Jordan Emergency Cash Transfer COVID-19 Response Second Additional Financing

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The proposed AF2 is in response to a request from the Government of Jordan for an additional financing in the amount of US$350 million and a restructuring of the parent project to support the Government’s COVID-19 response programs. The proposed AF and restructuring of the parent project will not include any revision to the project development objective (PDO). The AF and restructuring will entail the following changes: (i) increase the allocation for subcomponent 1.2 (Takaful-1 cash transfer program) by US$320.88 million while revising the PBCs linked to this subcomponent to reflect the expansion of program beneficiaries starting in 2022; (ii) enhance the PBC’s related to the consolidation of NAF CT programs around Takaful-1, as well as the operationalization of NUR and the EEP; (iii) increase the allocation for Component 4 (Support to workers in firms affected by COVID-19) by US$28.245 million, and (iii) extend the original loan closing date by 12 months (from December 31, 2023, to December 31, 2024) to align it with that of the AF.Similar to the parent project and AF, the proposed AF2 responds to the evolving needs arising from the COVID-19 crisis. The GOJ’s decision to expand Takaful-1 in 2022 despite the challenging fiscal situation reflects the GOJ's commitment to protecting the poor. AF2 will help the GOJ secure needed financing for Takaful-1 over the medium term. It will also support the reform and consolidation of all CT programs for the poor around Takaful-1, as well as other key reforms to further improve the cost-effectiveness of safety net programs. The AF will also finance the extension of the Istidama program for six months in 2022. This extension responds to the protracted negative effects of the COVID-19 crisis on the ability of firms to pay wages while supporting their transition out of the crisis. Under the proposed AF, an additional amount of US$320.88 million will be added to subcomponet 1.2 and US$28.245 million will be added to Component 4. Other components will remain unchanged.