Jordan Economic Observatory Discusses Energy’s Taskforce Results

03 Sep 2013  The report tackled the current status of energy in the Kingdom and examined all relevant aspects and their impact on the national economy
 
AMMAN----- September 3, 2013----- Jordan Economic Observatory held a session to discuss the findings of the Energy taskforce report with participation and presence of the head of the taskforce and members of Economic Policy Development Forum (EPDF), experts and specialists in this vital sector at Talal Abu-Ghazaleh Knowledge Forum.
 
The session was headed by Ms. Reem Badran, EPDF Vice President, Dr. Mohammad Abu Hammour and Mr. Adnan Abu-Ragheb.
 
The report tackled the current status of energy in the Kingdom and examined all relevant aspects and their impact on the national economy. The report described the current status in Jordan as a real crisis which is dramatically increasing due to the lack of commercial energy sources and thus relying on the import of almost all the country’s needs of energy resources.
 
The report summarizes that Jordan stands at the threshold of a ticking time bomb ready to explode at any moment, noting that the losses of the National Electric Power Company (NEPCO) reached until the mid of this year three billion dinars and the amount is expected to reach four billion by the end of this year, assuming that the daily supply of the gas from Egypt remains up to 100 million cubic feet a day as the case today.
 
The report pointed out that the indebtedness of NEPCO constitutes a heavy burden which will strain the energy sector in particular and the economy of Jordan in general if the current situation remains as is. This indebtedness increases daily and has not been confronted by urgent and effective measures by the Ministry of Energy and Mineral Resources and competent government institutions to halt the bleeding and to find immediate and radical solutions to this problem.
 
Meanwhile, regarding the reasons of the problem, the report held the Ministry of Energy and Mineral Resources liable for the lack of clarity of future visions of the said Ministry, seclusion in decision-making and lack of openness to other companies and institutions in the said sector, in addition to the absence of qualified administration due to their reliance on the individual decisions not based on the long-term strategies and fluctuations of decisions and policies with rapid changes of the energy ministers.
 
The report pointed out that the Ministry did not respond to the requirements of dealing with energy crisis since the beginning thereof. Also, the Ministry was delayed in dealing with the challenges and implementing the possible solutions until it is drown in useless bureaucratic procedures hindering the performance of their original work.
 
The report pointed to the weakness of the Ministry’s staff and understaffing as well compared to the major tasks within the Ministry which interrupted the work and hindered the implementation of its projects. This led to the interruption of the performance of various institutions and companies of this sector.
 
The report called for the restructuring of the Ministry and its relationship with companies and institutions in this sector in order to raise the efficiency of the administration and the efficiency of the various components of the energy sector. The said report proposes the establishment of an independent body for the renewable energy and rationalization of consumption to endure and continue with the current projects.
 
The report also called upon the decision-makers and planners to approach the energy problem and the burden posed on the economy and citizens from a comprehensive perspective that goes beyond the energy sector only; consider the problem as one of the general imbalances in the structure and performance and to increase the efficiency of overall economic outputs thereby minimize the burden of energy thereupon.
 
The report called for paying more attention to the fact that the deficiencies are a reflection of the shortcomings within the economic and administrative structure of the sector. The micro and sectoral handling of the problem will not succeed in achieving major accomplishments unless it is included within a comprehensive reform process.
 
The report further concludes that the fundamental solution of the energy problem does not lie in the formalities apart from the comprehensive development process at the macroeconomic level which should frame the procedures within a broader perspective of development.
 
Interventions and questions were raised during the meeting focusing on the alternative project such as oil shale, renewable energy and nuclear power project where the report puts down certain reservations on the procedures calling for a national conference for the advocates and opponents of this project.
 
It is worth mentioning that the energy task force comprises HE Dr. Ahmad Hiyasat as Team Leader, Dr. Maher Hijazin, Mr. Mohammad Faisal Yaghan‎‏, Mr. Jamal Othman and Eng. Wisam Kakish.