Cabinet Approves €112 Million in Strategic Projects with Italy and Global Partners - Jordan News

Jordan News

15-05-2025

Cabinet Approves €112 Million in Strategic Projects with Italy and Global Partners The Cabinet on Wednesday approved a key agreement with the Government of Italy and a financial agreement with the Italian Development Bank to support the National Water Carrier Project. The agreement includes a soft loan worth €50 million and a €2 million grant. اضافة اعلان This move is part of the Kingdom's strategic push to secure long-term water sustainability. The funding will help advance the Aqaba-Amman National Water Carrier a flagship infrastructure project that will supply 300 million cubic meters of desalinated drinking water annually. The project is central to the nation's response to its severe water scarcity and aims to boost supply across all governorates. The initiative is a pillar of the Economic Modernization Vision and represents the most ambitious national effort yet to confront water poverty head-on. In parallel, the Cabinet approved an amended agreement to move forward with the Northeast Balqa Wastewater Project, backed by €60 million in funding from the French Development Agency. The project will replace the existing Baqaa treatment plant with a new, state-of-the-art facility located 2 km from the King Talal Dam. It will also eliminate the Ain Al-Basha station, streamlining operations with a gravity-fed pipeline to the new site. The new plant will significantly improve sanitation infrastructure and environmental outcomes in the region. With an initial treatment capacity of 36,000 cubic meters per day expandable to 54,000 the project is designed to grow with demand. All required environmental, technical, and regulatory approvals have been secured. Tendering has been split into two packages, with both now through the prequalification and bid-opening phases. The project is moving toward contract awarding. The Cabinet also gave the green light to a new food security and inclusive growth project, developed in partnership with the Italian government. The program aims to empower small farmers, improve local food production quality, and promote sustainable agricultural systems. It aligns with the Economic Modernization Vision's high-value industries pillar and supports the national food security strategy (2021–2030), the Sustainable Development Agenda 2030, and other national plans. Key interventions include: * Technical and financial support to rural farmers to enhance productivity and quality * Training on modern farming techniques, business skills, and sustainability * Introduction of agricultural machinery to reduce labor intensity * Empowering rural women through small-scale food manufacturing initiatives * Establishing cold storage and waste processing units to reduce loss and improve quality * Expanding market access for smallholder farmers * Promoting circular practices and efficient resource use to minimize environmental impact The program targets smallholders, rural women, seasonal farmworkers, and members of agricultural cooperatives aiming to boost job creation, reduce poverty, and strengthen rural communities against economic and climate challenges. In the environmental space, the Cabinet approved a partnership with the Global Environment Facility (GEF) to launch Jordan's Circular Solutions Project. The initiative will align with global strategies to combat plastic pollution by banning certain single-use products, promoting sustainable packaging, and supporting SMEs developing eco-friendly packaging solutions. It will also push for higher recycled content in plastic products in line with global standards. The project will focus on environmentally impacted cities and will run for 60 months, beginning at the end of June 2025 and concluding in 2030. The Cabinet further approved an agreement with the European Union for the "Partnership Implementation Facility – Phase II" program, aimed at enhancing public sector effectiveness in executing key reform and partnership priorities with the EU. It will also support policy development in areas like green and digital economy growth and defense cooperation with the Jordan Armed Forces. To strengthen exports, the Cabinet extended the 75% tariff exemption on horticultural exports through December 31, 2025. This aims to sustain agricultural operations, protect jobs, and enhance Jordan's global market competitiveness. In support of investment, the Cabinet also extended special incentives granted to the Abdali Investment & Development Project for an additional two years. The goal is to accelerate Phase II implementation and attract investors to capitalize on the project's growing potential. Work on Phase II infrastructure began in early 2025. These exemptions will apply to necessary imported goods and services not available locally, provided they meet Jordanian standards, and are subject to Customs Department oversight. On the tax front, the Cabinet approved the settlement of 803 outstanding cases between taxpayers and the Income and Sales Tax Department part of broader efforts to ease the burden on businesses and citizens, encourage compliance, and improve the business climate. To boost employment and entrepreneurship, the Cabinet also approved two agreements with the German government, via the KfW Development Bank, to launch the "Employment Through Entrepreneurship" program. The initiative will introduce a new financing window under the Industrial Development Fund to increase access to capital for SMEs, especially women-led businesses, and support job creation. The program offers investment grants that support business growth and sustainable employment in line with the Economic Modernization Vision. The Cabinet also approved a draft regulation to license domestic cleaning service companies, referring it to the Legislation and Opinion Bureau for processing. This comes following amendments to the Labor Law requiring regulations to organize all aspects of hiring and managing domestic workers, including licensing conditions and ministry oversight. The new regulation aims to regulate the sector and reduce violations. On the international cooperation front, the Cabinet approved a framework agreement with the Republic of Malta to establish a Joint Economic Committee, along with four Memoranda of Understanding in the fields of water, energy, tourism, and archiving. In other decisions, the Cabinet appointed Omar Malhas as Chairman of the Social Security Investment Fund and accepted the resignation of Bilal Al-Hafnawi from the Board of Commissioners of the Telecommunications Regulatory Commission.
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