JORDAN ENERGY OUTLOOK

Jordan is totally dependent on imported oil to meet its demand for energy which has grown at an average rate of about 13% per annum during the period 1975-85. The cost of imported energy has had a substantial impact on Jordan's balance of payments. To reduce the economic burden of imported energy, the Ministry of Energy has adopted a policy aiming at reducing the cost of energy to the economy without jeopardizing social and economic development. This policy has been in force since 1985 and the results have been encouraging. A total of US$1450 million is required to provide adequate energy supplies during 1991-2000. Given the constraints on public funding, these financial requirements cannot be met from traditional resources. Energy enterprises have to improve their self-financing capabilities and the private sector should be encouraged to invest in energy projects.