Developers seeking up to $600m in financing
Negotiations with banks for financing three airport public-private partnership (PPP) contracts in Saudi Arabia for which 30-year concession contracts were awarded earlier this year could extend until early 2018.
According to a source familiar with the transactions, discussions with the banks are taking longer than expected.
MEED understands the value of financing being sought is close to $600m.
The team that won the three contracts, comprising Turkey’s TAV Airports and local Al-Rajhi Holding Group, initially indicated it was expecting to reach financial close before the end of 2017.
The TAV/Al-Rajhi team earlier this year won the build, operate, transfer (BOT) contracts for a new passenger terminal at Yanbu’s Prince Abdul Mohsin bin Abdul Aziz airport, and the redevelopment of passenger terminals in Hail and Qassim.
| Airport PPPs awarded to TAV/Al-Rajhi Holding in 2017 | |
| Expected capacity upon completion (million annual passengers) | |
| Prince Naif bin Abdulaziz, Qassim | 5.5 |
| Hail | 4 |
| Prince Abdul Mohsin bin Abdul Aziz, Yanbu (passenger terminal) | 3.7 |
| Source: MEED | |
The fourth airport BOT scheme awarded in Saudi Arabia this year, for the Taif International airport, expects to reach financial close by mid-2018. This contract was awarded to a team comprising local Asyad Group, Germany’s Munich Airport s and Lebanon’s Consolidated Contractors Company.
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