AMMAN — The Cabinet on Sunday approved a mechanism for full compensation and land swaps for properties expropriated for the Aqaba Railway Project and the expansion of the potash industry.

 

The decision, taken during a Cabinet session chaired by Prime Minister Jafar Hassan, followed a recommendation by the Economic Modernisation and Development Committee, according to a Prime Ministry statement.

 

Under the approved mechanism, the one-quarter deduction (legal quarter) proposed in amendments to the Real Estate Ownership Law will not apply to land expropriated for the Aqaba Railway Project, even if the expropriation process extends over a prolonged period.

 

The mechanism covers two categories of expropriated land: The first involves land expropriated for Arab Potash Company under its concession rights. These properties were expropriated under the 1958 law governing the company's concession. No statutory 25 per cent deduction applies in these cases, and fair compensation is to be paid by the company, while the expropriated land is registered in the name of the Treasury.

 

The second category covers land expropriated for the Aqaba Railway Project. These properties are subject to the currently effective Real Estate Ownership Law of 2019, rather than the proposed amendments currently under consideration by Parliament.

 

Under the mechanism, landowners affected by the railway project and potash expansion will receive full compensation either through payment of the fair market value of the entire expropriated area, including the value of any buildings or improvements on the land, or through an exchange for equivalent land.

 

For the land-swap option, approximately 6,000 dunums of Jordan Valley Authority land in the same area will be allocated and rehabilitated for this purpose.

 

Landowners who do not wish to exchange their properties will instead receive full financial compensation in accordance with Real Estate Ownership Law of 2019, without application of the proposed amendments currently before Parliament, the statement said.

 

Arab Potash Company will also contribute 50 per cent of the compensation due for the approved railway route, following the assessment of land values in accordance with the relevant legislation.

 

The government has recently said that the land required for the Aqaba Railway Project is estimated at approximately 1,325 dunums, representing less than 0.5 per cent of the agricultural land area in the Jordan Valley, while the total agricultural area in the valley is estimated at around 390,000 dunums.