Cabinet approves key agreements to strengthen water, food security, enhance infrastructure

AMMAN — The Cabinet on Wednesday approved grant and soft loan agreements of 50 million euros and two million euros with the government of Italy and the Italian Development Bank to finance the National Water Carrier Project.

The agreement aims to support the implementation of the Aqaba-Amman National Water Carrier Project for desalination and water conveyance, which seeks to provide 300 million cubic metres of potable water annually, address the chronic water shortage in the Kingdom, and increase water supply across all governorates, the Jordan News Agency, Petra. 

During a session on Wednesday, chaired by Prime Minister Jafar Hassan, the Cabinet also approved an amended agreement for the implementation of the Northeast Balqa sanitation project, funded by the French Development Agency, at a value of 60 million euros.

The project, covering an area of approximately 48 dunums, includes the construction of a new treatment plant about 2 kilometres from the King Talal Dam, to replace the existing Baqaa sewage treatment plant. The project aims to improve and enhance the efficiency of the water and wastewater sectors in the area.

The design capacity of the new plant is about 36,000 cubic metres per day, expandable to approximately 54,000 cubic metres per day, Petra said. 

The Cabinet endorsed an agreement for the implementation of the Food Security and Inclusive Economic Growth Project, in cooperation with the Italian government, focusing on sustainable rural products and the efficient use of local resources.

The agreement aims to enhance food security in Jordan, empower small-scale farmers, improve the quality of local food production, and develop resilient and sustainable agricultural systems.

The Cabinet also approved an agreement to implement the Circular Solutions Project in Jordan, in cooperation with the Global Environment Facility. The project aims to carry out specific activities in line with the global strategy for circular solutions to plastic pollution. It will improve the regulatory framework to ban certain single-use plastic products and promote a shift towards sustainable packaging by supporting the food and beverage sector’s transition to non-plastic alternatives, according to Petra. 

It also allocates financial support to small and medium-sized enterprises (SMEs) to establish businesses related to sustainable packaging and increase the percentage of recycled materials in plastic packaging, in accordance with existing coordination guidelines.

The Cabinet also approved the EU’s “Partnership Implementation Facility” (PIF) Phase II.The agreement aims to support the enhancement of effectiveness and efficiency of public sector institutions in implementing the partnership and cooperation priorities between Jordan and the EU, and to develop regulatory frameworks and policies that align with green, digital, and inclusive economic growth. It also includes defence cooperation with the Jordan Armed Forces – Arab Army, Petra reported. 

In terms of investment support across various sectors, the Cabinet approved the extension of the 75 per cent exemption on export-bound horticultural agricultural goods from imposed fees until 31 December 2025.

The Cabinet also decided to extend decisions related to the Abdali Investment and Development (AID) Project for two years from their expiration date, to enable the start of Phase II implementation. The AID Project has already commenced infrastructure work for Phase II in the first half of 2025.

The Cabinet endorsed the settlement of 803 outstanding cases between taxpayers and the Income and Sales Tax Department.

The Cabinet approved two agreements with the German government through the German Development Bank to implement an employment programme through entrepreneurship. The programme aims to create a new financing window within the Industrial Development Fund to boost employment in the private sector in the Kingdom, by providing new job opportunities and improving access to financing for SMEs, especially those led by women.

The Cabinet approved a framework cooperation agreement to establish a joint economic committee between Jordan and Malta. It also approved four memoranda of understanding with Malta in the fields of water, energy, tourism, and archiving.

The agreements are part of efforts to strengthen relations, exchange expertise, and enhance cooperation between the two countries in various fields, Petra said.