Ammon News - The Cabinet, in a session held on Sunday chaired by Prime Minister Jaafar Hassan, approved that the government will bear the interest costs arising from enabling establishments operating in the tourism sector to obtain financial facilities to cover operating expenses, particularly employee salaries. This will be implemented through approval for the Central Bank of Jordan to address commercial banks to provide these facilities and assist in rescheduling and installment payments of their financial obligations until Dec. 31, 2026.

The decision aims to support tourism establishments and enable them to cope with the repercussions of the regional crisis, which has significantly affected the sector, with the aim of sustaining its operations, preserving jobs, enabling it to face financial and operational challenges, and maintaining existing investments.

The Cabinet also decided to ban the export of inputs used in the pharmaceutical manufacturing industry in order to ensure the availability of raw materials for the production of a number of goods, most notably medicines, in light of the current conditions in the region.

It further approved measures to enable the National Electric Power Company to secure the financing required to purchase fuel to ensure the continued supply of electricity.

The decision includes raising the ceiling of government-guaranteed documentary credit facilities for the National Electric Power Company by $100 million, bringing the total to $300 million.

This comes amid regional conditions and challenges facing the company as part of the government’s contribution to increasing the credit facility ceiling to enable the company to secure the financing needed to purchase fuel and maintain electricity supply.

Under the decision, the Ministry of Finance will issue a guarantee on behalf of the National Electric Power Company to the bank issuing the letter of credit, covering the additional $100 million, to enable the company to meet its obligations related to documentary credits for the import of all types of natural gas and liquefied gas in order to ensure the continuity of electricity supply.

As part of decisions related to completing financing procedures for strategic and national projects, the Cabinet approved the second supplementary grant agreement between the Ministry of Planning and International Cooperation, the Water Authority, and the German Development Bank (KfW), 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 Ministry of Water and Irrigation is currently undertaking the final steps to complete financial close within weeks and obtain final approvals from financiers in preparation for launching the project at the beginning of the second half of this year.

The Cabinet also approved procedures for the Multilateral Investment Guarantee Agency (MIGA) to issue guarantees covering investments worth $27 million in the form of equity in renewable energy projects.

The decision falls under a program covering several countries in Africa, Central Asia and the Middle East and includes renewable energy projects such as the solar power plant in Ma’an Governorate and the wind power plant in Tafila Governorate. These guarantees cover various risks for up to 15 years.

The Cabinet also approved exempting the school transport project, announced by the government weeks ago, from all fees and taxes, including general and special sales tax, customs duties, import stamp fees and any other taxes and charges, in accordance with regulations and procedures set by the Customs Department and the Income and Sales Tax Department.

Two weeks ago, the Cabinet approved proceeding with the implementation of the first phase of the school transport project in partnership with the private sector, which will be applied for the first time in the Kingdom and will provide integrated and free school transportation for students in public schools, with no cost borne by students.

The first phase will begin in the southern Badia regions, covering 60 schools across the governorates of Karak, Tafila, Ma'an, and Aqaba, with gradual expansion planned to include all governorates, particularly the central and northern Badia regions.

In support of economic activities, the Cabinet approved a decision by the Board of Commissioners of the Aqaba Special Economic Zone Authority (ASEZA) granting a set of incentives on rental fees owed by tenants in the old free zone.

The decision comes as part of a series of measures taken by the Cabinet to support investment and economic activity in Aqaba.

The incentives include a 100% exemption on rental fees for contracts concluded before Jan. 1, 2010 some of which date back to the period of the Free Zones Corporation before the establishment of the Aqaba Special Economic Zone and a 75% exemption on rental fees for contracts concluded after that date. It also includes a 100% exemption on rental fees and repair costs for warehouses that were damaged.

These incentives will apply to tenants who vacate and hand over leased properties during the period from the issuance of the Cabinet’s decision until Dec. 31, 2026, in accordance with regulations and procedures set by ASEZA.