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Consortium management and GACA officials sign the deal for Medina Airport |
SAUDI ARABIA. A consortium led by powerful Turkish group TAV Airports has finalised and signed the build-operate-transfer contract for Medina Airport, the first airport privatisation deal in Saudi Arabia. The agreement was struck between the Civil Aviation Authority of Saudi Arabia (GACA) and TAV alongside partners Al Rahji and Saudi Oger. The TAV consortium was revealed as the preferred bidder in August.
The partners foresee an investment of between US$1 billion and US$1.5 billion. The consortium will construct a new passenger terminal by the first half of 2015, and will operate the airport for 25 years.
The move also offers major opportunities for TAV subsidiaries such as ATÜ Duty Free, BTA Catering and TAV Operation Services, which are expected to enter the market as concessionaires to the new airport operator.
The contract was signed by Prince Fahad, a member of the Royal Family; Faisal Hamad Al-Sugair, the President of the Civil Aviation Authority; M. Sani Şener, TAV Airports President & CEO; Dr.Ibrahim Sulaiman Al Rajhi, Al Rajhi Holding Group Board of Directors Member, and Sheikh Ayman R. Hariri, Saudi Oger Limited Deputy General Manager.
Şener said: “As TAV Airports, we are very much honoured to include in our airports portfolio the construction and operation of the airport of Medina, one of the most significant cities for the Muslim World. Our partnership with two significant major companies of Saudi Arabia gave rise to a collaboration whereby we can succeed in further airport tenders is Saudi Arabia as well.
“I am confident that increasing the capacity for the Hajj and Umrah trips from Istanbul, Ankara and Izmir, operated by TAV Airports, to Medina and the mutual communication and coordination to be enhanced will have significant contributions for the aviation sectors of Turkey and Saudi Arabia. As we have already arranged the financing prior to the tender, it is one of our biggest objectives to start the investment in the project at once, and to ensure early completion.”
Al Rajhi Holding Group Board of Directors Member Dr. Ibrahim Sulaiman Al Rajhi said: “Al Rajhi Holding Group is very pleased with the decision of GACA to award the first BTO airport Project in the region at Prince Mohammad Bin Abdulaziz International Airport to our Tibah Consortium. Al Rajhi Holding Group is honoured to join hands with GACA to develop such an important entrance station to the country and extend the services to Prophet Muhammad (PBUH) city visitors. Al Rajhi Holding Group is proud to join hands with an airport business leader such as TAV Holding and the local Saudi Oger Ltd; I am sure that the three partners with their different but integrated skills and specialties will add to the successes of the new airport and to the ambitious objective of GACA.”
Saudi Oger Limited Deputy General Manager Sheikh Ayman R. Hariri said: “We are very proud and honoured to be GACA’s partner for Prince Mohammad Bin Abdulaziz Airport in Al Madinah Al Munawara, the first PPP project for the aviation industry in the Gulf region and one of the most important airports in the Kingdom of Saudi Arabia since it is a major entry and exit hub for the pilgrims & visitors to the Prophet’s Mosque.
“With our partners, TAV Airports, Turkey’s leading airport operator and the local Al Rajhi Holding Group, we are committed to develop, finance, build and operate Prince Mohammad Bin Abdulaziz Airport in Al Madinah Al Munawara with the highest international standards and to provide the best level of services to all passengers for the coming 25 years. This project is very important to Saudi Oger because Al Madinah Al Munawarah is the second most holy city for the Muslim World and the Site for the Holy Quran Compilation.”
Within the scope of the project, the civil works are planned to be started in the first half of 2012 and completed in three years, and operated by the Consortium until 2037. The capacity of Medina Airport will be increased to 8 million passengers per year by increasing the capacity of the existing airport which had served 3.3 million passengers in 2010, through a new terminal building to be build, apron and fast exit roads, upon which the capacity shall be increased to 16 million passengers per year, prior to the expiry of the concession period.
The bid submitted by TAV Airports, with its consortium partners Saudi Oger and the Al Rajhi Holding Group was announced as the best bid on August 8, following the assessment by the local authority, the Civil Aviation General Directorate of the Kingdom of Saudi Arabia.
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The TAV Airports-led consortium will operate the airport for 25 years, and the deal includes the building of a new terminal |
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