February contract award for KSA's Madinah airport

The main construction package has been tendered as a PPP contract

The renovation of Madinah airport is part of GACA's wider plan to reform and liberalise KSA's airport sector.
The renovation of Madinah airport is part of GACA's wider plan to reform and liberalise KSA's airport sector.

The main construction contract to develop Saudi Arabia’s Prince Mohammad Bin AbdulAziz International Airport in Madinah will be awarded at the end of next month, according to officials close to the project.

Executives at IFC, a member of the World Bank Group appointed financial and legal advisor to the project, say one of several prequalifying consortiums will be chosen to build, operate and maintain the renovated airport in a public-private partnership.

In August last year, a mix of just eight international and national consortiums out of 49 which had prequalified for the multi-billion dollar expansion project, were invited to submit their final tenders.

Consultant on public private partnerships at IFC Alexandre Leigh said: “The main contractor will be selected through an international bidding process. The winning firm will have a mix of technical and financial expertise. The award is likely to be at the end of February this year.”

Mohamad Nada, another IFC consultant, added that each consortium would either pass or fail, based on their individual bids.

Addressing the audience at the conference PPP Middle East last week, Nada said: “The objectives of PPPs are to improve levels of service to the public, by introducing the private sector’s technical know-how, and to decrease the financial burden on the public sector for capital expenditure.”

The project, launched by Saudi Arabia’s General Authority of Civil Aviation (GACA), will be rolled out in two phases.

The first phase, worth US$1.5bn, is aimed at increasing the airport’s passenger handling capacity from 3.5 million passengers to 8 million by the end of 2014, whilst the second phase hopes to increase capacity further, to 14 million passengers by 2022.

Across the two phases, expansion plans involve construction of a new passenger terminal and renovation of the existing runway, with construction of a second runway also possible.

The prequalified consortiums include:

• Airports Company South Africa.

• YDA INSAAT SANAYI VE TICARET, AENA Desarollo Internacional, OHL Concesiones, led by YDA.

• Integrated Transportation Company, Incheon International Airport Corporation, Central Japan International Airport, and Samsung, led by Integrated Transportation Company (BADR Consortium).

• Saudi Binladin Group, Aéroports de Paris Management, and Bouygues Bâtiment International, led by Saudi Binladin Group.

• El Seif Engineering Contracting Co., MMM Group Limited, ADC & HAS Airports Inc. and Emirates NBD Capital / Emirates Financial Services, led by El Seif Engineering Contracting Co. (SaudiAirplex Consortium).

• Limak Investment, GMR Infrastructure, and MAPA Construction, led by Limak Invesment.

• TAV Airports Holding, Saudi Oger Ltd., Al Rajhi Holding Group, Consolidated Contracting Company, led by TAV Airports Holding (TIBAH Consortium).

• Bakri International Energy Company, Malaysia Airports Holdings Berhad, Almabani General Contractors – Impregilo SpA, and Riyad Bank, led by Bakri International Energy Company (Saudi-Malaysian Consortium).

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