Jordan Times
Tuesday, October 12, 2004
Jordan, Iraq seek $1b funding
for `mutual-interest' projects
By Rami Abdelrahman
AMMAN — Jordan and Iraq on Monday appealed for the support of the international
donor community to fund several “mutual-interest” projects at an estimated cost
of $1.078 billion.
An official at the Ministry of Planning and International Cooperation told The
Jordan Times that these projects include upgrading the Karameh border centre (at
an estimated cost of $105.8 million), establishing a 10-million-square-metre
free zone area at the border (at an estimated cost of $49 million), upgrading
the transportation routes between the two countries (at an estimated cost of
$723 million), and upgrading port facilities in Aqaba (at an estimated cost of
$200 million).
Jordan and Iraq had initially approved on Sunday several infrastructure projects
located within the borders of the Kingdom designed to accelerate and facilitate
Iraq's reconstruction efforts, according to an official joint Jordanian-Iraqi
governmental statement.
“Given the importance of the required infrastructure work, both countries'
planning ministers agreed to submit to the higher committee meeting a number of
priority projects for final endorsement and approval,” the ministry said.
According to a ministry official, the Aqaba Port is facing a severe congestion
problem with containers taking between 10 to 14 days to be cleared as a result
of increased imports and exports and inadequate infrastructure.
As a result of this congestion and the lack of capacity and declining security
situation in the Iraqi port of Basra, ships carrying goods for Iraq are
unloading in the Saudi Arabian port of Jeddah. The long distance between Jeddah
and Baghdad prolongs the time taken for goods to reach Iraq, the official added.
The planning minister's adviser, Abdullah Ben Zaid, said these projects are
needed because the current situation is hindering trade between the two
countries and delaying the delivery of humanitarian aid and reconstruction
materials to Iraq.
Currently, a 2,000 dunum free zone area is scheduled to open next month by the
Karameh border between Jordan and Iraq to serve trade between both countries,
the Jordan News Agency, Petra, quoted Ali Madadha, director general of the Free
Zone Corporation (FZC) as saying.
Ben Zaid said that Jordan and Iraq are cooperating and the projects would
provide solutions enabling both countries to “stand on their feet.”
He added that once these solutions are implemented, Jordan hopes that trade
would reach at least its prewar level, as Jordanian businesses relied mainly on
exports to Iraq before the war.
On Sunday, Planning and International Cooperation Minister Bassem Awadallah and
his Iraqi counterpart Mehdi Hafedh confirmed their participation in the upcoming
donors meeting for the reconstruction of Iraq, which will be convened in Tokyo
on Oct. 12-14, 2004.
Awadallah also announced that Jordan will submit a request to host the 2005
meeting of international donors in Amman next March, upon the directives of His
Majesty King Abdullah, “to support Iraq in rehabilitating and restoring its
economic, social and political life, as well as strengthening and deepening
bilateral cooperation.”
The Iraqi minister said on Sunday that Iraq hopes the international donors
community would agree during the Tokyo conference to provide the war-torn
country with donations promised at their first conference last year in Madrid,
Spain.
He indicated that donors promised to extend a total of $13.6 billion in grants
and loans to Iraq, but stated that so far Iraq has only received $1 billion of
the total amount.
Also on Sunday, both ministers agreed to hold the first Jordanian-Iraqi Higher
Committee meeting on Nov. 3, 2004, which will be co-chaired by both countries'
prime ministers.
The higher committee was established upon the signing of a memorandum of
understanding between both premiers during a meeting last July. It aims to
provide the policy guidelines for enhancing and strengthening future cooperation
with particular emphasis on facilitating reconstruction and development efforts
in Iraq.