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PPP for Rejuvenating the City Center of a Major GCC City

  Location: KSA

 

Client: Confidential

  Year: 2008-2009

Mindsets director supported the development strategy for around 6 million square meters of land between the historic core and the waterfront of Jeddah that were to be developed under a PPP model. This major undertaking was spearheaded by e orts of both the public and the private sectors. The complex PPP deal structure was at the core of the strategy work and was designed to align the incentives of owners and developers as well as maximize economic value. This entailed, among other things, designing alternative incentive and capital structures, and the formation of three companies to complete the project: a landowners company for the waterfront area, a landowners company for the historic district and an operating company to manage both former companies’ development activities. Mindsets Director worked closely with international and local law firms alongside both the public sector and the private sector consortium to reflect the commercial terms defined in the decision model in the many legal contracts that were to govern the relationship between the various companies planned to implement and operate the project.