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The Ministry of Transport of the government of Jordan is reportedly planning to contract Chinese company Touchstone to deliver a US$4.23 billion rail project through a build-operate-transfer (BOT) or build-own-operate-transfer (BOOT) agreement.
The project will connect the major cities, industrial zones and logistical hubs in the country to port city Aqaba and the borders with Syria, Iraq and Saudi Arabia. Construction is projected to take four years.
The Ministry conducted a feasibility study of the project in 2010 and in 2015 worked to implement it through a publicly procured construction contract and private operator. China Civil Engineering Construction Corporation was tapped to operate the railway, but the government failed to secure sufficient financing for construction.
The shift to a concession model has been attributed to the success of the Queen Alia International Airport project. A 25-year concession agreement to operate the airport, rehabilitate its facilities and construct a new passenger terminal was awarded in 2007 to Airport International Group, which is now majority-owned by Groupe ADP.
The railway will primarily transport freight. A representative of the Ministry of Transport has stated that a passenger railway would require government subsidies, which it currently cannot afford.
The project could potentially connect Jordan to the New Silk Road, a railway network being developed by various Chinese companies linking Beijing to Istanbul via Kazakhstan, Kyrgyzstan, Uzbekistan, Turkmenistan and Iran, and on to Europe, as part of the Chinese government's "One Belt, One Road" initiative.
A representative of the Ministry has stated that the project is not explicitly part of the initiative. However, the planned rail connections to the borders of Iraq and Syria will link to Iran, which is part of the Chinese project. This also means that the railway will give Jordanian businesses greater access to European and central Asian markets.
Groupe ADP has signed a contract to take exclusive control of Airport International Group (AIG), operator of Queen Alia International Airport in Amman, Jordan. The co-shareholders will be Meridiam, ASMA Capital Partners B.S.C., acting in its capacity as investment manager for IDB Infrastructure Fund II, and Edgo.
Read moreGroupe ADP, in consortium with Meridiam and ASMA Capital Partners B.S.C. have entered into exclusive negotiations to acquire Airport International Group (AIG), concessionaire of Queen Alia International Airport in Amman, Jordan, subject to Government of Jordan and project lenders consents.
Read moreThe government of Jordan has launched a request for expression of interest (RFEOI) to develop a waste-to-energy (WtE) plant in the vicinity of the Al Ekaider landfill.
Read moreMinistry of Energy and Mineral Resources of Jordan (MEMR) has issued a Request for Expression of Interest (RFEOI) seeking interested developers to carry out a waste-to-energy project in Irbid Governorate on build, own, operate and transfer basis.
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