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Amman, Jordan, 2008/09/03 - Under the Patronage of H.E Prime Minister Eng. Nader Al Dahabi, ADC signed a 30-year Build, Operate and Transfer (BOT) agreement with Jordan Phosphate Mines Company (JPMC) and the Arab Potash Company.
Under the Patronage of H.E Prime Minister Eng. Nader Al Dahabi, ADC signed a 30-year Build, Operate and Transfer (BOT) agreement with Jordan Phosphate Mines Company (JPMC) and the Arab Potash Company (APC), the two main user of the Industrial Terminal, to rehabilitate, develop, and operate the current Industrial Terminal as well as establish and operate a new terminal on a B.O.T basis. The agreement comes as part of ADC’s efforts to develop the ports in Aqaba in line with the Aqaba Special Economic Zone (ASEZ) Master Plan and the comprehensive plan for Aqaba’s ports according to international best practices. The total investment value of the project is expected to reach US$100 million.
The agreement falls in line with ADC’s responsibility to develop the infrastructure of Aqaba’s ports to support the increasing demand on the imports and exports of various commodities, to enhance the national economy and to transform Aqaba into a comprehensive logistics hub.
The agreement stipulates that the right to design, construct, finance, operate and manage the industrial port is granted to a joint venture between JPMC and APC to rehabilitate and enhance the capacity of the new industrial port, support the increasing amounts and international demand on fertilizers as well as increase handling capacity of the production inputs of the fertilizer industry. The land, terminals and infrastructure of the port will be owned by the state through ADC, and users will be obliged to operate the industrial port on a common use basis.
The agreement was signed by ADC’s CEO Eng. Imad Fakhoury, JPMC Chairman and CEO Mr. Walid Al Kurdi, the Chairman of APC, Dr. Mohammad Abu Hamour and APC CEO Mr. Mike Hogan. The signing ceremony was attended by ASEZA Chief Commissioner Eng. Husni Abu Ghaida who stated that this agreement is part of ADC’s efforts to rehabilitate and develop port facilities in the ASEZ with the ultimate goal to enhance the national economy. He added that the agreement falls in line with the master plan for Aqaba and represents ADC’s successful efforts to establish strategic public private partnerships.
ADC’s CEO Eng. Imad Fakhoury said, “This agreement is part of the ADC's Port Master Plan and ADC’s comprehensive plan for developing ports to transform Aqaba into a logistics and multi-modal transport hub on the Red Sea and the Fertile Crescent to serve the import, export and transit demands as well as the national economy according to international best practices.”
He added, “ADC encourages public private partnerships to implement developmental projects in the Zone, specifically for ports and logistics facilities, and this agreement is testimony to the trust that the private sector has in ADC’s long-term development programs for Aqaba’s ports.” He went on to say ,”The industrial port will be developed through a partnership with JPMC and APCO to serve the production capacity for both companies as well as other users in accordance with international best practice and on a common-use operating platform.”
Al Kurdi stated, “This agreement is a strategic step towards developing the infrastructure for such a significant national facility. JPMC will have the opportunity to export products and import raw materials for the fertilizer industry. It will also allow the company to meet the needs of its partners, which include the Jordan India Chemical Company and the Jordan Japan Fertilizers Company.”
Al Kurdi highlighted that this agreement is a successful model of public private partnerships that aims at developing the national economy, and falls line with the company’s strategic plans to increase its production capacity as well as provide various exports and imports in raw materials needed for the industry.
This project will provide infrastructure for future projects implemented by the Jordan India Fertilizers Company (JIFCO) and Jordan Japan Fertilizers Company (JJFC) with Mitsubishi. Both projects will be established at Al Shediyeh phosphate mines.
Abu Hamour said that this agreement comes at a very important time for APC, which will begin producing and exporting larger amounts of potash by mid 2009 as a result of the current expansion taking place at the company-- half a million additional tons of potash will be produced to reach an annual production of 2.4 million tons. The company is also preparing a feasible study for a second phase of expansion, which will increase the production capacity to 3 million tons annually.
The agreement is expected to enhance the handling capacity and efficiency at the industrial port as well as speed up loading procedures. It will also open doors for increased competition in the local market.
The new industrial port will include a 240 meter terminal for docked ships with a load of 100,000 tons of industrial fertilizers, which will be added to the current terminals that are 190 and 230 meters each, modern storage units and environmentally friendly and safe handling equipment with a capacity that will reach 8 million tons annually when the rehabilitation and expansion project is completed.
Through this agreement, ADC will be supporting the Government of Jordan by securing from private sector the necessary funding and expertise to develop, rehabilitate, expand and operate various port facilities based on international best practices without resorting to financing from national budgets.