Output-Based Incentive Program

Implementation Partners

The Ministry of Industry, Trade and Supply has been known Throughout its long History by Different Names. it was Called The Ministry of Trade.

Eligibility Requirements

The establishment must be small, medium or large.
It must be registered with the Ministry of Industry, Trade and Supply or the relevant official authorities.
It must have been established for at least one year, and the establishment’s total sales must not be zero during the year 2023, according to the audited financial statements.
It must be 100% operating and owned by the private sector, and for industrial establishments with public shareholding, government ownership must not exceed 5%.
To be a member of one of the Jordanian chambers of industry.
Must have a valid professional license.
It must have audited financial statements for the last two years (income statement, balance sheet, cash flow statement), and for the previous year for industrial establishments that are not more than two years old.
It must have the financial capacity to cover its share of the total cost of the project.
He must submit an application on the approved form and within the period specified for this purpose, and it must not be handwritten.
It must not have declared bankruptcy.
It achieves a local added value of no less than (30%) in accordance with the applicable legislation and does not include the mining of basic materials.
The project submitted by the industrial organization must be consistent with the goals and objectives of the results-based incentive program.
Do not exceed the financing contribution rate, the specified incentive ceiling, and the project implementation durations.
All industrial sectors are eligible except for the sectors mentioned in the sectors that are not eligible for the Fund’s programs.
The minimum monthly consumption of “electrical and thermal” energy for each industrial facility (for related projects) should not be less than:

Any activity classified as high risk.
Any activity that converts or results in the conversion of critical habitats and legally protected, internationally recognized areas of value and high biodiversity.
Any activity related to pesticides banned by the Jordanian government and included in the World Health Organization’s list of banned pesticides (Category 1A, 1B, and Category 2).
Any activity that violates the provisions of applicable state laws and international treaties and agreements signed by Jordan.
Involuntary acquisition of land regardless of ownership resulting in loss of shelter, livelihood or sources of livelihood; Loss of access to private and/or community property.
Any activity that encourages forced labour.
Any activity that would cause the deterioration of cultural heritage sites and/or the relocation of these sites from their original locations.
Any activities that involve the production of hazardous substances or the production of substances harmful to health (such as tobacco products, etc.).

Production or trade in any product or activity that is illegal (under host country laws or regulations and international agreements, or subject to an international embargo), such as: pharmaceuticals, pesticides/herbicides, ozone-depleting substances, PCBs, life Wild or products regulated by CITES.
Manufacturing or trading in weapons and ammunition.
Manufacture or trade in alcoholic beverages (except beer and wine).
Tobacco industry or trade.
Gambling, casinos and similar establishments.
Production or trade of radioactive materials. This does not apply to the purchase of medical equipment, quality control (measurement) equipment and any equipment considered by IFC to be of a minor radioactive source and/or adequately protected.
Manufacture and trade of unbound asbestos fibres. This does not apply to the purchase and use of asbestos cement sheets where the asbestos content is less than 20%.
Fishing with drift nets of more than 2.5 kilometers in length, in the marine environment.

Ineligible Sectors

Distilling, refining and mixing alcoholic beverages.
Wine industry.
Manufacture of alcoholic beverages from malt and malt industry.
Tobacco industry and its products.
Cement or mining activities carried out in quarries or quarries (post-extraction manufacturing is acceptable).
Agricultural industries up to the harvest stage (activities that take place after the harvest stage are acceptable).
Establishments engaged in developing and/or selling software.
“bakery”

Ineligible Melasma

Costs of purchasing raw materials and salaries.
Purchases of land, buildings, furnishings and vehicles (vehicles intended for transportation purposes are permitted).
Grant management consulting fees.
Purchases of used machinery, equipment and appliances that are more than 5 years old from the date of manufacture.
Expenses for advertising materials such as pens, agendas, etc.
Provisions for potential future losses or liabilities.
Accrued interest.
Costs declared by the beneficiary and covered by another project or work programme.
Any costs incurred before signing the grant agreement.
Any costs incurred after the end of the contract period.
Currency exchange losses.
Taxes and fees, including customs duties and import stamps.

