Construction work has begun on the $400m renovation of terminal two at Cairo International airport.

Turkey’s Limak Investment won the construction contract for the project in November 2011 (MEED 20:11:11). Limak is working in a joint venture with India’s GMR Infrastructure.

Six companies bid for the deal in March. The client on the project is Cairo Airports Company, a division of the Egyptian Holding Company or Airports and Air Navigation.

The renovation of terminal two will involve upgrading the existing passenger terminal to handle up to 7.5 million passengers a year, more than double its current capacity of 3.5 million passengers a year. The project will also involve building a new departure hall and airside pier, as well as the construction of larger gates to accommodate Airbus A380 aircraft.

Construction work is expected to take three years, so the renovated terminal is likely to be complete in 2014. In March 2010, the Washington-headquartered World Bank approved a $280m loan to help finance the renovation of the terminal.

Progress on the project slowed in early 2011 due to the political instability that led to resignation of former president Hosni Mubarak.

Egypt is also carrying out expansions of Hurghada International airport and Sharm el-Sheikh airport, both on the Red Sea coast.

Saudi Binladin Group won the construction contract to expand Hurghada airport in June 2011. Work is expected to be complete in 2014 and will comprise a four-kilometre runway, taxiways, airfield lighting and a new passenger terminal that will be able to handle 7.5 million passengers a year. Hurghada airport’s current capacity is about 4.5 million passengers a year.

Firms are currently being invited to submit prequalification documents for the construction of a terminal building at Sharm el-Sheikh airport.