The word Aqaba means ‘obstacle’ in Arabic, which is appropriate given the challenges that the New Aqaba Port development has faced. The financing structure of the port has been changed numerous times.

The popularity of public-private partnerships (PPPs) in the Middle East could well have stemmed from the successful expansion of Queen Alia International airport in Amman. This was the first project to be carried out on a PPP basis in the region. However, Jordan has struggled to continue the momentum.

The PPP with the consortium selected by Aqaba Development Corporation (ADC) in 2010 to build New Aqaba Port collapsed in January this year and the Jordanian government has stepped in to fund the project.

Prior to this, two rounds of build, operate, transfer negotiations also failed due to disagreements between the preferred bidder and the ADC. Relinquishing control over the development and disagreements over the design means ADC will now have to develop the port itself at the revised budget of between $300m-350m.

ADC faces a tight deadline to hand over the site of the existing port to UAE real-estate developer Al-Maabar by late 2013 and the new port will need to be finished and operational by then. This will be a major challenge for the ADC and the recent wave of unrest in the Middle East will make its job that much harder. Attracting investment in the current political climate in the region will be difficult and could make the 2020 investment target for ASEZ unrealistic.