Business | Construction

Arabtec group nears $3b airport contract

Project will build Etihad terminal

  • Reuters
  • Published: 00:00 April 27, 2012
  • Gulf News

Dubai An Arabtec Holding consortium that includes Greek and Turkish firms is on the cusp of securing an estimated $3 billion (Dh11 billion) contract for the expansion of Abu Dhabi's international airport, four industry sources told Reuters.

The group, which includes Turkey's TAV Insaat and Athens-based Consolidated Contractors Company (CCC), have pipped three rival consortia for the lucrative contract to build a midfield terminal building.

An Abu Dhabi-based source aware of the deal said the TAV-Arabtec group had been chosen but that final details still needed to be hammered out.

'Positive signals'

Meanwhile, a source in the consortium said the group "had gotten positive signals but no official information had been sent".

"They have the lowest bid ... it's likely they will win it," said a third source, who was involved in the bidding process, speaking on condition of anonymity.

TAV declined to comment. Arabtec and CCC officials in the UAE were not immediately available for comment.

An Abu Dhabi Airports Company (Adac) spokesman said an announcement would be made only once the tender is finalised.

Shares of Arabtec, in which Abu Dhabi-owned investment fund Aabar owns a 10.45 per cent stake, reversed earlier losses and jumped 2.2 per cent at 0858 GMT.

The stock has risen 114 per cent this year, driven by the fund's interest in the UAE's biggest builder by market value.

Four groups

Adac had short-listed four groups in February for the general construction contract.

The new terminal will be around 700,000 square metres in size, according to Adac's website, and is a key part of the expansion programme at the airport in Abu Dhabi.

The midfield complex will include the terminal building, passenger and cargo facilities as well as duty-free shops and restaurants for a total capacity of up to 40 million people a year. It is slated to become operational in 2017.

Growth

In the first three months of the year, Abu Dhabi international airport handled 3.4 million passengers, up 21 per cent over the same period in 2011.

Adac wants to expand its airport facilities to back the growth of Etihad Airways and compete with passenger growth of Emirates.

The other three short-listed groups were Bechtel Corporation-ENKA-Al Jaber Group, Hyundai Engineering and Construction-Kumho Engineering and Construction-China State Construction Engineering Corporation-Al Shafar General Contracting Company and Samsung-ACC-Six Construct.

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