VZCZCXRO5167
RR RUEHROV
DE RUEHAM #4274/01 2941101
ZNR UUUUU ZZH
R 211101Z OCT 07
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC 0657
INFO RUEHXK/ARAB ISRAELI COLLECTIVE
RUEHDOI/DEPT OF INTERIOR WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC

UNCLAS SECTION 01 OF 02 AMMAN 004274 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ELA, NEA/RA (LAWSON), AND OES 
STATE PASS TO USAID 
STATE PASS TO EPA FOR INTERNATIONAL 
USDA FOR FOREST SERVICE/INTERNATIONAL 
INTERIOR FOR INTERNATIONAL/WASHBURNE 
 
E.O. 12958: N/A 
TAGS: SENV ETRD EAID PGOV JO
SUBJECT: Construction Underway for Al-Mushatta Qualifying Industrial 
Zone, Jordan's First "Green" QIZ 
 
SENSITIVE BUT UNCLASSIFIED.  HANDLE ACCORDINGLY. 
 
¶1.  (SBU) SUMMARY:  The newly established Al-Mushatta Industrial 
City, a designated Qualifying Industrial Zone (QIZ) on the outskirts 
of Amman, aims to be the first "green" QIZ in Jordan.  Al-Mushatta 
has partnered with an environmental services organization to screen 
prospective investors in the QIZ for their environmental/energy 
practices and to jointly advise the QIZ clients on implementing 
efficient designs.  With the centralized provision of utility 
services and a target of being carbon neutral, this QIZ has 
ambitious plans, but selling the environmental leadership concept to 
prospective clients will be challenging.  Potential client benefits 
include generation of Clean Development Mechanism revenues, 
reduction in running costs, improved public relations, and the 
ability to attach a "green" label to products.  END SUMMARY. 
 
 
Background 
---------- 
 
¶2.  (U) Established in 2002 as a public shareholding company with an 
investment capital of USD 42 million, Investors and Eastern Arab for 
Industrial and Real Estate Investments created Al-Mushatta 
Industrial City with the objectives of attracting high value 
investments to Jordan, benefiting from Jordan's free trade 
agreements, and taking advantage of the skilled local work force. 
Implementation plans began in 2004 to develop the 4.4 million square 
meters comprising Al-Mushatta.  Strategically located, Al-Mushatta 
sits adjacent to Queen Alia International Airport in Amman, which 
includes free zone facilities, customs, and cargo service.  The 
QIZ's location also offers easy access to the desert highway leading 
to Aqaba. 
 
A City within a City 
-------------------- 
 
¶3.  (U) Al-Mushatta intends to establish state-of-the-art 
infrastructure including water wells, a power transformer, 
accessibility to main transportation arteries, telecom utilities, 
large parking areas, fire hydrant connections, and sewage and water 
treatment plants.  Additionally, the site will include three bank 
branches, a mosque, development and support services, maintenance 
services, customs and clearance offices, a clinic, a supermarket and 
a canteen to make Al-Mushatta a complete industrial city that caters 
to the day-to-day requirements of its staff and investors. 
 
¶4.  (U) Econoff and ESTH officers toured the first phase of phase of 
Al-Mushatta construction, a 1,100,000 square meter site completed 
during the summer of 2007, that includes the main management and 
service buildings.  Al-Mushatta QIZ partners include Jordan 
Aerospace Industries (light aircraft manufacture) and Taameer Jordan 
(pre-cast concrete, wooden doors, and aluminum frames).  There are 
other joint ventures and partnerships with international 
manufacturers in the pipeline. 
 
Al-Mushatta Going Green as a Profit-Making Enterprise 
--------------------------------------------- -------- 
 
¶5.  (U) Al-Mushatta has been working with private Jordanian firm 
Energy Management Services Company (EMS) to provide comprehensive 
energy solutions to Al-Mushatta's clients for creating a "Green 
Industrial City."  This will be the first of its kind in the Middle 
East, according to EMS official Nedal Zatari.  Mohammad Turk, CEO of 
Al-Mushatta, commented that the future is "being green," and 
implementing such a concept in Al-Mushatta will distinguish the QIZ 
as forward-leaning, giving it an edge over other QIZs in Jordan, and 
helping it to attract investors from developed countries.  In 
particular, EMS and Al-Mushatta expect clients will be lured by the 
ability to attach a green label to their products, enhance profits 
and their public image, and reduce costs. 
 
¶6.  (U) When queried as to how Al-Mushatta could ensure clients that 
their capital costs would not increase significantly due to 
investments in energy and environmentally-friendly design, Nedal 
said that Al-Mushatta offers the advantage of building from scratch, 
so capital costs for these green designs would likely be only 2 
percent more expensive than conventional designs.  He added that 
companies would ultimately save 25 percent in running costs, and not 
have to pay for their own utility infrastructure due to the city's 
centralized provision of utilities.  He said EMS was finalizing a 
feasibility report that would detail these cost savings.  Nedal 
noted EMS's previous work with the Dubai Green Building Council, 
which he believes has equipped the company with the necessary 
 
AMMAN 00004274  002 OF 002 
 
 
experience to ensure that the clients, the industrial city, and the 
environment will all benefit from EMS's approach. 
 
¶7. (U) The Industrial City also hopes that by striving to be 
carbon-neutral, its clients will be able to generate revenues under 
the UN Framework Convention on Climate Change-linked Clean 
Development Mechanism to help offset the costs of investing in 
environmental friendly designs.  Solar energy is a critical area for 
the city, and Al-Mushatta management hopes to not only use solar 
energy for its clients, but also to potentially attract solar power 
vendors to the site. 
 
¶8.  (U) COMMENT:  Mushatta has laudable yet ambitious plans, 
particularly in a country such as Jordan where 
environmentally-friendly industrial practices are a new concept. 
Convincing its prospective clients of the merits of environmental 
leadership will be key to its success. 
 
Visit Amman's Classified Web Site at 
http://www.state.sgov.gov/p/nea/amman 
 
HALE