Attachment J-5 ERA SOW.pdf

SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 ERA Goal

Jordan’s Economic Reform Agenda Prioritized and Implemented.

C.2 Development Hypothesis

If Jordan-led economic reforms are enabled, the business enabling environment is strengthened, export development and local, regional and international investment are promoted, and joint priorities of the Government of Jordan (GoJ) and the United States Government (USG) are addressed, then Jordan’s economic reform agenda will be prioritized and implemented.

C.3 Link to the Country Development Cooperation Strategy

The Economic Reform Activity supports the USAID/Jordan Country Development

Cooperation Strategy 1 goal of Development Objective 1 “Accelerate broad-based, inclusive economic development in Jordan” by contributing to Intermediate Result (IR) 1.1, “Private sector competitiveness increased,” and IR 1.2, “Economic opportunities increased, including for women and other vulnerable groups 2 .” While the Mission is currently in the process of preparing its next five-year strategy, ERA is expected to likewise support the DOs and IRs of the next strategy, as economic growth and stability will continue to be a top priority of the USG in Jordan.

C.4 Geographic Scope

This activity is anticipated to operate nationwide, with a focus on governorates with high growth potential to promote economic growth inside and outside of Amman.

C.5 Problem Statement

Jordan has endured slow growth and widespread economic stagnation over the past decade. The country’s recent economic decline was spurred by the global financial crisis in 2008, the Arab Spring in 2011, and was further compounded by plummeting oil prices in 2014, which severely

1 https:/ /www . usaid.gov/sites/default/files/documents/1883/Amended_Jordan_Country_Development_Strategy_November_2016 _1.pdf 2 Vulnerable groups include women, youth, refugees, people with disabilities, and minority groups.

http://www.usaid.gov/sites/default/files/documents/1883/Amended_Jordan_Country_Development_Strategy_November_2016 http://www.usaid.gov/sites/default/files/documents/1883/Amended_Jordan_Country_Development_Strategy_November_2016 reduced Gulf state contributions, and the growing threat of the Islamic State of Iraq and Syria (ISIS) in the region.

While these elements have pressured the economy in recent years, structural challenges, including a lack of exploitable natural resources, a labor force with mismatched skills and expectations of labor quality, and a perennial reliance on aid, have limited the growth and independence of the economy for far longer, despite domestic commitment to finding pathways to greater economic self-reliance. These challenges have limited Jordan’s ability to focus on its reform agenda and have led the country to become more reactive than proactive.

C.6 Context

The enduring strain on Jordan’s economy has been exacerbated by varying influences and constraints to growth. These include prevailing regional instability, the stagnation of surrounding economies, a sharp reduction in financial support from oil-producing states, and the closing of borders, leading to lower import purchases and investment among Jordan’s natural trade partners. These elements, coupled with rapid increases in refugee populations, fluctuations in tourism, an unpredictable regulatory environment that hinders the ease of doing business, including trade and investment, the low sophistication of domestic enterprises, imbalanced unemployment, disparate access to reliable infrastructure, and volatile energy costs, have all contributed to the economic contraction affecting Jordan. This state has been further intensified by evolving tax policy and ongoing corruption challenges.

While the challenges are robust, the opportunities and domestic potential give rise to a hopeful future. The GoJ has taken a proactive role in attempting to spur investment, support export promotion, and build national capacity. The private sector has pushed forward with new gains in increased formalization. Working together, bolstered by donor community support, the GoJ and Jordanian private sector can jumpstart the economy.

C.7 Constraints to Growth

The constraints to economic growth in Jordan can be roughly grouped into external and internal influences, though none are mutually exclusive. External influences include regional instability and stagnation, refugee surges, a perennial reliance on aid and external financing and related donor crowding, unpredictable Gulf state financial support and investment, and the closure of land borders with neighbors.

Domestic constraints to growth include a challenging and unpredictable environment for doing business, varying government effectiveness and efficiency, reduced exports and investment, low enterprise sophistication and limited innovation, and relatedly, an economy focused on low wage labor despite having a population of highly educated people, with particularly low women’s participation in the workforce, varying receipts from tourism, natural resource challenges including water and energy, and disparate access to infrastructure and transportation. Mitigating and reducing these constraints and expanding positive influences is seen as critical to turning the tide and unlocking Jordan’s growth potential. Annex C.1 includes expanded discussion on the constraints and influences to growth in Jordan.

C.8 Assets to Build

Despite the considerable challenges facing Jordan's economic growth and its reform agenda, there are many assets to build upon and opportunities to explore that will unlock growth. First and foremost, Jordan’s great asset is its people. Jordanians are a highly educated population that can be strategically tapped for growth, with particular potential stemming from the underemployed population of skilled women. The joint Arabic and English competency across a large swath of the country positions businesses to provide high value back office services to the region and the world. The burgeoning youth population, who by nature are more willing to take risks on innovation and entrepreneurship, are another key asset to develop.

