The Aqaba Development Company (ADC), the investment arm of the Aqaba Special Economic Zone Authority (ASEZA) will build and finance the $700 million Aqaba port by itself after it cancelled the tender process.

The company made the decision after disagreements surfaced between the ADC and preferred bidder the Aqaba Gateway Group (AGG) over the terms of the development and operation agreement. The disagreement caused the breakdown of a six month-long negotiation process between the two parties.

The ADC will use its available financial resources to fund the project, including proceeds of its corporate bonds, the company said in a statement.

The company said it will invite the private sector to participate in later stages of the development and operation of the new port in order to benefit from public-private partnerships.

In August, MEED reported that the ADC selected the AGG consortium, led by Kuwait’s KGL Investment, having carried out due diligence on the group’s technical and financial bids (MEED 03:08:09).

The consortium also included Kuwait & Gulf Link Transport Company, Greece’s J&P, Portia from the UK, Deutsche Bank, a joint venture between US law firm Latham & Watkins and Jordan’s Obeidat & Freihat, Cowi from Denmark, and Arcadis from Holland.

The ADC said the project will now be carried out in a set time frame and the company will hand over the port to UAE-based Al Maabar, that has plans to build a real estate development project there.

The completion date of the port project is still confirmed for the end of 2012.