Wednesday, July 28, 2021

Abu Dhabi Airports calls off a $3B Midfield Terminal contract?

The operator of Abu Dhabi International Airport (AUH), Abu Dhabi Airports (ADAC), has reportedly canceled a contract with a consortium, which was constructing a new Midfield Terminal. 

The insider sources familiar with the matter, quoted by Reuters on July 5, 2021, said that the operator of the main United Arab Emirates (UAE) airport canceled a $2.9 billion contract with a consortium, which was building a new Midfield Terminal at AUH airport. One of the sources said the state-owned Abu Dhabi Airports canceled the contract after the group overran project costs.

The consortium of Arabtec, TAV Insaat, and Consolidated Contractors Company won the contract to build a new Midfield Terminal at Abu Dhabi International Airport in 2012. 

The new 700,000 square meters Midfield Terminal at AUH airport was supposed to be opened in 2017. However, the project was delayed by two years to 2019 due to roof design issues. In July 2020, former Senior Vice President Commercial Gavin McKechnie told TRBusiness the Midfield Terminal opening was pushed to late 2021. 

“The whole project has now sadly ground to a halt due to COVID-19,” McKechnie said. “We lost a year within a year. When I returned to ADAC in 2018 my job was to renegotiate all the contracts, because with Etihad Airways downsizing in 2015/2016 and passenger numbers consequently plummeting, most of the contracts were unsustainable for Midfield.”

The new Midfield Terminal was supposed to help with the growth of Etihad Airways. However, the Abu Dhabi-based air carrier has restructured and scaled back its ambitions to grow.

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