Other assets within Jordan include: GoJ commitment to reform, the Kingdom’s broad regional and international relationships, geographic positioning, tourism potential, Information, Communications and Technology, the Investment Map, numerous other investment opportunities, and changing policies and attitudes towards women’s expanded economic participation. Annex C.2 includes expanded context on these assets to build.

C.9 Assumptions and Risks

This activity, its expected implementation, and ultimately its impact and success, is not without assumptions and risks. Key assumptions include:

- Jordan does not face any new external economic shocks or crises, or an unknown factor similar to the global financial crisis or the Arab Spring;

- The region returns to its early 2000s stability conditions, ISIS is eradicated, and the main traditional borders around Jordan are safe and reactivated;

- Jordan does not receive or face a new external refugee crisis and current refugee levels are maintained or decreased;

- The country’s exports will grow by five percent annually;

- The country will be able to attract additional volumes of investments in local, regional, and foreign investments;

- The GoJ will be managed by consistent leadership for at least the next two years and subsequent leadership will have at least a two year life cycle;

- The GoJ will prioritize its reform agenda to map out the country’s journey towards economic growth;

- This prioritized reform agenda is unified, consensus-driven, public, and dynamic;

- The donor community is coordinated behind the reform agenda, works to avoid duplication of effort, and spread support across prioritized reform initiatives;

- The GoJ establishes an entity with sufficient resources to:

- Oversee the implementation of its full reform agenda;

- Reduce risks associated with the reform agenda and remove progress blocks;

- Routinely communicate with the public on the progress made and the challenges faced;

- Gather and coordinate economic assistance Jordan is receiving in various forms of aid towards the unified reform agenda; and

- Coordinate financial support for its reform agenda.

- Jordan secures adequate funding for its reform agenda;

- The Jordanian economy will continue to grow, its Gross Domestic Product (GDP) growth does not drop below two percent, and it will meet the expected IMF and World Bank growth rates;

- The federal debt will drop as a percentage of GDP;

- The macro fiscal stability of the country will make progress toward safe rates with a successful and continued International Monetary Fund (IMF) program/review;

- The private sector, civil society, and other stakeholders are active players in the country’s journey towards economic growth;

- Trust between the public and private sector is built and nurtured;

- The policies, once passed, will be supported for broad implementation and the public and private sector will embrace the new regulatory environment;

- Appetitive for financial risk for the purposes of business growth will increase with greater information and market formality;

- Donor funding will remain at current or higher levels; and

- Donor engagement will remain constant and coordination will increase.

Key risks that must be acknowledged include the following:

- The economic outlook for the country;

- The country’s macroeconomic status and improvements;

- Monetary policy changes;

- Instability of the region;

- New and unanticipated economic or political shocks;

- Domestic protesting as a result of reform that cause delays or reversals;

- Change in GoJ leadership may not build on prior reform agendas;

- The evolving capacities of the GoJ and related limitations of the civil service pay scale;

- Public and private sector will to implement and embrace reform;

- The private sector is or is perceived to be excluded from the reform process; and

- The International Community’s support of the Jordan-led reform agenda is convoluted by other inconsistent or competing agendas.

This is Jordan’s opportunity to demonstrate to its citizens that it is working seriously and systematically to make their lives better. Any dramatic shifts in assumptions and/or realization of risks could slow or derail the reform agenda. Remaining aware of the broader evolving context, while working at a technical level, will be a challenge that faces each Task Order Contractor of this IDIQ, and will be tracked through Task Order MEL Plans.

C.10 Technical Components and Results

The goal of the activity is for Jordan’s economic reform agenda to be prioritized and implemented.

The GoJ has explored and enumerated the country’s economic reform agenda through multiple documents. The GoJ Renaissance Plan and the Five-Year Growth Matrix 3 , and any subsequent prevailing reform agendas, will guide implementation. It is expected that Task Orders will catalyze systemic economic changes, those that affect all sectors of the economy, and sectoral ones that affect key industries.

Enabling the implementation of the State of Production chapter of the Renaissance Plan and its Pillar

1) Supporting Entrepreneurship, Enterprise, and Exports and Pillar 2) Investments, as well as the Five-Year Growth Matrix Pillar 2) Reduce Business Costs, Improve Regulatory Quality, and Increase Competition, and Pillar 3) Drive Foreign Direct Investment and Promote Export Development (of Products, Services, and Markets), will be a priority focus of Task Orders.

Other pillars in the respective reform agenda documents are not anticipated to be heavily incorporated in implementation but may be included in interventions.

The overlap between the activities targeted in the two reform agendas is significant.

3 The GoJ reform agendas can be found here: https://jordankmportal.com/collections/economic-reform-in-jordan

Support through the provision of technical assistance and capacity building to the GoJ to prioritize, manage, and, where needed, eliminate the overlap between the documents will be a key responsibility of the Task Order Contractor(s).

ERA will remain dynamic and responsive to the priorities of the GoJ’s economic reform agenda and the results framework (RF) (see Annex C.3) shared here will evolve based on the needs of the economic reform landscape in Jordan.

