Eng. Saleem Al Batayneh
Jordan’s energy sector is riddled with secrecy, poor decisions, and questionable contracts that have left the country grappling with poverty and economic instability. The recent loss in the arbitration case against the Al-Attarat Company is just the latest in a series of missteps that have deepened the nation’s energy crisis. It’s time to confront these issues head-on and demand transparency and accountability from those in power.
The energy file is not just another line item in the national budget—it’s a critical component of Jordan’s political economy. Yet, despite its importance, it remains shrouded in mystery, with key details hidden from public scrutiny. This lack of transparency has allowed a series of disastrous decisions to go unchecked, plunging Jordan deeper into economic hardship.
For years, I’ve raised concerns about the energy sector through a series of articles, each highlighting the glaring issues that have gone unaddressed. Whether it’s the inexplicable long-term contracts, the exorbitant cost of energy production, or the opaque dealings that characterize this sector, the problems are numerous and deeply entrenched.
The recent arbitration loss regarding the Al-Attarat project underscores the gravity of the situation. The government’s decision to sign a 30-year contract with the company, locking in a kilowatt-hour price of 12 piasters—a figure far above the cost of energy produced from imported gas—has now backfired spectacularly. The World Bank had warned against this deal, citing its high cost and the burden it would place on the state treasury. Yet, these warnings were ignored, and now Jordanians are paying the price.
Why did the government rush into this agreement? Who benefited from keeping the details of the energy sector shrouded in secrecy? And why were alternative, cheaper sources of energy, like wind and solar, not pursued more aggressively? These are questions that demand answers.
Jordan is not lacking in potential for renewable energy. Countries across Europe have successfully harnessed wind and solar power to meet significant portions of their energy needs. Yet, despite Jordan’s ample sunlight and wind, the government has failed to capitalize on these resources. Instead, it chose a path that has led to financial losses and increased energy costs for ordinary citizens.
The parallels between the Attarat deal and the infamous 2007 casino agreement are striking. Both were shrouded in secrecy, both violated legal norms, and both have had devastating consequences for the country. The casino deal, like the Attarat project, was signed with confidentiality clauses that kept the public in the dark and led to substantial financial losses. The state’s refusal to listen to advice or consider the long-term implications of its decisions is a pattern that must be broken.
Jordan’s energy crisis is not just a technical or economic issue; it’s a symptom of deeper governance failures. The lack of transparency, accountability, and foresight in the energy sector has cost the country dearly. Any attempt at economic reform must start with a complete overhaul of how the energy sector is managed. This means reviewing all contracts, holding those responsible for bad deals accountable, and ensuring that future agreements are subject to public and parliamentary scrutiny.
Jordan is in desperate need of a new approach to economic policy—one that prioritizes transparency, accountability, and the long-term well-being of its citizens. The energy sector, in particular, requires urgent reform to prevent further economic damage and to ensure that the country’s resources are used to benefit all Jordanians, not just a select few. The time for change is now, and it must start with a full reckoning of the past mistakes and a commitment to a more transparent and responsible future.
Al Batayneh was a member of the Jordanian Parliament.