IFC-Structured Concession Mobilizes Private Investment in Jordan
Amman — 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.”
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