Hajj bid raises capacity questions

15 December 2006
A team of Saudi Binladin Group (SBG) with France's Aeroports de Paris is the favourite to win the Hajj terminal upgrade contract at King Abdulaziz International Airport in Jeddah. The group submitted the best offer after technical and commercial prices were opened in early December (MEED 3:11:06).

SBG's latest coup follows recent deals to take part in the construction of at least three of the kingdom's economic cities and after submitting the lowest prices for the three main packages on the north-south railway.

'We are seeing a real phenomenon,' says a rival contractor bidding on the scheme. 'It has been a Saudi Binladin deluge. They are everywhere. I'm beginning to ask where they will

get engineers, equipment or facilities.'

SBG's offer came in ahead of a joint venture of Omar Kassem Alesayi Trading & Contracting, the Dallah Albaraka Group, both local, and Spain's Abertis.

'Don't worry,' says a senior SBG official. 'There is no problem. We have the highest number of employees and largest number of equipment of any contractor in the Middle East. We have also finished ahead of schedule on the Jamarat bridge project in Mina, which will relieve workers for us.'

The 20-year build-operate-transfer project includes upgrading the 500,000-square-metre terminal and creating permanent structures to replace existing tent structures. A total of 1.2 million pilgrims used the terminal last year, but substandard facilities and overcrowding have led to long processing and waiting times. The International Finance Corporation is advising the General Aviation Civil Authority.

www.meed.com/transport

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