Cities and Villages Development Bank was established in1970, it's an official public institution, which enjoys the status of a judicial person, and administratively and financially independent .

The banks announced capital amounted to JD (50) million and the paid – up capital with the reserve amounted to JD(57) million while the paid – up capital without the reserve amounted to JD(46.6) million

 as follows:-

Contributor	announced capital	percent	paid – up capital
The Hashimit Kingdom	JD (34) million	68%	JD (34)m
Jordan Central Bank	JD (1) million	2%	JD (1) m
Local council	JD (15) million	30%	JD (11.6) m
Total	JD (50) million		JD (46.6)m

The bank provides long term financing to establish both services and productivity projects through the local councils. The total of these projects amounted to JD(244) million.

The bank also administrates and guarantees loans held between the councils and any other party aim to provided the councils with the essential services.

CVDB assists the local councils in appointing priorities for productive projects in the light of their economic feasibility.

CVDB provides the technical experience and services including the training of the technicians.

The bank administers the councils treasury collected by the government.

The bank address

Amman – Alshmaisani

Prince Shakir bin Zaid

building No. (7)

Tel           : (962 6 5682690)

Fax          : (962 6 5681553)

P.O.box     : (1572)

Area code  : (11118)

E-mail       : cvdb@cvdb.gov.jo

website     : www.cvdb.gov.jo

Board of Directors :-

·            Minister of Municipal affairs  as   Chairman.

·            General Manager of CVDB as Deputy Chairman.l

·            Representative of ministry of Finance.

·            Representative of ministry of Public Works.

·            Representative of ministry of Municipal Affairs.

·            Representative of ministry of Planning.

·            Representative of Central Bank of Jordan.

·            Two Representatives of the local councils.

The General Manager is appointed by a decision of the council of Ministers upon the recommendation of the bank’s board of  directors. The General Manager has to implement the decisions taken by the bank’s board of directors and apply the general policy drawn for the bank and supervise the bank’s administrative personnel. The General Manager also exercises the powers granted to him by virtue of the bank’s law and regulations or granted to him by the board of directors.

Objectives and Duties

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

·            The administration and guarantee of the loans procured by the local councils, and performing any banking function, dealing or operation required  by virtue of this law or any other enactment or by virtue of any international agreement to which the government of the kingdom is party of and whose implementation requires the participation of the Bank.

·            Assisting the local councils in appointing priorities  for productive projects in the light of their economic feasibility and participate in the capital for those projects.

·            Assisting the procurement of technical expertise and services including the training of the technicians 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.

Bank Departments.

1.        Banking Department.

2.        Fund Department.

3.        Computer Department.

4.        Administrative Services Department.

5.        Internal Auditing Department.

6.        Planning and Development Department.

7.        Development and training Department.

8.        Law Department.

9.        Human Resource Department.

10.    Monitoring Department.

11.    Finance Department.

Lending Activity:

The Bank continues to contribute in the development process of the local councils by providing the adequate fund, experience, services, technical and administrative skills within the government effort in developing and reforming the municipalities to achieve a comprehensive sustainable development by several projects, and the most important projects are:-

1.        Services projects, streets, curbs and sides, parks, public entertainment places, pilot centers, health and social centers.

2.        Productive projects, complexes, offices, industrial and handcraft areas, car parks, libraries.

Projects types           Interest          Installment              Grace period

                                        Rate              period plus                       /year

Services Projects         6%                 12                                 2

curbs and sides            7%                  6                                 1

Productive projects       7%                 12                                2

The Bank also supports and participates effectively in developing municipal work and expense control through providing some of the municipalities with credential facilities as in the overdraft accounts to cover its financial needs.

Training Activity:

Referring to Item (5) of the Bank’s law, and  within the bank’s effort towards supporting the local councils by conducting training courses for the local council’s employees, to cope with the current development, the Bank established (5) training centers in association with the Ministry of the Municipal affairs as follows:-

1.        The main training center is in the bank’s headquarters. This center covers Jordan’s central region (Zarqa, Balqa, Amman and Madaba)

2.        In Irbid Municipality, covers the northern region (Irbid, Jerash, Ajloon, Mafraq).

3.        In Al-Karak

4.        In Al- Tafeela.

5.        Ma’an Municipality, covers the southern region.

The training courses included various subjects such as:

Financial subjects, Administrative, management information, budget analysis, feasibility studies and many other subjects.

Lending Method:

The Bank approves on financing the  projects of the municipalities according to the public policy settled by the board’s decision no 44/85 according to the projects acceptance standers as follows:-

·            The local council applies for a loan through the ministry of municipal affairs – after a decision made by the council board – and transfer the application to CVDB.

·            The application will be studied technically and financially by the concerned departments in the bank, in association with the Ministry and the concerned municipality, and the departments will make their own recommendations.

·            Afterwards the application is transferred to the central lending committee which is formed by the General Manager to study the application and the financial and technical recommendations, then provide the board of directors with their recommendations to make the suitable decision .

·            Informing the municipality with the decision, and incase of acceptance an agreement will be signed between the bank and the local council including all data, conditions to follow, and lending condition like period of payment, interest rate, instatement method. afterwards a tender will be submitted to execute the project according to the signed agreement.

·            The general director will sign the agreement on behalf of the bank, the municipality’s board chairman or deputy chairman on behalf of the municipality.

Bank’s  Branches:

According to the government role in supporting the decentralization, ten branches were established in Irbid, Mafraq, Zarqa, Jerash, Ajloun, Salt, Madaba, Karak, Tafeela, Ma’an and three offices.

 Branches’ phone numbers:-

Zarqa Branch          053960592 

Mafraq Branch        026232576

Madaba Branch       053241299

Ajloon Branch                                 026420116

Karak Branch                         032353917

Salt Branch                             053559957

Irbid Branch            027276421

Ma’an Branch           032133161

Tafeelah Branch      032242941

Jarash Branch                     026342127

Aqaba Office          032063388

Rusaifah Office       053749888