The Egyptian Airports Company (EAC) has cancelled the tender for the  Ras Sidr airport build-operate-transfer (BOT) contract, according to a source familiar with the project.

Two firms, the UAE-based Tristar and Suwaa Saudi Holding Company, submitted bids for the airport project.

MEED reported in August 2018 that EAC was evaluating the technical bids for the scheme, which will be built in western Sinai, a popular destination for local tourists.

It is understood the authorities are keen on developing the western Sinai area further in order to attract tourists.

Egypt first announced the project in 2015, when the government said it had provided the land plots necessary for establishing the airport.

Passenger traffic at Egyptian airports rose by 10 per cent in 2017, the second-highest growth rate the country’s airports have experienced since 2011 when the Arab Spring triggered a 27 per cent drop in passenger traffic.

Russia’s decision to lift its two year ban on Egypt-bound flights following the terrorist attack on a Metrojet plane over the Sinai Peninsula in 2015 is expected to sustain passenger growth in Egypt’s main airports this year.

EAC opened a new airport, Sphinx International, which is located on the Cairo to Alexandria desert road. The airport can handle up to 600 passengers an hour.

The Egyptian military financed the construction of Sphinx International, as well as two other airports under construction: New Capital Cairo and Bredwell International.