ERA will consider gender disparities, priorities, and norms within the context of the activity to ensure economic reform approaches mitigate and do not perpetuate or escalate gender challenges and work to unlock gender constraints. Jordan continues to face gender issues, including low rates of female participation in the labor market, persistent gender stereotypes about the role of females and males, and conservative norms that restrict the ability of females to make decisions about their lives. Women are the key untapped natural resource in Jordan. The Contractor(s), through Task Orders, will incorporate gender considerations throughout implementation. They will identify how they will thoughtfully incorporate gender relative to the reform agenda throughout all interventions.

C.10.1 Economic Reform Activity Results Framework

A visual representation of the ERA Results Framework is found in Annex C.3.

Component 1/Result 1 - Jordan-led Economic Reform for Self-Reliance Enabled Sub-component/IR1.1 - GoJ Reform Secretariat functioning Sub-component/IR1.2 - Priority reforms independently advanced and institutionalized Sub-component/IR1.3 - Donor and stakeholder resources and engagement coordinated

Component 2/Result 2 - Business Enabling Environment Strengthened Sub-component/IR2.1 - Economy-wide competitiveness improved Sub-component/IR2.2 - Firm competitiveness promoted

Component 3/Result 3 - Export Development and Foreign Direct Investment (FDI) Promoted

(including Products, Services, and Markets) https://jordankmportal.com/collections/economic-reform-in-jordan

Sub-component/IR3.1 - Export competitiveness and promotion enhanced Sub-component/IR3.2 - Investment promotion and facilitation improved

Component 4/Result 4 Joint Priorities of the GoJ and US Addressed Sub-component/IR4.1 - Constraints to growth reduced Sub-component/IR4.2 - Assets to build supported

C.10.2 Component/Result 1. Jordan-led Economic Reform for Self-Reliance Enabled Jordan has established an agenda to reach desired economic growth targets.

Driving accountability, transparency, and implementation of that reform agenda will require that the GoJ provide clear leadership and develop internal capacity and external communication to deliver on its commitment to its citizens. The Renaissance Plan and the Five-Year Growth Matrix, along with other GoJ-developed reform agendas, necessitate that the GoJ expand its capacity and potential to guide and implement reforms.

To execute the reform detailed in the various reform agendas, Jordan needs a functioning Reform

Secretariat to provide clear leadership, coordination, internal capacity development, and strategic communications with all stakeholders.

Sub-component/IR 1.1 - GoJ Reform Secretariat Functioning

In close coordination with the Ministry of Planning and International Cooperation and other entities involved in the setup of the Secretariat, the IDIQ Contractor(s), through Task Orders, will support the establishment of a functioning Reform Secretariat which will lead the implementation of the prioritized economic reforms from following:

- The GoJ Renaissance Plan;

- The Five-Year Growth Matrix; and

- Future GoJ developed reform agendas.

Through Task Orders, the IDIQ Contractor(s) will provide support and resources to build the Reform

Secretariat’s capacity to lead Jordan through its journey for economic growth and beyond to self-reliance. The IDIQ Contractor(s), through Task Orders, will invest in the capacity of the Secretariat to pursue public procurement, navigate government processes, and develop the capacity of other GoJ institutions to support the reform agendas. The IDIQ Contractor(s), through Task Orders will enable the GoJ Secretariat to monitor and learn from the reform process and improve implementation. The IDIQ Contractor(s), through Task Orders, will pursue interventions that enable the GoJ to independently move their reform agenda forward.

While considerable support and resources will be provided through ERA to the GoJ, the independent ability of the GoJ to procure and implement reforms must be the ultimate outcome of interventions with the Secretariat.

Wherever applicable, the IDIQ Contractor(s), through Task Orders, will embed exit strategies to ensure long term sustainability for all of the activities under this sub-component.

Sub-component/IR 1.2 - Priority reforms independently advanced and institutionalized

While the Reform Secretariat is being established, the IDIQ Contractor(s), through Task Orders, will assist the GoJ and the Jordanian private sector to ensure that their reform priority list is dynamic and up-to-date and will provide technical and legal assistance to move reforms forward. The IDIQ Contractor(s), through Task Orders, will also build the capacity of the GOJ to monitor and learn from the reform process to improve onward implementation.

It will ultimately be a function of the Secretariat to manage the economic reform priorities of the GoJ and the Jordanian private sector to keep the reform agenda moving forward and respond to priority shifts.

The IDIQ Contractor(s), through Task Orders, will support investments in building internal technical capacity, to complement the leadership capacity, and to allow for sustainability beyond the life of the activity. In all interventions, the Task Order Contractor will enable the GoJ to do reform implementation work independently, understanding that it may be less efficient and require greater upfront human and financial resource investment. The sustainability and institutionalization of new processes and faculties within the GoJ is paramount in all interventions, as is improving the working relationship and mutual respect between the GoJ and the Jordanian private sector for the purposes of advancing implementable policy.

