Queen Alia International Airport project awarded
Edgo Ventures, the corporate finance and investment management arm of the Edgo Group, announced that it has been awarded the expansion project of the Queen Alia International Airport (QAIA) in Jordan. The Government of the Hashemite Kingdom of Jordan announced a 25-year agreement with the ADP Consortium to expand and rehabilitate the QAIA through a competitive bid process. IFC, the private sector arm of the World Bank Group, assisted the government of Jordan in structuring the transaction, which is expected to mobilise over USD 500 million dollars of private investment in the country's airport sector, bridging a critical gap in infrastructure and promoting Jordan as a regional economic and tourist destination.
The ADP Consortium is composed of Edgo Ventures (Edgo), Aeroports de Paris Management (ADPM), Joannou & Paraskevaides (Overseas) Ltd., J&P-Avax, Abu Dhabi Investment Company (ADIC) and Noor Financial Investment Company. 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 is a major financial institution from Kuwait. The ADP consortium beat off stiff competition from four other international groups that had been shortlisted to bid for the build-operate-transfer (BOT) project. The pre-qualified consortia included:
• Amman Airport Partners: Saudi Oger; Abu Dhabi-based Mubadala Development Company; Hochtief Airport; and United Arab Investors Corporation, Jordan.
• TAV Airports Holding, Turkey, with Athens-based Consolidated Contractors International Company and Kawar Group, Jordan.
• UDC Holdings (Kharafi), Kuwait, with Kuwaiti Jordanian Holding Company, Jordan, and Malaysia Airports Holding Berhad.
• International Investment Group, Kuwait, with Banco Efisa, Aeroportos de Portugal and Soares da Costa Group, all of Portugal.
ADP Consortium won by submitting the highest concession fees 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. 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 transport 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 mobilise 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."
ADP Consortium added, "We would like to congratulate the Government and its advisors on the very clear and transparent manner in which the competition has been conducted. 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 strategically important project."