The Mafraq Development Corporation (the “MDC”), the Government body responsible for the planning and development of the Mafraq region in the Kingdom of Jordan, has announced that it has halted the bidding process for land located in the Mafraq area. The MDC will be announcing a new set of bidding rules and procedures that will be applied for land allocation. This revised bidding protocol will supposedly be more comprehensive as well as being more straightforward and easier for investors/developers to apply and follow.
It is understood that the new MDC land bidding process will involve (among other things) a new rent payment method whereby there will no longer be any requirement for investors/developers to provide a down payment of rent prior to entering into a Power Purchase Agreement with the Jordanian Government. This will address the fact that some investors/developers may not reach the PPA execution phase and therefore will reduce the possibility of them incurring any financial loss in this regard.
It is anticipated that a formal announcement regarding the details of the new bidding process will be made by the MDC at some point next week (the week beginning 31 March 2014). Eversheds will be releasing a further bulletin as soon as any further information is provided by the either the MDC or any other relevant Jordanian authorities.