The Queen Alia airport expansion financing is due to be signed on 14 November by a consortium of international banks. The International Finance Corporation (IFC), a division of the World Bank Group, advised the Jordanian government on structuring the deal to appeal to international investors. Key among the issues that IFC and the government had to resolve was the kind of assurances given to banks about political risk, compensation, and arbitration if there are problems with the project.
Towfique Haque, investment officer for the IFC, tells MEED: “This deal marks the breaking away of Jordan’s old way of doing deals, and going forward the government will adopt a similar financing structure to this one involving private sector financing for infrastructure development.”
Among these is likely to be the $300 m independent power project (IPP) near Almanakher, east of Amman which is currently yet to reach financial close.
In additional to advising the government, IFC also supplied $120 m of financing, while Ernst & Young advised Airport Investment Group (AIG), the consortium which won the expansion contract. The rehabilitation of the airport is seen by the government as crucial for the development of the landlocked country, and Haque says the country’s poor infrastructure is a major impediment to Jordan’s economic growth.
You might also like...
Qiddiya evaluates multipurpose stadium bids
26 April 2024
Al Ula seeks equestrian village interest
26 April 2024
Morocco seeks firms for 400MW wind schemes
26 April 2024
Countries sign Iraq to Europe road agreement
26 April 2024
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.