business plan summary 2005-2009 march 26 th, 2005 unlocking the potential in aqaba and jordan...
TRANSCRIPT
Business Plan Summary 2005-2009
March 26th, 2005
Unlocking the Potential in Aqaba and JordanAccelerated Economic Development through Public Private Partnership
Please Note: Selected information and illustrative business plan components included here are from ADC previously released public sources.
Vision
To have successfully established Aqaba
as Jordan’s model of development and innovation.
Mission
Partners in Development, Developing in Partnership.
Objectives
Providing businesses with world class multi-modal transportation facilities
Packaging strategic real estate development projects
Creating world class logistics and industrial infrastructure and superstructure
Breaking the “chicken and egg” cycle by creating critical economic and social enablers
4
ADC Strategy
ADC
Mission
ADC
Investment
National Goals & AEZA Master Plan
Infrastructure & Utilities Supply & Capacities
Market Demands Projections
Financial Resources & Leverage Potentials
Aqaba & ASEZA Growth Forecasts
Private sector stimulation
Social and Environmental Needs
SWOT Analysis Update
2005 Business Plan & Priorities
2005-2009
5 Year Priority Projects Program
20 year Master Plan
Integrated Business, Trade Leisure, Education, Tourism Hub
5
Three Pillars Investment Strategy
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.
7
Priority Project Objectives
World Class Governance Structure, Management and Development Techniques
2005-2009
Priority Projects
Respond to Immediate Market Demand in Partnership with Private Sector
Create Investor-Friendly Environment
Achieve Mission and Vision of ASEZA 20 Year Master Plan
Stimulate and Unlock Market Demand
8
Project Development/Approval Process
ScreeningADC Objectives
ASEZ Needs
Project Portfolio
PlanningTerms of Reference
Pre-feasibility study
Feasibility
Project Master Plan
ImplementationPreliminary Design
Design Development
Project Financing & Commercial Structuring
Final Design
Construction Planning/Contracting
Construction
Operations and Revenue
Exit and/or Maintain and Monitor
Internal Project Assessment & Prioritization
“Due Diligence” Investment Assessment for BoD Approval
BoD Approval for Development Funding
ASEZA Coordination (Joint Planning Committee)
BoD Approval and ASEZA Coordination
Update BoD if within approved 15% of implementation budget
9
Project Development/Approval Process
Confidential/Not Publically Released
Please contact us to discuss generic
Project Development & Approval Methodologies
10
ADC Financial Model Concepts (Current & Future)
Confidential/Not Publically Released
Please contact us to discuss generic
Public-Private Development Concepts, Models
& Implementation Approaches
11
Proposed Investment Targets (edited approach)
Enablers
•Improves Attractiveness of Aqaba•Socio-economic projects•Creates jobs•Safety, Health, Environmental projects•Education/Training
Evaluated by: Benefit/Cost Analysis Socio-Economic Value
B/C Ratio: highIRR + exit strategy
Example projects
Infrastructure Projects
•Facilitates private sector / business growth•Increases value of property•Affects other commercial investments•Example: utilities, transport and infrastructure
ROI >10%
Also: Benefit/Cost Analysis
Example projects
Commercial Projects
•Based on merits / likelyhood of success •Example: commercial and tourism real estate, logistics and warehousing
ROI > 20%
Example projects
ADC Investments - Net Aggregate List of Projects
Private Sector Investment Participation
High Economic Development ValueLow Financial Return
High Economic Development ValueHigh Financial Return
Economic, Technical & Financial Analysis
Economic Value(ROI, IRR, NPV, FCF, RAR)
12
Priority Development Pipeline
Commercial
Pre-Built Warehousing Projects
Labor Housing Project
Serviced Lands
Produce Market
Bus Terminal
(Smart) Business Park
Gateway Expansion
Exhibition Properties
Lagoon and Saray
Yemania/South Beach Club
Aqaba Towers
Enablers
Aqaba International School
American University of Jordan
Hospitality College
Community Economic Development
Smart City
Air-Route Development
Transport and Infrastructure
Oil Terminal
Industrial Jetty
New Ferry Terminal
Container Village Logistics
•Container Freight Station
•Container Service Center
•Container Logistics Park
Truck Marshalling Yard(s)
King Hussein International Airport
Phosphate Terminal
13
Source and Application of Funds
Local and International Investors
Commercial Lending Institutions
Bilateral Aid and Multi-lateral agencies
Private Placement Funds
Establishing Limited Partnerships
Regional Arab Development Funds
Joint Venture Capital Funding
Turning certain business units into public company entities
Existing operational funds
14
Implementation Next Steps
Project Execution
• Staff, Consultants & Outsourcing Resources
• South Port Area Plan & Tender
• Release Other Key Tenders
Continued Recruitment
Finalize/Agree with ASEZA on Master Plans
Finalize Master Development Agreement
Screen/Evaluate/Select Specific Proposals
Refine Corporate Governance & Culture