AMMAN (JT) -- The Aqaba Development Corporation (ADC) invited investors to submit expressions of interest for a $3 billion project that will soon be formally floated in a tender.
The request was made during a press conference in Dubai Wednesday on the sidelines of Cityscape real estate exhibition.
The project, whose terms of reference will be ready in the first quarter of next year, involves the relocation of the existing port facilities, 20 kilometres to the south, and developing the vacated seafront with various facilities.
When completed, the two-phase five-year scheme is likely to give the Aqaba Special Economic Zone (ASEZ) its envisioned face a commercial, residential and tourism powerhouse.
According to an ADC statement, the main port facilities, sitting at the heart of existing major urban development projects, will be relocated to the southern border area. The vacated land represents prime waterfront property on the Aqaba town corniche.
The new location, characterised with deeper waters, will have upgraded services and an ability to expand in capacity to cope with the growth of goods handled by the port.
Aqaba Port currently handles approximately 21 million tonnes of cargo per annum.
Projects envisaged for the vacated land would complete the picture of the new Aqaba, tourism and commercial hub that is free from heavy industries' activities.
The projects would "present residents and tourists with a vibrant and engaging city centre, and investors with lucrative, flexible and unique investment opportunities."
The objective of this new development area will be to create a new mixed-use waterfront neighbourhood and business district -- a magnet for businesses and tourists, as well as creating new easy to access, residential suburbs, according to the statement by ADC, which is the investment arm of the Aqaba Special Economic Zone Authority (ASEZA).
ADC owns the public assets in Aqaba and has developed a business model by which it enters as a partner with investors.
The area, which is currently granted a low-tax and duty-free status, features a pristine coastline and terrain and is surrounded by Jordan's other two top tourism product: Petra and Wadi Rum.
According to the ASEZ Master Plan for 2001-2020, the distribution of investment would be as follows: 50 per cent tourism, 30 per cent services, 7 per cent light industries (located in the northern tip of the zone) and 13 per cent heavy industries, located near the new port site in the south.
If a government plan to establish a land port in Maan, about 140 kilometres to the north of Aqaba, sees the light, the city will no longer be the host of thousands of trucks that call on the port. Instead, trains will be carrying cargo to Maan, where trucks will be loaded and unloaded.
ADC's Chairman and CEO Imad Fakhoury said of the tender: "We have been developing the Aqaba region for some time and this final phase will enable institutional investors to develop one of the most sought after parcels of real estate in the world. Our track record speaks for itself with $2 billion in real estate public-private partnerships already under way."
"We have shown that we're willing to offer levels of flexibility and freedom as well as government support to any private development initiative. With its location, Aqaba is the most beautiful blank canvas that any developer could ever wish for," he added.
The new hotel and hospitality zone, with at least three world-class beach resorts, will support approximately one thousand rooms of new development with generous open space and common facilities.
An essential part of the redevelopment plan will be new freehold housing to support a resident population that will take advantage of the site's new amenities.
By Mahmoud Al Abed
© Jordan Times 2006
