Khaberni - The Cabinet decided in its session held today, Sunday, chaired by Prime Minister Dr. Jafar Hassan, to approve that the government will bear the interest related to enabling tourism establishments to obtain financial facilities to cover operational expenses, especially the salaries of their employees, through approval for the Central Bank of Jordan to address commercial banks to provide these facilities and assist in scheduling and installment of the financial dues incurred until the date 12/31/2026.
The decision comes to support the tourist facilities and enable them to face the repercussions of the regional crisis that has significantly impacted the tourism sector, aiming to sustain the sector's operation, preserve jobs, and enable it to face financial and operational challenges, and to maintain investments in this sector.
The Cabinet also decided to prohibit the export of pharmaceutical industry inputs to ensure the availability of raw materials necessary for producing several goods, importantly pharmaceuticals, given the current regional conditions.
The Cabinet also approved measures to enable the National Electricity Company to provide the necessary financing to purchase fuel to ensure the continuation of electricity supply.
The decision includes raising the ceiling of documentary credits facilities on demand guaranteed by the government for the National Electricity Company from 100 million dollars to 300 million dollars.
The decision is in light of the regional circumstances and challenges faced by the National Electricity Company and the government's contribution to raising the ceiling of documentary credits facilities to enable the National Electricity Company to provide the necessary financing to purchase fuel to ensure the continuation of electricity supply.
Based on the decision, the Ministry of Finance will issue a guarantee in favor of the National Electricity Company to the bank that will issue the documentary credit letter worth the increase amounting to $100 million, for purposes of enabling the company to meet its obligations from the documentation credits related to importing all types of natural and liquefied gas for conserving the continuity of electric current.
Within decisions related to completing the financing procedures for strategic and national projects, the Cabinet approved the second supplementary grant agreement between the Ministry of Planning and International Cooperation and the Water Authority, and the German Reconstruction Bank, valued at 22 million euros; to contribute to financing the national water carrier project within the eighth phase of the water resources management program.
The Water and Irrigation Ministry is currently in the final steps to complete the financial closure within weeks and the final approvals of the financiers; the project is set to begin in the first half of this year.
The Cabinet also approved measures for the International Investment Guarantee Agency to issue guarantees covering investments worth $27 million in the form of shares in renewable energy projects.
The decision is part of a program that includes several countries in Africa, Central Asia, and the Middle East, and includes renewable energy projects at the solar power station in Ma'an Governorate, and the wind power generation station in Tafilah Governorate, covering various risks for up to 15 years.
The Cabinet also approved the exemption of the school transportation project announced by the government a few weeks ago from all fees and taxes, including general and special sales taxes, customs duties, import stamp fees, and any other taxes and fees, according to the controls, conditions, and procedures specified by the Customs Department and the Income and Sales Tax Department.
The Cabinet had decided two weeks ago to proceed with the procedures to start the implementation of the first phase of the school transportation project in partnership with the private sector, which will be applied for the first time in the Kingdom, providing integrated and free school transportation for students in public schools, such that the student bears no cost.
The implementation of the first phase of it will begin in the southern desert areas including 60 schools spread across the governorates of Karak, Tafilah, Ma'an, and Aqaba, and will be gradually expanded to include all governorates, especially the central and northern desert areas.
In terms of supporting economic activities, the Cabinet approved a decision by the Board of Commissioners of the Aqaba Special Economic Zone Authority that includes granting a series of incentives on rent fees due from tenants in the old free zone.
The decision comes as a continuation of a series of decisions taken by the Cabinet to support investment and economic activities in Aqaba.
The decision included a 100% exemption from rent charges for contracts signed before the date 1/1/2010, which some dates back to the period of the Free Zones Corporation's management before the establishment of the Aqaba Special Economic Zone, and a 75% exemption from rent fees for contracts signed after 1/1/2010, and a 100% exemption from rent and repair expenses for warehouses that have been damaged.
These incentives will be applied to tenants who vacate the rented property and deliver it during the period from the date the Cabinet's decision on this matter is issued until 12/31/2026, according to the controls and procedures specified by the authority.
