Arab Republic of Egypt

Development of Hurghada International Airport (Supplementary Loan)
Loan No: 559 Interest Rate: 3.0 %
Beneficiary: Egyptian Airport Company Grace Period: 5 years
Project Cost: KD 119.0 million Maturity: 25 years
Amount of Loan: KD 15.0 million Repayment: 41 semi-annual installments
Date of Board Approval: 2010-12-09 First Installment: 5 years following the first disbursement
Date of Loan Agreement: 2010-12-09 Date of Loan Effectiveness: -

Objectives:

The project aims at improving air transport services and accommodating the increasing demand for transport services of passengers and freight through Hurghada International Airport. The project also aims at developing the tourism industry, which is a key element of economic and social development in the Red Sea Governorate.

Description:

The Project, which is expected to be completed during the first quarter of 2013, consists of the construction of a departure terminal with the required equipment and facilities, in order to enable airlines to provide the appropriate services to passengers. The main components of the project include:

  1. Construction of a Terminal Building and an Apron: This includes the construction of a 90,000 m2 terminal building, comprising departure and arrival halls, with furniture, equipment, luggage receiving and handling units, lifts, escalators and all necessary electro-mechanical works, as well as security and audio-visual systems required for the management and control of the operation of the terminal. This also includes the construction of a 90,000 m2 apron, in addition to roads and external parking areas for vehicles and other ancillary works.
  2. Runway, Taxi-ways and Service Roads:This includes the construction of a runway, 4 km long and 60 m wide, and taxi-ways. This also includes all structural, electrical and mechanical services, as well as water drainage, and other services such as service roads.
  3. Consultancy Services:This includes preparation of technical studies, design, tender documents and supervision of the project.

Financing:

The Arab Fund’s supplementary loan, along with the original loan (No. 488/2006), cover about 42.0% of the total project cost. The Egyptian Government will cover the remaining cost of the project and any additional cost that may arise.