Saudi Arabian to award USD4.5 billion in contracts for a new airport and an airport city in 2010
Saudi Arabia’s General Authority of Civil Aviation (GACA) Director of Business Development, Alaa Samman, announced the authority plans to launch tenders worth USD4.5 billion across two airport sites in 2010 (Reuters, 08-Mar-2010). Details include:
- USD1.9-2.1 billion contract for the development of a new airport in Medina, on a 25-year build-operate-transfer basis. This airport would increase Medina’s capacity from three to eight million passengers p/a. The tender is expected to be opened in May-2010, close in Oct-2010 and be awarded in Dec-2010.
- USD2.6 billion in contracts for the development of an airport city near the existing Jeddah King Abdul Aziz International Airport, which would include hotels, office space, housing, retail malls and a flight academy. The tender for the airport city includes two land plots (one 1.0 sq km and the second 1.4 sq km), which be open to investment by Saudi and foreign investors. Jeddah Airport currently handles approximately 18 million passengers p/a, which is expected to increase to 30 million p/a by 2013. The airport city contracts are expected to be awarded by Aug-2010.
The GACA forecasts Saudi airport traffic will double to 60 million passengers p/a within the next ten years. The Saudi Arabian Government plans to launch USD14.6 billion in airport projects for completion over the next 20 years. A second smaller airport city is planned for Riyadh.