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‘Gov’t to pay JD55m in outstanding dues to contractors’

By Laila Azzeh - Nov 12,2016 - Last updated at Nov 12,2016

AMMAN – The government has recently decided to extend JD55 million to the Ministry of Public Works and Housing, and to pay the outstanding dues to the Jordanian Construction Contractors Association (JCCA).

According to JCCA President Wael Toukan, the payment was agreed to be made on Sunday.

“Finally the issue has been resolved. The Cabinet met last Sunday and decided to resolve the issue,” he told The Jordan Times over the phone on Saturday.

Last month, the association appealed to Prime Minister Hani Mulki to “swiftly intervene” to address the government’s delay in paying outstanding bills to contractors.

In the appeal, published in Al Rai Arabic daily, the association noted that the sector is suffering “immensely” from the government’s delay in paying its dues. 

In previous remarks, Toukan said Jordanian companies and contractors are paying millions of dinars and hiring thousands of workers to implement projects, noting that the sector has been suffering for months because it has not received its financial dues for projects that have already been implemented.

“The projects are worth more than JD100 million,” he noted, adding that half were commissioned by the Ministry of Public Works and Housing while the rest were from other government agencies. 

The government’s delay in paying the sector has affected contractors’ abilities to spend money on projects, pay salaries and meet their own obligations to banks, suppliers and the Social Security Corporation, Toukan said.

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