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IFC-Structured Concession Mobilizes Private Investment in Jordan


In Dubai
Towfiqua Hoque

Phone: +971 (4) 360-1000

Email:
thoque@ifc.org

In Cairo

Egidio Germanetti & Riham Mustafa

Phone: +0020 (2) 2461-9150 Ext. 314/ 306

Email:
egermanetti@ifc.org/ rmustafa@ifc.org


Amman, April 26, 2007—The government of the Hashemite Kingdom of Jordan awarded a 25-year agreement to the ADP Consortium to expand and rehabilitate the Queen Alia International Airport in Amman, Jordan. IFC, the private sector arm of the World Bank Group, advised the government in structuring the transaction. It is expected to mobilize over $500 million dollars of private investment in the country’s airport sector, bridging a critical gap in infrastructure and promoting tourism in Jordan.
 
After a competitive bidding process, the ADP Consortium, a leading international association, won out over four other competitors by submitting the highest concession fees offer to the government of Jordan.


Built in 1983, the Queen Alia International Airport is Jordan’s principal airport, accounting for over 97 percent of all air traffic. Current capacity constrains the airport’s ability to add more flights and serve more passengers. Under the agreement, the private sector partner will operate and upgrade existing airport facilities. The ADP Consortium will also construct a new terminal designed by world-class architects Foster + Partners, who have designed airports in Beijing, Hong Kong, and the United Kingdom.


“This project is a key milestone in Jordan’s move toward attracting private participation in the country’s transportation sector. I believe that it will pave the way for other public-private partnership agreements in Jordan,” said Saud Nseirat, Jordan’s Minister of Transport.  


Bernard Sheahan, IFC’s Advisory Services Director, noted, “The private sector can mobilize financing and provide the necessary expertise to help meet the infrastructure needs of Jordan’s growing economy. This project serves as a model and sets an important precedent for future initiatives. The design and transparency of the tender will encourage further private sector participation in the country’s infrastructure projects.”


Jacques Follain, Managing Director of Aeroports de Paris Management (ADPM)  said, “We are delighted to have been awarded the concession for the development of Queen Alia International Airport and look forward to working closely with the government on the successful implementation of this important project.”


About IFC


IFC, the private sector arm of the World Bank Group, promotes open and competitive markets in developing countries. IFC supports sustainable private sector companies and other partners in generating productive jobs and delivering basic services, so that people have opportunities to escape poverty and improve their lives. Through FY06, IFC Financial Products has committed more than $56 billion in funding for private sector investments and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. IFC Advisory Services and donor partners have provided more than $1 billion in program support to build small enterprises, to accelerate private participation in infrastructure, to improve the business-enabling environment, to increase access to finance, and to strengthen environmental and social sustainability. For more information, please visit
www.ifc.org.

About the ADP Consortium


The ADP Consortium comprises the Aeroports de Paris Management (ADPM), Joannou & Paraskevaides Ltd. and J&P Avax, Abu Dhabi Investment Company (ADIC), Noor Financial Investment Company, and EDGO group.  ADPM is a leading airport operator, and in addition to those in France, it operates 23 airports worldwide.  J&P and J&P Avax are leading construction companies operating in the Gulf, Africa and Europe having constructed important airports in the Middle East and Pakistan. ADIC is a leading investment house from Abu Dhabi. Noor Financial and EDGO GROUP group are major financial institutions from Kuwait and Jordan.