Jeddah, Saudi Arabia, November 1, 2011—IFC,
a member of the World Bank Group, is helping Saudi Arabia expand Medina’s
international airport under a public-private partnership project that is
the first of its kind in the region and is expected to spur economic development
and help accommodate a growing number of religious pilgrims.
Saudi Arabia’s General Authority of Civil Aviation (GACA) has announced
that TAV Airports Holding of Turkey, in partnership with Saudi Oger and
Al Rajhi Holdings of Saudi Arabia, will develop and maintain the Prince
Mohammed Bin Abdulaziz International Airport over the next 25 years. IFC,
as the lead advisor, helped the authority structure the arrangement, the
first full public-private airport partnership in a Gulf Cooperation Council
country. The project will generate jobs locally and support the development
of Saudi Arabia’s burgeoning religious tourism market.
“This is a continuation of GACA’s efforts to introduce private-sector
participation in its activities,” said H.E. Faisal Al-Sugair, GACA president.
“This will considerably improve our ability to welcome a greater number
of passengers while providing a higher level of service for many years
to come. We are delighted with the result and look forward to partnering
with the TAV consortium.”
The consortium will build a modern terminal capable of handling 8 million
passengers a year by 2015, double the airport’s current capacity. By 2034,
it will be expanded to accommodate 16 million people. The terminal will
be eco-friendly, conforming to the standards of LEED, an internationally
recognized certification system for green buildings. It would be the first
airport in the region to be recognized by LEED.
“This transaction shows the significant benefits of governments pursuing
their infrastructure requirements through public-private partnerships,”
said Dimitris Tsitsiragos, IFC’s Vice President for Eastern and Southern
Europe, Central Asia, Middle East and North Africa. “As the first full
airport public-private partnership in the region, this should encourage
further private sector involvement and promote infrastructure development.”
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.
With states across the region facing financial limitations, public-private
partnerships are a key tool in extending services to millions, an effort
that can in turn foster economic development and create much-need jobs.
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,