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Contractors union urges gov’t to pay dues, save sector

Association says sector’s deteriation threatens jobs, future reconstruction opportunities

By JT - Feb 02,2019 - Last updated at Feb 02,2019

The Jordanian Construction Contractors Association on Saturday said the money owed by the government to contracting companies is bringing down the sector’s growth and threatens future prospects for Jordanian companies in reconstruction efforts in neighbouring countries (Reuters photo)

AMMAN — Government debt to contracting companies has reached some JD100 million, the majority of which is owed by a Ministry of Public Works and Housing fund, the Jordanian Construction Contractors Association’s (JCCA) president said on Saturday.

President Ahmad Al Yacoub told the Jordan News Agency, Petra, that the sector is in a bad state, calling on the government to save the sector and that it lacks the ability to survive.

The president said that such conditions could force contractors to miss out on reconstruction projects in Syria and Iraq.

Delays in decision making and the inability to find solutions by the Ministry of Public Works and Housing, as well as other government institutions, have contributed to the deteriorating conditions, he added.

Yacoub underscored that some 100,000 employees in the sector are in danger of losing their jobs.

The president called for establishing a specialised commission and extending the period of tax exemption.

The construction sector should receive treatment similar to that of industries, Yacoub demanded.

The JCCA on Saturday also criticised a government decision, announced by Energy Minister Hala Zawati, to freeze new renewable energy projects.

Yacoub said that the syndicate was surprised by the decision and it was made without consulting or even notifying the association, the Jordan News Agency, Petra, reported.

He added that the decision would incur financial losses to contractors, highlighting the importance of cooperating with the association before making decisions that can harm the rights of contractors and their commitments.

Last month, the JCCA announced the formation of a joint Jordanian-Syrian panel to facilitate Jordanian participation in the reconstruction of Syria.

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