Sub-component/IR 1.3 - Donor and stakeholder resources and engagement coordinated

The work comprised within the reform agendas is extensive and will demand substantial funding which will come from numerous and varied sources. The Secretariat will be responsible for coordinating those resources and, at a future point, independently managing some of those resources through GoJ systems to ensure the funds are directed, designed, and executed.

The IDIQ Contractor(s), through Task Orders, will assist the Secretariat to build its capacity to generate, coordinate, and guide donor support for reform activities, to establish appropriate funding vehicles or facilities to conduct direct implementation, and to build internal systems and capacity to support that will enable that direct implementation.

Specific tasks under Component 1 will be further defined in Task Orders, as appropriate. They may involve, but not be limited to, the following tasks:

- Establish the Terms of Reference for the Reform Secretariat;

- Develop human resource tools and systems to enable the Secretariat to achieve its goals and objectives;

- Provide support and resources to build the Secretariat’s capacity to sustainably lead the

GoJ’s implementation of reforms;

- Provide technical assistance to the Secretariat to navigate government processes and develop the capacity of GoJ institutions to support the reform agendas;

- Enable the Secretariat to monitor and learn from the reform process, while creating a feedback mechanism to strengthen reforms;

- Develop a sustainability and independence plan for the Secretariat;

- Develop a strategy to integrate communications activities into the reform process;

- Produce communications materials and products supporting implementation of reforms.

C.10.3 Component/Result 2. Business Enabling Environment Strengthened Strengthening the business enabling environment (BEE) in Jordan is crucial for expanding domestic businesses, attracting investments, and increasing employment. Joint priorities across the Renaissance Plan and the Five-Year Growth Matrix focus on economy-wide BEE interventions and those at the firm-level.

Some areas of focus on the BEE policy front include improving regulatory practices, reducing regulatory overlap, and enacting and implementing priority legislation. For firm-level interventions, supporting ease of business entry or formalization, incubation and acceleration of startups, increasing firm sophistication and appetite for innovation, and improving overall firm performance are all key points for engagement.

Sub-component/IR2.1 - Economy-wide competitiveness improved

Jordan’s competitiveness environment is constrained by the extensive and often opaque administrative requirements imposed by government agencies. The BEE environment needs reform that can directly affect business operations and the ability to invest, hire, and grow.

The IDIQ Contractor(s), through Task Orders, will support the GoJ to analyze, consult on, draft or revise, finalize, and implement reforms coupled with capacity building and training of the GoJ staff that will interact with the end user of those reforms.

Where appropriate, the IDIQ Contractor(s), through Task Orders, will support the GoJ in carrying out targeted awareness campaigns on policy reforms. In the Renaissance Plan and the Five-Year Growth Matrix, key policies for reform include but are not limited to the Competition Law, Public Private Partnerships Law, Investment Law, Companies Law, Bankruptcy Law, and Insolvency Law. Depending on political will and appetite, these may be critical to moving the business environment forward.

The IDIQ Contractor(s), through Task Orders, will provide technical assistance to the GoJ’s regulatory rationalization effort on a macro and sector specific level.

Regulatory rationalization (referred to as the “regulatory guillotine” in GoJ documents), including efforts to reduce the overall number of policies and regulations, deconflict overlapping regulations, and simplify existing policies, will be critical in easing unnecessary pressure on the private sector, decreasing corruption, and supporting growth.

The IDIQ Contractor(s), through Task Orders, will analyze Jordan’s performance in the components of the World Bank’s Doing Business Report and World Economic Forum’s Global Competitiveness Index (GCI), and propose and deliver specific actions for priority reforms to improve Jordan’s ranking, to complement the key proposed reforms from the respective reform agendas. The IDIQ Contractor(s), through Task Orders, will propose direct implementation opportunities where appropriate.

The IDIQ Contractor(s), through Task Orders, will also enable direct implementation of specific policy reforms that focus on firm competitiveness or sector growth that are not covered in the above mentioned documents or international indicators, as driven from direct dialogue with the private sector, key business associations, and research think tanks.

Sub-component/IR 2.2 - Firm competitiveness promoted

Firm-level interventions will complement policy interventions to translate theory into practice. The ultimate test of Jordan’s economic reform will be if firms emerge with a greater ability to compete with each other domestically and to successfully compete in markets abroad. Firm-level interventions will focus on enabling the growth of anchor firms (defined below).

While micro and small enterprises employ a majority of the Jordanian private sector and are fundamental to the economy, they largely are limited in their ability to serve as employment growth engines, and will not be the target beneficiaries for ERA.

To complement the work of other USAID activities that will focus on micro, small, and medium enterprises, ERA will focus on assistance to anchor firms with the ability to scale operations.

Anchor firms are those private sector firms that deliver wide economic advantages as they act as hubs in supply chains, are more likely to be active in global trade and investment, and spend more on innovation through research and development. The IDIQ Contractors(s), through Task Orders, will propose a method for recommending firms to receive direct assistance through ERA activities or referring them to alternative sources of support. The IDIQ Contractor(s), through Task Orders, may propose assisting startups, but these must be those that have the potential to become anchor firms within the economy. The IDIQ Contractor(s) through Task Orders, will focus on firms that have scalable potential to increase employment, especially of women and youth, and exports and investment. Jordanian-owned firms will be a primary focus of interventions.

