Presentation on theme: "Unlocking the Potential in Aqaba and Jordan"— Presentation transcript:
1 Business Plan Summary 2005-2009 Unlocking the Potential in Aqaba and JordanAccelerated Economic Development through Public Private PartnershipBusiness Plan SummaryPlease Note: Selected information and illustrative business plan components included here are from ADC previously released public sources.M. CobbMarch 26th, 2005
2 Vision Mission To have successfully established Aqaba as Jordan’s model of development and innovation.MissionPartners in Development,Developing in Partnership.
3 ObjectivesProviding businesses with world class multi-modal transportation facilitiesPackaging strategic real estate development projectsCreating world class logistics and industrial infrastructure and superstructureBreaking the “chicken and egg” cycle by creating critical economic and social enablers
4 ADC Strategy National Goals & AEZA Master Plan Infrastructure & Utilities Supply & CapacitiesMarket Demands ProjectionsFinancial Resources & Leverage PotentialsAqaba & ASEZA Growth ForecastsPrivate sector stimulationSocial and Environmental NeedsSWOT Analysis UpdateADCMissionADCInvestment2005 Business Plan & Priorities5 Year Priority Projects Program20 year Master PlanIntegrated Business, Trade Leisure, Education, Tourism Hub
6 Financial and Investment Strategy Sustainability - Adoption of projects and a portfolio of project investments that ensures ADC’s sustainability in the long term, especially in helping achieve the long-term development objectives of the ASEZA 20 year master plan.Profitability - As a development company, ADC has adopted a commercial perspective while also balancing the need for community enabler projects and the promotion of private sector competition and participation.Reinvestment - ADC will structure investment projects with exit strategies such that further reinvestment, either into similar or higher priority projects will be possible.Public-Private Partnerships - While mitigating risk to ADC, public-private partnerships reinforce ADC’s market-driven strategy by offering shared investment opportunities to private sector partners.
8 Project Development/Approval Process ScreeningADC ObjectivesASEZ NeedsProject PortfolioInternal Project Assessment & Prioritization“Due Diligence” Investment Assessment for BoD ApprovalPlanningTerms of ReferencePre-feasibility studyFeasibilityProject Master PlanBoD Approval for Development FundingASEZA Coordination (Joint Planning Committee)ImplementationPreliminary DesignDesign DevelopmentProject Financing & Commercial StructuringFinal DesignConstruction Planning/ContractingConstructionOperations and RevenueExit and/or Maintain and MonitorBoD Approval and ASEZA CoordinationUpdate BoD if within approved 15% of implementation budget
9 Project Development/Approval Process Confidential/Not Publically ReleasedPlease contact us to discuss genericProject Development & Approval Methodologies
10 ADC Financial Model Concepts (Current & Future) Confidential/Not Publically ReleasedPlease contact us to discuss genericPublic-Private Development Concepts, Models& Implementation Approaches
11 Proposed Investment Targets (edited approach) Economic, Technical & Financial AnalysisEconomic Value(ROI, IRR, NPV, FCF, RAR)EnablersImproves Attractiveness of AqabaSocio-economic projectsCreates jobsSafety, Health, Environmental projectsEducation/TrainingEvaluated by: Benefit/Cost AnalysisSocio-Economic ValueB/C Ratio: highIRR + exit strategyExample projectsInfrastructure ProjectsFacilitates private sector / business growthIncreases value of propertyAffects other commercial investmentsExample: utilities, transport and infrastructureROI >10%Also: Benefit/Cost AnalysisExample projectsCommercial ProjectsBased on merits / likelyhood of successExample: commercial and tourism real estate, logistics and warehousingROI > 20%Example projectsHigh Economic Development ValueLow Financial ReturnHigh Economic Development ValueHigh Financial ReturnPrivate Sector Investment ParticipationADC Investments - Net Aggregate List of Projects
12 Priority Development Pipeline Transport and InfrastructureOil TerminalIndustrial JettyNew Ferry TerminalContainer Village LogisticsContainer Freight StationContainer Service CenterContainer Logistics ParkTruck Marshalling Yard(s)King Hussein International AirportPhosphate TerminalEnablersAqaba International SchoolAmerican University of JordanHospitality CollegeCommunity Economic DevelopmentSmart CityAir-Route DevelopmentCommercialPre-Built Warehousing ProjectsLabor Housing ProjectServiced LandsProduce MarketBus Terminal(Smart) Business ParkGateway ExpansionExhibition PropertiesLagoon and SarayYemania/South Beach ClubAqaba TowersIn the coming few months and in the course of next year, ADC aims to launch and develop an aggressive program of projects that aim to kick-start development in the zone; those are a variety of commercial, infrastructure and enabler projects. The next few slides go into more detail by each sector.
13 Source and Application of Funds Local and International InvestorsCommercial Lending InstitutionsBilateral Aid and Multi-lateral agenciesPrivate Placement FundsEstablishing Limited PartnershipsRegional Arab Development FundsJoint Venture Capital FundingTurning certain business units into public company entitiesExisting operational funds
14 Implementation Next Steps Project ExecutionStaff, Consultants & Outsourcing ResourcesSouth Port Area Plan & TenderRelease Other Key TendersContinued RecruitmentFinalize/Agree with ASEZA on Master PlansFinalize Master Development AgreementScreen/Evaluate/Select Specific ProposalsRefine Corporate Governance & Culture