Cities & Villages Development Bank (CVDB) | Overview

The History:

- In 1951 , special financing corporation named " Economic Development Fund " was established to finance the municipal projects with a capital of J.D 68 thousand.


- In 1955 , this fund eas transferred to The Construction Council with the name of " The Municipalities Loans Fund " with total capital of J.D 1.7 million and emerged with The Rural Reformation Department.


- In 1966 , the fund became an independent institution with the name of The Municipalities Loans Fund with total capital of J.D 2.1 million.


- On 16/9/1979 , CVDB was established with total capital of J.D 5.8 million.


- In 1982 , the capital was raised up to J.D 12 million.


- In 1996 , the capital was raised up to J.D 25 million.


- In 2002 , the bank capital was raised to J.D 50 million.



Cities and Villages Development Bank | Objectives and Duties

Objectives:

CVDB is a loan institution mainly dealing with the municipalities of Jordan and with the public departments that work to provide services to the citizens. The main objectives of CVDB are as follows:

- Support the national projects of the local organizations to secure the services and participate in their development by way of mobilizing its local and foreign financial resources and extends credit facilities necessary for the execution of the council’s projects.

- Handle the management of the loans procured by the local councils and provide loan security as needed

- Assist the local councils to prioritize productive projects based on their economic feasibility and contribute to the capital for those projects.

- Assist to provide the technical expertise and services inclusive of training of the skilled manpower as needed by the local councils.


The Activities:

- Collect the governmental revenues of taxes and fees ( fuel , motor licensing , penalties and violations returns ) and distributed over the municipalities as sanctioned by the council of ministers.

- Open commercial bank accounts to receive the self-generated incomes of the municipalities or from other accounts and directly paid out to the beneficiary or clients of contractors and suppliers.

- Open trust account to pay out the Social security , medical insurance and employees depository installments.

- The transactions through the above accounts are amounted to 80% of the municipalities budgeting . J.D 94 million was paid out in 2006.

 

Cities and Villages Development Bank | Types of Projects funded by the Bank

Infrastructural and social projects:


1- Streets
2- Sidewalks.
3- Gardens,sports centers and public entertainment places.
4- Electricity and lightening
5- Equipment regarding to civil works.

6- Solid waste equipment.
7- Cemeteries.
8- Water projects,water rain draining.
9- Municipal buildings and public libraries.
10-Lands owning and real estates for above projects.


Productive projects:


1- Vegetables markets.
2- Commercial markets.
3- Refrigerators.
4- Slaughterhouses.
5- Offices and Departments centers.
6- Popular markets.

7- Industrial and crafts areas.
8- Cars Parking.
9- Trucks parking.
10-Entertaining places.
11-Lands owning for the above projects.
12-Gardens and parks.

Cities and Villages Development Bank | Lending Activity

CVDB is funding the various local projects as follows:

Projects types Interest Rate Repayment / Installment period Grace period /year
Infrastructures 5% 12 2
Productive projects 6% 12 1
Short Term Facilities 6% 112 -

+ The bank provided short, medium and long term loans for local associates in order to fund services and productive projects with low interest since 1979 up to 2007 with total JD281 million.

Theses loans divided as follows:

   - Productive projects with total JD30.5 million i.e. 11%.

   - Service loans with total JD 250.5 million i.e. 89 %.


Cities and Villages Development Bank | Granted Loans Since (1999 - 2007)
Year Total/million Loans #
1999 1.38 47
2000 1.9 60
2001 7.9 60
2002 14.5 149
2003 6.4 74
2004 6.3 49
2005 11 69
2006 26 46
2007 10 21
Grand Total 77.88 581

JD12 million for Greater Amman Municipality (GAM ) for land appropriation and obligations payment.

The Taxes returns and Fees

The following table illustrates the taxes returns and fees transferred to the local organizations by the government representing 6% of the fuel pricing return in addition to 40% of the traffic and motor licensing / registration fees with tremendous increase in 2007 since the municipalities emerging:

Year 2001 2002 2003 2004 2005 2006 2007
Amount in Milion JD 25 40 50 50 50 55 75

The above amounts composes the shares of the municipalities, GAM, JSCs and other supporting accounts.


The aids and donations by CVDB to the municipalities


+ CVDB is granting aids and donations to the municipalities that reported a permanent deficit by boards declaration and endorsement of the council of ministers :


   - Aids amounting to JD 500 thousand in 2006


   - Aids amounting to JD 450 thousand in 2007


   - Allocation of JD 150 thousand to construct 5 public gardens within the National Greening and  


      Gardening Project launched by the ministry of municipal affairs


Cities and Villages Development Bank | Branch offices

The Branch offices are located in the following cities :

Branch Phone Number
Head Office +962 6 5682690
Zarqa +962 5 3960592
Mafraq +962 2 6232576
Madaba +962 5 3241299
Ajloon +962 2 6420116
Karak +962 3 2353917
Salt +962 5 3559957
Irbid +962 2 7276421
Ma’an +962 3 2133161
Tafeelah +962 3 2242941
Jarash +962 2 6342127

+ The Functions and services of CVDB in these cities are summarized in the following:

   - Support the national projects of the local organizations to secure the services and participate in their development

    by way of mobilizing its local and foreign financial resources and extends credit facilities necessary for the execution

    of the council’s projects.

   - Handle the management of the loans procured by the local councils and provide loan security as needed.

   - Assist the local councils to prioritize productive projects based on their economic feasibility and contribute to the

    capital for those projects.

   - Assist to provide the technical expertise and services inclusive of training of the skilled manpower as needed by the

     local councils.

   - Extend credit facilities to local councils or Establishment to whose objectives include providing basic services within

    the boundaries of the local councils.

   - Fund the project of the local organizations with interest - free loans or credits.

 
   
 
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