EXCLUSIVE: Saudi Arabia conducts discussions on airport PPP

15 March 2018
Planned airport is seen to play a vital role in expanding the Jubail industrial complex in eastern Saudi Arabia

Saudi Arabia’s Royal Commission for Jubail and Yanbu (RCJY) is understood to be working with Spain-based aviation consultancy Aertec, in addition to Netherlands-based KPMG,  on the planned new passenger terminal at Jubail airport, which is currently used by the Defence Ministry.

It is understood RCJY planned to issue a request for prequalification (RFQ) for the scheme last year. However, sources familiar with the project tell MEED that RCJY is still fine-tuning the plan, including the concessions and operations structure, as well as the requirements of the aviation regulator, the General Authority of Civil Aviation (Gaca).

“RCJY has made it clear that it needs this airport to support its future expansion plans,” a source tells MEED.

The new terminal is to be procured using a public-private partnership (PPP) model and will cater to the Jubail Industrial City and Jubail 2 in the eastern region of the kingdom.

The location of the current air defence facility in Jubail is approximately 100 kilometres away from King Fahd International airport in Dammam.

MEED understands that RCJY and Gaca could be considering a development plan similar to the one used for Taif International airport, which is situated relatively close to Jeddah’s King Abdulaziz International, the kingdom’s busiest airport.

MEED understands RCJY is also working with US-based law firm King & Spalding on the airport development.

If successfully developed, the new airport in Jubail will bring the total number of airport PPPs in Saudi Arabia to six and the total number of airports to 28.

Saudi Arabia’s first airport PPP, the $1.2bn airport in Medina, entered full operations in 2015.

Gaca awarded four airport build, transfer, operate (BOT) contracts last year. These include a passenger terminal building at the Yanbu airport and the redevelopment of airports in Qassim and Hail, which were awarded to a team of Turkey’s TAV Airports and local firm Al-Rajhi Group.

A fourth contract, for the Taif International airport, was awarded to a consortium of local firm Asyad Group, Germany’s Munich Airports and Lebanon’s Consolidated Contractors Company.

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