Contracts for Saudi Arabia’s first airport privatisation have been signed between GACA, the Civil Aviation Authority of Saudi Arabia, and consortium partners TAV Construction, Al Rajhi Group and Saudi Oger for the Medinah Airport build-operate-transfer (BTO) project.
The 25 year operation contract has an investment cost of $1.2bn and will more than quadruple passenger capacity from 3.8 million passengers in 2011 to 16 million upon final completion.
As part of the project, the Consortium will finish construction on the passenger terminal by the first half of 2015. Within the scope of the project, infrastructure works are planned for completion within three years, commencing in 2012.
“As TAV Airports, we are continuing our rapid growth in the aviation sector by procuring the construction and operation rights of Medina Airport, the second most important city in the Islamic World. We have reinforced our leadership in the airport operations sector in Turkey by becoming a global brand,” said TAV airports president and CEO M. Sani Sener.
Established through the build-transfer-operate model, Medinah Airport is very important, as it is the first airport privatization of Saudi Arabia, the first ever public-private enterprise collaboration in the Gulf Region, and the main entry point for visitors to the Ka’aba and those arriving on pilgrimage,” Sener explained.
TAV Airports and its consortium partners also signed $1.2bn in loan agreements with project financiers National Commercial Bank, Arab National Bank and Saudi British Bank.
“As TAV Airports, we are very happy to add Medinah Airport, which has significant passenger capacity, to our portfolio as our 12th airport. We expect an improvement in the passenger network between these two points. This year it will be a great pleasure and honor for us to welcome our citizens going to Mecca in the Eid al Adha and Umrah throughout Ramadan, at Medinah Airport as TAV Airports. I believe that this project will make a significant contribution to the aviation sectors in Turkey and Saudi Arabia.”