construction firms come under austerity hammer
Last Updated : GMT 18:31:24
Arab Today, arab today
Arab Today, arab today

Construction firms come under austerity hammer

Arab Today, arab today

Arab Today, arab today Construction firms come under austerity hammer

Amman - Agencies

By curbing capital spending, the government is driving many construction firms out of business, contractors complained on Tuesday. The Cabinet decided recently to freeze the implementation of new projects and to cut capital spending by 10 per cent as part of the government’s austerity measures to address an unprecedented fiscal shortfall. Only to complete ongoing schemes, capital expenditure in the 2012 budget law is estimated at JD962 million. Ahmad Tarawneh, president of the Jordan Contracting Construction Association (JCCA), told The Jordan Times yesterday that the sector is facing a “very difficult situation” due to the financial straits in the Kingdom and that local contractors, who have been idled for a while, are also unable to enter other markets outside. He indicated that government delay in paying around JD100 million in dues to construction companies is exacerbating the situation and pushing firms to lay off employees. “The government should give special treatment to the sector as it is a major engine for economic activity supporting over 120 professions,” Tarawneh said. Omar Fazza, executive director of a construction firm based in Amman, agreed that companies which executed government contracts are unable to receive their financial claims, and noted that many other firms have not found projects to implement for over a year. Construction firms will be dismissing some staff because contractors are struggling to pay loans to banks and dues to suppliers, he said. “Due to sharp competition, some contractors undercut prices and take up projects below real costs in a bid to delay their death for another year or two” Fazza added . He blamed the government for not making enough efforts to promote the ‘qualified’ sector outside Jordan in countries like Libya and Saudi Arabia. Although Jordan helped Libya politically, the contractor was not optimistic that the Kingdom’s construction firms would have a share in the reconstruction of the North African country, saying the government did not focus on such an issue when decision makers in both countries discussed bilateral cooperation. Khalil Abul Jloud, director of another Amman-based company, complained that his firm has not implemented any project for over a year. “This is the first time the company has been idled,” he said, noting that the construction company has entered bids for projects in Saudi Arabia, knowing beforehand that it is hard to enter the Gulf country market. “As it stands now in Jordan, many firms are competing for small projects,” he added, echoing Fazza remarks that several companies are willing to lose in some projects as long as they get cash to repay loans to banks and avoid high interest rates. “This year is the toughest for the sector in decades,” Abul Jloud, who has been in the industry for over 20 years, said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

construction firms come under austerity hammer construction firms come under austerity hammer

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

construction firms come under austerity hammer construction firms come under austerity hammer

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Banyan Tree Phuket Takes Festive Season

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Top Democrat faces investigation

GMT 09:50 2017 Friday ,17 November

Top Democrat faces investigation
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today Angola oil boss sacked by father's protege

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Urban, young and active?

GMT 11:01 2017 Thursday ,16 November

Urban, young and active?
Arab Today, arab today Ayten Amer happy for “The Flood” success

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success
Arab Today, arab today Unloved vultures fight for their survival

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 08:21 2017 Tuesday ,14 November

Nelly Karim focuses on humanitarian roles

GMT 09:23 2017 Wednesday ,15 November

Years melt away as Bening & Bell play unlikely lovers

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 13:40 2017 Monday ,13 November

Pollution spikes in Delhi amid warnings

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 10:55 2017 Thursday ,16 November

UN warns fuel running out

GMT 01:04 2017 Wednesday ,15 November

In Morocco, a blue tourist town

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday