Saudi Arabia invites bids for Riyadh airport project management deal

29 April 2012

Project management firms have until 16 June to submit tenders for airport

Saudi Arabia’s General Authority for Civil Aviation (Gaca) has invited companies to submit bids for the project management contract for the planned expansion of King Khalid International airport in Riyadh.

Gaca has set a deadline of 16 June for firms to submit bids for the project management deal. The expansion is expected to increase the airport’s annual capacity to about 24 million passengers from the current 14 million.

The expansion scheme will involve renovating the existing Terminal 3 and the currently unused Terminal 4, as well as adding four new concourses – A, B, C and D.

The project will also involve building new aprons. Gaca recently received bids from contractors for the construction of an apron at Terminal 3 and the future Terminal 4. The local Al-Mabani General Contractors submitted the lowest bid of SR219.5m ($58.5m).

Other bids included SR285m from a joint venture of Turkey’s TAV and local Al-Arrab Contracting; SR226m from local Unimac; SR273.5m from local Shibh al-Jazira and SR343m from Al-Khodari.

In August 2008, Gaca signed a consultancy contract with Netherlands Airports Consultants (Naco) for the Riyadh airport expansion. Naco is also carrying out the masterplan for the expansion of airports at Dammam and Abha.

King Khalid International airport is located about 35 kilometres north of the capital. The Riyadh scheme is part of Saudi Arabia’s wider plan to increase the capacity of airports throughout the kingdom.

Saudia Aerospace Engineering Industries (SAEI) recently awarded the consortium led by Turkey’s TAV Construction an estimated $800m contract to build its aircraft maintenance, repair and operation (MRO) facility at the King Abdulaziz International airport in Jeddah. In 2010, the local Saudi Binladin was awarded an estimated $6.7bn contract to build a new passenger terminal and runways at the airport expansion scheme.

In August 2011, a consortium led by TAV was awarded the contract for the $1.5bn expansion of Medina International airport on a public-private partnership (PPP) basis. The consortium also consists of the local Saudi Oger and Al-Rahji Holding Group.

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