Changi loses deal to manage and operate new Jeddah airport

LONDON: Saudi Arabia’s General Authority of Civil Aviation (GACA) has terminated an agreement to allow a consortium consisting of Singapore’s Changi Airports International and Saudi Naval Support Co. to manage and operate the new King Abdul Aziz International Airport in Jeddah, just 10 months after it was told it had won a competitive bidding tender.

GACA said in a statement: “Following an internal review, GACA has decided to undertake a new international tendering process for the contract to manage the airport in Jeddah. This review raised a number of fundamental concerns that has required GACA to revisit and terminate the award of the concession to the consortium comprising of Changi Airports International and Saudi Naval Services.

“All actions undertaken by GACA are in accordance with the terms of the executed concession agreement. The new tendering process will meet best practice standards of transparency and fairness.”

GACA said it would communicate further information on the new tendering process in due course. It added that the decision would not impact the projected timeline for the new airport, which is scheduled for “a soft opening” in May 2018.

A consortium statement said it noted that GACA had chosen “to terminate the agreement for the operation and management of the new airport.”

It also said: “The consortium strictly observed the request for (the) proposal process, stipulated by GACA. It submitted all required documentation for GACA’s review and had obtained all requisite approvals prior to the award of the concession.”

On May 2, 2017, Singaporebased Changi Airports International said in a statement that it had won the license to run the airport for a 20-year term.