Summary of Proposed Investment
Project Number
11106
Company Name
SPECIALIZED INVESTMENT COMPOUNDS CO. PLC.
Date SPI Disclosed
Aug 27, 2001
Country
Jordan
Industry
Tourism, Retail and Property
Projected Board Date
Sep 30, 2001
Status
Completed
Sector
Construction and Real Estate
Department
Regional Industry MAS MCT
Environmental Category
B - Limited
Previous Events
Approved : Oct 3, 2001
Signed : Oct 22, 2001
Invested : Dec 3, 2001
Project Description
The proposed venture will expand the existing integrated industrial estate, ATIC. The expansion will commence in late 2000 to keep up with the high demand for qualifying industrial zone (QIZ) space in Jordan. The project entails: (i) purchase of additional land; (ii) construction of supplementary infrastructure (electrical and water treatment facilities, transportation, communication and cargo-handling facilities); (iii) completion of seven, and expansion of three, factory buildings that will add 60,255 m2 of industrial space to the existing occupied 88,000 m2; and (iv) construction of a canteen and dormitories for up to 2,250 workers. The project will not only expand the built-up area of the industrial city in response to growing demand, but will also allow ATIC to attain a stronger competitive position by providing new value-added services to tenants.
The proposed project development impacts are as follows:
- Employment creation: The project would facilitate creation of up to additional 12,000 skilled and semi-skilled jobs in Jordan. ATIC has already generated 5,000 jobs.
- SME development: The project will continue to attract domestic small and medium sized private businesses given its proximity to Amman.
- Promotion of private investment: The project will attract local and foreign private investment and help broaden Jordan’s narrow economic base.
- Foreign currency inflow: The QIZ status of ATIC will continue to stimulate development of export-oriented businesses, which will generate foreign currency revenues for Jordan, a country with a large trade deficit.
- Transfer of skills and know-how: The project will host foreign companies that would bring in new technologies and provide training to the Jordanian workforce.
IFC''s role in the project is as follows:
- Provision of long-term financing: IFC will provide debt financing with longer maturity that is currently not available from local financial institutions.
- Corporate Governance: IFC has provided and will continue to provide valuable advice to the company on improvements in its corporate governance.
- Advisory Role: IFC has also advised ATIC on strengthening its marketing efforts, improving the technical area to achieve the necessary savings, and introducing a new management information system to enable better monitoring of the company''s financial performance.
- Continuing Support of the Sector: Given the importance of QIZs for the Jordanian economy, IFC’s commitment to this sector through multiple investments will encourage foreign investors to come to Jordanian QIZs.
The proposed project development impacts are as follows:
- Employment creation: The project would facilitate creation of up to additional 12,000 skilled and semi-skilled jobs in Jordan. ATIC has already generated 5,000 jobs.
- SME development: The project will continue to attract domestic small and medium sized private businesses given its proximity to Amman.
- Promotion of private investment: The project will attract local and foreign private investment and help broaden Jordan’s narrow economic base.
- Foreign currency inflow: The QIZ status of ATIC will continue to stimulate development of export-oriented businesses, which will generate foreign currency revenues for Jordan, a country with a large trade deficit.
- Transfer of skills and know-how: The project will host foreign companies that would bring in new technologies and provide training to the Jordanian workforce.
IFC''s role in the project is as follows:
- Provision of long-term financing: IFC will provide debt financing with longer maturity that is currently not available from local financial institutions.
- Corporate Governance: IFC has provided and will continue to provide valuable advice to the company on improvements in its corporate governance.
- Advisory Role: IFC has also advised ATIC on strengthening its marketing efforts, improving the technical area to achieve the necessary savings, and introducing a new management information system to enable better monitoring of the company''s financial performance.
- Continuing Support of the Sector: Given the importance of QIZs for the Jordanian economy, IFC’s commitment to this sector through multiple investments will encourage foreign investors to come to Jordanian QIZs.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Halim Salfiti
General Manager
Tel: 962 6 402 7525
Fax: 962 6 402 7535
Address: P.O. Box 117, Amman, 11591, Jordan
General Manager
Tel: 962 6 402 7525
Fax: 962 6 402 7535
Address: P.O. Box 117, Amman, 11591, Jordan