Summary of Proposed Investment
Project Number
10112
Company Name
Jordan Gateway Project
Date SPI Disclosed
Nov 30, 2000
Country
Jordan
Industry
Tourism, Retail and Property
Projected Board Date
Feb 8, 2001
Status
Completed
Sector
Construction and Real Estate
Department
Regional Industry MAS MCT
Environmental Category
A - Significant
Previous Events
Approved : Feb 8, 2001
Signed : Jun 18, 2001
Invested : Sep 19, 2001
Project Description
The project is to develop, construct and operate an industrial estate covering about 65 ha (of which about 50 ha would be in Jordan) at the Jordan-Israel border (the “project”). The project will be developed in three phases. Phase I of the project will involve: (i) land and infrastructure development of a 50 ha area on the Jordanian side, and (ii) construction of 94,000 m² of buildings, offices and factories for rent, on the Jordanian side, which are proposed to be partially financed by IFC. In addition, Phase I will include land and infrastructure development of 5 ha area on the Israeli side, and construction of a 700 m long bridge across the Jordan River, connecting the Jordanian and the Israeli sides of the estate, which will be funded by the Israeli sponsors under a separate legal entity. In the second and third phases, additional 105,000 and 97,000 m² will respectively be developed on the Jordanian side. The implementation of subsequent phases, which are not IFC financed, will proceed in accordance with tenant demand, cash flow generation and project finance availability.
The project will generate significant development impact as follows:
- The project will facilitate creation of up to 15,000 skilled and semi-skilled jobs in Jordan where the unemployment rate is approximately 25%.
- The project will attract foreign investment from Israel, Europe, the U.S. and Asia and stimulate development of export-oriented industries.
- The project will host hi-tech and other high value added industries, that would provide opportunities for technology transfer and improved utilization of Jordan''s skilled and educated workforce.
- The project will broaden the JRV’s economic base and stimulate planned development of the JRV, as it is part of an integrated plan which includes provision of housing, education and training centers, development of complementary enterprises, and raising the standard of living of the population of the JRV.
- The project will assist community development in the health and education sectors, and has attracted a major medical research institute (the King Hussein Research Center), affiliated with the world-renowned Sloan Kettering Medical Center.
- The project can potentially broaden Jordan-Israeli economic cooperation and contribute to peace between the two countries. If successful, the project will create a demonstration effect that may stimulate other similar projects in the pegion.
IFC’s role in the project is as follows:
- IFC has helped the sponsors structure the project and limit the scope to a reasonable level in Phase I, instead of pursuing open-ended development.
- Given the project''s political dimension involving Jordan and Israel, IFC has served as a third-party facilitator.
- IFC will help complete the financial plan through its own funds, and to the extent possible, mobilize funds from other investors, who, given the political risk, are unlikely to support the project without IFC’s presence.
- IFC’s involvement has ensured that best environmental and social practices are followed. This includes changes in the project design as recommended in the Environmental and Social Assessment (ESIA) Reports, such as a different Israeli site, a different bridge design and careful planning of the estate area, so that the development impact of the project could be maximized. Due to IFC’s involvement, an ESIA for a Jordanian project has been prepared and publicly released for the first time in the country.
- Finally, IFC’s involvement in the project will provide comfort to potential international and regional tenants given the unstable political situation in the region and help mitigate political risk perceived by potential tenants.
The project will generate significant development impact as follows:
- The project will facilitate creation of up to 15,000 skilled and semi-skilled jobs in Jordan where the unemployment rate is approximately 25%.
- The project will attract foreign investment from Israel, Europe, the U.S. and Asia and stimulate development of export-oriented industries.
- The project will host hi-tech and other high value added industries, that would provide opportunities for technology transfer and improved utilization of Jordan''s skilled and educated workforce.
- The project will broaden the JRV’s economic base and stimulate planned development of the JRV, as it is part of an integrated plan which includes provision of housing, education and training centers, development of complementary enterprises, and raising the standard of living of the population of the JRV.
- The project will assist community development in the health and education sectors, and has attracted a major medical research institute (the King Hussein Research Center), affiliated with the world-renowned Sloan Kettering Medical Center.
- The project can potentially broaden Jordan-Israeli economic cooperation and contribute to peace between the two countries. If successful, the project will create a demonstration effect that may stimulate other similar projects in the pegion.
IFC’s role in the project is as follows:
- IFC has helped the sponsors structure the project and limit the scope to a reasonable level in Phase I, instead of pursuing open-ended development.
- Given the project''s political dimension involving Jordan and Israel, IFC has served as a third-party facilitator.
- IFC will help complete the financial plan through its own funds, and to the extent possible, mobilize funds from other investors, who, given the political risk, are unlikely to support the project without IFC’s presence.
- IFC’s involvement has ensured that best environmental and social practices are followed. This includes changes in the project design as recommended in the Environmental and Social Assessment (ESIA) Reports, such as a different Israeli site, a different bridge design and careful planning of the estate area, so that the development impact of the project could be maximized. Due to IFC’s involvement, an ESIA for a Jordanian project has been prepared and publicly released for the first time in the country.
- Finally, IFC’s involvement in the project will provide comfort to potential international and regional tenants given the unstable political situation in the region and help mitigate political risk perceived by potential tenants.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Yousef Dajani, General Manager, Jordan Gateway Projects Company, Jordan
P.O. Box 251, Amman 11118, Jordan
Fax: 962-6-568 6293
Phone: 962-6-568 6294
Mr. Gili Dekel, General Manager, Jordan Gateway Projects Company, Israel
7, Aba Hilel Silver St., Ramat Gan, 552522, Tel Aviv, Israel
Fax: 972-3-575-8137
Phone: 972-3-575-7707
P.O. Box 251, Amman 11118, Jordan
Fax: 962-6-568 6293
Phone: 962-6-568 6294
Mr. Gili Dekel, General Manager, Jordan Gateway Projects Company, Israel
7, Aba Hilel Silver St., Ramat Gan, 552522, Tel Aviv, Israel
Fax: 972-3-575-8137
Phone: 972-3-575-7707