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Firms prepare Abha airport PPP proposals

12 February 2025

Prequalified firms are preparing to submit their proposals for a contract to develop and operate a new passenger terminal building and related facilities at Abha International airport in Saudi Arabia.

MEED understands Saudi Arabia’s Civil Aviation Holding Company (Matarat), through the National Centre for Privatisation & PPP (NCP), expects to receive proposals for the contract by 22 April.

The companies that have been prequalified to bid for the contract are:

  • GMR Airports (India)
  • Mada TAV: Mada International Holding (local) / TAV Airports Holding
  • Touwalk Alliance: Skilled Engineers Contracting (local) / Limak Insaat (Turkiye) / Incheon International Airport Corporation (South Korea) / Dar Al-Handasah Consultants (Shair & Partners, Lebanon) /  Obermeyer Middle East (Germany/ Abu Dhabi)
  • VI Asyad DAA: Vision International Investment Company (local) / Asyad Holding (local) / DAA International (Ireland)

Located in Asir province, the first phase of the Abha International airport public-private partnership (PPP) project will increase the airport terminal area from 10,500 square metres (sq m) to 65,000 sq m.

The contract scope includes a new rapid-exit taxiway on the current runway, a new apron to serve the new terminal, access roads to the new terminal building and a new car park area.

In addition, the scope includes support facilities such as an electrical substation expansion and a new sewage treatment plant. 

The project's construction phase is set for completion in 2028.

    A total of 100 firms expressed interest in bidding for the contract in February last year. Matarat and NCP issued the prequalification request two months later.

    The project will be developed using a build, transfer and operate (BTO) model and entails designing, financing, constructing and operating a greenfield terminal at the airport.

    The project will be the kingdom’s third airport PPP project, following the Hajj terminal at Jeddah’s King Abdulaziz International airport and the $1.2bn Prince Mohammed Bin Abdulaziz International airport in Medina.

    Higher capacity

    According to Matarat, Abha airport’s capacity will increase to accommodate over 13 million passengers annually, a 10-fold rise from the current 1.5 million capacity.

    When completed, the airport will handle more than 90,000 flights a year, up from 30,000.

    The new airport is also expected to feature 20 gates and 41 check-in counters with seven new self-service check-in counters.

    The BTO project duration is 30 years.

    The existing terminal at the airport, which catered to 4.4 million passengers in 2019, will be closed down once the new terminal is completed.

    Matarat’s transaction advisory team for the project comprises UK-headquartered Deloitte as financial adviser, ALG as technical adviser and London-based Ashurst as legal adviser.

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    Jennifer Aguinaldo

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