Negotiations for the financing of the three airport public-private partnership (PPP) projects in Saudi Arabia that were awarded earlier this year to a team comprising Turkey’s TAV Airports and local Al-Rajhi Group are progressing well with financial close expected to be reached between October and November this year.

According to a source with knowledge of the project, the value of financing being considered is close to $600m.

MEED understands that the initial financing sought was around $350m.

Banque Saudi Fransi (BSF) is the lead arranger for the project.

The three projects comprise a passenger terminal building at the Prince Abdul Mohsin bin Abdul Aziz airport in Yanbu and the redevelopment of airports in Qassim and Hail.

The TAV/Al-Rajhi team is now forming a special purpose vehicle (SPV) for each project, which will design, build and operate the three airports over a 30-year period.

US/Indian Synergy Consulting and UK-based Norton Rose Fulbright are the financial and legal advisers to the team, respectively.

In 2012, National Commercial Bank (NCB), Sabb and Arab National Bank provided $1.2bn financing for the development of the Prince Mohammed bin Abdulaziz International airport in Medina, the kingdom’s first airport PPP.