On March 30, 2018, MIGA agreed to issue guarantees of up to $195,154,839 to Meridiam Eastern Europe Investments 2 SAS (Meridiam) of France for its equity/quasi-equity investment into Airport International Group (AIG), the current concessionaire of the Queen Alia International Airport (QAIA) in Jordan. The guarantees are issued for a period of up to 15 years against the risks of Transfer Restriction, Expropriation, War and Civil Disturbance and Breach of Contract.
The project consists of the acquisition by Meridiam of a 32% stake in AIG, which entered a 25-year concession agreement with the Government of Jordan (GoJ) in 2007 to rehabilitate, expand and operate QAIA with the possibility to extend the concession by an additional 5 years (until 2037).
The project is a category B under MIGA’s Policy on Environmental and Social Sustainability.
The proposed investment by Meridiam will enable capital expenditures to be directed towards optimizing the commercial activities of Jordan’s principal airport (e.g. duty free shopping, specialty retail, food and beverages) which is expected to lead to higher non-aeronautical revenues, thereby generating additional revenues for Jordan over the duration of the REOA while enhancing the passengers’ travel and retail shopping experience. The airport is an important infrastructure asset for Jordan, used by over 7 million passengers in 2017, supporting the country’s economic growth and development, notably through the tourism sector. The acquisition is expected to reinforce the role of QAIA, consistent with the Jordan Economic Growth Plan spanning 2018-2022. The acquisition will support existing and new direct employment opportunities at QAIA, as well as indirect employment by domestic suppliers and service providers.