The UK-based Siemens Plessey Systems and Athens-based Joannou & Paraskevaides (Overseas) are understood to be in negotiations for a $220 million contract for work on the expansion of Lahore airport, project sources say. The contract is for the construction of a new passenger terminal building, a new apron, taxiway, car park and associated works. The client is the government's Civil Aviation Department.

The new terminal will handle 6.5 million passengers a year. Letters of intent have been issued to the two companies and an official contract award is expected towards the end of May. The consultant is the local National Engineering Consultants (Nespak). Work is scheduled for completion in 1998.