Proceedings of the 12th Meeting of the COMCEC
Financial Cooperation Working Group
22
1. Queen Alia Airport Transaction Structure: The Jordanian Government awarded a 25-
year concession to AIG to reconstruct and expand the airport’s terminal in 2007. It was
the first successful airport PPP in the Middle East. The number of international flights
has increased from 120 flights per day to more than 190 daily flights in 2015. The sale
of AIG’s shares marks the first transaction of its kind in the Middle East as it was the
first sale of a secondary infrastructure asset in the Middle East. The consortium of
investors consist of Groupe ADP, Meridiam, IsDB Infrastructure Fund II and EDGO
Group.
2. Manisa PPP Hospital Transaction Structure: The Manisa Hospital in Turkey has a total
capacity of 558 beds consisting of a general hospital and technical buildings for
training and research. IsDBG was the mandated lead arranger in the transaction. The
senior finance facility has garnered significant Islamic finance support. About 80% of
the funding commitments consist of Islamic finance tranches. The cumulative fund
arrangement was oversubscribed by almost 35%.
3. New Bong Hydro Power Project Transaction Structure: The Project is the first run-of-
river type hydropower PPP of Pakistan. The Project also has the distinction of being
the first hydropower project of Pakistan which has been registered with the United
Nations’ Framework Convention on Climate Change as Clean Development Mechanism
(CDM) project. It avoid greenhouse gas emissions equal to 218,988 tons of carbon
dioxide annually by supplanting fossil fuel-fired power plants. The Project added 84
MW installed capacity to the system. It is estimated that the project’s direct
beneficiaries reached up to 100 thousands households or around 0.6 million people as
of 2015.
4. Dakar Airport Project: AIBD is a high priority project for the Government of Senegal,
and it fits well with their overall plans to improve connectivity and positioning Dakar
as a regional hub for business. Turkish construction companies Summa and Limak
were selected as contractors, which is a demonstration of a south-south initiative.
Challenges of PPPs in Member Countries were elaborated by Mr. KAYAR subsequently which
are as follows: lack of robust regulatory framework, lack of awareness, weak institutional
capacity required for project preparation, underdeveloped capital markets and unavailability
of equity etc.. He also listed his recommendations to address the challenges which are
providing PPP advisory and project preparation services, mobilization of 3rd party resources
via B-financing, raising infrastructure focused funds, awareness activities such as workshops,
conferences and increasing cooperation among MDBs and other donors.
He summarized his presentation with the following points: 1) There is a huge financing gap to
finance development goals. 2) PPP is a relevant tool to help Governments close this gap. 3)
Islamic finance products can perfectly co-exist with conventional finance. 4) IsDB is open to
consider further PPP financing and advisory transactions.
Question(s) and Comment(s)
Question: Are feasibility studies conducted for PPP projects?
Answer: Mr. KAYAR stated that feasibility studies are conducted for PPP projects and it is an
important part of project preparation.