{"id":1475,"date":"2019-12-02T16:37:54","date_gmt":"2019-12-02T20:37:54","guid":{"rendered":"http:\/\/www.arubaports.com\/main\/?page_id=1475"},"modified":"2025-01-28T11:25:41","modified_gmt":"2025-01-28T15:25:41","slug":"port-city-oranjestad","status":"publish","type":"page","link":"https:\/\/www.arubaports.com\/main\/port-city-oranjestad\/","title":{"rendered":"Port City Oranjestad"},"content":{"rendered":"

Aruba Ports Authority (APA) has the pleasure to welcome you to the Port City Oranjestad project. APA will transform the former cargo terminal area near the cruise terminal Oranjestad into a new and reformed leisure, residential and working area. This area is to act as a magnet for residents and tourists alike, with a Waterfront Park and phased development of mixed use commercial real estate. APA is proud to embark on this new expedition and setting the ground work for unique sustainable new project with multiple uses and social economic growth for Aruba and investors.<\/p>\n

APA exploits and manages the land of the former cargo port area in Oranjestad and is the area developer of this project \u2018Port City Oranjestad\u2019. APA has developed a provisional Urban Development Plan for the designated area, which was approved by the Aruban government in February 2019. APA will be responsible for the realization of the public space and issuing the building plots. For each individual lot, market participants are offered flexibility in realizing a wide variety of buildings and semi-public space. <\/p>\n

In the early stages of the planning process, APA collected market information by means of market research and dialogues with various stakeholders and developers. This way APA gained insights into the demands and commercial considerations of the market.<\/p>\n

These insights formed the foundation for the assumptions in the financial model of the development and exploitation of \u2018Port City Oranjestad. in 2020 APA by means of a market consultation collected updated information from various market participants in a more formal, yet non-committal manner. This market consultation offered the interested market participants the opportunity to respond in broad terms to the entire plan, but the emphasis and depth of the market consultation was sought in the most western part, where the first lots OA and OB are to be issued to a private developer. <\/p>\n

The overall master plan is the result of a close collaboration between APA and Port of Amsterdam International as well as OZ Architect in an advisory capacity.<\/p>\n

Currently APA is preparing a formal pre-registration in anticipation of the tender process of parcels OA and OB. <\/em><\/p>\n

Expected date of pre-registration Q2\/23. Please be aware that APA will do its ultimate to attain its planning but is dependent of governmental administrative decision making process for the actual start.<\/p><\/blockquote>\n

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\n\t\t\t\tMain Assumptions & Characteristics Of The Project\t\t\t<\/h3>\n\t\t\n\t\t
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Port City Oranjestad Assumptions & Characteristics<\/h3>\n
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  • Unique opportunity to add to the proposition of Aruba, for both visitors and inhabitants. Functions\/business activities should be complementary to existing facilities elsewhere on the island.<\/li>\n
  • APA has the primary leasehold over the former port area APA will be responsible for the re-development and exploitation of the Port City plan area, operating as a governmental public limited company.<\/li>\n
  • It is vital to safeguard APA\u2019s primary role as a cargo and cruise port developer and manager. APA will set up a separate legal entity for Port City.<\/li>\n
  • APA will exploit the commercial plots, issuing in sub lease. Private investors develop\/exploit the real state (approx. USD$ 500 mln.).<\/li>\n
  • APA will invest in creating the public waterfront park and scenic road (approx. USD$ 78 mln.).<\/li>\n
  • Intended is a multifunctional\/mixed use for the commercial plots. The final composition will determine the actual land value of the project (sub lease revenues from developers).<\/li>\n
  • The master plan was approved in Feb. 2019 and allows APA to move forward to develop and operate the final version of the plan, with clear guidelines from the urban development plan from the start.<\/li>\n
  • Further preparation will be done in close cooperation with the government and in continuous alignment with stakeholders.<\/li>\n<\/ul>\n

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    \n\t\t\t\tProject Timeline - Port City Oranjestad\t\t\t<\/h3>\n\t\t\n\t\t
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    Port City Oranjestad Project Timeline<\/h3>\n

    1995<\/strong> \u2013 First (urban) plans for the transformation of the cargo port area; for two decades\u2019 multiple plans were drawed up and reviewed by various governments; the common line has been an approach of a balanced ratio of Public Park versus the development of the commercial real estate.<\/p>\n

