Cairo (APD) - Arab Banking Corporation Egypt, a subsidiary of Bahrain-based Arab Banking Corporation (ABC), will manage a $90 million loan that a consortium of six banks provided to TAV, the lead contractor for the third passenger terminal at Cairo International Airport.
In announcement published Sunday in al-Ahram daily, Arab Banking Corporation Egypt said it signed for $28 million out of the total $90 million loan to TAV.
Barclays Bank Egypt, HSBC Bank Egypt and Misr International Bank each granted TAV loan amounts of $18 million. Misr Romanian Bank and Egyptian Commercial Bank each provided $ 4 million to the consolidated loan.
TAV (Tepe-Akfen-Vie), a joint venture of two Turkish construction firms, is constructing Terminal 3 in cooperation with the state-owned Holding Company for Roads and Bridges.
The venture won the contract for Terminal 3 in November of last year with a bid of $347 million and projected 833 days duration of construction. The TAV bid was the best on both counts and the company was the only bidder with experience in airport projects, according to sources close to the project.
The program for expansion of Cairo International Airport was made possible to a large part through a World Bank-funded airports development project. The project aims to enhance efficiency of management at Egypt's airports and double the passenger capacities of the Cairo and Sharm El-Sheikh international airports.
The World Bank's Board of Directors had approved a $335 million loan for the airports development project in March 2004, under the rationale that the two airports are vital for meeting international air transport demands and boosting the country's foreign currency earnings, mostly from tourist arrivals.
To meet projected growth in tourism demand, Terminal 3 at Cairo International Airport is designed for a capacity of handling up to 11 million passengers per year - six million international passengers and five million domestic passengers.
The terminal, due to be completed in three years, will be equipped with six conveyer belts and 10 counters, in addition to a mall and multi-storey car park.
After the refurbishment of Cairo International Airport, Terminal 2 is expected to handle up to 3.6 million passengers a year, and Terminal 1 a further six million passengers.
Last December, Cairo International Airport signed an agreement with Frankfurt Airport Services (Fraport), operator of one of Europe's main aviation hubs, to run Cairo airport on a private, revenue-sharing basis. The eight-year contract covers the airport's existing two terminals as well as the planned third terminal. [TS]
By Eman Wahby, APD Staff Writer in Cairo
© APD (Arab Press Digest) 2005
