A tramway system could be developed in Amman within five years to help decongest the city and introduce a more efficient public transport system.

“We are looking at the possibility of building a tramway within five years… this project will entail land value capture involve private sector funding,” Ayman Smadi, executive director for transport, Greater Amman Municipality, tells MEED.

Amman’s population has doubled over the past few years due to urban migration as well as the influx of refugees from neighbouring countries.

“A mass transit system is required [in Amman], otherwise the number of vehicles in Amman will be reaching 2 million by 2020… this will be disastrous environmentally and economically,” Smadi adds.

Jordan is also expected to approve a National Transportation Law this week, which would help address the growing need for a more efficient public transport system.

The law would support a National Transportation Fund initiative, where a nominal tax will be added to fuel and fare fees in order to subsidise public transport services.

Phase 1 of Amman’s bus rapid transit (BRT) project is also making progress. Smadi said a tender for some 180 buses is expected to be released by mid-2016.

Smadi said they plan to acquire and put into operation some 100 electric vehicles, the Nissan Leaf, and install 20 electric vehicle chargers across Amman.

The Jordan Central Bank is now acting as a clearing house for an e-wallet application for a public transport fare to encourage the usage of public transport.

Financing remains a key issue for the cash-strapped municipality. Smadi said several initiatives are being considered to establish the credit worthiness of Amman. These include issuance of special bonds such as sukuk, special-purpose vehicles with public trading and non-sovereign guarantees.