What this guide is for
Your institution launches a PPP program that guarantees the bank loans of the young companies, small contractors and proposers behind public-private partnership (PPP) projects.
The case
Credit guarantees bring young companies into every PPP in Jordan
Banks have lent to infrastructure mostly through a few large developers and contractors with deep balance sheets, and smaller firms have watched the deals from the outside. The projects of the next fifty years will be built by many smaller companies at once, and the institutions that share their credit risk with banks now will decide who takes part. This guide invites credit guarantee institutions in Jordan to launch a PPP program, starting with the projects at home.
The guide
Open the $500 trillion PPP infrastructure opportunity to new borrowers
Your institution opens a dedicated PPP program, a team and a set of guarantees that let banks lend to the young companies, small contractors and proposers behind PPP projects, starting with Jordan’s $86 billion of projects and the $46 billion anchored in Aqaba.
01
A PPP guarantee team
A dedicated team that knows how PPPs are prepared, procured and financed follows every project in Jordan’s pipeline from the first market sounding and decides early where a guarantee can bring a bank in.
02
Partial credit guarantees
A guarantee that covers part of each loan lets banks lend to young PPP companies, small contractors and suppliers whose track records are still short, with the bank and the institution sharing the risk.
03
Supplier and small-loan cover
Guarantees on supplier finance, working capital and small-scale PPP loans keep cash moving to the firms that build and maintain each asset, so they can take on concession work and wait to be paid.
04
Guarantee-led direct proposals
Jordan’s PPP Law No. 19 of 2023 accepts direct private proposals under Article 15. A credit guarantee institution can back the companies that propose their own projects, such as a solar plant for a group of schools, a smart parking network or a water reuse plant, so their banks can lend from the first study to financial close.
05
Pilots as small-scale PPPs
PPP Regulation No. 9 of 2024 defines small-scale PPPs below $14.1 million, which can be bundled into one feasibility report and one tender. A guarantee on the loans behind a bundle of pilots at that scale gives the institution a live portfolio and a reference.
Why credit guarantee institutions
Credit guarantees bring young companies into every PPP in Jordan
A PPP is built by many firms beyond the lead developer, and most of them need bank loans to take part. Credit guarantee institutions share the risk of those loans with banks, which lets each project draw its partners from the whole economy.
Where credit guarantee institutions fit in a PPP
- Preparation
- Guarantees on the loans that pay for studies behind direct proposals and small projects.
- Tender
- Cover for the bid and performance bonds of young firms and small contractors.
- Financial close
- Partial credit guarantees that bring banks into loans to newer borrowers.
- Operation
- Cover for supplier finance and working capital that keeps service firms paid.
- Exit
- Guarantees on refinancing and tokenized notes that bring new investors into the asset.
Risk-sharing lets banks lend to more PPP companies
Banks lend to the borrowers they know, and most PPP companies in Jordan are still new. A credit guarantee institution can share the risk of their first loans with banks and development finance institutions and publish how the portfolio performs, so banks lend to more PPP firms with less cover over time.
Why a program, and why now
Jordan’s first small-scale PPPs and direct proposals are being prepared now, and their sponsors will need loans before they have a record. A program gives a credit guarantee institution a team, a pipeline and the bank partners to act first, and the institution that backs Jordan’s first PPP pilots and their suppliers will set the terms that later lenders follow.
Futureproofing
Futureproof Credit Guarantee Institutions in Jordan for the infrastructure singularity
This free 17-page guide shows how, with small PPPs in parallel, PPP research labs, artificial intelligence, robotics, tokenization and six first steps.
Jordan and Aqaba
An $86 billion pipeline to start with
Many of them will be built by companies that banks cannot yet lend to without a guarantee. A Jordanian credit guarantee institution that backs one PPP at home can carry the same products to the next project across the region.
- $86B
- of PPP and infrastructure projects in development in Jordan
- $46B
- of them anchored in Aqaba
Artificial intelligence
AI lets a credit guarantee institution judge more borrowers with the same team. It can read a young company’s contracts, payments and project data, score the risk of each loan and watch the asset that repays it in real time. A credit guarantee institution can share those scores with its partner banks and price each guarantee on live data from the projects it backs.
Robotics
Robots and sensors record what was built, inspected and repaired, which gives a guarantor an independent view of the asset behind each loan. A credit guarantee institution can back the loans that small contractors take to buy robots and drones, and it can release cover as those machines confirm the work on site.
Tokenization
Tokenization opens PPP finance to many small investors, and a guarantee can make the first issues safe enough to buy. A credit guarantee institution can cover part of the first tokenized PPP notes in Jordan, paid from the asset’s own revenue, so savers and banks can back projects still building a record.
Small PPPs and research labs
Every PPP research lab needs partners who can borrow to build its pilots. A credit guarantee institution can cover the loans behind each pilot, publish how those loans perform and carry the guarantees that work into standard products for larger projects.
Unsolicited proposals
A direct proposal lets a young company bring a project of its own to a ministry or municipality. A credit guarantee institution can cover the loans that pay for its studies and its build, so the proposer keeps its ideas, its bank and its right to match the best offer.
The program
How the program could work
The program can sit inside the institution’s guarantee and risk teams, with a PPP lead at its center and products built from the guarantees the institution already offers.
