‘Water Ministry budget projected to drop due to GCC grant’

AMMAN — The Water and Irrigation Ministry’s budget will drop by 18 per cent in 2016 and 64 per cent in 2017 compared to its 2015 budget, which stands at JD54.7 million, according to the 2015 draft state budget law.

The ministry’s 2016 budget is estimated at JD44.3 million, dropping to JD19.8 million in 2017, as per the 2015 state budget bill.

Some 96 per cent of the ministry’s 2015 budget will be directed towards implementing water and wastewater projects across the Kingdom.

Water Ministry Secretary General Basem Tulfah on Thursday attributed the drop in the ministry’s budget in 2016 and 2017 to the fact that it will be spending the remainder of its share of the Gulf grant on necessary water and wastewater projects.

In 2011, the Gulf Cooperation Council (GCC) allocated $5 billion to finance development projects in Jordan during the 2012-2016 period. The grant is divided between Saudi Arabia, Kuwait, the United Arab Emirates and Qatar, with each country paying $1.25 billion.

Some $425.4 million has been allocated for water and sanitation projects.

“The ministry’s capital expenditure will even drop to JD3 million by 2018,” Tulfah told The Jordan Times.

The ministry’s capital expenditure in 2015 is estimated at JD52.4 million, according to the draft state budget law, which indicated that the figure will drop to JD41.9 million in 2016 and JD17.4 million in 2017.

The official said the ministry’s capital expenditure will continue to drop as it spends its allocations of the Gulf grant.

Capital spending in 2015 is estimated at JD1.175 billion, an increase of JD59 million from 2014, of which JD510 million will be covered by the GCC grant.

Foreign grants were estimated to reach JD1.128 billion in 2015, split into JD806 million from the GCC, and JD322 million from the US and EU.