Jeddah, Saudi Arabia, July 2, 2012
—IFC, a member of the World Bank Group, and Saudi Arabia’s General Authority of Civil Aviation (GACA) announced today the formal completion of a landmark agreement to build a state-of-the-art airport in Medina.
TIBAH, a consortium composed of TAV Airports, Saudi Oger and Al Rajhi Holdings of Saudi Arabia, alongside the National Commercial Bank, Arab National Bank, and SABB have agreed to provide at least $1.1 billion over the next three years to support the development of the Prince Mohammed Bin Abdulaziz International Airport. It will be the first airport built under a partnership between the government and the private sector in a Gulf Cooperation Council country. The project, of which IFC is the lead advisor, is expected to spur economic development and help accommodate a growing number of religious pilgrims.
"This financial closure, which has happened on schedule, sets a milestone in GACA’s efforts to include private-sector participation in airports around the kingdom,” said His Excellency Faisal Al-Sugair, GACA Vice President. “The project will allow us to welcome a higher number of passengers and considerably improve service levels. We are delighted with the results of this international competitive tender process and look forward to working with our new private sector partners."
IFC helped the Kingdom of Saudi Arabia carry out an international bidding process that in October 2011 saw the project awarded to a consortium composed of TAV Airports Holding of Turkey in partnership with Saudi Oger and Al Rajhi Holdings of Saudi Arabia. The consortium will develop the airport and operate it over the next 25 years.
"The entire TAV family is deeply honored to be entrusted with the airport of Islam's second holiest city," said Sani Sener, President and CEO of TAV Airports Holding. "This carries with it a great responsibility and we are committed to transforming Medina airport into one of the best international airports in the region."
Mouayed Makhlouf, IFC Director for the Middle East and North Africa, said, “Much can be achieved when governments and the private sector work together on key infrastructure projects. Along with financing, the private sector can bring much-needed expertise to these projects, delivering results that can help people across the region and support economic development.”
The international consortium will build a modern terminal capable of handling 8 million passengers a year by 2015, double the airport’s current capacity. By 2037, it will be able to accommodate over 21 million people. The terminal will be eco-friendly, conforming to the standards of LEED, an internationally recognized certification system for green buildings.
The initiative is part of IFC’s Public-Private Partnership program, which aims to provide people across the Middle East and North Africa with access to clean water, steady power supplies, safe roads, and other infrastructure essentials through joint efforts between governments and the private sector.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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