Germany’s Hochtief in $1.5bn deal for Riyadh airport expansion
International joint venture consists of Hochtief, Shapoorji Pallonji MidEast and Nahdat Al Emaar
A multinational joint venture led by Germany’s Hochtief has been awarded a $1.5 billion contract by the Saudi General Authority of Civil Aviation (GACA) to expand Riyadh airport, it has been announced.
The joint venture consists of three construction companies – Hochtief with a 55% stake, Shapoorji Pallonji MidEast and Nahdat Al Emaar, the German contractor said in an emailed statement. Work to upgrade two existing terminals has already started and should be complete by May 2019.
Hochtief, Germany’s largest contractor, said that the announcement was a reflection of its increased focus on infrastructure projects. It will act as the technical and commercial lead for the Riyadh Airport Expansion joint venture. The project team will redesign, upgrade and expand the two existing terminals, and demolish and refurbish other parts of the airport infrastructure.
“We are delighted to have won this major contract. It reinforces our position as an important infrastructure construction group and shows that our international expertise and the know-how of our engineers in the area of complex, large-scale projects are greatly appreciated by our clients,” said Marcelino Fernández Verdes, CEO of Hochtief.
The Riyadh airport expansion is the first part of GACA’s $4.44 billion plan to develop and expand the airport’s facilities. As part of the contract award, the joint venture will be tasked with the demolition and reconstruction of the aprons – areas in the airport where planes are parked – inclusive of apron lighting and fuelling facilities.
The contract also covers the construction of new terminal lounges and operation buildings, as well as the installation of baggage handling and security systems. The German contractor will be responsible for installing IT, fire protection and communication systems, it added.