The IDIQ Contractor(s), through Task Orders, will invest resources in co-work planning on the issue of direct firm level assistance with any other USAID activity that will be operating in this space, as determined by USAID. They will be expected to develop a clear tracking system to make sure that USAID is coordinating efforts and beneficiaries are prevented from double-dipping across multiple donors and USAID activities.

Low enterprise sophistication along with associated limited innovation constrains the economy. For innovation to occur, capital, institutions, and technological progress must creatively interact to induce economic growth. Since innovation, including research and development, can in many cases be easily replicated, economic agents have an incentive to free-ride.

This makes it difficult for innovators to capture adequate returns on investment in innovation and engage in the process of identifying the products or technologies in which the investment is worth the allocation of scarce resources. The IDIQ Contractor(s), through Task Orders, will assist the GoJ and private sector in creating an environment for the economic ecosystem to nurture innovation and address elements that constrain innovation.

The various business incentive schemes that exist in Jordan may distort the market unnecessarily and may inhibit growth. The IDIQ Contractor(s), through Task Orders, will analyze existing incentive schemes and recommend possible modernization efforts to undertake. Clear recommendations regarding which incentives should remain, those that should be phased out, and which new incentives should be considered by the GoJ will be included in the analysis.

Specific tasks under Component 2 will be further defined in Task Orders, as appropriate. They may involve, but are not limited to, the following tasks:

- Support the GoJ to analyze, consult on, draft or revise, finalize, and implement reforms coupled with capacity building and training of GoJ staff interacting with the end user of those reforms

- Support the GoJ in targeted awareness campaigns on policy reforms

- Assist the GoJ in reforming at least four economy-wide policies. Those to be considered for revision include: Competition Law, Public Private Partnerships Law, Investment Law, Companies Law, Bankruptcy Law, and Insolvency Law

- Conduct a regulatory rationalization assessment, enumerating regulatory overlap and areas for consolidation

- Analyze regulatory issues within sectors to ensure regulatory rationalization enables greater trade and investment

- Analyze Jordan’s performance in the components of the World Bank’s Doing Business Report and World Economic Forum’s GCI, and propose specific actions for priority reform to improve Jordan’s ranking

- Propose a method for identifying and recommending anchor firms for assistance

- Provide assistance to firms that have scalable potential to increase exports, investment, and employment, especially of women and youth

- Re-examine and update the existing Jordan Innovation Strategy and recommend an action plan for developing the innovation landscape, including possible actions for both the public and private sector

- Conduct an incentives scheme review and develop an action plan in consultation with relevant stakeholders and support the GoJ in modernization efforts

C.10.4 Component/Result 3. Export Development and Local, Regional, and International Investment Promoted (Including Products, Services, and Markets)

Export development and investment attraction are heavily influenced by the BEE in Jordan. While the IDIQ Contractor(s), through Task Orders, are implementing BEE and firm-level interventions, they will pursue export competitiveness and promotion enhancements along with investment facilitation and promotion activities, noting that component activities will have overlap and remain interdependent. The IDIQ Contractor(s), through Task Orders, will assist Jordan in increasing investment and growing national exports.

Sub-component/IR 3.1 - Export competitiveness and promotion enhanced

To achieve export growth, the IDIQ Contractor(s), through Task Orders, will assist the GoJ in establishing a lean, focused export agency, provisionally titled Jordan Export (JE) (JE, previously discussed as Enterprise Jordan but later launched as Jordan Export), which will lead and implement export growth services. As this entity is established, the IDIQ Contractor(s), through Task Orders, will provide support spanning entity design, governance, implementation, long-term sustainable financing, stakeholder coordination, marketing, and promotion.

Building on work already undertaken by USAID through other activities, the IDIQ Contractor(s), through Task Orders, will assist Jordan to expand and grow the economy through better utilization of existing free and preferential trade agreements, to include those of The United States, The European Union, and others as they may be applicable. The IDIQ Contractor(s), through Task Orders, will provide technical assistance on trade facilitation measures, such as legal gap analysis, reviewing and expanding relevant international standards adherence among firms, relevant policy reform, and the development of a trade facilitation action plan.

The IDIQ Contractor(s), through Task Orders, will conduct a trade corridor assessment and develop an action plan to unlock identified corridor constraints. As Jordan is geographically a crossroads of commerce and services in the region and a nearly landlocked economy, this plan will develop approaches for better positioning Jordan for regional and global trade while improving its economic prospects.

The IDIQ Contractor(s), through Task Orders, will also assess possible alternative trade markets, including Africa, develop a strategy for exploration of new markets for Jordanian goods and services, and assist JE and relevant stakeholders in its implementation.

