AMMAN —
Economists unanimously
agreed that establishing a new city would entail serious borrowing by the
government, to be able to complete the project.
اضافة اعلان
Those interviewed by
Jordan News, said that
such a project is “absolutely undesirable”, especially in view of the country’s
high indebtedness, budget deficit, and the need to revive the economy and
increase the citizens’ purchasing power.
During its Wednesday session, the Cabinet,
chaired by Prime Minister Bisher Al-Khasawneh, was briefed by the consulting
company Dar Al-Handaseh on the project to establish a new city with the aim of
accommodating the steady population increase, especially in the capital, Amman,
and the city of Zarqa.
The new city would be built within the
boundaries of the
Greater Amman Municipality on lands owned by the state
Treasury. It would be approximately 40km from the center of Amman, 33km from
Queen Alia International Airport, and 26km from Zarqa.
The site of the project is considered part of
the badia it would have access to two international roads, linking Jordan Saudi
Arabia and of Iraq, and its total estimated area is projected at 277,000
dunums, Al-Mamlaka reported.
According to the presented study, the project
would be implemented in several phases; the first would start in 2025 and end
in 2033, while the last would end in 2050. The aim is to establish a modern,
environment-friendly city with economic and social investment potential, at a
cost of over JD8 billion.
The Cabinet referred the study on the new
city to the
Economic Development Committee, which will give a detailed report
to the Council of Ministers within a month, for it to study it and take a
decision.
Economist Mufleh Aqel said that the new city
will “increase the burden of debt” on the country.
He, however, admitted that it may be a
positive thing in the long run, “such as relieving pressure on the capital,
since the government will cover the cost of financing from land sales after
developing the infrastructure”.
“Therefore, the government must move toward
funding this project, and stay away from borrowing,” he pointed out.
The areas where the city will be built may
witness positive effects, raising land and real estate prices, “but at the
expense of land and real estate in the capital”.
Economist
Zayyan Zawaneh said he hoped that
the government would forget this project because “it is unproductive and would
not stimulate the economy”.
According to him, “we tried to build
hospitals, but we have been unable to operate them to provide better health
services.”
Zawaneh stressed that the government does not
have the financial capacity to build the project, which would force it to
borrow to implement it, “and this is what we must fear”.
Implementing this project, he said, would be
similar to the act of “a citizen who borrows from a bank in order build himself
a large house, then becomes unable to pay his obligations and loans, and as a
result sells the house in a public auction”.
Economist
Mazen Irsheid said that “it is
necessary to establish such projects, so that government institutions,
embassies, hospitals, and schools are transferred to neighboring areas in order
to relieve pressure”, stressing that the infrastructure in Amman “will not last
more than few years, and the city will face major problems, most notably great
overcrowding”.
Irsheid likened this idea
of a new city to the “government’s tendency to establish Jordanian universities
in the suburbs of the capital, to relieve pressure”, and praised the “security
and economic aspects of this project”.
He also said that the JD8 billion “will not be allocated directly from
the government, but will be contracted with the private sector”.
Former mayor of Amman Mamdouh Al-Abbadi told
Jordan News that establishing a new city “is not easy at all, as the
construction of infrastructure is very expensive, and we have to determine
whether the government is able to borrow this amount so that it can hire
contractors and attract investors”.
Abbadi said that the government should think
of projects that are less risky and attract investments, especially in the
tourism sector.
Amman Mayor Yousef Al-Shawarbeh could not be
contacted for a comment on the matter.
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