JPMC will develop, build and operate a new phosphate port over 30 years under an agreement signed Sunday with Aqaba Development Corporation (ADC).

The $240 million agreement stipulates that the port will be ready for operation by mid 2012 and that it will operate in accordance with international best practice and in line with the Aqaba Port development master plan.

ADC, the central development and investment arm of the Aqaba Special Economic Zone Authority(ASEZA), and JPMC signed a memorandum of understanding in 2008 setting the basic terms for the development and operation agreement including granting JPMC the right to undertake the preparatory works necessary for the implementation of project.

ADC Chief Executive Officer 'Shadi Ramzi' Majali, who signed the agreement with JPMC Chairman and Chief Executive Officer Walid Kurdi, expressed satisfaction saying: "The agreement is indeed key to ADC’s plans to develop, rehabilitate and transform Aqaba’s ports into world class transport and infrastructure facilities, through public private partnerships, which alleviate the financial burden on the government for funding such infrastructure projects and in turn utilises private sector know-how and expertise in managing strategic assets."

Following the signing ceremony which was attended by the Minister of Finance, Minister of State for Mega-Projects, ASEZ Chief Commissioner, and the Director of Port Authority, Kurdi said: "Upon completion, the project will ensure the continuation of the exportation of phosphate, which will in turn allow ADC to close the current phosphate terminal within the main port for its redevelopment with Al Maabar."

He indicated that JPMC will finance the project through a direct loan agreement signed with the International Finance Corporation noting that $110 million will be through debt, and the remaining $130 million through JPMC’s own resources.

The new phosphate port, which will have an average annual handling capacity of approximately four million tonnes, will include a 280-metre-long berth equipped with handling equipment, the ADC said in a statement.

“The berth will be connected to a state of the art storage/handling facility with a long haul pipe conveyor all completely equipped as part of JPMC’s obligations whether during construction or operation with the necessary environmental, safety, general security and health equipment and precautions and according to the environmental laws of the ASEZ,” the statement concluded.