Queen Alia International Airport

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On May 19, 2007, the government of the Hashemite Kingdom of Jordan awarded a 25-year concession contract to ADP Consortium to operate, expand and rehabilitate the Queen Alia International Airport in Amman. The ADP Consortium was composed of Edgo Ventures (Edgo) (9.5%), Aeroports de Paris Management (ADPM) (9.5%), Joannou & Paraskevaides (Overseas) Ltd.(9.5%), J&P-Avax (9.5%), Abu Dhabi Investment Company (ADIC) (38%) and Noor Financial Investment Company (24%). The contract was awarded by following a competitive bidding process initiated in June 2006. At that time, more than 30 international companies expressed their interest in the project. The ADP Consortium won out over four other final qualified bidders by submitting the highest percentage of revenue tranfer to the government of Jordan. Under the concession agreement, the government is expected to receive 54.5% of total revenues in the first six years, then 54.6% thereafter. On November 15, 2007, the contract was officially signed and the construction and operation of Queen Alia International Airport was handed over to Airport International Group Private Shareholding Company (AIG PSC), the project comapny created by ADP Consortium. Under the term of the contract, AIG PSC was in charge of the operation and the construction of a new terminal of more than 85.000 m2. More particularly, Aeroports de Paris Management had the obligation to remain in charge of operating the airport and Joannou & Paraskevaides was in charge of building the new terminal. With this expansion, airport's total capacity was expected to increase from 3.5 to 9 million passengers per year. The project cost was evaluated at US$675 million. AIG PSC secured a US$370 million loan from the International Finance Corporation, the Islamic Development Bank, the banks Calyon, Natixis and Europe Arab Bank. Detailed financing arrangements were as follow: - An IFC US$70 million, 17-year senior loan. - An IFC US$40 million, 18-year subordinated loan with a 15-year grace period to match the cashflows generated during the concession. - An IFC US$10 million standby loan to be disbursed in the event that the cashflows generated by existing operations were insufficient to complete the financing of the new terminal during the construction phase. - The IFC mobilized US$160 million in a 16-year syndication that attracted French banks Calyon and Natixis as well as Europe Arab Bank. - The Islamic Development Bank provided a US$100 million loan. - The IFC also provided a swap to Airport International Group to minimize the interest rate risk on the transaction. The rest, about US$305 million, was agreed to be financed by equity and revenue of airport operation. In March 2013, the airport became operational.