MEED reported that 8 consortiums have pre qualified to bid for work on the Phase I of the expansion of Prince Mohammed Bin Abdulaziz Airport in Madina.

The USD 1.5 billion development which is part of a wider USD 10.5 billion project to reform and liberalise Saudi Arabia’s airport sector is being developed by the General Authority of Civil Aviation of the Kingdom of Saudi Arabia.

The objective is to increase the airport’s passenger handling capacity from 3.5 million people per year currently, to 14 million per year on completion in 2016.

The pre qualified consortiums include Airports Company of South Africa, the Badr consortium, Saudi Malaysian consortium, Tibah consortium, Saudi Airplex consortium and another 3 consortiums made up of well known Spanish, Turkish, Indian, French and Saudi firms. All will be invited to bid for work in September 2010 with an award expected by the end of November and a scheduled start date of Q1 2011.

Mr Alaa Samman GACA’s director of business development for domestic airports said that we plan to offer 25 year build, operate and transfer contract for the development of a new airport in Medina.

In April, GACA received a total of 49 requests for prequalification for the expansion of the airport which will include building a new passenger terminal, renovating the existing runway and potentially constructing a second runway.

Mr Samman said that the Phase I specifically will involve developing airside and landside facilities under a long term concession. It is first of GACA’s projects to be financed through a public private sector partnership with the aim of developing the airport sector on a commercial basis and introducing increased competition and private sector participation.

He said that whilst a number of banks have confirmed they are already speaking with potential bidders about providing funding for the scheme, how much funding each bidder will be required to provide is still unknown.

(Sourced from MEED)