IFC to Promote Business and Tourism in Jordan with Queen Alia International Airport
IFC, a member of the World Bank Group, will participate in the official signing and handover ceremony for the Queen Alia International Airport on November 15 in Amman, Jordan. His Majesty King Abdullah II has strongly supported the project that is expected to foster the development of tourism, a core part of Jordan’s economic strategy.
Private sector investment in the airport will enable the Jordanian government to channel public resources toward other sectors such as health and education. The project supports the government’s efforts to boost tourism, which constitutes about 10 percent of the country’s GDP. It is also aligned with the Royal Jordanian Airlines’ strategy to make travel to the country more competitive by developing a regional and international hub and increasing the frequency of flights to other countries in the Middle East and beyond.
IFC’s advisory services helped mobilize private sector participation for the rehabilitation and expansion of the airport by advising the government of Jordan during the bidding process. In May 2007, the government awarded a 25-year concession for the project to an international consortium comprising Aeroports de Paris, J&P Overseas, J&P Avax, EDGO, ADIC, and Noor. The consortium formed a special purpose company, Airport International Group, to rehabilitate the existing facility and finance, build, and operate a new terminal for 9 million passengers per annum.
By demonstrating the feasibility of limited recourse financing for infrastructure projects in Jordan, IFC played a significant role in bringing other investors on board. IFC also invested $120 million for its own account in the project and helped mobilize up to $160 million in funds from commercial banks.
Rashad Kaldany, IFC Director for Infrastructure, said, “This project, the largest IFC investment in Jordan to date, demonstrates the multifaceted package of solutions that the World Bank Group can provide for private sector investments in infrastructure. IFC looks forward to helping bridge a critical gap in infrastructure and increasing the quality of service standards in the region by undertaking more projects in the sector.”
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