The negotiations with local banks for the financing of the three airport public-private partnership (PPP) projects in Saudi Arabia are likely to extend beyond the target time-frame, according to sources familiar with the projects.
The team, which won the three projects, is aiming to raise between $250m and $350m from banks in September.
It is likely that the negotiations with banks will extend beyond September, one source tells MEED.
The foreseen delay is due not only to the shortened working hours this month but to the relative novelty of financing PPP projects in the kingdom.
The contracts for the redevelopment of the airports in Yanbu, Hail and Al-Qassim were awarded to a team comprising Turkeys TAV and local Al-Rajhi Holding Group between March and April. US/Indian Synergy Consulting and UK-based Norton Rose Fulbright are the financial and legal advisors 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.
In May, TAV CEO Mustafa Sani Sener said that local banks have shown a strong interest in financing the schemes.