need:
The Ministry of Water and Irrigation (MWI) of the Hashemite Kingdom of Jordan and the US Agency for International Development (USAID) Mission in Jordan retained the services of SEGURA to evaluate and implement a new model of management of the water services in the city of Amman. The main objective of the project was to recommend and implement the most suitable option for the operation and maintenance of the Greater Amman water & sanitation services, which covers approximately 40% of the country’s population.

Program Description:
During the First Phase of this project the consulting team conducted the following activities:

1) Evaluated the existing water & sanitation management models in the country, namely an international management contract for the City of Amman by LEMA (a consortium of European and US firms) and the recently corporatized Aqaba Water Company (AWC); and

2) Analyzed options based on international experience and best practices. The team then presented a third viable model, tailored for this specific situation. Having received the approval of the recommended model by the Ministry of Water and Irrigation (MWI), the team completed Phase Two of the project, i.e. the detailed feasibility study for the implementation of the recommended option. Based on the results of the feasibility study, the consultants provided the necessary technical assistance to the MWI during the transition period to the new model.

At the request of the MWI/WAJ, USAID/Jordan extended the Task Order contract on two occasions, to include additional support for the following initiatives: development of its first 5-year business plan and in the design of a sound medium-term financing plan; outsourcing of a Non-Revenue Water (NRW) management program; a study proposing the revised methodology for water tariff policy formulation and support in the implementation of the new system; organization and implementation of three (3) Study Tours to visit relevant locations of water & sanitation management models (in the USA, Colombia and Spain); and the preparation of a “Monograph” or “Case Study” documenting the Jordan corporatization reform process.

Program Results:
SEGURA supported by the Jordanian firms Interdisciplinary Research Consultants (IdRC) and Khalifeh & Partners (Law firm) worked closely with the team of the Water Authority of Jordan and the management staff of the water utility to create in January 2007 MIYAHUNA, the newly created “corporatized” Water Company. The company ( is in its fourth year of operations and together with Aqaba Water are examples of modern utilities with independent management and operations with continuous improvement of quality of services and introduction of efficient work practices to manage water distribution in areas with water scarcity problems.