Bouygues construction lost International Airport upgrading contract in Iran

The French company and Imam Khomeini International Airport (IKIA) City Company signed, in January 2016, a memorandum of understanding (MoU) for the undertaking of an enhancement project at the airport but it has been canceled due to delays.

The preliminary agreement signed between both companies consisted in the building and running of a new terminal. Last week, Bouygues spokesman officially announced the cancelling of the contract. Two different motives are claimed.

The French Company has expressed its difficulty to get financial backing from international banks which had led to delays in delivering documents.

Mahmoud Navidi, the managing director of IKIA Airport City Company said: “The memorandum had seven paragraphs listing financial and technical area in which the company had to submit their documents to us so that talks over their investment in the terminal could continue.
“However, the company was not able to fulfil these seven paragraphs in the preliminary agreement. Hence, about four months ago in a written letter, we announced to the French company that the agreement had been cancelled.”

The project was worth $2.8bn.