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Saudi Arabia extends Abha airport PPP tender

1 May 2025

 

Saudi Arabia’s Civil Aviation Holding Company (Matarat) and the National Centre for Privatisation & PPP (NCP) have extended by two months the tender closing date for a contract to develop and operate a new passenger terminal building and related facilities at Abha International airport in Saudi Arabia.

The previous bid deadline was 22 April.

In early March, the clients held one-on-one meetings with the prospective bidders in Riyadh, as MEED reported.

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.

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.

READ THE MAY 2025 MEED BUSINESS REVIEW – clck here to view PDF

Gulf hunkers down as US tariffs let fly; Abu Dhabi looks to secure its long-term economic prosperity; Nesma stays on top as China State moves up in 2025 GCC contractor ranking

Distributed to senior decision-makers in the region and around the world, the May 2025 edition of MEED Business Review includes:

> GULF PROJECTS INDEX: Gulf projects index inches upwards
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Jennifer Aguinaldo

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