This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS AMMAN 006288 
 
SIPDIS 
 
DEPT PASS USTR FOR NED SAUMS 
 
E.O. 12958: N/A 
TAGS: ECON EINV EAID IS JO
SUBJECT: JORDAN'S UNUSED INDUSTRIAL CAPACITY 
 
REF: A. TEL AVIV 5395 
 
     ¶B. WERTHEIMER - D LETTER OF 21 OCTOBER 2002 
     ¶C. WERTHEIMER - NSA RICE LETTER OF 20 OCTOBER 2002 
 
¶1.  (u)  Summary:  We have been following with interest 
attempts by Israeli industrialist Stef Wertheimer to secure 
support for a new industrial park (or parks) in Jordan. 
While there does not seem to be a need for new industrial 
parks in Jordan given a current glut of unused industrial 
infrastructure, there are aspects of the ideas that might fit 
in well with growth plans in existing industrial parks in 
Jordan, including in Aqaba.  We would welcome the opportunity 
to discuss these plans with Mr. Wertheimer.  End summary. 
 
¶2.  (u)  We have heard for several months about Israeli 
industrialist Stef Wertheimer's interest in new industrial 
development schemes for Jordan in support of building 
economic ties between Israel and Jordan.  While Ref A 
expanded on some of these plans, we have not yet seen the 
details of the plans or talked directly with Mr. Wertheimer, 
so it is difficult to gauge the suitability of his plans to 
Jordan's current investment environment.  However, we thought 
it would be useful to outline the lay of the land regarding 
Jordan's industrial infrastructure. 
 
¶3.  (u)  Land already allocated or earmarked for industrial 
use in Jordan is massively underutilized.  The USAID-funded 
AMIR project undertook a study in April 2002 to detail market 
demand in government-owned industrial estates in Irbid, Amman 
and Aqaba.  Among the report's findings was a projection that 
existing and planned infrastructure was sufficient to meet 
all new demand for space from potential investors through at 
least 2007.  The study, undertaken at the behest of the GOJ, 
recommended that no further industrial estates be developed. 
 
¶4.  (u)  A similar study undertaken by a private-sector QIZ 
developer discovered that, in the ten currently approved QIZ 
sites, 5.5% of aggregate available space is occupied, leaving 
94.5% (or roughly 4,000 acres) available for development. 
Most of this land is in parks for which industrial 
infrastructure is already in place, including Al Hassan in 
Irbid, Al Dulayl in Zarqa, Al Tajammouat in Amman, Hussein 
bin Abdullah City in Kerak, the Gateway QIZ in the Jordan 
Valley, and the Aqaba International Industrial Estate.  This 
study was undertaken at the developer's own initiative, to 
argue against the GOJ approving additional QIZ designations 
for undeveloped land, and thus should not be viewed 
uncritically.  That said, the numbers track closely with 
anecdotal evidence -  for instance, there are only two 
factories operating in the massive Kerak QIZ and in the even 
larger Cybercity project in Irbid, and Al Dulayl estimates 
84% of its own land is still available for investment. 
 
¶5.  (u)  The land that has been allocated/occupied is already 
well developed from an industrial infrastructure standpoint. 
Government-owned parks in Sahab and Kerak are fully served 
with roads, electricity, water, sewage, communications, 
firefighting/civil defense, banks, etc.  Private sector-owned 
parks in Al Dulayl and Al Tajammouat are similarly fully 
developed, and private-sector parks at the Gateway site, in 
Aqaba, and in Irbid's Cybercity development are further 
outfitted for ITC-type businesses.  The Aqaba site in 
particular benefits from the services of a development 
management team from Parsons-Brinkerhoff, and is supplemented 
by support in the Aqaba Special Economic Zone from master 
developer Bechtel. 
 
¶6.  (u)  Viewed in this context, proposals for building new 
industrial parks in Jordan would not seem useful from the 
Jordanian perspective.  However, developers would probably 
welcome additional investment in existing parks.  Part of the 
Wertheimer proposal as outlined refs a and b included 
training centers for hi-tech jobs and continuing education 
for local workers.  These sorts of schemes would probably be 
very well received by existing industrial parks, particularly 
those like Gateway and Cybercity that hope to focus on 
innovative, creative business development like that promoted 
by Wertheimer.  In addition, Wertheimer's stated ability to 
bring major multinationals into the picture would be welcomed 
by all current industrial park managers.  Thus JV 
partnerships, fee-for-training schemes, or similar 
arrangements seem more appropriate investments of capital and 
expertise than building new parks out of whole cloth, given 
the current glut of unused industrial infrastructure in 
Jordan.  The Mission would welcome the opportunity to discuss 
such options, including in the Aqaba International Industrial 
Estate, with Mr. Wertheimer or his representatives at 
his/their convenience. 
GNEHM