The Hashemite Kingdom of Jordan

The Ministry of Planning and International Cooperation

Guideline I: Project Concept Note Preparation

and Preliminary Screening

February 2020
 Guideline I: Project Concept Note Preparation and Preliminary Screening

Foreword
There is a close relationship between economic growth and infrastructure development. Insufficient and inefficient
infrastructure stifles economic growth. Efficient infrastructure creates employment, develops human capital, promotes
local and foreign investment and trade, fuels business productivity and expansion, and helps to raise standards of living
and access to critical services. Infrastructure can also contribute significantly to a country’s social development through
provision of better and more health and education services.
In line with international experience, the Government of Jordan (GoJ) aims to augment its economic growth and
social development through improved infrastructure and best possible utilization of its assets. However, given the
GoJ’s fiscal limitations and need to enhance operational efficiency of infrastructure service provision, it will need to
adopt supplementary and innovative methods by leveraging private sector resources, alongside traditional public
investment to achieve its aims.
The GoJ’s goal is thus to put in place a combination of policy and legislative reforms, institutional support and
incentives to build an efficient Public Investment Management (PIM) –Public Private Partnership (PPP) governance
framework. This will ensure that priority projects that are economically and socially viable, environmentally sustainable
and fiscally affordable are selected as investment projects worth undertaking and that these investment projects, where
possible, are procured as PPPs to open fiscal space and bring in private sector experience, skills and expertise.
Specifically, by putting in place a robust “PIM-PPP Framework Policy”, the GoJ aims to establish the building blocks
of a comprehensive, effective and efficient baseline for public investments in Jordan. This Policy l (i) defines its scope
of application, (ii) details its objectives and guiding principles for setting up Public Investment Project (PIP) or and
PPP projects, (iii) describes the upstream PIM/PPP process for identifying projects, (iv) decides when and how to
pursue an investment project as a PPP, (v) shows how to manage the fiscal commitments of PPPs, and finally (vi)
details how these processes form part of the PPP lifecycle.
This Guideline supports the new Jordan 2019 Public Investment management – Public Private Partnership Policy by
promoting a unified approach for preparing and implementing public investment projects. The guideline responds to
the benefit of officials who have the responsibility for submitting public capital investment project proposals through
the Project Concept Note, which is now available to line ministries. Any national and sub-national public sector entities
and their agencies that has the authority to create and generate public investment projects in accordance with the
General Budget Law is subject to the requirements of the PCN and must therefore comply with the instructions and
guidance contained in this document.
Therefore, it gives me great pleasure as Minister of Planning and International Cooperation to launch this Guideline
(I): Project Concept Note Preparation and Preliminary Screening for all public investments. The PCN requires more
information about project proposals than may have been previously required but this is necessary in order to assess
their need, rationale and quality of initial preparation. This is part of a drive by the Government of Jordan to improve
the overall quality of public investments.

Minister of Planning and International Cooperation

Wissam Adnan Rabadi

Page 1
 Guideline I: Project Concept Note Preparation and Preliminary Screening

Table of Contents

1. Introduction .................................................................................................................................... 3
2. The Benefits of first level Screening of Public Investment Project Proposals ............................... 4
3. Purpose and Scope of the Project Concept Note .......................................................................... 4
4. Internal Quality Control in Proposing Authorities ......................................................................... 9
5. How to Complete the Project Concept Note................................................................................... 9

Page 2
 Guideline I: Project Concept Note Preparation and Preliminary Screening

GUIDELINE I

Project Concept Note Preparation and Preliminary Screening

1. Introduction
1.1 This Guideline supports the new Jordan 2019 Public Investment management – Public
Private Partnership Policy by promoting a unified approach for preparing and implementing
public investment projects. The guideline responds to the benefit of officials who have the
responsibility for submitting public capital investment project proposals through the Project Concept
Note (hereinafter referred to as the PCN), which is now available to line ministries. Any national and
sub-national public sector entities and their agencies that has the authority to create and generate public
investment projects1 in accordance with the General Budget Law is subject to the requirements of the
PCN and must therefore comply with the instructions and guidance contained in this document.

1.2 Capital funds are precious and must be spent wisely. The PCN requires more information
about project proposals than may have been previously required but this is necessary in order to assess
their need, rationale and quality of initial preparation. This is part of a drive by the Government of
Jordan to improve the overall quality of public investments. Quality assurance is a process that needs
to run through the entire project cycle but it begins with the PCN, and it is particularly important that it
is completed, fully and accurately. The information in the submitted PCN will be used as a means of
identifying high quality proposals for inclusion into the public investment program. Project proposals
for which the sponsor is unable to demonstrate a sufficient need or quality of preparation will be either
returned for further work, or rejected.

1.3 The completed PCNs should be submitted to the Public Investment Management Unit
(PIM) / Ministry of Planning and International Cooperation for compliance and quality
assessment. The requirements for achieving compliance and attaining sufficient quality standards are
also explained in this document so that there is full transparency for both sponsor and reviewer. Both
have access to exactly the same information and guidance and proposers should therefore be able to
understand what is required in order to develop a good quality project proposal.

1.4 It is expected that PIM Unit will examine the affordability issues contained in the PCN,
particularly those in PCN Section 3 – Financial Information, in consultation with the General
Budget Department / Ministry of Finance. Affordability must be considered in the context of the
availability of capital and O&M requirements over the lifetime of the project.

1
A public investment project is the acquisition of an asset by the public sector in the expectation of generating a stream of future benefits. This definition
implies that PIM focus is capital expenditure which is financed through the discretionary surplus of the fiscal budget, after considering the recurrent
expenditure commitments and ongoing capital investments.

Page 3
 Guideline I: Project Concept Note Preparation and Preliminary Screening

1.5 There are a number of ways in which new projects can be conceived by sponsoring
agencies:
 Legal fulfilment: sometimes projects are necessary in order to fulfil legal requirements – an
example of which would be to comply with environmental standards; but could also relate to
new safety legislation on highways for example. Projects driven by legal necessity are likely to
be strong candidates for approval, provided that they are prepared correctly.
 National Development Plans and the Executive Development Plan can identify key
development projects and their priority sequencing. Other published government programs that
require investment for their fulfilment can also point towards good project ideas.
 Sectoral strategic plans may highlight priority areas for public investment and therefore guide
project identification.
 Asset Registers, where they exist, can provide information on the condition and remaining life
of specific capital assets – such as buildings or equipment – and be used to identify those assets
requiring replacement or renovation in the near future.
 Participation by relevant stakeholders, including local communities, in identifying new public
investment ideas is also recognized as a legitimate way of identifying project ideas, provided
that a structured approach to consultation has been used.