The Required Documents

Request to apply to benefit from the program, and the budget form.
A verification form for environmental and social risks signed by the facility’s authorized signatory.
A valid registration certificate for the facility for the year 2024, including those authorized to sign, date of incorporation, distribution of shares, and registration purposes.
The official professions license is valid for the year 2024.
The Social Security Statement for the year 2024 “shows all the names of employees and is stamped by the Social Security Institution”
Membership in one of the chambers of industry for the year 2024.
The audited financial statements for the year 2023 (income statement, balance sheet, cash flow statement), in addition to the audited financial statements for the year 2022 (income statement, balance sheet, cash flow statement).
Bank statement for the year 2024 “stamped by the bank” or the electronic copy, provided that it is certified by the bank without a signature.
To verify the ICV requirement through one of the following documents:

A copy of any customs declaration in the name of the establishment (for export outside Jordan stating that the country of origin is Jordan) for industrial establishments with previous export experience,
Calculating the local added value by the Industrial Development Directorate in the Ministry of Industry, Trade and Supply for industrial establishments that do not have previous export experience.

Permitted Activities

Expanding or modernizing production lines/purchasing new production lines.
Implement climate smart solutions and systems to more efficiently manage water/energy/waste and/or climate change
Obtaining quality certificates, including the necessary infrastructure improvement processes, including accreditation certificates regarding calculating the work environment and improving compliance with environmental requirements and energy consumption.
Product development (creating new products and developing existing products).
Registration fees and costs of establishing business development offices in target markets.
Marketing and promotional activities at the corporate level in target markets.
Participation in trade fairs at the corporate level.
Targeted promotion and image building activities.
Business development and sales.
Accessing databases of exporters or groups of business activities in target markets.
Intelligence reports/market information.
Accounting, human resources and sales systems
Other

Details of Financial Support for Industrial Facilities

Small Enterprises: Minimum (1) qualifying results/criteria.
Medium Enterprises: Minimum (2) qualifying outcomes/criteria, “including one related to green economy, women’s employment, or efficient use of resources.”
Large Enterprises: Minimum (3) qualifying outcomes/criteria, “including one related to green economy, women’s employment, or efficient use of resources.”

10% increase in coverage if performance indicators related to climate change and indicators related to energy efficiency, water, and waste management are achieved through the following performance criteria and key targeted results in the application form to benefit from the program (Criteria 4, 5, 6, or 7) .
An increase of 10% of coverage if the resource efficiency performance indicator is achieved by increasing the percentage of waste, through the following performance standards and key target results in the application form to benefit from the program (Criterion No. 8).
An increase of 15% if an indicator related to increasing the employment of women or for establishments owned or managed by businesswomen is achieved.

The Ministry of Industry, Trade and Supply has been known Throughout its long History by Different Names. it was Called The Ministry of Trade.

The establishment must be small, medium or large.
It must be registered with the Ministry of Industry, Trade and Supply or the relevant official authorities.
It must have been established for at least one year, and the establishment’s total sales must not be zero during the year 2023, according to the audited financial statements.
It must be 100% operating and owned by the private sector, and for industrial establishments with public shareholding, government ownership must not exceed 5%.
To be a member of one of the Jordanian chambers of industry.
Must have a valid professional license.
It must have audited financial statements for the last two years (income statement, balance sheet, cash flow statement), and for the previous year for industrial establishments that are not more than two years old.
It must have the financial capacity to cover its share of the total cost of the project.
He must submit an application on the approved form and within the period specified for this purpose, and it must not be handwritten.
It must not have declared bankruptcy.
It achieves a local added value of no less than (30%) in accordance with the applicable legislation and does not include the mining of basic materials.
The project submitted by the industrial organization must be consistent with the goals and objectives of the results-based incentive program.
Do not exceed the financing contribution rate, the specified incentive ceiling, and the project implementation durations.
All industrial sectors are eligible except for the sectors mentioned in the sectors that are not eligible for the Fund’s programs.
The minimum monthly consumption of “electrical and thermal” energy for each industrial facility (for related projects) should not be less than:

Any activity classified as high risk.
Any activity that converts or results in the conversion of critical habitats and legally protected, internationally recognized areas of value and high biodiversity.
Any activity related to pesticides banned by the Jordanian government and included in the World Health Organization’s list of banned pesticides (Category 1A, 1B, and Category 2).
Any activity that violates the provisions of applicable state laws and international treaties and agreements signed by Jordan.
Involuntary acquisition of land regardless of ownership resulting in loss of shelter, livelihood or sources of livelihood; Loss of access to private and/or community property.
Any activity that encourages forced labour.
Any activity that would cause the deterioration of cultural heritage sites and/or the relocation of these sites from their original locations.
Any activities that involve the production of hazardous substances or the production of substances harmful to health (such as tobacco products, etc.).

