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Wed 27 Jun 2012 02:52 PM

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Arabtec-TAV group wins US$2.9bn Abu Dhabi airport deal

Consortium of UAE builder and Greek, Turkish firms wins deal to build new terminal

Arabtec-TAV group wins US$2.9bn Abu Dhabi airport deal
The contract was signed with the group that includes Turkeys TAV Insaat, Athens-based Consolidated Contractors Company and Dubais Arabtec.

A consortium of Arabtec Holding that includes Greek and Turkish firms on Wednesday won a AED10.8bn (US$2.94bn) contract from the Abu Dhabi government to build a mid-field terminal at the cash-rich emirate's airport.

The contract was signed with the group that includes Turkey's TAV Insaat, Athens-based Consolidated Contractors Company and Dubai's Arabtec, a statement from operator Abu Dhabi Airports Company (ADAC) said.

Construction of the complex will begin in the third quarter and is expected to be concluded in 2017.

"Abu Dhabi Airports Company is looking ahead to an exciting five years of growth focusing on increasing traffic at Abu Dhabi International Airport and on expanding the airport's infrastructure to support this growth," Ali Majed Al Mansoori, chairman of ADAC said in the statement.

The 700,000 sqm terminal building is one of the key strategic infrastructure projects to be undertaken in the UAE capital, and will initially handle 30m passengers per year. It will be the future home of Abu Dhabi's Etihad Airways.

The project will include two phases, the four-year construction phase and the operational readiness assessment phase to undertake tests, the statement said.

In May, ADAC had said it identified the consortium as the preferred bidder for the contract. Reuters had reported in April that the consortium was close to winning the contract.

Abu Dhabi's state-owned investment firm Aabar is the main shareholder in Arabtec.

Oil-rich Abu Dhabi, home to one of the world's largest sovereign wealth funds, is investing billions of dollars in tourism, industry and infrastructure as it diversifies its economy away from oil.

Shares in Arabtec ended 0.4 percent higher on the Dubai bourse. Akfen Holding, the holding company of TAV Insaat, was trading up 3.1 percent on the Istanbul stock exchange as at 1030 GMT.

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Engr.Mirza Sarfaraz Mohammad Baig 6 years ago

Maa shaa Allah. Hope ADAC learn the lesson from the fiasco Qatar is presently going thru regarding the new airport(HIA) at Doha. All they need is perpetual eye on what contractors and project managers are doing,once the plans are 100% finalized. To do this, Abu Dhabi's Civil Aviation would have to organize an honest & ruthless supervisory committee,reporting directly to top Emirati boss,who must have no nonsense approach to safeguard the image.