CPCS Transcom Selected to Assist the Government of Jordan with the Privatization of the Aqaba Railway Corporation
CPCS Transcom, a canadian consulting firm was selected to assist the Government of Jordan with the restructuring and privatization process of the Aqaba Railway Corporation (ARC). For this project, CPCS is joined by Santander Central Hispano Investment S.A., Fasken Martineau DuMoulin LLP, IB Law - International Business Law Associates, Talal Abu-Ghazaleh & Co., and. Al Jidara.
CPCS commenced work in August, 2005. It has completed its inception mission and is currently working on the following steps of the project.
The project will be broken down into two phases. Phase 1 will focus on restructuring the Aqaba Railway Corporation (ARC) and will include:
• Abolition of ARC
• Creation of a public shareholding company to be named the Aqaba Railway Operating Company (AROC)
• Transfer of assets and liabilities from ARC to AROC
• The signing of a long-term transport contract between AROC and the Jordan Phosphate Mines Company (JPMC) and;
• The signing of a long-term Operating Contract between AROC and GOJ
Following the successful completion of Phase 1, the GoJ will determine whether to proceed directly to sell its shares in AROC or, if the sale is delayed, until some time after AROC's takeover of operations. In any case, Phase 2 activities will focus on the bid process for selling, in whole or in part, to private investors or other designated parties the shares that GOJ will own in AROC.
The Specific services to be carried out by the CPCS team include the following:
• Conducting an inventory and valuation of all ARC infrastructure and movable assets
• Preparing a financial model and financial analysis to assess the value of AROC
• Finalizing and draft transport contract between AROC and JPMC and providing assistance in the negotiation of this contract
• Preparing an Operating Agreement for AROC
• Preparing AROC Articles of Association and Memorandum of Association
• Identifying potential strategic investors and marketing the investment opportunity
• Supporting the EPC in the prequalification and bidding processes
• Supporting the EPC in the evaluation of bids and in the process of sale of shares in AROC