Bloomberg News

Arabtec-TAV Group Is Preferred Bidder for Abu Dhabi Deal

May 06, 2012

A group including Arabtec Holding Co. (ARTC), TAV Insaat and Consolidated Contractors Co. is the preferred bidder for the construction of the new terminal building at Abu Dhabi airport.

“Abu Dhabi Airports Co. is currently in discussions with the preferred bidder to finalize all details of the contract prior to its signing, and before officially announcing the winning contractor of the midfield terminal building at the capital’s airport in June this year,” according to an e-mailed statement from Abu Dhabi Airports today.

Abu Dhabi is expanding the international airport to meet the growth of Etihad Airways, among the fastest-growing Middle Eastern carriers. The airline ordered 100 jets at the 2008 Farnborough Air Show and is on the acquisitions trail, with stakes in Air Berlin Plc, Air Seychelles Ltd. and Aer Lingus. (AERL) The United Arab Emirates’ capital city and holder of about seven percent of the world’s proven oil reserves plans to spend $500 billion on industry, tourism and culture through 2030 to reduce its reliance on hydrocarbons.

The re-development and expansion plan will increase the airport’s capacity to more than 40 million passengers a year, the statement added. The 700,000-square-meter building will have piers that can accommodate as many as 65 aircraft at one time, including the wide-body Airbus SAS A380 and Boeing 747-800 planes, Abu Dhabi Airports said. The project is scheduled for completion in 2017.

Arabtec Gains

Etihad vies for transfer traffic with Gulf rivals Emirates, based in Dubai and the world’s largest carrier by international traffic, and Qatar Airways. All three are seeking to attract long-haul passengers away from traditional hubs in locations such as London, Paris and Frankfurt.

Arabtec’s Chief Executive Officer Riad Kamal didn’t answer calls to his mobile seeking comment.

Arabtec has an order backlog of around 14 billion dirhams, a level similar to this time last year, Chief Financial Officer Ziad Makhzoumi said on April 25.

Arabtec shares gained 1.7 percent to 3.50 dirhams in Dubai at the 2 p.m. close in Dubai The stock has more than doubled in the past year compared with a 2 percent decline for the benchmark DFM General Index.

To contact the reporters on this story: Tamara Walid in Abu Dhabi at twalid@bloomberg.net; Zainab Fattah in Dubai at zfattah@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net


Coke's Big Fat Problem
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus