EXCLUSIVE: Riyadh commences airport renovation work

29 October 2017
$2.1bn renovation work on the four old terminals at the airport is expected to be completed in 2021

Renovation work on the King Khalid International airport in Riyadh has already commenced although slight revisions on the concept design are not expected to be completed until mid-November.

The SR2.2bn ($587m) renovation work on the four old terminals at the airport is expected to be completed in 2021.

The four-year contract was awarded earlier this year to a joint venture of Turkey’s IC Ictas and the local Al-Rashid Trading & Contracting.

The team had initially lost its bid for the contract to upgrade the terminals in 2015 to a joint venture comprising Germany’s Hochtief, local Nahdat al-Emaar and India’s Shapoorji Pallonji. The contract with the Hochtief-led team, however, was cancelled in 2016.

Unlike the cancelled contract, which calls for the construction of new concourses, the new contract entails mainly renovation and refurbishment works that aim to expand the terminals’ capacities and improve services.

The redevelopment of the airport will be conducted in phases, starting with terminals 3 and 4.

Terminal 4 is unused and Terminal 3 previously catered to domestic flights, which have been moved to the newly completed Terminal 5.

Succeeding phases will entail redevelopment work for terminals 1 and 2, which cater to international flights.

Terminal 5, which was completed in 2016, is being operated and managed by Dublin Airport Authority (DAA) under a five-year contract with the General Authority of Civil Aviation (Gaca). A joint venture of Turkey’s TAV and local Al-Arrab Contracting won the $430m contract to build the terminal, which has a capacity to handle up to 12 million passengers annually, in 2012.

All airports in Saudi Arabia have been organised under a holding entity called Saudi Civil Aviation Holding Company. An airport company has been formed for the kingdom’s key airports including the Riyadh Airport Company, which operates King Khalid International.

A minority stake in Riyadh Airport Company will be offered to private investors via an equity sale. US-based Goldman Sachs was hired earlier this year to advise on the sale.

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