The consortium that won the contract to develop three airport public-private partnership (PPP) projects in Saudi Arabia has yet to reach a financial close with banks that will provide funding for the projects.

According to a source with knowledge of the transactions, a number of banks have agreed to provide funding for the projects, but the documentation process has taken longer than expected.

The consortium that won the contract, which comprises of Tukey’s TAV Airports and local Al-Rajhi Holding Group, has initially expected to reach financial close before the end of last year.

MEED understands the value of financing being considered is close to $600m.

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.

It is understood the TAV/Al-Rajhi team began forming a special purpose vehicle (SPV) for each project, which will design, build and operate the 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.