2. The Benefits of first level Screening of Public Investment Project

Proposals
2.1 The PCN will provide the means to conduct a first level screening of public investment
project proposals. First level screening is the decision point that decides the fate of an initial project
proposal – whether it is to be rejected or allowed to continue to be developed.

2.2 The objective of first level screening is to improve the quality and consistency of
information received from project sponsors. This will allow properly informed decisions to be made
on whether projects should be considered for prioritization and inclusion in the budget for funding (in
the case of small projects) or allowed to continue to the next stage of project preparation (in the case of
medium and large projects2). Checking the quality at this early stage increases the probability of
successful project results (outputs outcomes and impacts) and decreases the probability of poor
outcomes and wasted investments. It is intended to exclude from further consideration those projects
that:

• Are not needed

• Are lacking rationale or logic
• Are inconsistent with government or sector priorities
• Are unlikely to be viable
• Involve unacceptable risks
• Lack the required implementation capacity
• Have little chance of being affordable under foreseeable fiscal circumstances

2.3 All investment projects, large, medium or small, must follow the same format for first

2 The legal definition of ‘small’, ‘medium’ and ‘large’ projects can be found in Section 3.

Page 4
 Guideline I: Project Concept Note Preparation and Preliminary Screening

level screening. A positive decision at this early stage requires that the strategic policy relevance,
rationale, demand and realism of the project proposal have been demonstrated to the satisfaction of the
reviewers at the PIM Unit and a convincing case has been made to justify expenditure, whether it is to
consider funding to directly implement a small project or on further project planning and appraisal for
a larger one.

2.4 There are a number of reasons why only quality assured projects should become eligible
for capital expenditure:

 A well-prepared project is less likely to over-spend – thereby preventing budget problems in

future years; or run over time – meaning that they are likely to contribute more quickly to the
economic and social development of the Kingdom.
 First level screening also prevents financial and human resources from being wasted on
feasibility studies for projects that would never be funded after years of waiting on a list of
potential projects, and assists in reducing pressures on the budget or on development partners
and implementing ministries by keeping the project pipeline at a manageable level.
 First level screening provides an important opportunity for the sponsoring agencies to test the
robustness of their project proposals in terms of need, risk and sustainability. It is, after all, in
the interests of the sponsoring agencies that their projects provide real solutions to real problems
or deliver benefits when opportunities arise. Therefore, it makes sense to check that proposals
are planned well so that they can be implemented effectively. This would include considering
risks related to climate change, disasters, and environmental in today’s projects to increase the
long-term success of development efforts. Doing this helps to avoid problems throughout the
operational life of the project – problems that impact long-term on the users as well as the public
agency that would be responsible for fixing these problems.

3. Purpose and Scope of the Project Concept Note

3.1 The overall purpose of the PCN is to improve the quality of public investments in Jordan.
It will achieve this through a more consistent presentation of information by project proposers and
careful quality checking of that information. This will require line ministries to complete a PCN for
each project idea, creating a single entry-point for all project proposals regardless of size, type of project
or implementing body within the relevant sector. Therefore, line ministries will be the PIM single point
of contact per sector and will have to internally quality assure all sectoral project proposals.

3.2 The PCN has been designed in order to make an initial assessment of new project
proposals in Jordan, irrespective of funding source. The reasons for this are:

 It is important that the government has a comprehensive overview of all economic and social
development activity so that it can be properly coordinated planned and sequenced.
 Even though the capital costs of a project are often financed from external funding sources, the
long term operational and maintenance costs are usually paid from national or local budgets. It
is therefore important that these long term costs are taken into account in budget planning and
decision-making before commitments are made for approving the project.

3.3 The PCN is a single template that serves two related purposes depending on the scale
and/or complexity of the proposed project:

a) For small projects (<10 Million JOD) the PCN will serve as the only document through which

Page 5
 Guideline I: Project Concept Note Preparation and Preliminary Screening

authorized public agencies can make a request for small scale capital funding for a project.

All PCN proposals (whether later implemented as a Public Investment Project or Public Private
Partnership) will be registered in the National Registry of Investment Projects (NRIP), once they are
submitted to the PIM Unit, by assigning a single, unambiguous identification number (P-Code). This
identification number will accompany the project during its entire life cycle. If the proposal is assessed
positively, it will enter into a pipeline of assessed projects to be considered for prioritization and
inclusion in the budget for funding, alongside other project proposals that have achieved the same status.
In the event of a delay of 12 months or more between approval and funding, a further review of the
project assumptions and implementation readiness will be undertaken, before considering a project
eligible for funding. It may still be possible for the PIM to request a feasibility study for a small project
for example in the case of new technologies or processes being introduced. In the case of small projects
‘Approval’ of a project proposal and ‘Selection’ for financing should not be seen as the same
thing. It is possible to approve a project as a ‘good’ project without necessarily having the funds to
allocate to it immediately. It may be a good project and approved through the quality check in the PCN,
but not a current priority compared to other approved projects.

b) For medium and large projects (>10 Million JOD) the PCN will still be the only document
through which authorized public agencies can make a request for capital funding for a project. However,
these larger (or more complex) projects will be required to undergo more detailed appraisal (feasibility
study level) under conditions that will be prescribed by further guidance. Therefore, in the event that
the proposal is assessed positively, it will be allowed to progress to the next stage of preparation which
will involve more detailed preparation and appraisal during which a feasibility study (including a more
detailed risk assessment), will be prepared. This feasibility study will then be assessed in accordance
with Guidance II.

3.4 In the case of medium or large projects, the PCN should only be seen as a means of
identifying potentially good projects. ‘Approval’ in this case allows them to proceed to the next stage
of planning, preparation and appraisal – a feasibility study (FS) - ensuring they are adequately presented
with all relevant information. It can be seen therefore as a ‘stepping stone’. The PCN in larger projects
represents the first stage of a quality management process that will also involve the checking of
feasibility studies as they are prepared at a later stage.

Figure 1: The Role of the PCN in Project Submissions

Page 6
 Guideline I: Project Concept Note Preparation and Preliminary Screening

Recommended workflow for the preparation of capital projects: track 1 (<10 M JOD)

Central PIM Unit adopts

templates for PCN submission
and train line ministries and
agencies’ staff on their use

MoF/Budget Dpt

Review of PCN by Submission for

Project generation Recommendations by Projects selection and budgeting to MoF or/and
Central PIM unit & Confirmiation of Project
Drafting of project Central PIM unit to Inter- prioritizationl by Inter- to PPP unit by
Project concept note registration in NRIP PPP unit
concept note ministerial Committee ministerial committee sponsoring ministry or
regionation in NRIP agency

In case committee rejects project, it

informs sponsor, motivate decision and
may request for revisions or additional
information
Central PIM unit reverts to
project sponsor for further
information if need be

Line ministries and agencies

Central PIM unit
Inter-ministerial committee
MoF/Budget Department
PPP unit
 Guideline I: Project Concept Note Preparation and Preliminary Screening

Recommended workflow for the preparation of capital projects: track 2 (>10 M JOD)

Central PIM Unit adopts Central PIM Unit provides

templates for PCN submission standard appraisal
and train line ministries and methodologies and TA for their
agencies’ staff on their use use

MoF/Budget Dpt

Submission for
Project generation Review of PCN by Recommendations by Projects selection and budgeting to MoF
Central PIM unit & Project appraisal by Confirmiation of
Central PIM unit to prioritizationl by or/and to PPP unit by
Drafting of project sponsoring Project registration in
Project concept note Inter-ministerial Inter-ministerial sponsoring ministry PPP unit
concept note ministry/agency NRIP
regionation in NRIP Committee committee or agency

In case committee rejects project, it

informs sponsor, motivate decision and
may request for revisions or additional
information
Central PIM unit reverts to
project sponsor for further
information if need be

Line ministries and agencies

Central PIM unit
Inter-ministerial committee
MoF/Budget Department
PPP unit
 Guideline I: Project Concept Note Preparation and Preliminary Screening

4. Internal Quality Control in Proposing Authorities

4.1 The quality of project proposals is the ultimate responsibility of the sponsoring agencies.
When a PCN is being prepared and prior to its submission for assessment to the PIM Unit, the proposing
agency should take measures to ensure that the quality of the PCN is good enough to stand the best
possible chance of success. It is in nobody’s interest to submit a poor quality PCN because it wastes the
time not only of the PIM Unit but also of the sponsoring agency itself.

4.2 All projects that are being conceived or developed should be internally reviewed in the
relevant line ministry prior to the submission of the PCN. This is not only to check for completion
and overall quality but also to guard against simple mistakes or omissions that could result in them
being returned or rejected and, consequently, wasting time. Therefore, all departments and agencies of
one sector must first present their projects in the PCN format to their line ministry for initial review and
approval. The minister will assign a department to conduct the internal quality review of all new project
proposals prior to signature and formal submission of the PCN.

4.3 A PCN can only be submitted by the responsible line ministry and requires the signature
of the minister as well as the most senior official holding overall responsibility in the public entity
that is proposing the project. For example, in the case of an agency this would be the head of the
agency. Projects may be proposed by any public body in the administration with legal authority to do
so but without these signatures it will be assumed that the proposal does not have the support of the
minister. This will also mean that the PCN cannot be validated and will be returned without assessment.

5. How to Complete the Project Concept Note

5.1 The table below is a full reproduction of the PCN template and contains all the same
sections and text. For the purposes of this guidance note, at each section or sub-section heading is a
narrative description of the information required and an explanation of how to complete that section.
This narrative is shown in blue italic font. Please read ALL the notes provided before attempting to
complete the PCN.

Project Concept Note Template for Public Investment Projects

in the Infrastructure and Social Sectors

Section 1: Executive Information and Project Profile

Executive Information is provided to allow decision makers easy access to relevant data. It may
be preferable or even easier to complete this section after the other detailed sections have been completed.
Clearly identify the public agency responsible to submit/in charge of
Name of Sponsoring Public
the project
Agency/entity:
Clearly identify the line ministry responsible for the public agency
Responsible Line Ministry:
The date is automatically created once the project is
Submission Date:
submitted/registered at the NRIP
Name of Project: Be sure to use the correct title of the project in full. Avoid any
abbreviated names or ‘working titles’. Once a project has been
accepted and issued with a reference number in the NRIP, the title
shown in this box will become its official name

Page 9
 Guideline I: Project Concept Note Preparation and Preliminary Screening

The project ID Number is automatically created once the project is

Project ID Number (according to NRIP)
submitted/registered at the NRIP
Clearly identify the sector and corresponding sub-sector, according to
Sector:
the sector policies
Provide only enough information to illustrate the physical nature of the
Physical Description of the Project /
project. For example: Construction of 235km of paved road between
Type:
[town] and [town], Expansion of 30 bed hospital, Rehabilitation of a
10 km 1200mm water pipeline, etc.
Type of project: construction, expansion, rehabilitation, replacement,
improvement, etc.
Location (Governorate/Sub- Name the location of the project or locations if the project includes
Governorate/City/Municipality): more than one site. If possible please use map reference or GPS co-
ordinates
Name of partners – if applicable: Related to project coordination and permit issuance i.e. environmental
permits, road excavation permits, etc.
If more than one organization are requesting this project and will
collaborate in its implementation, please list the name(s)of the other
co-requesting organization(s)
Estimated start date of the project The start date would be:
(month / year):  In the case of a small project not requiring a Feasibility Study: the
point at which the Procurement Notice is published
 In the case of medium and large projects where a Feasibility Study is
required: the point at which the Feasibility Study begins. This is the
point at which expenditure starts to be committed (for the FS).
Estimated date of operation of the In all cases, this would be the date at which the project is expected to
completed project (month / year): enter operational service and start delivering, partially or totally, the
expected benefits
Project Readiness: Describe any relevant information regarding the readiness of the
project. For example, if land expropriation is required or not.
Add information regarding the status of pre-investment analysis
(studies, surveys, etc.) and any permits to implement and operate the
project.
Provide any information regarding the status of appraisal studies
(technical, financial, economic, environmental, social and
stakeholders)
Estimated Capital Cost of the Project (CAPEX):
1. This is the total capital cost required to complete the proposed project which must include all items necessary to allow
the project to achieve its designed functions and objectives. Provide an estimate of the cost of further preparatory
studies required for project appraisal. As an example, in a health clinic, in addition to building and construction costs,
all the medical equipment, fixtures, fitments and furniture should be included. The costs of acquiring land (including
compensation and settlement costs) as well as all technical consultancy fees (feasibility, design and supervision) and
costs should also be included. Please also include the add-on costs of bringing necessary utility service to the site eg
water pipe, electricity cable or even a service road to create access in the construction costs.

