SaudiArabiaHajjTerminal WBG IFC IsDB

- MULTILATERAL DEVELOPMENT BANKS’ COLLABORATION:
INFRASTRUCTURE INVESTMENT PROJECT BRIEFS
Saudi Arabia: Hajj Terminal at King

Abdulaziz International Airport
Overview
The millions of religious pilgrims who visit the Saudi holy cities of Makkah and
Madinah every year are experiencing better quality services at the Hajj Terminal
at Jeddah’s King Abdulaziz International Airport as a result of a concession award-
ed by the General Authority of Civil Aviation of Saudi Arabia (GACA) in December
2006 to expand and modernize the terminal facilities. The new terminal, complet-
ed in 2011, served 8.3 million passengers in 2012. The Islamic Development Bank
(IsDB) provided up to US$100 million in financing while the International Finance
Corporation (IFC) served as lead transaction advisor to GACA. The Hajj Terminal
was the first Public-Private Partnership (PPP) project undertaken by GACA, which
has since been replicated to other airport projects by GACA.
This series showcases how the Multilateral Development Banks’ collaboration

supports the development and implementation of infrastructure investment. This
support comes in the form of public sector loans, private sector finance, sector
and transaction advice, guarantees, and output-based aid.
- MULTILATERAL DEVELOPMENT BANKS’ COLLABORATION: INFRASTRUCTURE INVESTMENT PROJECT BRIEFS - MARCH 2017
Background Multilateral Development Banks’ Role
Every year, during the 12th month of the Islamic The Islamic Development Bank provided $100 million
calendar, Muslims from around the world embark in financing for the project with a 10-year repayment
on the journey to Makkah for pilgrimage (Hajj). period. The Hajj Terminal Redevelopment is the first
Since 1981, the Hajj Terminal at King Abdulaziz aviation PPP and the first Shariah-compliant financing
International Airport in Jeddah has been the main for a BTO concession in Saudi Arabia. The IFC,
facility for processing pilgrims visiting Makkah and member of the World Bank Group, provided advisory
Madinah for the Hajj and Umrah. The airport has services, organizing a transparent international
three terminals: one for Saudi Arabian Airlines, bidding process to ensure selection of a reputable
another for foreign operators, and a third exclusively consortium capable of handling such a complex
for Hajj and Umrah. airport infrastructure project. The IFC engagement
also focused upon establishing a successful PPP
The original Hajj terminal was a prestigious building,
model with replicability.
winning the Agha Khan Award for Architecture in
1983. However, since the late 1990s, the number of
pilgrims attending the Hajj had more than doubled.
Outcomes
By 2005, despite being one of the largest airport The fully modernized Hajj Terminal was completed in
buildings in the world, the Hajj terminal had reached 2011 making it safer and more pleasant for pilgrims
capacity. The increasing number of Hajj pilgrims traveling to Makkah for the Hajj. The terminal has
every year, overburdened the capacity of the facilities, the capacity to process 3,800 arriving passengers and
resulting in poor service and long processing and 3,500 departing passengers per hour meeting the
waiting times. GACA recognized that the existing level “C” service standard from the International Air
terminal was inadequate to handle the growth Transport Association (IATA) for peak operations.
in the number of Hajj and Umrah pilgrims and In 2015 the new Hajj terminal served 8.8 million
appointed IFC as the lead advisor for structuring and pilgrims. GACA expects an increase of approximately
implementing a public-private partnership with an 17 percent in the total amount of Hajj and Umrah
international airport operator that had the experience traffic by 2019, once the expansion projects of the
to build and operate modern terminal facilities. Holy Mosques are completed.
Project Description The Hajj and Umrah traffic contributes substantially

to the Saudi economy and the government is keen
The project tripled the terminal surface area to 90,000 in increasing religious tourism. King Abdulaziz
m2 and included lounges, prayer halls, retail areas, International Airport is expected to annually
food courts and 10 contact gates with additional contribute US$10 billion to Saudi Arabia’s
remote gates. A consortium led by the Saudi Binladin economy.
Group in association with Aéroports de Paris
Management won the 20-year build-transfer-
For more information please contact:
operate (BTO) concession for the Hajj Terminal.
World Bank Group: Nadine Ghannam
The consortium has invested US$249 million in a new Email: [email protected]
terminal that is unique because it can be converted IFC: Geoffrey Keele
from an arrivals-only to a departures-only facility Email: [email protected]
to cope with peak demand during the Hajj season, Islamic Development Bank: Khaled Nazer
when passenger numbers hit a high of 80,000 per Email: [email protected]
day. The BTO concession was financed through an
Islamic Loan with participation from the Islamic
Development Bank, Bank Al-Jazira and Credit Suisse.
Photo Credits
Front: Jean Laprevotte/IFC
eib.org @EIB ifc.org @IFC_org worldbank.org @WorldBank

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- MULTILATERAL DEVELOPMENT BANKS’ COLLABORATION:

INFRASTRUCTURE INVESTMENT PROJECT BRIEFS

Saudi Arabia: Hajj Terminal at King

This series showcases how the Multilateral Development Banks’ collaboration

Project Description The Hajj and Umrah traffic contributes substantially

eib.org @EIB ifc.org @IFC_org worldbank.org @WorldBank

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