(MENAFN- Jordan Times) The Governorates Development Fund (GDF) is designed to help citizens run their own businesses, starting with providing them technical assistance and training, a government official said on Saturday.
"The fund will literally spoil its beneficiaries," Trade Minister Shabib Ammari told reporters.
"The government will enter the projects as a partner with a maximum share of 49 per cent, then after the ventures are up and running we will withdraw" at the end of the day they are meant to be operated by citizens," he added.
His Majesty King Abdullah ordered the creation of the JD150 million GDF last July to finance development plans for the country's governorates.
The fund was launched in February and its legal framework was endorsed last month, after the King urged the government to accelerate development in the country's outlying areas in his Letter of Designation to Prime Minister Fayez Tarawneh.
During a press conference organised by the Jordan Press Association for the government's economic team, Ammari noted that Amman will be excluded from the fund, which only focuses on underprivileged areas with high unemployment.
He noted that King Abdullah asked the government to ensure the sustainability of the GDF, equality in the distribution of projects and that residents of governorates are aware of the fund's mechanisms and facilities.
Ammari reiterated that the fund will be financed by the government, the private sector, donor countries and international financial institutions.
Planning and International Cooperation Minister Jafar Hassan said the GDF will not finance infrastructure projects, but only those which generate income for their owners.
"The main theme of the fund will be establishing projects that people believe are of priority in their respective regions," he said, adding that it seeks to strike a balance in growth returns for all governorates.
Ammari noted that the fund's contribution to each venture will range between 26 and 49 per cent, as it seeks to encourage entrepreneurs.
The minister said that the minimum contribution of the GDF in each project is JD50,000, noting that it could reach JD1 million if the project provides work opportunities in a given governorate.
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