Sub-component/IR 3.2 - Investment promotion and facilitation improved

As Jordan improves its promotion of exports, it must couple that work with positioning itself as an attractive and safe destination for local, regional, and foreign investment. The IDIQ Contractor(s), through Task Orders, will provide support to stimulating investment across the Kingdom. Namely, they will assist Jordan in analyzing its current systems, offerings, and regulations around investment promotion and facilitation and identify ways to increase the volume of local, regional, and foreign investment in the country to meet targets set in the Renaissance Plan and other reform agendas.

The IDIQ Contractor(s), through Task Orders, will build on the previous USAID interventions and will conduct an assessment of the investment space, including the Jordan Investment Commission (JIC) and its Investment Promotion Department, and provide recommendations on how the space can be improved to better solicit investment and robustly build Jordan’s investment pipeline. Investments will be pursued in both the goods and services sectors, with a particular focus on those sectors where Jordan maintains a comparative and competitive advantage. This assessment will include reviewing the broad investment landscape, mandates, functions, units, merged functions, and engagement with the Special Economic Zones 4 . The IDIQ Contractor(s), through Task Orders, will include recommendations for strengthening the capacity and impact of the investment space, relative to best practice, to ensure Jordan will continue to retain and attract new investment to the country, especially ones that have higher potential for generating employment opportunities for women and youth, and promote Jordan as a safe and desirable investment destination.

As part of the assessment, the IDIQ Contractor(s), through Task Orders, will evaluate and compare

Jordan’s investment promotion approach to international best practices and develop a framework to modernize their approach. The IDIQ Contractor(s), through Task Orders, will provide technical assistance and support to enable the implementation of the investment modernization framework. The IDIQ Contractor(s), through Task Orders, will provide support for mobilizing and organizing diplomatic missions for export and investment functions, engage men and women and activate the strong Jordanian Diaspora to mobilize capital, and will support JIC engagement with the Public Private Partnership (PPP) Unit and Special Projects Unit, and/or any new structure that might be added to the PPPs space.

The IDIQ Contractor(s), through Task Orders, will propose a framework for assessing the country’s deals pipeline and will coordinate institutional development work within this space to ensure a common path forward, including supporting the GoJ to streamline the engagement of stakeholders working on these deals. The IDIQ Contractor(s), through Task Orders, will advance identified priority investment projects from GoJ’s pipeline to fruition and provide facilitation guidance.

The Jordan Investment Map highlights specific investment opportunities in the economic, industrial, agricultural, tourism and services sectors that would contribute to job-creation for men, women, and youth in each governorate.

4 With the aim of attracting foreign investment, creating employment opportunities and boosting exports, the GoJ established a number of special economic zones and free zones in the Kingdom, where preferential arrangements are made for companies that have growth and employment potential.

The IDIQ Contractor(s), through Task Orders, will assist the relevant GoJ stakeholders in validating and updating the assumptions related to the map, and prioritizing at least three investment projects in each governorate, building capacity to package and facilitate deals, accelerating market readiness, and utilizing roadshows to promote the projects.

Specific tasks under Component 3 will be further defined in Task Orders, as appropriate, and may include work alongside the GoJ Ministry of Planning and International Cooperation, and other relevant line ministries, to accomplish:

- Provide comprehensive support to the establishment of a lean, focused export agency (JE).

- Assist the GoJ in entity design, governance, implementation, long-term sustainability, financing, stakeholder coordination, marketing, and promotion.

- Support exploration of non-traditional markets, including Africa, as determined by market research, to absorb Jordanian goods or services.

- Build the capacity of packing and marketing firms in Jordan; this assistance model will be linked to the services offered by JE.

- Provide technical assistance on trade facilitation (e.g. legal gap analysis, policy reform, international standards).

- Carry out a trade corridor assessment, socialize it with stakeholders, and co-develop an action plan.

- Conduct assessments on current systems, offerings, and regulations around investment promotion and facilitation, including comparison to international best practice.

- Develop a modernization framework for investment.

- Mobilize and activate the diplomatic missions in Jordan to promote export and investment.

- Engage the Jordanian Diaspora in the country’s effort to expand exports and investment.

- Propose sectors for investment promotion, especially those with high potential to positively impact women and youth.

- Develop a unified investment framework for Jordan as a country; this to include the work around PPPs.

- Develop a unified investment pipeline, with a direct link to any unit or government agency that is working on PPPs, Public Expenditure Projects, or Mega Projects.

- Design Public Private Dialogue platform to facilitate strategic investment projects.

C.10.5 Component/Result 4. Joint Priorities of the GoJ and USG Addressed

Addressing the joint priorities of the GoJ and USG is key for Jordan’s economic reform agenda implementation. This component will cover interventions not being addressed in other components of the IDIQ and will focus on unlocking the constraints to economic growth in Jordan and the assets that Jordan has to build upon and opportunities to explore that will underpin success. Annex C.1 and Annex C.2 include expanded discussion on the constraints and influences to growth in Jordan as well as the expanded context on these assets to build.

Sub-component/IR 4.1 - Constraints to growth reduced

The IDIQ Contractor(s), through Task Orders, will address constraints to growth in Jordan, including those discussed in Annex C.1: Constraints to Growth. Mitigating and reducing constraints and expanding positive influences are critical to turning the tide and unlocking Jordan’s growth potential.

