Arab Today, arab today construction firms come under austerity hammer
Last Updated : GMT 22:26:23
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 - Arabstoday

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. By The Jordan Times

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*

Arab Today, arab today construction firms come under austerity hammer Arab Today, arab today 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*

Arab Today, arab today construction firms come under austerity hammer Arab Today, arab today construction firms come under austerity hammer

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Italy regions back 'big bang' autonomy

GMT 07:10 2017 Monday ,23 October

Italy regions back 'big bang' autonomy
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Trump: End of Daesh is in sight

GMT 20:29 2017 Monday ,23 October

Trump: End of Daesh is in sight
Arab Today, arab today Maltese demand justice for murdered

GMT 06:08 2017 Monday ,23 October

Maltese demand justice for murdered
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Lost Australia diver swam miles

GMT 19:09 2017 Monday ,23 October

Lost Australia diver swam miles
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 Tesla to build wholly-owned plant

GMT 07:55 2017 Monday ,23 October

Tesla to build wholly-owned plant
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Rogina happy for reactions to “The Flood”

GMT 09:30 2017 Friday ,20 October

Rogina happy for reactions to “The Flood”
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:07 2017 Sunday ,22 October

15,000 Under Fives Die

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
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