Component Cost (JOD) Estimated duration Sources used for

(months) costing
Land acquisition
Feasibility

Page 10
 Guideline I: Project Concept Note Preparation and Preliminary Screening

Design and
Supervision
Construction
2.
3. It is also necessary to specify the total amount of the capital requirement in terms of
a) National Budget funds required (state the actual amount required) and the amount which could be provided through
foreign sources
b) Estimated capital costs should be presented in real costs
c) The sources for costing include: none; secondary sources (conceptual design: averages, website, expert opinion);
primary sources (detailed data: detailed design, well-defined specifications, final data, plans, actual quotes, final
prices in contracts)
Estimated project duration (years): Refer to above schedule. Time needed for the planning and
execution of the project
Estimated operation and maintenance costs (first full fiscal year of operation):
This is the total cost of operating, supplying and maintaining the project in the first full budget year after the time of
entry of the project in to its operational phase. The purpose of this information is to inform the budgeting process of
future additional annual costs that would be incurred through implementing the project. It should include an estimate
of all salaries, utility costs as well as the cost of supplies, and services. Some operational costs may already be taken
into account in the budget planning. For example, in the case of replacing an old school with a new one, some - or
maybe all - teachers’ salaries are covered by the existing budget. It is important to identify separately those operational
costs that will be new calls on the budget. In the case of completely new projects, all operational costs are usually new
calls on the budget. The requirement to complete this section applies equally to externally funded projects.

Note: If the project is due to enter service part way through a budget year a separate note must be made of the costs of
operation in the months immediately following the date of the project’s entry in to operation to the end of the fiscal year.

Page 11
 Guideline I: Project Concept Note Preparation and Preliminary Screening

Section 2: Justification, Objective and Relevance

2.1 Why does this project need to be implemented (In terms Quality Score
of problem to be resolved or opportunity to be exploited)?
Include basic information about the scale of the problem Fail = Fails to describe the problem or
or opportunity. opportunity or that the problem / opportunity is
described but is not considered important
a) Projects can be generated either to fix a problem that only the Not Clear = There is inadequate numerical
government can resolve or an opportunity that the private sector information about the scale of the problem or
has been unable to address. opportunity
b) To stand the best possible chance of justifying the commitment of Pass = The problem, its reasons and causes are
government or external funding, it is essential to describe the explained fully or opportunities are explained
nature and scale of the problem or opportunity that the proposed fully with evidence of scale
project will address.
c) The description should explain the causes of the problem and its
effect(s) or the origin of the opportunity. It should also explain
why the problem/opportunity has occurred and for how long it
has been a problem or opportunity.
d) The scale of the problem / opportunity should be explained in
terms of (as examples) how many people are affected by a
problem or what size of market might be available in a certain
market opportunity scenario. Please be clear about the numbers
involved and where the evidence to support the numbers comes
from.

For example, the project is designed to solve the problem of transport

trucks entering Amman city, which is causing traffic in the city. It is
also expected to improve transport for trucks connecting Amman to
Petra. This project is also crucial for the country’s integration in
terms of its connection to neighboring countries. In this regard, the
project will facilitate international trade and commerce.
2.2 What is / are the objective(s) of the proposed Quality score
project?
State the objectives that the proposing authority aims to meet with Fail = Objectives not described
this proposal. There should be a single primary objective expressed Not Clear = Objectives described but not clearly
in no more than two or three sentences. in accordance with Guidance
Pass = Objectives clearly described
The objectives should be specific to dealing with the
problem/opportunity described in section 2.1; they should be
measurable (to achieve what by when?). They should also be
realistic against previous experience of similar projects.

An example of an objective might be ‘to reduce fatal road accidents

in [location] to less than [number] by [date] through [construction
of…]’

A number of secondary objectives may also be listed if appropriate .

2.3 State how the project will fulfil objectives of the Vision Quality Score
2025 National Development Plan, Sector Strategies and
plans or other government policy. Fail = No link was established between the
Project proposals need to demonstrate that they are being pursued project and Vision 2025, NDP or sector strategies
in the interests of the economic or social development needs of the and plans
nation or a local area. The government policies or strategies that Not Clear = Reference has been made to the
relevant national or sector programs but their link

Page 12
 Guideline I: Project Concept Note Preparation and Preliminary Screening

are relevant to the proposed project, must be referenced here, and to the proposed project is not clear
it must be elaborated how the project contributes to their Pass = Reference has been made to the relevant
achievement. The project may only meet a single policy objective Plan or Strategy and a clear explanation has been
or it may aim to meet more than one. If this is the case, each one provided about the link to the proposed project.
must be referenced.
2.4 Who are the intended beneficiaries of the project and Quality Score
how many?
Depending on the nature of the proposed project, describe the main Fail = fails to describe intended beneficiaries of
beneficiaries of the project. Estimate the predicted use of the project the project
using relevant available statistics. When forecasts are being Not Clear = Intended beneficiaries of the project
quoted, please include the source of the forecast data. not clearly described or quantified
Pass = Intended beneficiaries of the project are
described clearly and quantified
As an example, if the project relates to a road, provide traffic
statistics. If the project relates to healthcare, provide statistics on
numbers and the nature of hospitalizations within the project’s
target area of coverage. If the project relates to a school, use
population data to show how many school age children live within
a realistic radius of the school.

The source of the evidence should be provided as well as the date

at which the statistics were gathered. Historic data showing trends
would further strengthen the proposal, if available. Rather than just
providing basic statistics, try to relate the numbers to the proposed
scale of the project.
2.5 What are the intended activities, outputs Quality Score
(deliverables) and outcomes of the proposed project?
Activities Fail = Either activities, outputs and outcomes are
List the main activities of the proposed project. Activities are the not described
tasks or actions required to achieve the objective; for example, the Not Clear = Activities, outputs and outcomes
construction of a new clinic at [location]; fit out with equipment are described but not clearly or appear not to
and supplies; ensure adequate staffing and all other staff necessary be linked to the description of the project
to operationalize the clinic. Pass = Intended activities, outputs and outcomes
are described clearly
Outputs (deliverables)
List the main outputs and outcomes of the project. Outputs might
include (as examples) number of kilometers of new road or number
of school places or hospital beds added by a certain date.

Outcomes
Outcomes should relate to resolving the problem described in
section 2.1: What will have been gained by implementing the
project and how can we measure the degree of success of the
project?
For example, in the case of a new road, one of the outcomes might
be described as a 50% reduction in accidents in the first year of the
new road. In the case of new hospital beds, a successful outcome
might be the reduction of waiting times in hospital admissions by 2
hours in the first 12 months.

Outcomes are likely to be variable over the operational life of the

facility created by the project – often less in the first year of
operation and greater in subsequent years as operating efficiency
improves. Conversely as demand grows, delivery efficiency may be
compromised if a facility has to operate at over- capacity. This

Page 13
 Guideline I: Project Concept Note Preparation and Preliminary Screening

variability should be reflected in stating the estimated outcomes –

i.e. what will be achieved by when?
2.6 Are there any precedents in the country, in the sector Quality score
or the sub-sector? (Either answer yes or no - if 'yes' please
describe the lessons learned - if 'no' please describe the extra Fail = Either: there are no precedents for the
measures that will be taken to address this risk). project in the country, sector or sub- sector and no
credible mitigating measures have been described
Projects that have not had precedents are almost always at
OR: there have been precedents in the country,
additional implementation risk. The purpose of this question is to
sector or sub- sector but the outcomes were poor
ensure that:
with no obvious mitigating measures.
a) If there is a precedent for the project previously in Jordan, were
Not Clear= Mitigating measures are not included
the outputs and outcomes satisfactory and most importantly what
or described.
were the lessons learned that could benefit the present proposal?
Pass = Either: There has been no precedent for the
b) If there are no precedents, what mitigation measures have been
project in the country, sector or sub-sector but
considered to manage the risks of time and budget over-runs?
credible mitigating measures have been described
OR: There have been precedents and the outcomes
were positive.
2.7 List all the positive and negative social and Quality Score
environmental effects of the project. In addition, please
explain if the project may negatively affect different Fail = fails to list any effects of the project OR the
groups (by gender, race, religion, disability etc.) and if so negative effects are unacceptable
Not Clear = positive and negative effects are listed
how these effects can be mitigated
but not explained clearly
List the positive effects of the project. All worthwhile projects
Pass = positive and negative effects are explained
should create positive effects. Some projects can disproportionately
clearly and appear acceptable
benefit some groups more than others. Often this is intended; for
example, in the case of a project to build better access to
government buildings for disabled people.

Project proposers should consider the positive effects that the

project would likely have on different groups of people or
communities. For example, positive or negative social impacts
include job creation/destruction, increase in public health and
safety in the city, reduced air and environmental pollution,
increased roadside traffic within the city, poverty alleviation.

Many projects have some form of negative impact, the most

common of which are climate change, disasters and environmental,
and the displacement of people in order to free up space for a
project. Careful consideration should be given to all negative
impacts and how they can be mitigated. They should be listed here.
Some projects may negatively affect a minority group
disproportionately for example a proposed road that crosses a site
that has some religious significance for a certain religious group.
Again these disproportionate negative impacts should be listed
here. This should include measures on how to reduce nuisance from
construction activities from the project, in the local area.
2.8 Potential climate change impact or benefit – if Quality Score
applicable Fail = fails to list any effects of the project OR the
Clearly identify any positive and negative impact on climate negative effects are unacceptable
change. For example, the project is expected to reduce carbon Not Clear = positive and negative effects are listed
dioxide emissions, a leading cause of climate change. The but not explained clearly
corresponding benefit was estimated as the social cost of carbon Pass = positive and negative effects are explained
for Jordan. clearly and appear acceptable

Page 14
 Guideline I: Project Concept Note Preparation and Preliminary Screening

2.9 List the alternative implementing options that have been considered for achieving the objectives

No government can fulfil all tasks required in an economy. It is therefore more realistic to focus only on the projects
that only the government can do. Identify if the project can be implemented as a Public Private Partnership (PPP), fill
in the below form under the title “Applicability of PPP”
APPLICABILITY OF PPP

A. PPP Project Rationale: (Please check all that apply)

i) Project is difficult to implement with financial resources or the expertise of Government alone
ii) Private investment would potentially increase quality / level of service compared to what Government
could accomplish on its own
iii) There is an opportunity for competition among private investors which may reduce the cost of providing
public service
iv) Private investment could allow the project to benefit from the private sector’s innovation, modern
technologies, knowledge and expertise in project development and management
v) Project includes the construction, rehabilitation, operation, and / or maintenance of public infrastructure
vi) Others:

B. Please describe the end services that a PPP operator could deliver:

C. Please indicate the proposed risk allocation between the private and public sector illustrated below:
Risk Category Public Shared Private Additional information
Sector Sector
Design risk
Land acquisition and resettlement
Financing risk
Construction risk
Operating risk
Environmental/social risk
(operation)
Demand risk
Other

D. Would any legislation/regulation need to be enacted to allow private sector to deliver and charge for services?
Yes No Not Known

E. i) Estimated period of contract: _____ years ii) Estimated economic life of project: _____ years
If uncertain, please specify a range - If uncertain, please specify a range -
Less than 10 10-15 15-20 20-35 <10 10-30 >30
F. Please specify the preferred mode of project procurement: Solicited Unsolicited

If “Unsolicited”, please indicate if the project complies with the conditions for direct / unsolicited proposals laid out in
Article 22 of the PPP Law: Yes No

If yes, provide detail on how the project complies with the PPP Law and detail on the unsolicited proposer?

