SAUDI ARABIA. Saudi Arabia’s General Authority of Civil Aviation (GACA) has terminated a 20-year contract with the consortium led by Changi Airports International to manage King Abdulaziz International Airport in Jeddah.
GACA said an internal review “raised a number of fundamental concerns” about the award of the concession, which was made less than a year ago (in May 2017).
Changi Airports International – Changi’s foreign investment and airport management arm – and Saudi Naval Support Company said in a statement they had “strictly observed” the request for proposal process. The contract loss is a significant blow to Changi Airport’s overseas ambitions.
GACA will now undertake a new international tendering process for the contract to manage the airport.
The authority’s statement read: “An internal 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.”
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.
The Changi Airports International/Saudi Naval Support Company consortium’s statement confirmed it had received the notice of termination from GACA.
“The consortium notes that GACA has chosen to terminate the agreement for the operation and management of the new King Abdulaziz International Airport, in Jeddah, in accordance with the concession agreement which is to terminate for convenience,” the statement read.
“It is reviewing the contents of the notice and will not be making further comments for the time being.
“The consortium strictly observed the request for 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.”
The termination notice came as the consortium was reviewing the “overwhelming response” it had received to its call for proposals for food & beverage concessions at the airport.
The consortium had also been preparing to release other proposals for a wide range of concessions, including additional F&B outlets.
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