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— Council of Ministers covers loan interest for tourism businesses
— Export of pharmaceutical inputs banned to secure local supply
— 22m grant approved to fund National Water Carrier project
— Cabinet exempts school transport project from all taxes, fees
AMMAN — The Cabinet, during a session chaired by Prime Minister Jafar Hassan on Sunday, approved measures enabling the National Electric Power Company (NEPCO) to secure financing for fuel purchases to maintain an uninterrupted electricity supply.
The ceiling for government-backed letters of credit for NEPCO will be raised from $100 million to $300 million. Under the decision, the Ministry of Finance will issue a guarantee for the additional $100 million, allowing NEPCO to meet its obligations for importing all types of natural and liquefied gas required to sustain electricity provision.
The Cabinet also approved government coverage of interest on financial facilities for tourism sector establishments to help cover operational expenses, particularly employee salaries, according to a Prime Ministry statement.
The Central Bank of Jordan (CBJ) will coordinate with commercial banks to provide these facilities and assist in scheduling and instalment payments, effective until December 31, 2026.
The decision aims to support tourism businesses in mitigating the impact of the regional crisis, sustaining operations, preserving jobs, addressing financial and operational challenges, and safeguarding existing investments in the sector, the statement read.
The Cabinet also banned the export of pharmaceutical industry inputs to ensure the availability of raw materials for producing essential goods, including medicines, in light of current regional conditions.
The Cabinet also
The Cabinet also endorsed 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.
The grant will contribute to funding the National Water Carrier project under the eighth phase of the Water Resources Management Program. The Ministry of Water and Irrigation is completing final financial closures and approvals, with project implementation expected to begin in the second half of 2026, according to the statement.
The Cabinet also authorised the International Investment Guarantee Agency to issue guarantees covering $27 million in investments in renewable energy projects. The programme spans multiple countries in Africa, Central Asia, and the Middle East, including the solar power plant in Ma’an and the wind power plant in Tafila, covering various risks for up to 15 years.
The Council of Ministers also approved exemptions for the school transport project from all fees and taxes, including general and specific sales taxes, customs duties, import stamp fees, and other charges, in accordance with regulations set by the Customs Department and the Income and Sales Tax Department.
The Cabinet has recently approved the first phase of the school transport project in partnership with the private sector, marking its first implementation in the Kingdom.
The project would provide free, integrated school transport for public school students, with no cost to families. The first phase will cover 60 schools in the southern Badia regions of Karak, Tafila, Ma’an, and Aqaba, with gradual expansion planned to include all governorates, especially the central and northern Badia areas.
To support economic activity in Aqaba, the Cabinet approved a decision by the Board of Commissioners of the Aqaba Special Economic Zone Authority (ASEZA) granting incentives on rent fees for tenants in the old free zone. The measures include a 100 per cent exemption from rent for contracts signed before January 1, 2010; a 75 per cent exemption for contracts signed after January 1, 2010; and a 100 per cent exemption from rent and repair costs for damaged warehouses. These incentives apply to tenants who vacate and return leased property from the date of the Cabinet decision until December 31, 2026, in accordance with the rules and procedures set by the Authority.