FINANCIAL ANALYSIS AND BANKABILITY

A. i) Please indicate the source of project revenue (Please tick as applicable):

User Charges Line Ministry / Agency Both
ii) Please complete the following if you have ticked “User Charges” or “Both”:
Estimated average benchmark charges payable by User: Estimated number of Users (per day):
JOD

iii) Please complete the following if you ticked “Line Ministry / Agency” or “Both”:
a) Does the Line Ministry / Agency have separate revenue raising power? Yes No
b) Does the Line Ministry / Agency have a budget for delivering these services? Yes No

Page 15
 Guideline I: Project Concept Note Preparation and Preliminary Screening

If “Yes”, please indicate how much:

c) Please provide an estimate of the number of Users (per day):
d) Please provide an estimate of the fiscal commitments and contingent liabilities (FCCL) arising from the project:

e) Are the estimated FCCL arising from the project affordable to the Government?: Yes No

B. Do the estimated user charges, line ministry/agency payments, or combination of both, provide sufficient revenue to cover
project costs? Yes No

Please add detail on assumptions/calculations as necessary:

C. Are you aware of a similar project being delivered through a PPP Model elsewhere? Yes No

If “Yes”, please indicate where: Jordan Arab states Rest of the world
(Please attach any reference material i.e. project reports, website link etc.)
D. Has the project received any feedback from lenders, equity providers, MDBs/DFIs, operators, etc.? Yes No

If “Yes”, please provide summary of feedback:

SECTION FOUR (REQUIRED)

IMPLEMENTATION

A. Based on project information, we determine that this project should be procured as a PPP?
Yes No

Please explain why:

B. Please indicate if there are Financial Resources available for project development (e.g. feasibility study):
Yes No (If “Yes”, indicate how much):

SECTION FIVE (REQUIRED)

TIMELINE

A. Please provide an indicative time line:

PPP Project Date Public Project Date
i) Submission of Project Concept Note i) Submission of Project Concept Note
ii) NRIP Registration ii) NRIP Registration
iii) Pre-feasibility study iii) Pre-feasibility study
iv) Feasibility study and FCCL report iv) Feasibility study
v) Development of tender documents v) RFQ
vi) RFQ vi) RFP
vii) RFP vii) Contract negotiation
viii Contract negotiation viii) Signing the contract
)
ix) Signing the contract ix) Project implementation
x) Financial closure
xi) Project implementation

Quality Score

Fail = No serious attempt to address the question

Not Clear = It is not clear whether the project could be best implemented by the public sector / private sector
Pass = It is clear why either the public sector / private sector would be the best implementer of this project proposal

Page 16
 Guideline I: Project Concept Note Preparation and Preliminary Screening

Section 3: Financial and Economic Information

In this section, estimates must be shown of all capital, operational and maintenance costs necessary in order to realize
the project. (all amounts in JOD). PIM may ask MoF for their opinion in terms of financial affordability. It is
recognized that in larger projects, it is more difficult to estimate costs at an early stage prior to feasibility studies being
made, however ‘best endeavours’ should be employed using precedent costs and as a principle should aim to include
more contingency to cover unknown future costs.

3.1 Estimated Total Capital Cost to

complete the project
Costs must include, in addition to construction costs, pre-construction costs such as
feasibility studies, architecture and engineering, land acquisition / expropriation /
compensation and settlement costs, and the costs of all materials, equipment and
services (including consultant costs) necessary to complete the project. The capital costs
must be estimated to the best ability of the proposing authority and the source or basis
for these estimates should be shown or attached as separate documents.
3.2 Capital Requirement for each year Quality Score
(total must equal the amount shown above)
Costs for the first year during which disbursements are expected to be made should be Fail = The information is
shown even if it is only to pay for a feasibility study. Future years’ figures should include not realistic or credible
the estimated disbursement in the case of multi-year implementation or phased projects. Not Clear = The
Please add additional years for extended period projects. State the exact year in all information may be
cases. credible but requires
clarification
Pass = The data is clear and
Fiscal Year Amount Required
estimates provided seem
…………… …………………….
realistic
…………… ……………………..
…………… …………………......
…………… ……………………..
3.3 Sources of Capital Funding
Use the table below to input all sources of capital funding for the project by amount in Note that the Quality Score
JOD and also as a percentage. applies to the combined
responses to questions 3.1;
3.2 and 3.3.
Type of Finance Amount Amount (%)
(JOD)
Treasury
External project loan
External Grant Aid
Domestic Borrowing
Sales Revenue
Tolls and Fees
Community Contribution
Total (calculated values)

Page 17
 Guideline I: Project Concept Note Preparation and Preliminary Screening

3.4 Annual Operating Costs (JOD):

The estimated on-going operating (recurrent) costs required to sustain the project over Quality Score
its useful life must be estimated and expressed as: [x amount] of JOD operating costs
per annum. The figure should include costs for salaries, utilities, maintenance, supplies Fail = The information is
and materials etc. The source or basis for these estimates must be shown or can be not realistic or credible
attached as a separate document if necessary. As shown below, the operating costs Not Clear = The
should be expressed in terms of how much can be paid from the proposing authority information may be
(administrative unit) regular running costs and how much will be additional cost. credible but requires
clarification
Pass = The data is clear
and estimates provided
seem realistic

Total Estimated Annual Operating Costs of the Project

Note that the Quality Score
State the total estimated cost of operating the project for the first
applies to the combined
full fiscal year. responses to questions 3.4;
and 3.5.
How much of this will be recovered from the existing budget?
Some projects involve replacing existing facilities meaning that
there is already a budget attached to an old or previous facility. If
this is the case enter here the amount in the existing budget.
If the project is completely new, with no related previous
budget, please enter ‘0’ here.

New operating costs (calculated value)

3.5 Sources of additional operating and maintenance costs:

State here how the additional operating costs will be funded. This should amount to
the same figure as shown above in ‘New operating costs (calculated value). When
sources other than Treasury funding are anticipated please add evidence of the offer
to do so. This could be in the form of a letter of intent or email exchange. Sales
revenues, tolls and fees should have calculated values and assumptions to support the
predicted values of the income

( ) Treasury
( ) External Loan
( ) External Grant
( ) Domestic Borrowing
( ) Sales Revenue
( ) Tolls and Fees
( ) Community Contribution

Page 18
 Guideline I: Project Concept Note Preparation and Preliminary Screening

3.6 Is land expropriation required? (Yes / No) Quality Score

If ‘YES’, state the total expenses required to achieve this (compensation /
re-settlement costs etc) Fail = The information
was provided but does not
Simply write ‘YES’ or ‘NO’ here depending on which is the case. In the case of a ‘YES’ seem realistic
answer, this amount should already have been included in the total values shown at 3.1 Not Clear = The information
and 3.2 but should be identified separately here. provided may be realistic but
requires clarification
If expropriation is required in order to realize the project, this must be made clear at
Pass = The information is
this point. The estimated cost of the entire expropriation should also be included here clear and appears to be
and should include all compensation and re-settlement costs if necessary. realistic