- PPP team
- A small team of credit, risk, legal and finance people that covers every PPP in Jordan’s pipeline from the first sounding.
- Credit guarantees
- Partial guarantees on loans to young PPP companies, small contractors and proposers.
- Supplier finance
- Cover for supplier finance and working capital for the firms that serve each concession.
- Risk-sharing
- Agreements with banks and development finance institutions that split each loss on set terms.
- Direct proposals
- Guarantees for companies that propose projects under Article 15 and borrow to prepare and build them.
- Pilots
- Guarantees on the loans behind bundled small-scale PPPs below $14.1 million and their suppliers.
- Partners
- Agreements with banks, development finance institutions, fintech companies, contractors and PPP developers.
What the institution gains
The institution gains a growing portfolio of guarantees on loans repaid from contracted public revenue, new partner banks and fee income from projects that run for decades, inside every project it helps finance.
It also gains a central place in how Jordan builds. The institution that opens PPP lending to young companies and small contractors will widen the market for every project that follows, in Jordan and across the region.
Next steps
How a credit guarantee institution can start
Any credit guarantee institution in Jordan can take this guide forward. The first steps use the products and bank partners it already has.
01
Mandate
Board approval for a PPP program, with its products, its risk limits and its first-year goals.
02
Team
A named program lead, with credit, risk, legal and finance people drawn from the institution’s existing teams.
03
Pipeline
A map of Jordan’s $86 billion of projects by sector and stage, and the companies and contractors that will need loans to join them.
04
Products
Partial credit guarantees, supplier finance cover and small-scale PPP loan guarantees on standard terms.
05
Partners
Banks, development finance institutions, fintech companies, contractors and PPP developers.
06
Pilot
A first guarantee on a small-scale PPP loan or a direct proposal, taken from idea to signing.
Jordan has the projects, the banks and a law that lets a company propose its own. A PPP program puts your guarantees at the center of who builds, finances and runs the superintelligent infrastructure future.
The full document
Inside this guide
Seventeen pages and thirteen chapters, from the case for a PPP program to the first steps, written for credit guarantee institutions in Jordan.
- 17
- pages
- 13
- chapters
- 3
- technologies
- 6
- first steps
01Introduction
Why a century of infrastructure needs rebuilding, and the $500 trillion it will take.
Page 3 of 17
02The guide
Open the $500 trillion PPP infrastructure opportunity to new borrowers
Page 5 of 17
03Jordan and Aqaba
An $86 billion pipeline to start with
Page 6 of 17
04Artificial intelligence
How AI designs, structures and runs PPP projects, and what it means for credit guarantee institutions.
Page 7 of 17
05Robotics
How robots build infrastructure and keep it running, and what that means for credit guarantee institutions.
Page 8 of 17
06Tokenization
How tokenization funds projects from their own revenue, and the role it opens for credit guarantee institutions.
Page 9 of 17
07Small PPPs in parallel
Why many small PPPs teach a country faster than a few large ones.
Page 10 of 17
08PPP research labs
A lab in each sector, running ten small PPP projects a year.
Page 11 of 17
09Unsolicited proposals
How Jordan’s PPP law accepts direct proposals from private companies.
Page 12 of 17
10Why credit guarantee institutions
Credit guarantees bring young companies into every PPP in Jordan
Page 13 of 17
11The program
The program can sit inside the institution’s guarantee and risk teams, with a PPP lead at its center and products built from the guarantees the institution already offers.
Page 14 of 17
12About
About Jordan PPP and what it offers.
Page 15 of 17
13Next steps
How a credit guarantee institution can start: six first steps.
Page 16 of 17
Questions
Questions about the guide for Credit Guarantee Institutions in Jordan
- What does the guide for Credit Guarantee Institutions in Jordan propose?
- Your institution launches a PPP program that guarantees the bank loans of the young companies, small contractors and proposers behind public-private partnership (PPP) projects.
- Why should credit guarantee institutions in Jordan launch a PPP program?
- Credit guarantees bring young companies into every PPP in Jordan. A PPP is built by many firms beyond the lead developer, and most of them need bank loans to take part. Credit guarantee institutions share the risk of those loans with banks, which lets each project draw its partners from the whole economy.
- Which PPP projects can credit guarantee institutions in Jordan take part in?
- Jordan has about $86 billion of PPP and infrastructure projects in development, $46 billion of them anchored in Aqaba. Many of them will be built by companies that banks cannot yet lend to without a guarantee. A Jordanian credit guarantee institution that backs one PPP at home can carry the same products to the next project across the region.
- How can credit guarantee institutions in Jordan start a PPP program?
- Any credit guarantee institution in Jordan can take this guide forward. The first steps use the products and bank partners it already has. The guide sets out six first steps: mandate, team, pipeline, products, partners and pilot.
- What does a PPP program give credit guarantee institutions in Jordan?
- The institution gains a growing portfolio of guarantees on loans repaid from contracted public revenue, new partner banks and fee income from projects that run for decades, inside every project it helps finance.
- Is the guide for Credit Guarantee Institutions in Jordan free?
- Yes. It is free to read on this page and free to download as a 17-page PDF, with the case for a PPP program, Jordan’s pipeline, the role of AI, robotics and tokenization, the program and six first steps.
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