Contracts worth $189.3m signed to develop Saudi airports

The contracts signed recently by Crown Prince Sultan, Deputy Premier and Minister of Defence and Aviation, with five national groups, are for a period of three years that took effect in June 2007, according to the Saudi Press Agency (SPA).

The first group that signed the contract is a consortium of Saudi Service Co. and Muhammad bin Muhammad Binladin Co. The contract worth SR156,750,000 is to undertake various works at the airports of Al Baha, Taif, Rabigh and Yanbu and the headquarters of the General Authority for Civil Aviation (GACA) .

The second contract with Samamah Company for operation and administration worth SR129,250,000 is for the works at the airports of Hail, Madinah, Tabuk and Al-Wajah.

The third contract for SR133,650,000 with Abdul Aziz Rajab and Abdullah Silsilah Co. is to take care of airports at Arar, Al Qurayyat, Al Jouf, Rafha and Toraif.

The fourth contract with Al Zamil Maintenance and Operation Co. for SR141,350,000 will undertake the works the airports of Ahsa, Dwadmi, Qassim, Hafr Baten, Qaysuma and Wadi Al Dawasser.

The fifth contract with Dallah Co. at SR149,050,000 is for the airports at Abha, Beesha, Jizan, Najran and Sharour.

Early this year, Crown Prince Sultan signed a SR902.91contract with Al-Mabani Company to develop and upgrade aviation facilities at King Abdul Aziz International Airport in Jeddah. .

GACA said in a statement said that the contract covers expansion of the airport's tarmac and runways in order to increase its annual capacity to 80 million passengers.

The work will also include construction of a new aircraft parking facility west of the Haj Terminal as well as modernisation of ground lights systems and information technology infrastructure. Under the project, a 6.5 km square metres area will be set aside for commercial projects including hotels and offices of companies. The new expansion project, which is estimated to cost SR18 billion will enable the airport to receive large jumbo jets, including the A380, the 555-seat Airbus jet taking to the skies this year.

The expansion involves the construction of two new terminals and renovation of the existing South Terminal, a new concourse with 25 gates, three connector buildings and an extensive upgrade of landside and airside infrastructure facilities.

Saudi Arabia has so far spent more than SR50 billion on airports. GACA plans to invest SR30 billion in expanding airports in Jeddah, Madinah and Tabuk in order to meet the increasing number of passengers and the requirements of two new domestic private airlines.

Saudi Arabia plans to transform international airports in the Kingdom into state-owned companies, as a step towards privatisation of these airports, according to Abdullah Ruhaimy, president of GACA.

He reportedly said recently that GACA would start commercial operation of airports within three years.

"The international airports will be given corporate identity with independent financial status before being transferred to the ownership of companies fully owned by the state," he said.

Ruhaimy said the new plan would improve management of these airports. "This will eventually help the state take a decision on privatisation of these airports," he explained. He said the authority was studying a proposal to set up business cities within the Kingdom‚s airports. "There is a plan to establish an exhibition centre and a hotel at King Fahd International Airport in Dammam," he said, and added that many businessmen in the Eastern Province had expressed their interest in the project.

"We have sought private sector participation for the development of the Haj Terminal at King Abdul Aziz International Airport (KAAIA) in Jeddah," he said.

The Haj Terminal project, as well as a desalination plant project, will be carried out by the private sector on a build, operate and transfer (BOT) system.