Risk Management in Transport PPP Projects
In the Islamic Countries
178
Project Name Transport
mode
Type of PPP Year of
contract
signature
Concession
Period
Contracting
Authority
3 Marine Services Port Rehabilitate-
Equip-Finance-
Operate-
Transfer
2007 15 ADC
4 Phosphate
Terminal
Port Build, operate,
and transfer
2010 30 ADC
5 Industrial
Terminal
Port Build, operate,
and transfer
2016 30 ADC
6 Aqaba Logistics
Village
Logistics Build, operate,
and transfer
2007 21 ADC
7 Air Cargo
Terminal
Logistics Build, operate,
and transfer
2006 15 ADC
Source: Authors based on information by Ministry of Transport and ADC.
Reference to specific projects
In the transport sector, the main PPPs implemented in the country are two BOT arrangements,
related to Queen Alia International Airport (QAIA) in Amman and to the Aqaba Container
Terminal (ACT).
Box 29 An introduction to the two main transport PPP projects in Jordan
Queen Alia International Airport (QAIA) was originally opened in 1983, at a time when both
economic growth and air traffic were low (Leigh, 2017). Over time, the increasing number of
tourists visiting Jordan and sustained economic growth put the airport’s capacity under pressure.
Against this background, the government involved the World Bank and the International Finance
Corporation (IFC) as advisors and launched a tender process for the rehabilitation of the existing
facilities, the construction of the new passenger terminal and the operation of the airport, under
a 25-year concession. The tender process was concluded in 2007 and the PPP awarded to the
consortium Airport International Group (AIG). IFC, international banks and the Islamic
Development Bank contributed to financing the project through USD 380 million in loans to AIG.
Construction works lasted until 2013, when the new terminal was inaugurated (while additional
works lasted until 2016). Since 2013, QAIA has won numerous awards and it has significantly
improved its status in international rankings.
Aqaba Container Terminal (ACT) is part of the Port of Aqaba. The port’s strategic location
makes it a fundamental gateway for cargo not only to Jordan, but to the wider region. In 2003, the
terminal experienced a severe crisis. Mismanagement, long waiting times for ships to berth,
congestion issues, lack of security and missing computerization brought the terminal close to
collapse, significantly damaging Jordan’s economy. To solve the situation, a PPP project was
conceived building on previous studies. The government-owned Aqaba Development
Corporation (ADC) launched an international tender for a 2-year contract for managing the
terminal and a subsequent 25-year joint venture. The management contract was awarded to APM