The FINANCIAL — TAV Airports and consortium partners – the Al Rajhi Group and Saudi Oger signed the contract for the Medina Airport, the first airport privatization of Saudi Arabia, using the Build Transfer Operate model. The Contract was signed by Consortium partners – TAV Airports President & CEO M. Sani Sener, Al Rajhi Holding Group Board of Directors Member, Dr. Ibrahim Sulaiman Al Rajhi and Saudi Oger Limited Deputy General Manager Sheikh Ayman R. Hariri.
Within the scope of the project whereby an investment of approximately 1 to 1.5 billion USD is contemplated, the Consortium shall construct a state-of-the-art passenger terminal in the first half of 2015, and shall be entitled to operate the Medina Airport for 25 years. Within the scope of the project, the civil works are planned to be started in the first half of 2012 and completed in three years, and operated by the Consortium until 2037. The capacity of the Medina Airport will be increased to 8 million passengers per year by increasing the capacity of the existing airport which had served 3.3 million passengers in 2010, through a new terminal building to be build, apron and fast exit roads, upon which the capacity shall be increased to 16 million passengers per year ¬prior to the expiry of the concession period. The bid submitted by TAV Airports, with its consortium partners Saudi Oger and the Al Rajhi Holding Group was announced as the best bid on August 8, following the assessment by the local authority, the Civil Aviation General Directorate of the Kingdom of Saudi Arabia.
TAV Airports President & CEO M. Sani Sener said “As TAV Airports, we are very much honored to include in our airports portfolio the operation and operation of the Airport of Medina, one of the most significant cities for the Muslim World. Our partnership with two most 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 Hajj and Umrah trips from Istanbul, Ankara and Izmir, operated by TAV Airports, to Medina and the mutual communication and coordination to be enhanced will have significant contributions for the aviation sectors of Turkey and Saudi Arabia. As we have already arranged the financing prior to the tender, it is one of our biggest objectives to start the investment in the project at once, and to ensure early completion”.
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