Please answer the following question :

Why The two projects didnt see the light yet?

(Write a couple of pages on challenges related to PPP and Government Relations issues; try to apply on both or one of the projects Rail Road and/or Health Care)

The Saudi Jordanian Investment Fund (SJIF) is a Limited Public Shareholding Company based in Amman, Jordan. SJIF was formed in 2017 by the Public Investment Fund of Saudi Arabia and 16 commercial and Islamic Jordanian banks, and is registered according to the Jordan Investment Fund Law No. (16) of 2016.

With a capital commitment of $3 billion, SJIF pursues strategic, sustainable, and economically feasible investments in Jordans vital and promising sectors. SJIF seeks to invest in viable long-term projects, create a clear and sustainable socio-economic impact in Jordan, and align its objectives with the Public Investment Fund of Saudi Arabias strategic investment direction[1].

Saudi Jordanian Investment Fund signs $705mn rail network deal

The Saudi Jordanian Investment Fund (SJIF) said it has signed an agreement with Aqaba Special Economic Zone Authority (Aseza) to develop a rail network at an investment of $705.2 million that will connect Aqabas seaports to a dry port in the Maan region forming the first phase of Jordans nation railway network.

A memorandum of understanding (MoU) was signed outlining the form of co-operation between SJIF and Aseza which includes completing thorough technical and feasibility studies, SJIF said in a statement. Once the studies are completed, SJIF and ASEZA would begin project development.

Work includes the construction of a new railway line inside the city of Aqaba connecting the southern seaport and container terminal with the existing line and renovating the existing railway line connecting the city of Aqaba to Maan. Scope of work also includes the procurement of new rolling stock, wagons, and other equipment, and constructing a dry port in Maan on 4 million sqm of land.

The railway will operate along a 195 km rail track transporting cargo and containers to and from Aqaba as well as phosphate from the mines in Shidiya to Aqaba for export, once work finishes, it stated.

Hisham Attar, chairman at SJIF said: As our first major investment in Jordan, we are pleased to sign this MoU aimed at establishing this major infrastructure project. The Fund continues to be committed to pursuing investment opportunities that create value for Jordan and its citizens.

We are proud to partner with the SJIF to develop a key transportation project that promises to strengthen Jordans logistics offering and drive economic growth, said Nasser Shraideh, chief commissioner at Aseza. The Aqaba-Maan railway and Maan dry port would reduce transportation costs and spur the development of the logistics ecosystem in southern Jordan and could be the first step in the development of a national railway network.

The statement from SJIF also said that this project is a major public-private partnership aimed at enhancing Jordans logistics offering by providing more efficient transportation solutions and supporting growth and job creation in the local communities in Aqaba and Maan.

The SJIF is a Jordanian public shareholding company set up as a joint venture between the Public Investment Fund (PIF) of Saudi Arabia and 16 conventional and Islamic Jordanian banks, with PIF having 90 percent stake in the company[1].

The Saudi ambassador to Jordan, Nayef bin Bandar Al-Sudairy, revealed the volume of trade exchange between Riyadh and Amman, which was estimated at $ 5 billion last year, pointing out that the Kingdom of Saudi Arabia is looking forward to increasing it in the coming years.

Al-Sudairy confirmed in a televised interview with the Kingdom of Jordan channel, that the economic relations between the two kingdoms are distinguished, adding that Saudi Arabia is the largest trading partner of Jordan, and between the two countries is a joint investment fund, Saudi Arabia owns 90% of the capital and 10% is owned by Jordanian banks. Huge future . The declared capital of the fund is estimated at 3 billion dollars.

Al-Sudairy noted that the health care project has been approved to establish a hospital and a medical university in Amman, at an estimated cost of $ 400 million. 600 medical students and provides 300 beds.[1]

SJIF Commends Cabinet Decision to Include its Healthcare Project Under Investment Fund Law

Amman, Jordan 20 October 2020 The Saudi Jordanian Investment Fund (SJIF) commended the Cabinets decision issued on Sunday, which officially approved the inclusion of its healthcare project under the provisions of Jordan Investment Fund Law No. (16) of 2016.

The project will be implemented based on a build-operate-transfer (BOT) model, as ownership of the project will be transferred to the Jordanian Government after the end of the operational period. SJIF will apply for the required licenses and approvals from the relevant Government agencies prior to the signing of an Investment Agreement, as stipulated in the Jordan Investment Fund Law.

In a press statement regarding the Cabinets decision, SJIF expressed its appreciation for the Governments keenness to ease obstacles facing investments that support growth, development, and job creation.

The CEO of the Saudi Jordanian Investment Fund, Omar Alwir, said that with an initial investment of USD 400 million, the project will consist of a general academic hospital which includes 300 beds, 60 outpatient clinics, and a medical university with a total capacity of 600 students, with a projected annual student intake of 100 students.

The ambitious project is developed as a research-driven, integrated educational healthcare system, and will include partnerships with leading global healthcare institutions.

Our agreement with two of the worlds most prestigious institutions in the fields of healthcare delivery and medical education is instrumental in the success of this project that promises to uplift the healthcare system in Jordan and beyond, Alwir added.

He explained that the project seeks to improve the quality of healthcare provided in Jordan, enhance the competitiveness of medical tourism and medical education, and maximize the transfer of foreign knowledge and expertise into Jordan. The project is projected to create more than 5,000 permanent job opportunities.