Prime Minister Patronizes the Handover of QAIA to Airport International Group

Thursday, November 15, 2007

Held under the Patronage of His Majesty King Abdullah II Ibn Al Hussein

25 year concession to rehabilitate, expand, modernize, and operate Jordan's main airport

International consortium to lead the US$ 700 million development

Representing His Majesty King Abdullah II Ibn Al Hussein, the Prime Minister Dr. Ma'rouf Al Bakhit patronized the handover of the rehabilitation, expansion and operation project of Queen Alia International Airport (QAIA) to the Airport International Group (AIG), last Thursday.

According to the US$700 million agreement, AIG will rehabilitate, expand, and operate QAIA and increase capacity from 3.5 million passengers in 2006 to nine million in 2010, with the potential for 12 million by the end of the second phase of the project. This project will help mobilize around US$1 billion of private investment in the country's airport sector.
"The key contribution of the QAIA Project will be the construction of a new state-of-the art airport infrastructure operating at a higher level of service. Airports are cornerstones of today's global economy as they facilitate the movement of people, capital and goods," commented HE, Mr Saoud Nsairat, Minister of Transport.

During his speech, Nsairat outlined key characteristics of the new Airport project which is expected to provide nearly 23,000 job opportunities, "The comprehensive architectural plan of the new Terminal has been provided by the leading practice of Sir Norman Foster, an internationally acclaimed architect with experience in numerous futuristic airport projects in China, Malaysia, Singapore, USA, Canada and more."

Under the terms of the 25-year concession agreement, the concessionaire, AIG will be responsible for the operation of the airport, the rehabilitation of existing facilities, and the construction of the new passenger terminal. The new facility will extend over 85,000 square meters and is planned to be completed in late 2010.

Nsairat went on to highlight recent achievements of the Ministry of Transport including Jordan's new civil aviation law; the restructuring of the Jordanian civil aviation sector to increase productivity, efficiency, and modernization of its managerial aspects; in addition to the US$1 billion Amman-Zarqa light railway project.

For his part, Chairman of AIG, Mr. Salem AlAmeri said "An early transitional period has been planned, starting with the implementation of visible improvements with quicker passenger flows, upgrades to the quality of the current facilities and the development of new services or enhancement of existing ones."

"We plan to leverage our combined resources and to capitalize on Jordan's strategic positioning in the area to maximize on regional trade flows and unique tourist attributes; I mention tourism in particular given the recent success of Petra being recognized as one of the modern seven Wonders of the World, which is likely to attract hundreds of thousands of new visitors." Al Ameri explained. AlAmeri also pointed out that there are still challenges that lay ahead, however these would prove to be key motivators for AIG in creating a positive and tangible difference on the ground for the immediate benefit of passengers.

AIG comprises of the Edgo Group, Noor Financial Investment Company, Joannou & Paraskevaides (Overseas) Limited, J&P-Avax, Abu Dhabi Investment Company, and Aeroports de Paris Management, who won the tender launched by the Government of Jordan in April 25, 2007 and signed the Rehabilitation, Expansion and Operation Agreement on May 19, 2007. The International Finance Corporation, the private sector arm of the World Bank Group, assisted the Government in structuring the transaction. The IFC is providing up to $120 million in financing and mobilizing up to $180 million in funds to AIG. This is also the first infrastructure deal with Islamic tranche partnering with the Islamic Development Bank.

In July this year, HM King Abdullah II Ibn Al Hussein paid a visit to QAIA and ordered the various parties involved in the airport operation to facilitate procedures for travelers and to eliminate obstacles.

During his speech, Nsairat extended his greatest appreciation to key staff of the Ministry of Transport for their determination and continuous momentum in bringing the project to fruition.

AIG is a Jordanian company with private shareholding by Abu Dhabi Investment Company (UAE), Noor Financial Investment Company (Kuwait), Edgo Group (Jordan), Joannou & Paraskevaides (Overseas) Limited (Cyprus), J&P-Avax (Greece) and Aéroports de Paris Management (France).