TAV Airports and its consortium partners Al Rajhi Group and Saudi Oger signed the contract, which represents the first airport privatisation in Saudi Arabia.
TAV Airports president and CEO M Sani Şener said: “Our partnership with two most significant major companies of Saudi Arabia gave rise to a collaboration whereby we can succeed in further airport tenders is Saudi Arabia as well.”
An investment of approximately US$1bn to US$1.5bn (£623m to £934m) is envisaged. The consortium will build the new passenger terminal by the first half of 2015, and operate the Medina Airport for 25 years. Civil works are due to start in the first half of 2012. The airport capacity will be increased initially to eight million passengers per year – the existing airport served 3.3 million passengers in 2010. As well as the new terminal building, other works are planned to bring the capacity to 16 million passengers before the expiry of the concession period.