Saudi Arabia cancels airport deal with Singapore group

The Saudi General Authority of Civil Aviation (GACA) has cancelled a contract signed with the consortium of the Changi Airports International and the Saudi Naval Support Company to manage and operate the new King Abdulaziz International Airport in Jeddah.

The authority said in a statement issued yesterday that the decision comes after an internal review raised a number of fundamental concerns that required GACA to revisit and terminate the award of the concession to the consortium.

GACA stressed that its decision is in line with the terms of the agreement, pointing out that the project will be put up for public bidding in the near future.

According to the statement, the authority’s decision will not affect the timetable for the initial opening and pilot operation of the new airport which is scheduled for May.

Singapore’s Changi Airports International operates 20 international airports around the world. The company won the contract to operate the new Jeddah airport in April 2017.

The new airport is independent of the current King AbdulAziz International Airport and is expected to cost 27 billion riyals ($7.2 billion).

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