Local banks have shown strong interest in financing the estimated $250-350m required in building and operating the three airport public-private partnership (PPP) projects that were recently awarded in Saudi Arabia.

According to Mustafa Sani Sener, CEO and executive board member of Turkey’s TAV Group, the strong commitment made by the Saudi government to privatise all airports by 2020 is boosting banks’ confidence in providing the required long-term financing.

It is understood that the projects are aiming for a financial close by the third quarter of 2017.

Sener also confirmed that they will be forming a special purpose vehicle (SPV) for each of the airports in Hail, Qassim and Yanbu. 

TAV, along with local firm Al-Rajhi Holding Group, recently won the 30-year contracts to design, build and operate the three airports. US/Indian Synergy Consulting and UK0based Norton Rose are the financial and legar advisors to the team, respectively.

TAV, along with local Saudi Oger and Al-Rajhi, formed Tibah Airports in 2012. Tibah built and currently operate the $1.2bn Medina International airport.

There are plans to expand the airport, with work on the second phase expected to start not earlier than 2021, Sener tells MEED.