CAIRO: Egypt’s government has awarded Turkish Limak Construction, a flagship company of Limak, with a $387 million contract to expand Cairo airport’s second terminal and increase passenger capacity.
Approved by the World Bank in February 2010, a $280 million loan in assisting Egypt will be put towards financing the second terminal project, a bank official in Cairo told Daily News Egypt.
The project was secured and is currently ongoing despite the recent political turmoil that hit the country after the ouster of former president Hosni Mubarak.
Harun ?yidil, member of the Limak executive board, said in a statement that the project “symbolizes the restoration of stability and trust in Egypt after a difficult period.”
"It will open the gates of Cairo to the world with significant contributions to the country’s economy,” he added.
The Egyptian Holding Company for Airports and Air Navigation (EHCAAN) is the government agency overseeing the ongoing project, as it is responsible for all airport projects in Egypt.
The Cairo Airport Terminals Company, a subsidiary of EHCAAN, will be funding the remaining costs of the project, Egypt state-owned Al-Ahram reported.
The “official” closing date for the project is November 30, 2015, according to the bank.
Although several other companies competed in the bid, the Turkish consortium won the deal due to their “competitiveness,” Alaa Ezz, secretary general of the Federation of Egyptian Chambers, told DNE.
Ezz added that when it comes to business in the region, “Turkey, who is very competitive when compared to Egypt, has an advantage” for several reason; whether it be cheaper labor, skills, or better quality for lower prices.
According to the World Bank, the objectives of the second terminal building (TB2) is to help Egypt’s government in enhancing the overall quality of the country’s airport services by increasing the capacity of Cairo International Airport (CAI).
“The construction of a new terminal on the site of the existing Terminal Building 2 with a capacity up to 7.5 million passengers per annum, increases the overall capacity of CAI to 25 million passengers per annum,” said said Michel Bellier, the World Bank Task Team Leader in a statement released in 2010.
The new terminal building will operate jointly as one integrated terminal, “thus reinforcing the role of Cairo International Airport as a regional hub,” Bellier added.
Consisting of two components, the project is expected to also strengthen air transport in Egypt.
“The first component of the project is rehabilitation and expansion of the TB2 at the CAI; the new TB2 will be operated in combination with the recently completed TB3,” the bank stated.
“The second component of the project is technical assistance and studies. The project is based on the expectation of strong traffic growth in the coming decade. It finances the necessary airport infrastructure improvements to meet and facilitate this growing air transport market,” the bank stated.
The bank also notes that given the “increased complexity of the air transport sector, the project will include a component to strengthen the institutional capacity of the sector’s institutions.”
Furthermore, “this component will support policy initiatives and the enhancement of air transport services in Egypt.”
After the terminal is completed, the number of gates will increase from seven to 14, including new Airbus A380 facilities.
“To monitor and manage all airport and hub operations from one centralized location, Terminal 2 will host the new Airport Operations Control Center (AOCC),” CAI said on their website. “It will be located on-top of the new Terminal and supervise operation in Terminal 1, 2, 3, airside and also curbside.”
According to CAI, after the completion of the project, the entire terminal’s “look and feel” is expected to improve significantly.
Cairo International Airport is the second largest in Africa, after Johannesburg Airport in South Africa.
Currently, CAI is used by 58 passenger airlines, which include charter operations, 10 cargo operators, and has a total capacity of 21 million passengers per year divided across the three terminals, according to the World Bank.
