TAV Airports wins tender for Medinah Prince Mohammad Bin Abdulaziz PPP Airport
Date
August 09, 2011
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A consortium formed by the Turkish aviation group TAV Airports Holding and the local companies Al Rajhi and Saudi Oger has won the 25-year build-operate-transfer at Medinah Prince Mohammad Bin Abdulaziz Airport. Each firm has a 33% participation stake in the consortium.
The consortium said it achieved the highest technical grade in the tender and submitted the best financial offer for the PPP airport project.
TAV expects to earn $333 million to $500 million from the contract valued at $1 billion to $1.5 billion. The consortium will be paying an annual concession fee based on revenues generated. The Build Operate Transfer (BOT) tender is for a concession period of 25 years.
GACA appointed IFC, a member of the World Bank Group, as lead advisor to assist in designing and implementing a transaction.
Other bidders included:
- Quba'a Consortium: Saudi Binladin Group, Aéroports de Paris Management and Bouygues Bâtiment International;
- Saudi Airplex Consortium of: El Seif Engineering Contracting Co., MMM Group Limited, ADC & HAS Airports Inc. and Emirates NBD Capital/Emirates Financial Services;
- Saudi-Malaysian consortium of: Bakri International Energy Company, Malaysia Airports Holdings Berhad, Almabani General Contractors - Impregilo SpA and Riyad Bank.
Other four groups that were prequalified did not submit bid in the last phase of the tender:
- Airports Company South Africa
- YDA INSAAT SANAYI VE TICARET, AENA Desarollo Internacional, OHL Concesiones
- Integrated Transportation Company, Incheon International Airport Corporation, Central Japan International Airport, and Samsung
- Limak Investment, GMR Infrastructure, and MAPA Construction
Madinah benefits from strong religious-driven traffic growth potential: it has averaged 21% CAGR over past five years and is projected to reach 3.9 million passengers during FY2009. The airport requires substantial investment for the expansion and rehabilitation of the terminal buildings and other airport infrastructure, in order to satisfy the increasing demands from religious traffic and to improve service levels. Capacity requirements for the expanded airport are likely to be approximately 8 million passengers by end-2014 (Phase 1) and 14 million passengers by 2022 (Phase 2).
The Project Agreement will provide the private-sector investor the rights to develop, rehabilitate, expand, operate and manage the airport (airside as well as landside) and collect a share of the aeronautical and commercial revenues generated.
The investor will be responsible for the management, construction, operation, and financing associated with the project's implementation. Certain strategic activities such as air traffic control, customs, immigration etc., will remain the responsibility of the Government.
About TAV Airports
TAV is currently operating ?zmir Adnan Menderes Airport International Flights Terminal besides Istanbul Atattrk Airport, Ankara Esenbo?a Airport and Antalya Gazipa?a Airports in Turkey, and two airports each in Tunisia, Macedonia and Georgia
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