Jordan's construction sector eyes PPP opportunities

29 August 2020
Jordan's updated public-private partnership (PPP) law came into effect in May, enabling new projects to be identified, developed and facilitated

There is a real buzz around public-private partnerships (PPPs) in Jordan after the updated PPP law came into effect in May this year.

The new legislation will provide a structure within which PPP projects can be identified, developed and facilitated, as well as create a framework for private sector investment. This should mean more projects in the future.

Amman has also moved to form a PPP unit under the prime minister's office, and it will assist government agencies in defining and developing future PPP projects.

Projects launching

The executive director of the PPP unit, Mahmoud al-Khashman, said in May that it plans to launch projects including the development of Amman civil airport at Marka, express bus services in Amman and between Amman and Zarqa, the national railway project and desalination schemes on the Red Sea coast.

Another project is the terminal at King Hussein bridge, which is the border crossing that links Jordan and the West Bank. In May, the PPP unit invited companies to express interest in the estimated JD160m ($226m) project, which will include a terminal and ancillary facilities. It will be developed using a 25-year build-operate-transfer contract.

Jordan has proven with Queen Alia airport that it can deliver infrastructure using the PPP model

The proposed national railway network may also progress and is expected to move into the tender stage later this year.

Speaking in March this year, Transport Minister Khalid Saif said feasibility studies had been updated for the project, and that detailed design would complete in the second half of this year. The scheme involves building a 1,000 kilometre-long cargo line.

As is often the case with PPPs, they will take time to develop. Jordan has proven with Queen Alia airport that it can deliver infrastructure using the PPP model. If it can build on these successes with a more solid with its new legal framework, then the construction sector will be able to look forward to more opportunities in the future.


 

> Algeria: PPP framework fails to modernise
> Bahrain: Manama ramps up its PPP plans
> Egypt: Mixed results for Egyptian PPPs
> Iraq: Crises and protests curb Iraq PPPs
> Jordan: Construction sector eyes PPP opportunities
> Kuwait: Corner turned on water and power schemes
> Lebanon: PPPs offer route to recovery
> Morocco: Rabat reforms legislation to spur PPPs
> Oman: Muscat risks PPP confidence loss
> Saudi Arabia: Riyadh refocuses PPP plans
> Tunisia: PPP plans draw broad support
> UAE: PPPs expected to take off in UAE
> Other GCC: Gulf state bolsters legislation to drive PPPs

 

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