    January 2008<\/strong> \u2013 Declaration of shared intention between Land Aruba \/ APA on conditions for the redevelopment of the Oranjestad port area.<\/p>\n

    March 2014<\/strong> \u2013 Official decision to invest and develop Barcadera as a (container) cargo port.<\/p>\n

    February 2016<\/strong> \u2013 Relocation of the cargo port.<\/p>\n

    November 2016<\/strong> \u2013 Former cargo port area demolished.<\/p>\n

    December 2016<\/strong> \u2013 Area vision and design principles prepared by APA \/ Port of Amsterdam International presented and approved by the Parliamentary Commission and the Government of Aruba.<\/p>\n

    May 2017<\/strong> \u2013 Assignment for design Urban Development Plan awarded to Oever & Zaaier (OZ) Architect.<\/p>\n

    May 2017<\/strong> \u2013 Start of the jointly project team APA, PoAI, DIP, DOW.<\/p>\n

    June 2017<\/strong> \u2013 First sketches and impressions of the area by OZ shared at international cruise conference on Aruba (PAMAC)<\/p>\n

    July 2017<\/strong> \u2013 Update Minister of Infrastructure & the Infrastructure Team (based on the first OZ sketches and impressions)<\/p>\n

    July 2017<\/strong> \u2013 Meeting Min of Infrastructure & the Infrastructure Team on Concept Urban Development plan by OZ; information session and consultation of various involved stakeholders, private\/public and NGOs.<\/p>\n

    October 2017<\/strong> \u2013 Phase 1, Concept Provisional Design Urbanism plan, work-in-progress<\/p>\n

    January 2018<\/strong> \u2013 Phase 2 Detailing of the Provisional Design of the Urban Development Plan, elaboration of Appearance Direction Plan, Parcel Passports, , still work-in progress<\/p>\n

    January 2018<\/strong> \u2013 Presentation of the Provisional of the Urban Development Plan, working-progress to the Ministers of Tourism \/ Ports and Infrastructure.<\/p>\n

    February 2018<\/strong> \u2013 Market analysis and socio-economic impact analysis by MGM Source; in collaboration with the Aruba Tourism Authority (ATA)<\/p>\n

    May 2018<\/strong> \u2013 Bridge document, adjustments, specifications in the plan, intended phasing starting from the West Side (Bushiri Beach).<\/p>\n

    July 2018<\/strong> \u2013 APA delivered complete set of Provisional Urban Development Plan, Concept Business Plan and all attachments.<\/p>\n

    August 2018<\/strong> \u2013 Approval of the Ministers for Tourism \/ Ports and Infrastructure by continuing to work out the masterplan.<\/p>\n

    October 2018<\/strong> \u2013 Presentation to Parliamentary Commission.<\/p>\n

    December 2018<\/strong> \u2013 Presentation of the Council of Ministers.<\/p>\n

    February 2019<\/strong> \u2013 Decision of the Council of Ministers for approval of the Master Plan; press release Minister of Tourism and Ports.<\/p>\n

    July 2019<\/strong> \u2013 The decision of the Council of Ministers for approval of the conditions for issuing commercial plots in sublease by APA.<\/p>\n

    Jan – Augustus 2020<\/strong> \u2013 Market consultation <\/p>\n

    October 2021<\/strong> \u2013 Incorporation (findings market consultation) Port City project in Ports Master Plan<\/p>\n

    September 2022<\/strong> \u2013 Minister Dangui Oduber and Prime minister press release next phase Port City<\/p>\n

    October 2022<\/strong> \u2013 Legal restructuring APA NV, founding subsidiary Aruba Ports Development NV (for execution of Port City) <\/p>\n

    November 2022<\/strong> \u2013 Registration of applicable General Terms<\/p>\n

    January 2023<\/strong> \u2013 Publication reparcelling\/ provisional Urban Development Plan<\/p>\n

    March 2023<\/strong> \u2013 Installation of broad and objective Advisory Committee (participation ATA, DIP, DOW, DAECI, PoA)<\/p>\n

    May 2023 Expected<\/strong> \u2013 Land lease DIP (designated use and determination new land lease)<\/p>\n

    July 2023 Expected<\/strong> \u2013 Actual start of tendering first lots, dependent of governmental administrative decision making<\/p>\n

