Consortium forming special purpose vehicles for each airport
Financial close for the three airport public-private partnerships (PPPs) in Saudi Arabia awarded to a team comprising Turkeys TAV Airports Holding and local Al-Rajhi Group is expected before the end of the year, Sani Sener, TAV chief executive, tells MEED.
The initial goal was to reach financial close in September but sources familiar to the transactions have earlier told MEED there could be a slight delay due to Ramadan and the intervening summer months.
The TAV/Al-Rajhi team won 30-year build, transfer, operate (BTO) agreements for the airports in Yanbu, Qassim and Hail earlier this year.
They aim to raise between $250m and $350m from local banks.
|Airport PPPs awarded to TAV/Al-Rajhi Holding|
Expected capacity upon completion (million annual passengers)
Prince Naif bin Abdulaziz, Qassim
Prince Abdul Mohsin bin Abdul Aziz, Yanbu (passenger terminal)
US/Indian Synergy Consulting and UK-based Norton Rose Fulbright are the financial and legal advisers to the team, respectively.
The 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.
Bahrains GIB Capital is the lead financial adviser of the client, General Authority of Civil Aviation (Gaca), for the four airport PPP transactions. Hillbrook Capital and Clifford Chance, both of the UK, are acting as co-financial adviser and legal adviser, respectively, while Mott MacDonald, also of the UK, is technical adviser.
The kingdoms first airport PPP, Prince Mohammed bin Abdulaziz International in Medina, is operating on a BTO basis and entered full operations in June 2015. It is operated by Tibah, a special purpose vehicle formed between Turkeys TAV and local contracting firms Saudi Oger and Al-Rajhi Holding.
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