Riyadh, November 4, 2004 —The International
Finance Corporation, the private sector arm of the World Bank Group, has
signed advisory mandates with the Saudi Presidency of Civil Aviation to
help mobilize private investment in two infrastructure projects at the
King Abdulaziz International Airport at Jeddah.
One project will rehabilitate or replace the desalination plant that supplies
water to the airport. At the moment, water supply to the airport is expensive,
unreliable, and insufficient to meet future demand. Through private sector
participation, the project will bring the investments and efficiency that
are needed to resolve these problems.
The other project will help expand the existing Hajj terminal, which is
dedicated to religious tourism. The facilities at the airport are insufficient
to meet growing passenger traffic, both in terms of capacity and quality
of services. The project will improve the quality of Hajj travel by using
private sector participation to rehabilitate and operate the terminal.
IFC’s role is to advise on structuring and implementing these projects
through a fair, transparent, and competitive bidding process. These projects
are expected to create a model for further public private partnerships
in Saudi Arabia
“Successful implementation of these projects will encourage private sector
investments in Saudi Arabia,” said IFC regional director Sami Haddad.
“We are pleased to support this process with IFC’s global infrastructure
experience and commitment to achieving high standards and social benefits.”
IFC’s Advisory Services director Bernard Sheahan added, “By bringing
in private sector participation, we will help ensure substantial improvements
in the cost and quality of the airport’s infrastructure.”
The mission of IFC (http://www.ifc.org/)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people’s lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY04, IFC has committed more than $44
billion of its own funds and arranged $23 billion in syndications for 3,143
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY04 was $17.9 billion for its own account and $5.5 billion held
for participants in loan syndications.From its founding in 1956 through
FY04, IFC has committed more than $44 billion of its own funds and arranged
$23 billion in syndications for 3,143 companies in 140 developing countries.
IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its
own account and $5.5 billion held for participants in loan syndications.