Madinah airport expansion deals signed

Prince Fahd bin Abdullah, president of General Authority of Civil Aviation (GACA), yesterday signed key documents for the new Prince Muhammad bin Abdulaziz International Airport in Madinah with Saudi banks and investors.
The documents included the build, transfer and operate agreement (BTOA) and direct credit agreement with banks that are to finance the project, BTO direct agreement and the novation agreement.
The new airport will have a capacity to accommodate eight million passengers in the first phase, which will be ready in three years. The capacity will be increased by 12 million in the second phase, which will be completed in 2020.
During the signing ceremony, which took place at the GACA office in Jeddah, Prince Fahd handed over the aerodrome certificate to operate Madinah airport to Tibah Airport Development Company, a consortium led by Turkish group TAV Airports.
The function was attended by Abdul Aziz Al-Anqari, deputy CEO of GACA, Ala Samman, general supervisor of the project, as well as representatives of Saudi banks and Tibah Airport Development Company.
This is the first time GACA is handing over a Saudi airport to a private company for operation. The consortium led by TAV Airports had earlier signed the build-operate-transfer contract for the development of Madinah airport.
The agreement was struck between 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 $ 1 billion and $ 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.
M. Sani Sener, TAV Airports president & CEO, said: “As TAV Airports, we are very much honored to include in our airports portfolio the construction and operation of the airport of Madinah, 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 Haj and Umrah trips from Istanbul, Ankara and Izmir, operated by TAV Airports, to Madinah and the mutual communication and coordination to be enhanced will have significant contributions for the aviation sectors of Turkey and Saudi Arabia,” Sener said.
The Madinah airport project includes construction of new terminals covering 138,000 sq. meters. The new airport will have 18 departure gates with air-bridges linked to aircraft in addition to parking for 20 planes. The project’s total area will be spread over four million sq. meters.
GACA recently opened the newly established international terminal at the airport that can handle 35 flights daily. “The new terminal has the capacity to accommodate 600 passengers per hour,” GACA said, adding that the capacity would double to 1,200 passengers once the second phase of the airport project is completed.
“The second phase includes construction of the first floor, which will be completed by the end of next month,” the GACA statement said. The new terminal’s opening will improve services to pilgrims.
Earlier this year GACA completed construction of two passenger lounges at the airport for Umrah passengers.