Provision of an equity co-investment to acquire an indirect equity stake in Airport International Group ("AIG"), through acquiring a share of the investment made in AIG by Meridiam Eastern Europe Investments 2 SAS ("Meridiam"). AIG is incorporated in the Hashemite Kingdom of Jordan and holds the concession for the Queen Alia International Airport of Amman ("QAIA").
The proceeds of the Bank's investment will be used to acquire shares and provide a shareholder loan, plus financing other associated costs.
The project will enhance resilience through development of PPP markets and capital markets by (i) supporting investors to recycle their invested capital into new PPP projects, and (ii) supporting the development of PPP secondary market transactions that attract institutional investors. Moreover, the Bank's engagement will contribute to enhanced engagement with ESD issues by AIG.
MERIDIAM CO-INVESTMENT INFRASTRUCTURE EASTERN EUROPE SLP
AIG is a private shareholding company incorporated in Jordan in 2007, and was awarded a 25-year BOT concession by the Government of Jordan for the rehabilitation, expansion and operation of QAIA. In April 2018, a consortium comprising ADP Group, Meridiam Fund and Asma Capital, acquired 85.25 per cent of the shares from several selling shareholders, with ADP, one of the world's largest airport companies, increasing its stake to 51 per cent and the Meridiam Fund acquiring 32 per cent.
EBRD Finance Summary
EBRD is considering an investment of up to EUR 30,500,000.
Total Project Cost
The total project cost will be up to EUR 30,500,000.
Environmental and Social Summary
Categorised B under the 2014 ESP. Key Environmental and Social (E&S) risks and impacts associated with the acquisition of shares in the operating international airport can be readily assessed, site specific and can be avoided or mitigated through good management practices and targeted E&S actions.
Environmental and Social Due Diligence (ESDD) was completed in early 2018 by an independent consultant at the request of the Meridiam Fund who are a current airport shareholder and Bank client. The ESDD included a site visit to the project site and review of various E&S data to assess airport operations against EBRD PRs. Further E&S information was reviewed by ESD which included an independent OHSAS 18001 certification audit report (2017), a soil analysis report (2018) and updated noise model (2017). ESDD confirmed that the airport is operated in line with national legislation and through the ongoing implementation of the recommendations identified in the independent ESDD report, the operations controlled by AIG will be compliant with EBRD PRs. The airport operations are currently certified to a number of managements systems which include Quality (ISO 9001), Environmental (ISO 14001) and Occupational Health and Safety (OHSAS 18001). ESDD identified that although some activities form part of the airport operations many do not come under the control of AIG. However AIG have managed to influence the improvement of pollution prevention measures with the current airport fuel operator.
In 2018 the airport applied and was successfully awarded a level 3+ (Neutrality) certification under the Airports Carbon Accreditation program. Noise monitoring was conducted in 2016 and an updated noise modelling report was carried out by independent consultants and concluded that airport operations will meet Jordanian noise standards. A further noise study is planned to be conducted in 2019. The closest residential town to the airport is Al Jizah approximately 2,500m from the end of the south runway. ESDD recommended future effective and enforced integrated land use planning. Dedicated areas for the storage of waste including hazardous waste are present on the project site and the company appoints a certified waste removal company. Segregation of waste streams requires improvement.
The company has relevant emergency plans in place for the protection of people and property and Jordanian Civil Defence organisation have responsibilities airside and are on site full time. The company confirmed they have relevant HR policies in place setting out arrangements for managing the workforce including written terms and conditions and a formal grievance mechanism. A recent independent audit confirmed that the company has detailed safety training arrangements covering key risks and a high number of internal auditors. The report also identified some areas which require improvement to bring the airport operations in compliance with EBRD PRs. Implementation of these E&S actions is ongoing and includes a social management system and update of HR procedures, management of supply chains and contractors, development of water use minimisation plan, increase awareness in regards to waste management, vibrations assessment of cultural heritage site in the project vicinity, review of the grievance procedure and a number of actions on proactive noise monitoring. These will be monitored by the Bank through annual reporting and site visits if appropriate to confirm compliance with the Banks E&S performance requirement compliance.
Company Contact Information
+33 1 73 73 98 77
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