The total cost of expropriation is

estimated at: JOD

3.7 Will the project generate revenues? (Yes / No) Quality Score
If ‘YES’ provide the estimated revenues, their sources and the anticipated
project IRR: Fail = The information
Answer either ‘YES’ or ‘NO’ here. was provided but does not
If the answer is NO’ move to the next section. seem realistic
If the answer is ‘YES’ meaning that revenues are anticipated (e.g. fees from use of the Not Clear = The information
facility or sales from goods produced) they should be estimated and expressed as JOD provided may be realistic but
per annum according to the table below. If the first operational year is a part year as is requires clarification
often the case, the reduced values should be shown with the following three full years’ Pass = The information is
estimates. clear and appears to be
realistic
1st operational year Year 2 Year 3 Year 4

Sources of Revenue:
State here where the anticipated revenue will come from. The answer given here should
concur with the information given in sections 3.3 and 3.5.

Anticipated Project IRR:

State here the estimated project IRR based on the revenue figures shown in the
table above. Calculations should be shown in all cases.

3.8 What is the economic benefit and project net present value NPV in JOD Quality Score
– if applicable
Include, if they are available, any information regarding expected benefits. For Fail = The information was
example, it is expected that the road improvement will generate savings in maintenance provided but does not seem
realistic
costs for substitute roads
Not Clear = The information
provided may be realistic but
Include, if they are available indicators of evaluation criteria (NPV) requires clarification
State any information about the economic profitability of the project, estimated based Pass = The information is clear
on the revenue figures shown above in 3.7 and appears to be realistic

Page 19
 Guideline I: Project Concept Note Preparation and Preliminary Screening

4. Implementation
This section should provide evidence that a basic implementation plan has been considered. Although detail
will not be possible or necessary at this early stage, basic planning will require consideration of the main
challenges in implementing the project even though this may be adjusted as detailed planning progresses.
Basic information at this stage should include a timeline for implementation and a consideration of the risks
involved in implementing the project effectively as well as a consideration of engagement with stakeholders
in the project. The proposed governance and decision making process should be explained with clear roles
and responsibilities. This should also identify which official is ultimately accountable for the project.
4.1 Outline the planned timing of the project: Quality Score
All the important stages of project preparation and implementation should be listed in
the table below with the planned target dates to achieve each one: Fail = Timings are not
credible
Not Clear = The plan
presented appears
Stage Target Date credible but requires
Preparation Feasibility / Appraisal Complete clarification
Pass = The plan is clear and
Procurement Notice appears to be realistic.
Award of Contract
Works Begin
Works Finalize
Project becomes Operational

4.2 List the human resources, goods, works and services necessary for the Quality Score
implementation and operation of the project. How will they be made available on
time? Fail = No serious attempt
The answer given to 4.2 should first and foremost justify the Target Dates shown in 4.1 to address the issues
above. Not Clear = List of
resources provided but no
The physical resources necessary to implement the project in the required timescale consideration of how they
should be listed here with approximate quantities and lead times for procuring them. will be made available
State whether these resources are available domestically or might need to be imported; Pass = Resources are
from where and what availability is possible. For example, there is no point in planning listed with a credible
for a 12-month completion on a project if a key piece of technical equipment might not acquisition plan
be available on site for 14 months.

Resources can include manpower, technical advice, plant and equipment; building
materials and technical equipment required for the commissioning of the project.

An example of this might be a renewable energy project that requires specialized

equipment to be procured, designed, manufactured and shipped to Jordan from another
country. The time is takes to complete all these steps will have a significant bearing on
the date by which the project becomes operational.

Page 20
 Guideline I: Project Concept Note Preparation and Preliminary Screening

4.3 What previous experience does the proposing body have in Quality Score
implementing similar projects? In the case of limited or no experience,
explain how this issue will be addressed or mitigated. Fail = No previous
experience and no
a) If the proposing authority has previous experience of implementing similar projects
credible mitigation
(for example ‘repeat’ projects like clinics or schools) this offers a high degree of
Not Clear = No previous
confidence that the proposed project can be delivered well if it is approved for funding.
experience but mitigation
The proposing authority should list the similar projects that it has successfully
might address the issue with
implemented over the previous 5 years.
further work
b) Conversely if there has been no previous experience or the proposed project Pass = Previous relevant
contains significant levels of innovation, this will be seen as potentially risky in terms implementing experience is
of successful delivery. In this case, the proposing authority should describe the listed and can be verified
measures (for example hiring specialist staff or external consultants) that would OR No previous experience
improve the prospects for success. but the proposed mitigation
measures appear credible.
4.4 List the agencies, utilities or regulatory institutions that will need to be Quality Score
involved in the implementation of the proposed project and what legal
issues will need to be addressed? Fail = No credible
Many implementation problems arise due to the need for liaison with utilities and response
regulatory bodies not being addressed at an early enough stage. This is a common cause Not Clear = Institutions
for delays in many projects across the world and early planning and contact with these listed but with some
bodies will help to plan the work and negotiations required to keep a project on track. obvious gaps on legal /
Therefore, please list all the agencies, utilities and regulatory bodies that will need to institutional issues
be consulted – in particular but not exclusively – the Ministry of Construction. Also Pass = All likely
write a very brief description of the legal / regulatory /permitting / institutional issues institutions are listed with
that need to be discussed with each of these bodies. clear information on legal
/ institutional issues to be
addressed
4.5 List the stakeholders in the project and state whether they have been Quality Score
consulted
‘Stakeholders’ are interested parties in the project. They are either persons or Fail = No stakeholders
representative bodies that have an interest in the outcome of the proposal or those that are listed
may be affected by it. List them here. Not Clear = Stakeholders
are listed but no
Against each of the stakeholders, indicate whether they have been consulted and if so, consultation has taken
in a word or two, whether they support or do not support the project. This can be place so far or the
ascertained through initial contact / consultation. stakeholder list appears
incomplete
Pass = Stakeholders list
appears complete and
initial consultation has
started
4.6 Potential risk assessment and mitigation Quality Score
Briefly describe any potentially significant risk (environmental, social, stakeholder’s
impact) that may need further investigation and suggest possible mitigation measures Fail = No serious attempt
where likely to be necessary. to address the issues
Not Clear = List of risks
provided but no
consideration of how they
will be mitigated
Pass = Risks are listed
with a credible
mitigation plan

