TAV signs 1.5 billion dollar agreement with Medina

Published 31.10.2011 00:00
Updated 31.10.2011 14:54

TAV has signed on to a 1.5 billion dollar agreement on the Medina Airport’s build-operate-transfer project.

TAV Airports has signed on to a build-operate-transfer project for Medina Airport, in Saudi Arabia's first-ever airport privatization, with partners Al Rajhi and Saudi Oger as well as Saudi Arabian Civil Aviation Authority GACA. The contract was signed by Deputy Minister of Defense and Aviation, Prince Fahad Bin Abdullah Bin Mohammed Al Saud, Civil Aviation Authority Chair Faisal Hamad Al-Sugair, TAV Airports Chairman of the Executive Board M. Sani Şener, Al Rajhi Holding Administrative Board Member İbrahim Sulaiman Al Rajhi and Saudi Oger Deputy Chairman Ayman Al Hariri.

The consortium, investing in the project anticipated to cost between one and one and a half billion dollars will complete the construction of the passenger terminal by the first half of 2015 and will hold the operating rights for Medina Airport for 25 years. Construction for the project will begin in the first half of 2012 and is expected to be completed within three years time. After which, the airport will be operated by the consortium until the year 2037. In the first stage of the project, the building of a new terminal building, apron and fast exit routes should increase the airport's current capacity of 3.3 million passengers a year in 2010, to eight million passengers. The airport capacity is planned to be brought up to 16 million however, by the end of the timeframe allotted for the project.

TAV Airports Chairman of the Executive Board M. Sani Şener states, "Our standing partnership with two of Saudi Arabia's most significant companies has revealed that our union is one that is capable of success in future airport tenders. I believe that increased capacity for the Hadj and Umre pilgrimages to Medina and the mutual communication derived will contribute greatly to the two nations' aviation sectors. We want to begin the investment immediately in order to complete it as soon as possible."
Saudi Oger Deputy Chairman Ayman Al Hariri states, "We will put forth all of our efforts in order to develop the Medina Airport up to international standards, in order to provide financing, to build and then to operate for a period of 25 years by providing the best service possible to our passengers with our partners."

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