TAV close to signing modified airport contract

30 July 2004
The signing was imminent in late July of a modified contract for the controversial build-operate-transfer (BOT) concession for Tehran's new Imam Khomeini International Airport (IKIA). The new agreement is expected to be announced while senior executives from the Turkish firm Tepe Akfen Vie (TAV), which won the original contract in early May,were in Tehran as part of a delegation of more than 100 Turkish businessmen accompanying Turkey's Prime Minister Recep Tayyip Erdogan on an official visit.

Under the new agreement, the management of terminal 1 is expected to be shared between TAV and Iran Air, with ground handling services provided by the flag carrier. TAV will however still be responsible for constructing and operating the estimated $200 million second terminal, through its local affiliate TAV Pars, over an 11-year period.

The original concession called for TAV to manage the operations of the existing terminal at the airport and to construct and operate the second terminal within the following two years. However, the new facility was closed down by the armed forces on its first day of operation on 8 May, citing national security concerns.

TAV, which runs Ataturk International Airport in Istanbul, had already made pre-investment of about $15 million (MEED 14:5:04; 30:4:04).

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