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	Jordan		Info-Prod Country Guide
CHARACTERISTICS   INDICATORS   THE ECONOMY   INVESTMENT ISSUES   PROJECTS   PROSPECTS

Current and Projected Projects General A number of joint projects with Israel have been proposed (in energy, water, electricity, infrastructure and tourism), although, as yet, none have been undertaken. During the November 1996 Cairo Conference, Jordan presented twenty-five national projects in the industry, telecommunications, energy, water, transport and tourism sectors, requiring US$ 3.7 billion in private financing. None of the sectors, with the obvious exception of tourism, are directly affected by the regional political climate. The industrial projects are concentrated on minerals exploitation, in which Jordan already has experience and a good track record in attracting private investment. Interest in the new telecommunications projects is already running high. Jordan's limited natural energy resources might make energy a rather hard sector to sell to international investors but the government is not deterred. Its invitation for expressions of interest in building a private oil refinery attracted no less than seventeen responses early in 1996. Additionally, the US company Enron Development Corporation has recently reaffirmed its interest in building a liquefied natural gas (LNG) plant in Aqaba, importing the gas from the Gulf. Tourism is the most vulnerable sector,but it has seen extraordinary growth since the signing of the peace treaty between Jordan and Israel in 1994. Leading international names, including Movenpick, Marriott, Hyatt, Four Seasons and ACCOR are already involved in new projects in Amman and the Dead Sea. The Aqaba Regional Authority has also issued licenses for four new hotels in Aqaba, including one for Jordan's first 100 percent Israeli-owned investment. The Jordan Rift Valley is also back on the agenda as a joint Jordanian-Israeli offering with twelve to thirteen projects, with each of the two sides presenting two projects in detail. It is known that Israel will present a joint telecommunications project while Jordan has elected to offer the Aqaba/Peace airport and a logistics center for land transport. Jordan will also be involved in the EU-sponsored Regional Economic Development Working Group (REDWG) schemes, which link it with Israel, the Palestinian Authority and Egypt. Projects by Sector The following projects have been proposed in the various economic sectors: Energy: Expansion of power generation capacity, refinery expansion and development, oil and gas exploration. Telecommunications: The installation of new telecommunications services and data networks. Tourism: Development of the Aqaba tourist area and the Dead Sea tourist area. Industry and Mining: Production of magnesium oxide, magnesium metal plant, potassium sulphate, calcium phosphate and potassium nitrate. Glass sand production, gold exploration, copper exploration, kaolin/clay exploration. Transportation: Construction of the Aqaba-Wadi II & Al-Shidiya railway link, a light rail system for greater Amman and development of the Aqaba airport and the Zerqa-Iraqi border railway. Build Operate Transfer Jordan is also seeking private investors for the Amman-Zerqa light railway project, which it hopes to see launched as Jordan's first transport scheme carried out on a build-operate-transfer (BOT) or build-own-operate (BOO) basis. Austria Rail Engineering Company has completed a feasibility study for the forty-two kilometer line, which will link Zerqa with Amman and may be extended to the Amman suburb of Suweileh. The government is now seeking international financing for the detailed feasibility studies and designs. The US-based Corporate Holdings Of America signed an initial agreement with the Jordanian government in June 1996 regarding the construction of an oil refinery in Jordan. The proposed plant is to have an installed refining capacity of 250,000 barrels per day. The project will also include the construction of a 165 MW power station as well as a 20,000 cubic meter per day desalination plant. The overall cost of the planned undertaking has been estimated at US$ 2.5 billion. Construction is expected to take about four years to complete, and the concession is to last for a twenty year period effective from the beginning of commercial operations. At that time, a new Jordanian company capitalized at US$ 700 million is to be established upon final agreement. Although local investors will be offered up to a 45 percent equity stake in the venture, American investors will take a controlling interest and will be obliged to cover whatever stake Jordanian investors fail to take-up. Franchising Jordanian businessmen have expressed an increased interest in franchising, especially in industry, services, and fast food although retail and service franchises are rare in Jordan. Previous Chapter Contents Menu Next Chapter

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