Sub-component/IR4.2 - Assets to build supported

The IDIQ Contractor(s), through Task Orders, will work to unlock assets within Jordan, including those discussed in Annex C.2: Assets to Build. While Jordan does not possess a preponderance of traditional natural resources, there are many exploitable assets within the country that require support and strategic investment. Activities will be designed to enable expansion of those assets to grow the economy.

C.11 Management and Coordination Considerations

Location: At the Task Order level, the Contractor(s) will be based in Amman, with primary and/or satellite office locations that will best meet project needs. Any operational presence in the governorates will be justified and approved by the cognizant Contracting Officer.

Task Order Management: The Contractor(s) will have the ability and resources to respond to and implement multiple Task Orders and propose adequate key personnel structures for individual Task Orders.

Flexibility in Implementation: The contract will be implemented in a complex environment. The

Contractor(s) will work with the GoJ, private sector, civil society, key partners, donors, and others on common issues where authorities overlap and interests may clash. Issues of security and regional stability could be an evolving concern.

Key features in industry markets and economic realities may also change during implementation.

Levels of funding not only from USAID but other donors and stakeholders could fluctuate.

Contract implementation will therefore be flexible, allowing for shifts in component focus and geographic focus if and as needed. Significant changes in focus require the written agreement of

USAID.

Co-Work Planning with Complementary USAID/Jordan Activities and Other Coordination: The

IDIQ Contractor(s), through Task Orders, will conduct, at a minimum, annual co-work planning with complementary USAID/Jordan activities. The co-work planning partner activities are expected to include, but are not limited to, the Enterprise Support Activity (ESA) and the Women’s Economic Empower and Leadership Activity (WEELA). The Task Order Contractor(s) will propose a co-work planning approach for coordination with ESA and

WEELA.

Learning from Prior Donor Work: Jordan and the US have a long history of partnership. Throughout this partnership, copious research, reports, data, analysis, and other tools have been developed.

Additionally, several USAID and other donor activities will be online while ERA is implemented.

The IDIQ Contractor(s), through Task Order(s), when and where possible, will build on the previous investments by USAID, and fellow donors. This means when USAID issues a Task Order under this IDIQ, contractors are expected to:

1) Perform desk research to identify what USAID has done under its various activities within the economic development portfolio, or other technical offices, if relevant, as well as other donor activities and GoJ efforts, 2) determine how they can build on what has been done and maintain lessons learned from past experiences, and 3) avoid repetition of effort or duplication.

Furthermore, the Contractor(s) will frequently consult the following online resources:

Development Experience Clearinghouse (DEC) (https://dec.usaid.gov) and Jordan’s Knowledge Management Portal (https://jordankmportal.com/).

Many donors working in Jordan operate within the space of BEE, regulatory reform, and economic competitiveness. This translates to a crowded, heavily funded economic development space in Jordan, leading to the need for strong donor coordination.

Therefore, the IDIQ Contractor(s), through Task Orders, may be asked to maintain a donor mapping master sheet to ensure a) stakeholders are aware of what assistance exists in Jordan in relation to the work that is expected to be performed under this IDIQ, b) funding levels available for economic reform is demystified, and c) creative solutions are built and leveraged.

This will support integrated donor coordination and collaboration. The IDIQ Contractor(s), through Task Orders, will also propose a donor coordination approach.

USAID may use funds from other USG agencies or funds from international donors to implement task order under this IDIQ.

Sustainability: With added focus on self-reliance, with an emphasis on domestic capacity and nurturing host-country commitment, the IDIQ Contractor(s), through Task Orders, will work incrementally toward sustainability in all interventions. Sustainability approaches should not wait for the final years of Task Orders to be fully embraced. USAID recognizes that it is unlikely that all intervention successes will lead to full sustainability. However, it is expected that sustainability and domestic capacity building will take priority over potentially more swift ‘parachuting’ in of external resources.

Political sensitivities: The IDIQ Contractor(s) will steer activities in a clear and consistent direction even while working with multiple layers of government that may disagree on key issues and in the face of evolving decentralization initiatives. Activities will also undermine existing ways of doing business (for example, monopolistic sector control) and may face resistance to doing business differently.

The IDIQ Contractor(s), through Task Orders, will build alliances with the government and private sector, manage politics carefully, and consult USAID if/when any challenges emerge. These considerations will place unusual demands on the Task Order Contractor(s) to understand the various interests at stake, navigate between them, and find common ground that counterparts can agree on. The IDIQ Contractor will emphasize that it does not speak for the USG on issues of policy or jurisdictional disputes and will refer such issues to USAID.

Inclusive Development : USAID is committed to the inclusion of people who have physical and cognitive disabilities and those who advocate and offer services on behalf of people with disabilities. This commitment extends from the design and implementation of USAID programming to advocacy for and outreach to people with disabilities.

