Egypt’s Ministry of Civil Aviation is preparing to tender a $127m airport development in Sinai in the first quarter of 2016.

The Ras Sidr airport will be delivered using a build-operate-transfer (BOT) contract, according to local reports quoting aviation minister Hossam Kamal. “The government has provided the land plots necessary for establishing the airport,” said Kamal.

The airport, which will be built in western Sinai, is a popular destination for local tourists. It is understood that the authorities are keen on developing the area further in order to attract foreign visitors.

Egypt is also expanding the Sharm el-Sheikh airport. In November MEED reported that the Egyptian Airports Company extended the tender deadline for contractors to submit bids till mid-January.

The local African Development Bank group is part financing the $671m project through a $140m loan, which was approved in April this year.

Egypt’s tourism sector has been hit by the recent Metrojet crash which killed 224 people on 31 October. It is understood that the economy is set to lose $280m a month as foreign tourist visitor numbers dry up amid security concerns.