TAV in major airport deal

ISTANBUL (Reuters) – Turkish airport operator TAV, due to list on the stock market this year, and Japan’s Taisei have won a contract to build a terminal at Doha airport for over $800 million, TAV said on Friday. TAV said in a statement that the total cost of the airport project was $5 billion, divided into 34 tender packages, with the construction tender with Taisei being the largest. The company said the deal was worth $805 million. A TAV official earlier told Reuters that its lowest bid, made in riyals, was worth $809 million. «Construction of the building is planned to begin within a month. The Doha project will be the fourth abroad which the TAV Group has taken on,» the statement said. The project is expected to take 26 months and the terminal will have capacity for 12 million passengers a year. Sources close to the tender said last month that TAV and Taisei had made the lowest bid, while the second-lowest bidder was Britain’s John Laing, offering $866 million. Previously a source familiar with TAV said its initial public offering planned for this year would value the company at around $1.5 billion when it lists in Istanbul. The company won a landmark deal last June to operate Istanbul airport’s domestic and international terminals for 15-and-a-half for $3 billion. TAV also secured the right to build and operate Ankara’s airport for 189 million euros ($226.3 million) from autumn 2006 and is a partner in a similar project in Izmir, Turkey’s third-largest city. In Egypt it is building Cairo airport for $347 million and it is also working on part of Dubai airport under separate deals.