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
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.
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.