Page 21
 Guideline I: Project Concept Note Preparation and Preliminary Screening

4.7 Potential operational budget constraints Quality Score

Explain how operating, maintenance and depreciation expenses are expected to be
covered once the project is completed, indicating whether user charges must be Fail = No serious attempt
implemented or raised. to address the issues
Identify is project sustainability can be compromised by a shortage of funding for Not Clear = List of
operation and/or maintenance or by critical weaknesses in the capacities in the constraints provided but
operating entity that are unlikely to be resolved in time for project completion. no consideration of how
they will be resolved
Pass = Constraints are
listed with a credible
resolution plan
4.8 In the event of a successful pre-screening, for projects that require a feasibility study or pre-
feasibility study

A. What budget would be required for a (pre)feasibility study?

Please estimate the total costs for completing a feasibility study for the project. Since larger projects also need a pre-
feasibility study, also include this cost-estimate.

B. What is the source of funding for the (pre)feasibility study?

Where will the funding for the (pre) feasibility study come from? Be precise about the source of funding particularly if
it is being co-financed. If the (pre)feasibility study is being funded externally, please provide supporting evidence (in
writing) of the external funder’s intent to fund.

C. Describe how the preparations / feasibility study will be completed

Describe here what activities would need to take place between notification of a successful PCN and the completion of
the feasibility study. This should include approximate time-lines and include realistic estimates of procurement lead
times. The completion date for the preparations and (pre) feasibility study should also be estimated here

Page 22
 Guideline I: Project Concept Note Preparation and Preliminary Screening

Section 5: Contact details and Sign-off

Name Signature

This should be the person who has

Project prepared by: completed this PCN.
Telephone No:
Email:
The most senior official holding
overall responsibility in the public
Project Representative: entity that is
proposing the project.

Approval (Minister):

Page 23
 Guideline I: Project Concept Note Preparation and Preliminary Screening

This Section is for the use of Reviewers (only)

The section must be filled out by PIM/MoPIC, including comments, observations and judgements regarding
the PCN

Once the Minister has signed his / her approval, the proposing authority must not write anything underneath.
All comments from this point are made only by the assessors.

A PCN will be assessed by the PIM according to the instructions and quality assessment criteria that are
clearly visible in the right hand column of the template shown above. The quality assessment criteria are
deliberately included in the template in order to demonstrate full transparency but also so that project
proposers can have no doubt as to what level and quality of information is required in order to get a project
proposal successfully pre-screened.

The initial assessment will be administrative to ensure that all sections of the template have been
completed and that there are no missing areas for completion. The PCN will also need to be signed by the
relevant minister and most senior official in the proposing entity. The completion of all sections is
mandatory, and the PCN will be returned to the originator for completion in the event of any gaps or
incomplete questions in the template.

Once the administrative check has been completed satisfactorily, the assessors will follow the quality
assessment criteria shown in the right-hand column of the template. These quality criteria are specifically
designed for each section to ensure that responses to the questions posed and the information required are
of a sufficient quality. Officials completing the template are able to view the criteria for each section as they
complete the template in order to ensure that the answers they give, and the information that they provide,
are sufficient to score the maximum number of points. Those completing the template have exactly the same
information and guidance as the assessors, so there is every opportunity for a good project to proceed
further. It is therefore in the interests of officials completing the template to follow the criteria and the
instructions faithfully to give their proposal the best chance of success.

In order for a project to proceed further it is necessary to achieve a ‘Pass’ in each assessment question
in the template. Each question in the PCN offers the possibility of three outcomes: ‘Fail’; ‘Not Clear’ or
‘Pass’. Each outcome will be awarded entirely on the criteria shown in the Scoring Guidance shown to the
right hand side of the question. Assessors do not have the authority to use any other criteria.

The assessors will conclude their assessment in one of three ways:

1: “Pre-Screening Successful” subject to funding (for smaller projects) or approved to proceed to a

feasibility study (for larger projects) – this means that passes have been achieved in all assessment
questions

A unique project reference number will be assigned to the project at this point. Even though a PCN may be
approved it could still be subject to conditions attached to the approval. These could require the resolution
of issues such as land acquisition or the successful obtaining of permits and licenses.

2: “Return for Further Work” (clarifications required) – this conclusion would be reached if the proposal
shows signs of being of value but the explanations provided are not clear, meaning that it is not possible to
provide a ‘Pass’. It could also indicate that not enough information has been provided for the assessor to
reach a conclusion or there is no supporting evidence when the question requires it.

Page 24
 Guideline I: Project Concept Note Preparation and Preliminary Screening

When a PCN is assessed like this, the template will be returned with a reasoned description of where
clarification or further information is required and giving instructions as to how the issue(s) identified could
be resolved in order to improve the proposal. In order to save time, in the case of minor clarifications it
may be possible to resolve an issue via an exchange of emails. When the proposing authority is confident
that it has resolved the issue(s) identified, it will return the PCN to the PIM for further assessment.
Therefore, returning a Template for further work is a consequence of one or more questions being assessed
as 'Not Clear'. In the event that 30% or more of the questions are assessed as ‘Not Clear’ this will be
considered as a ‘Fail’

3: “Rejected” – unable to satisfy the assessors of the value of the project

In the event that one or more assessed questions of the PCN are awarded a ‘Fail’, it will be rejected.
However, the assessor is obliged to give written reasons on the returned template for the score given. The
proposing authority will then need to decide whether or not the proposal could be re-submitted after dealing
with the identified inadequacies by adjusting it or to abandon the proposal as a bad idea.

The Budget Department at MoF will be informed by the PIM of the outcome in the event of a positive
assessment.

Comments by reviewers:
( ) Pre-Screening successful (Passes received in all assessment questions)
( ) Return for further work (less than all passes but not enough for Rejection)
Reason(s):
( ) Rejected (received ‘fail’ for more than one assessment question)
Reason(s):
Reviewed by: Name Signature
Date

Page 25