Amman: The Cabinet was updated by Minister of Local Administration Walid Masri on the progress of the ongoing municipal reform plan, which began in early 2025. The reform initiative has significantly reduced municipal debt from JD630 million in 2024 to JD285 million in 2025, thanks to financial obligation settlements and exemptions totaling JD345 million.
According to Jordan News Agency, Minister Masri credited these improvements to a comprehensive reform strategy designed to enhance the financial and administrative health of municipalities. The strategy focuses on upgrading municipal services, boosting environmental performance, and promoting sustainability and efficiency, alongside prudent spending. Key components of the plan include amendments to the Local Administration Law, addressing legacy municipal debts, implementing financial sustainability policies, and activating electronic financial and administrative systems.
Minister Masri further explained that the remaining debt has been rescheduled with repayment terms ranging from five to 15 years, considering each municipality's financial situation. Exemptions covered interest on debts, contractors' arrears, and obligations to entities like the Social Security Corporation and the National Electric Power Company. Moreover, municipal revenues saw a notable increase, rising from JD76 million in 2024 to JD109.9 million in 2025, marking a 45% growth, which has strengthened municipalities' ability to fulfill their financial responsibilities and enhance services.
In terms of service delivery and tenders, the financial value of awarded and executed tenders in 2025 increased to JD96.3 million, compared to JD74.6 million in 2024. Evaluations of municipal committees over the past six months, based on mystery shopper reports, Audit Bureau insights, field visits, and revenue collection figures, were also reviewed.
Addressing the Cities and Villages Development Bank, Minister Masri highlighted that the bank's liquidity improved to JD4 million in 2025. Significant measures included rescheduling municipal debts and overdrafts totaling JD303 million for 79 municipalities, with repayment periods from five to 15 years and reduced interest rates between 0.5% and 2%. This was contingent on the development of practical financial and administrative reform plans.
Efforts within the financial reform plan ensured annual cash flows to the Cities and Villages Development Bank, initiating a cautious credit policy aligned with municipal realities and project priorities. The bank achieved cash flows of JD35 million in the first year, reaching a cumulative JD175 million over five years.
On environmental performance, cleanliness levels showed progress, with 50 municipalities achieving a 70-100% classification and 42 municipalities falling within the 40-60% range.