Production or trade in any product or activity that is illegal (under host country laws or regulations and international agreements, or subject to an international embargo), such as: pharmaceuticals, pesticides/herbicides, ozone-depleting substances, PCBs, life Wild or products regulated by CITES.
Manufacturing or trading in weapons and ammunition.
Manufacture or trade in alcoholic beverages (except beer and wine).
Tobacco industry or trade.
Gambling, casinos and similar establishments.
Production or trade of radioactive materials. This does not apply to the purchase of medical equipment, quality control (measurement) equipment and any equipment considered by IFC to be of a minor radioactive source and/or adequately protected.
Manufacture and trade of unbound asbestos fibres. This does not apply to the purchase and use of asbestos cement sheets where the asbestos content is less than 20%.
Fishing with drift nets of more than 2.5 kilometers in length, in the marine environment.

Costs of purchasing raw materials and salaries.
Purchases of land, buildings, furnishings and vehicles (vehicles intended for transportation purposes are permitted).
Grant management consulting fees.
Purchases of used machinery, equipment and appliances that are more than 5 years old from the date of manufacture.
Expenses for advertising materials such as pens, agendas, etc.
Provisions for potential future losses or liabilities.
Accrued interest.
Costs declared by the beneficiary and covered by another project or work programme.
Any costs incurred before signing the grant agreement.
Any costs incurred after the end of the contract period.
Currency exchange losses.
Taxes and fees, including customs duties and import stamps.

Distilling, refining and mixing alcoholic beverages.
Wine industry.
Manufacture of alcoholic beverages from malt and malt industry.
Tobacco industry and its products.
Cement or mining activities carried out in quarries or quarries (post-extraction manufacturing is acceptable).
Agricultural industries up to the harvest stage (activities that take place after the harvest stage are acceptable).
Establishments engaged in developing and/or selling software.
“bakery”

Request to apply to benefit from the program, and the budget form.
A verification form for environmental and social risks signed by the facility’s authorized signatory.
A valid registration certificate for the facility for the year 2024, including those authorized to sign, date of incorporation, distribution of shares, and registration purposes.
The official professions license is valid for the year 2024.
The Social Security Statement for the year 2024 “shows all the names of employees and is stamped by the Social Security Institution”
Membership in one of the chambers of industry for the year 2024.
The audited financial statements for the year 2023 (income statement, balance sheet, cash flow statement), in addition to the audited financial statements for the year 2022 (income statement, balance sheet, cash flow statement).
Bank statement for the year 2024 “stamped by the bank” or the electronic copy, provided that it is certified by the bank without a signature.
To verify the ICV requirement through one of the following documents:

A copy of any customs declaration in the name of the establishment (for export outside Jordan stating that the country of origin is Jordan) for industrial establishments with previous export experience,
Calculating the local added value by the Industrial Development Directorate in the Ministry of Industry, Trade and Supply for industrial establishments that do not have previous export experience.

Small Enterprises: Minimum (1) qualifying results/criteria.
Medium Enterprises: Minimum (2) qualifying outcomes/criteria, “including one related to green economy, women’s employment, or efficient use of resources.”
Large Enterprises: Minimum (3) qualifying outcomes/criteria, “including one related to green economy, women’s employment, or efficient use of resources.”

10% increase in coverage if performance indicators related to climate change and indicators related to energy efficiency, water, and waste management are achieved through the following performance criteria and key targeted results in the application form to benefit from the program (Criteria 4, 5, 6, or 7) .
An increase of 10% of coverage if the resource efficiency performance indicator is achieved by increasing the percentage of waste, through the following performance standards and key target results in the application form to benefit from the program (Criterion No. 8).
An increase of 15% if an indicator related to increasing the employment of women or for establishments owned or managed by businesswomen is achieved.

Expanding or modernizing production lines/purchasing new production lines.
Implement climate smart solutions and systems to more efficiently manage water/energy/waste and/or climate change
Obtaining quality certificates, including the necessary infrastructure improvement processes, including accreditation certificates regarding calculating the work environment and improving compliance with environmental requirements and energy consumption.
Product development (creating new products and developing existing products).
Registration fees and costs of establishing business development offices in target markets.
Marketing and promotional activities at the corporate level in target markets.
Participation in trade fairs at the corporate level.
Targeted promotion and image building activities.
Business development and sales.
Accessing databases of exporters or groups of business activities in target markets.
Intelligence reports/market information.
Accounting, human resources and sales systems
Other