Jordan: More plans than action

18 February 2005

Several urban, tourist and infrastructure projects are on the table, but Amman is lagging behind the pack.

The Jordanian major projects construction market will continue to move sluggishly in 2005, even though the authorities are pushing ahead with plans to modernise infrastructure and make improvements to capitalise on another successful year in tourism and real estate. Priority infrastructure projects include the development and improvement of several wastewater treatment plants and water networks. Transmission networks will be built in the northern Jerash, Mefraq, Irbid and Aljoun districts. Projects to modernise and expand the kingdom's rail network will mostly remain at the planning stage this year. The Transport Ministry in February published a shortlist of six consultants for a railway strategy study into an estimated $1,000 million project, which includes building a north-south railway and an east-west railway linking Amman with Damascus, Baghdad, Riyadh and Cairo. The ministry will soon announce the winner for an advisory contract for a $120 million, 26-kilometre light railway from Amman to Zarqa. The Al-Abdali district in Amman is preparing for a makeover, as a proposed $1,000 million, 10-year urban regeneration project gets under way. Preliminary infrastructure work on the 300,000-square-metre development has already begun, while tenders will be issued on a fast-track basis, with the site preparation contract due to be awarded by the end of the first quarter. Abdali Investment & Development, a company established by state-owned Mawared - Jordan's largest real estate developer, and Oger Jordan, the local branch of Saudi Oger - is responsible for the site's development. The masterplan includes a 55-storey tower, the American University of Jordan (AUJ), four other high-rise towers, the King Hussein Memorial Library and commercial and residential premises. The local Abdali Investment & Development Company (ADIC) has already formed a joint venture with Dubai-based Emaar Properties to develop several residential lots. Meanwhile, Bahrain-based Gulf Finance House announced in late 2004 plans for a $1,000 million real estate project in Amman, to be called the Royal Metropolis development. Phase 1 will cover 220,000 square metres and comprise a 35-storey office block and a luxury hotel, while the second phase - to be called The Districts - will attract investment in industrial sectors. In Zarqa, work on an $830 million urban development has been divided into six phases, covering a 2,500-hectare residential city with related infrastructure. The Aqaba Special Economic Zone Authority (ASEZA) continues its drive to attract up to $6,000 million in investment. Ongoing projects include the 4.3 million-square-metre Ayla Oasis site, the 2.7 million-square-metre Tala Bay Resort as well as the American University Aqaba (AUA), while commercial development opportunities include the 1,000-square-metre Aqaba Gateway and the development of a 50,000-square-metre area in Aqaba city centre.

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