The local Al-Arrab Contracting Company is the low bidder for the estimated SR300m ($80m) contract to expand the domestic Arar airport, which is located in the north of Saudi Arabia, close to the Iraq border.

The client for the airport expansion scheme is Saudi Arabia’s General Authority of Civil Aviation (Gaca). Gaca received bids from about 12 contractors in June for the construction deal.

The expansion scheme will involve the construction of a new main terminal building, administration building and a crash and fire building. The contract will also involve constructing a main electrical station building and all of the external works.

 The Arar airport currently services about 140,000 passengers a year and the expansion is part of the kingdom’s efforts to develop the area’s economy.

Al-Arrab Contracting Company is part of the consortium that is currently working on the $1.5bn expansion of the Prince Mohammad bin-Abdulaziz International airport in Medina. The consortium, headed by Turkey’s TAV, was awarded the contract for the first phase of the expansion project in 2011. The work involves the construction of a new terminal building and rehabilitation and upgrading of the airside infrastructure, which will involve the construction of a new taxiway and apron system.

The Medina expansion project will expand the capacity of the airport to 8 million passengers a year, from the current 4 million. Phase one of the expansion will take place from 2012 to 2015. The Medina airport is being built under a public-private partnership (PPP) contract, the first airport privatisation scheme in the kingdom.

Al-Arrab Contracting Company is also part of the Al-Rahji consortium working on the first phase of the $6bn Haramain high-speed rail link Mecca and Medina. In May, Al-Arrab, in a joint venture with the local Al-Mabani General Contractors, was awarded an estimated SR1bn subcontract by the Al-Rahji Alliance for infrastructure works on the Haramain scheme.