(MENAFN- The Peninsula) Saudi Arabia yesterday officially opened a billion-dollar aviation gateway aimed at pilgrims, in its first airport privatisation.
Local media said Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud will inaugurate Prince Mohammad bin Abdulaziz International Airport in Madinah.
About two million pilgrims annually visit the western cities of Makkah and Madinah for Haj, which is in September this year.
Madinah's domestic airport was upgraded to international status because of "the importance and the role of the air transport sector in the service of pilgrims and visitors to the Prophet's Mosque," the airport operator's website said.
Tibah Airports Development Co. won the bid and in October 2011 signed a build, transfer and operate agreement with General Authority of Civil Aviation (GACA). The consortium includes Turkey's TAV Airports and local firms Al Rajhi and Saudi Oger.
Tibah said the project "represents the first partnership between the public and private sectors in airports" in the kingdom.
Madinah airport's annual passenger capacity will rise from last year's 5.7 million to eight million and double to 16 million by the end of a 25-year agreement for operating the facility, TAV said. The project "represents a new direction" because it was privately built and will be run by the joint venture, GACA said, adding a new terminal under construction in Riyadh will also be operated by a global firm.
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