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

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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

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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

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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