King Salman Airport Issues Terminal Tender with July Deadline

King Salman International Airport Development Company (KSIADC), backed by Saudi Arabia’s Public Investment Fund, has formally issued tenders for the first phase of terminal construction, targeting a July 2025 deadline. These packages will be delivered using an early-contractor-involvement (ECI) procurement model.

Project Snapshot

• Scope: The terminal package covers the “Iconic Terminal” and Terminal 6, part of a network that includes facilities for commercial, private aviation, cargo, hangars, runways, public transport, and supporting real estate.

• Timeline: Tender submissions are due by July 2025, following an initial April release and a prequalification completed in late 2024.

• ECI procurement: New tenders require shortlisted contractors to provide design input, delivery methodologies, cost strategies and proposals before formal award.

Strategic Context

This new terminal initiative forms part of the broader King Salman International Airport masterplan, designed by Foster + Partners with Jacobs and Parsons for engineering and Mace as delivery partner. The airport spans about 57 km², including six parallel runways, targeting 120 million annual passengers by 2030 and 185 million by 2050. The Iconic Terminal is intended as a signature gateway, both architecturally and operationally integrated with the wider “aerotropolis” plan.

Why ECI Matters

Adopting an ECI framework allows KSIADC and PIF to:

1. Harness contractor expertise early for value optimisation.

2. Improve design-build coordination to frequent cost and programme estimations.

3. Reduce delivery risks in large-scale, complex infrastructure through aligned problem-solving before final contract award.

   
   
   
   

Potential Bidders and Partners

Prequalified U.S. and international firms, including Bechtel, Parsons, and Mace, are leading contenders. Parsons is already involved in airside and landside delivery partner roles, while Bechtel has been formally appointed to deliver the commercial, Terminal 6, and private aviation terminals.

Successful bidders are expected to assemble consortia including:

• Project management consultancies

• Structural and MEP engineers

• Specialist systems integrators (BHS, security, IT, fire, mobility)

• Local construction and logistics subcontractors to satisfy local content requirements

Risk and Delivery Challenges

• Technical disclosure: High-profile terminal designs and cutting-edge systems require coordinated resolution of integration and interface challenges.

• Timing squeeze: With 2030 operational targets, construction and systems integration must be efficient.

• Integration with core network: Smooth alignment with runways, transport links, and cargo terminals is essential to system-wide performance.

• Local content and ESG: KSIADC will enforce sustainability targets and employment requirements within the ECI submissions and evaluation.

Implications for the Industry

• International opportunity: This tender demonstrates Saudi Arabia’s continued openness to global EPC and systems integrators leading landmark aviation projects.

• Best-practice trend: Reflects a growing shift in the region to ECI procurement for megaprojects, enabling better risk sharing and delivery performance.

• Benchmarking future work: Lessons from terminal procurement are expected to influence upcoming runways, transport links, logistics hubs, and commercial developments.

What to Expect Next

Shortlisted firms will refine methodologies in the ECI phase over Q3–Q4 2025. Final awards are likely around Q1 2026. Construction could begin by mid‑2026, aligned with runway and landside infrastructure development through 2030. Integration with Riyadh’s metro, road, and airport city logistics will be critical to operational success.