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    \n\t\t\t\tContribution Port City To Economy Of Aruba\t\t\t<\/h3>\n\t\t\n\t\t
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    Port City Oranjestad Economic Contribution<\/h3>\n
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    • Calculated for the development phase of 20 years, the economic impact is moderately positive, but impact for the construction sector it is still significant, with 6% annually of the forecasted construction activities in all of Aruba.<\/li>\n
    • During the operational phase, the economic impact significantly increases. The value added indicators move towards a positive with \u2018high impact \u2018, i.e. over 4.5% of Aruba as a total economy.<\/li>\n
    • During the operation employment will gradually rise to 2,665 FTE in 2038 (3.8% of total).<\/li>\n
    • Leading to a population increase of 5,330 in 2038 (3.8% of the total).<\/li>\n
    • In the first year 4,299 stay-over tourists will be attracted, ascending to ca. 86,589 in 2038. Ultimately about 6% of the total number of tourists, or 1,708 extra visitors on average daily.<\/li>\n<\/ul>\n

      ADDITIONAL TAX REVENUES ARE CONSIDERABLE<\/h3>\n
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      • Property taxes: from approximately US $100,000 in the first year to annually US $2.9 mln. (excl. inflation) after completion.<\/li>\n
      • Annual tourist tax ascending to approximately US $9, 3mln in 2038.<\/li>\n
      • Cumulated tax revenues after 20 years US $23.6 mln. on annual basis (2.7% of the total).<\/li>\n
      • Import dues of US $370,000 in the first year to US $8.1 mln. in 2038.<\/li>\n<\/ul>\n

        TOTAL IMPACT ON GDP<\/h3>\n
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        • Growth after the construction period is estimated at US $173 mln. on annual basis (4.4% of the GDP).<\/li>\n<\/ul>\n

          DEACI GENERALLY CONFIRMS FIGURES ABOVE AND CONSIDERS THE PROJECT AS:<\/h3>\n
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          • \u201cImportant to create new and diversified business activities that contribute to a more diversified sustainable economy,<\/li>\n
          • creation of an attractive living area that enhances inclusiveness among locals and visitors and enhancing the quality of Oranjestad as the main capital of Aruba,<\/li>\n
          • important that the development is complementary to the innercity of Oranjestad, not competitive,<\/li>\n
          • of utmost importance that private sector will be the main investor in infrastructure and sustainability as the government sees private investment in Aruba\u2019s development as an important factor in contributing to the economy of Aruba.\u201d<\/li>\n<\/ul>\n

            Source: SEIA research MGM Source 2018<\/em><\/p>\n

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            \n\t\t\t\tKey findings Market Consultation 2020\t\t\t<\/h3>\n\t\t\n\t\t
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            SUCCESSFUL LAUNCHING FIRST PHASE IS CRUCIAL<\/em><\/h4>\n

            START WITH LOTS OA\/OB TO PLACE THE CORNERSTONE UNDER THE OVERALL PROJECT<\/em><\/h4>\n

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            OPTIMIZATION COMPOSITION:<\/h3>\n
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            • A successful launching of the first phase is crucial for the entire project. Based on the advice it seems logical to start with lot OA, westside. OA is the most valued and sought lot, it must therefore be strived for to immediately achieve the intended top quality. Reinforcing this by adding OB in the initial launch.<\/li>\n
            • Consider start development on lots OG, OF as well.<\/li>\n<\/ul>\n

              THE FOLLOWING POINTS SHOULD BE FURTHER ELABORATED IN THE TECHNICAL DETAILING PHASE:<\/h3>\n
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              1. Making parking even easier and closer.<\/li>\n
              2. Utilize the proximity to the ocean, beach and park best as possible; add as much beach feeling in the park.<\/li>\n
              3. Going one step further in sustainability ambition, with the exploring the feasibilities of grey or black water system and collective sustainable energy and waste processing systems.<\/li>\n
              4. Elaborating a structure for management and maintenance of the (semi) public.<\/li>\n
              5. Evidently the impact of Covid-19, during the consultation procedure urged to adjustments of the start and phasing of the plan. Also new opportunities with renewed creativity, like flex-offices and \u2018working from second home market\u2019<\/li>\n<\/ol>\n

                Source: APA market consultation 2020<\/em><\/p>\n

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                \n\t\t\t\tPort City Oranjestad \u2013 Image Gallery\t\t\t<\/h3>\n\t\t\n\t\t
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