Jordan Times
Saturday, August 7, 1999
Government, consortium of foreign firms reach
agreement on concessions to the Aqaba Railway Corporation
By Iyad Waqfi
AMMAN — The government and a consortium of foreign firms have reached agreement on concessions with regard to the Aqaba Railway Corporation (ARC).
According to the government source, the 25-year concession will include operation and maintenance of ARC, expanding the railway net to serve the Jordan Phosphate Mines Company — the main customer of the railway on a build, transfer and operate basis.
A source at the Ministry of Transport said on Friday that Jordan has completed the negotiations and an agreement between the two sides is expected this week.
The source told the Jordan Times that the government is determined to open the door wide for investments — inviting investors from Jordan, Arab and foreign countries to help revive the country's economy.
Negotiations between the government and Raytheon, along with Wisconsin Central, Mitsubishi of Japan, CCC and Kawar Group have been going on since November 1998.
The ARC headquartered in Ma'an is burdened by JD70 million debt.
Minister of Transport Jamal Saraireh told the Jordan Times that his ministry will conclude the $120 million deal soon.
The mayor of Ma'an last December sent the government a memorandum warning that privatising the railway, which he said is the lifeline of the southern city could result in laying off local workers saying Ma'an is suffering from poverty and unemployment.