96902 PUBLIC-PRIVATE PARTNERSHIPS BRIEFS Jordan: Queen Alia Airport Overview The Queen Alia Airport is Jordan’s main international airport and a key component of the country’s transport, trade and tourism infrastructure. In 2007, IFC served as transaction ad- visor to the Jordanian government on structuring and awarding a 25-year concession to a private sector operator responsible for reconstructing and expanding the airport’s terminal. It was the first successful airport public-private partnership in the Middle East. IFC subse- quently financed the project by providing and arranging $280 million in loans. The new terminal was opened in March 2013 and by mid-2014, IFC provided and arranged an ad- ditional $68 million in loans to finance an expansion of the new terminal’s related facilities. This series showcases how the World Bank Group supports the development and implementation of public-private partnerships. This support comes in the form of public sector loans, private sector finance, sector and transaction advice, guarantees, and output-based aid. PUBLIC-PRIVATE PARTNERSHIPS - MAY 2015 Background government’s resources. Subsequently, IFC played a leading role in raising the project’s debt financing, by The Queen Alia International Airport (QAIA) is providing $120 million in loans to AIG and arranging located 36 kilometers from the capital, Amman. a syndication of $160 million from international Built in 1983, it handled almost all of the country’s banks. The Islamic Development Bank also helped air traffic. However, it did not have the capacity to finance the project with a $100 million loan. The new meet growing demand and it was too old and too terminal was successfully completed and it opened for small to be expanded. To address these constraints, traffic in March 2013. In mid-2014, IFC provided a the Jordanian government sought a private partner $21 million additional loan and arranged a further to reconstruct the airport’s terminal and expand $47 million syndication to finance an expansion of the its facilities. The project was key to supporting the new terminal’s related facilities to ensure that overall tourism industry, which contributes approximately airport capacity continues to meet traffic growth. The 10 percent of the country’s GDP. Greater airport Islamic Development Bank participated in this second capacity was also expected to stimulate trade and financing package with a $25 million loan. drive economic growth. Outcomes Project Description • Capacity of the airport will be increased from The project consisted of the construction of a new about 4 million passengers in 2007 to 12 million terminal to replace the existing terminal, expanding passengers by the end of 2016. the new terminal’s related facilities and operating the • With QAIA serving as a regional hub, Jordan’s entire airport under a 25-year concession. The project transport and tourism industries, regional links, aimed at increasing the airport’s capacity to handle and cross-border trade are expected to grow. long-term traffic growth and establish it as a regional • The number of international flights has increased transportation hub. The goal of the new terminal from 120 flights per day from 55 international project was to improve operations, increase quality of destinations in 2007 to more than 175 daily flights service, and serve as a model for other infrastructure from over 60 international destinations in 2015. projects in the country. • Over $1 billion in foreign investment, and a Following the successful completion and opening substantial number of jobs is expected to be of the new terminal, a second phase to expand the generated through the reconstruction and operation new terminal’s related facilities was launched, with of the airport. completion expected by the end of 2016. The new • The PPP resulted in a $700 million investment, terminal will cover more than 100,000 square meters 100 percent financed by the private sector and the airport will be able to handle 12 million • The PPP has generated significant gains for the passengers. public sector: cumulative $450 million since incep- tion, and an annual estimated minimum of $200 million going forward. World Bank Group Role • Since the PPP, the airport has won numerous awards In 2007, IFC successfully advised the government of including the 2013 Gold Award for top PPP in Jordan on a pioneering public-private partnership for Europe, Central Asia, MENA (IFC/Infrastructure the QAIA. Through a competitive bidding process, Journal), the ACI Award for 1st rank in the category: Airport International Group (AIG) was awarded a Best Improvement by Region: Middle East 2013; and 25-year concession to construct a new terminal to ACI’s Best Airport in the Region: Middle East, 2014. replace the existing one, expand the new terminal’s • QAIA has become Airport Carbon Accredited, related facilities, and operate the entire airport. The streamlining its activities related to environmental partnership sought to address the constraints on the protection. Photo Credits Front: Foster + Partners worldbank.org/ppp @WBG_PPP scribd.com/wbg_ppp