USAID’s policy on disability is as follows: to avoid discrimination against people with disabilities in programs which USAID funds and to stimulate an engagement of host country counterparts, governments, implementing organizations and other donors in promoting a climate of nondiscrimination against and equal opportunity for people with disabilities. The USAID policy on disability is to promote the inclusion of people with disabilities both within USAID programs and in host countries where USAID has programs.

USAID therefore requires that the Contractor not discriminate against people with disabilities in program implementation and that it make every effort to comply with the objectives of the USAID Disability Policy in performing this contract. To that end and within the scope of the contract, the Contractor’s actions must demonstrate a comprehensive and consistent approach for including men, women and children with disabilities.

Utilization of GUCs: Funds may be made available in some Task Orders for the award and administration of grants but are not currently planned and is not approved at the IDIQ level.

GUC may be utilized under this IDIQ to promote local ownership and capacity building of local partners across various activities.

To the extent possible, the IDIQ Contractors(s), through Task Orders, will provide in-kind assistance, meaning that funds are not transferred directly to the recipient institution. In these circumstances, the Task Order Contractor(s) will procure and deliver goods and services directly to the recipient institution. The IDIQ Contractor will solicit, negotiate, award and administer grants under Task Orders. These grants will be secondary or minor to the overall work performed under the Task Order. See section H.12 or the GUC provision.

The Task Order Contractor(s) will coordinate with the Task Order Contracting Officer’s Representative on grants management tasks that include the following for working with local organizations throughout each phase of the award process: 1. Pre-Solicitation Phase: Develop the solicitation 2. Solicitation Phase: Issue/advertise opportunity, hold solicitation conferences 3.

Evaluation Phase: Screen potential grantee partners, evaluate proposals consistent with USAID policies at ADS 303 and procedures and document the proposed awardee selection. The Task Order Contracting Officer will first approve grants unless otherwise stated in the Task Order.

The process for approving grants will be specified in individual Task Orders. 4. Award Phase:

Establish grants in accordance with USAID policies. 5. Post-Award Phase: Monitor implementation and deliverables and grant close-out as directed in the Task Order.

C.12 Monitoring, Evaluation, Learning, and Reporting

The IDIQ Contractor(s) at the Task Order level will develop an Activity Monitoring, Evaluation, and Learning (MEL) Plan with a theory of change and logic model such as a results framework to measure progress toward results.

The ERA results framework is described in this SOW, and Task Order logic models will address the

ERA contract’s goal, results, and IRs. Indicators at the Task Order objective and purpose level will be outcome-focused to the maximum extent possible.

The Task Order MEL Plans will explain the contribution of the Task Order results to the overall

ERA results framework, and how TO results will be monitored, data flow, including staff roles and responsibilities, why specific indicators were chosen, how data baselines and targets will be established and how data will be collected over time.

The Task Order Contractor(s) will include in the Task Order Activity MEL Plans at least one indicator from the Department of State’s Office of Foreign Assistance (F) indicators list, or propose custom indicators for each result of the Task Order activity. Potential standard indicators to consider include (but are not limited to) the following:

● United States Dollars (USD) of sales of firms receiving USG-funded assistance.

● Number of firms receiving USG-funded technical assistance to export.

● Number of firms receiving USG assistance that have obtained certification with

(an) international quality control institution(s) in meeting minimum product standards.

● Number of firms receiving USG assistance that report increased exports, sales or profitability.

● Average time (in hours) to trade goods along trade corridor receiving USG assistance.

Possible custom indicators will include at least one that measures policy reform, and could include:

● Number of enabling environment policies analyzed, consulted on, drafted or revised, approved, and implemented with USG assistance.

The Task Order Contractor(s) will assure that all data collected meets USAID’s data quality standards and any person level indicator is disaggregated by sex, at a minimum.

The Task Order Contractor(s) will fully support and provide all necessary data to facilitate monitoring and verifications, including full access and timely information on activities, locations, and issues. Evaluations will be conducted externally. The Task Order Contractor(s) will, therefore, ensure full cooperation with external evaluation partners.

C.13 Collaboration, Learning, and Adaptation

The IDIQ Contractors(s), through Task Orders, will propose how Collaboration, Learning, and

Adaptation (CLA) principles will be reflected throughout their proposed interventions.

The IDIQ Contractors(s), through Task Orders, will propose how collaboration with stakeholders, beneficiaries and counterparts will be approached; how learning will be reflected by project staff, how that learning will be captured, shared, and utilized, and how the activity will translate collaboration and learning to needed adaption. The IDIQ Contractors(s), through Task Orders, will propose how their CLA approach will serve as a base for knowledge sharing, learning and adapting, and how the activity will capture convey the change brought about by economic reform, learn and share what worked and what did not, and how the Task Order Contractor will refine activity work plans and activities. The IDIQ Contractors(s), through Task Orders, will propose how they will amplify synergies and reduce duplication with complementary USAID and other donor activities, including USAID’s ESA and WEELA. The Task Order MEL Plan will include a learning agenda which includes key knowledge gaps and organizes the CLA approach described above for implementation.