A preliminary deal signed by Bouygues in January last year to build and run a terminal at Tehran’s Imam Khomeini International Airport (IKIA) has been cancelled, a spokesman for the French construction group said on Friday.
Mahmoud Navidi, the managing director of IKIA Airport City Company, confirmed that the deal had been ended on Saturday.
He said the cancellation was due to Bouygues’ failing to fulfil its commitments under the agreement.
He 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."
Aéroports de Paris, which was to have been Bouygues’ partner on the terminal development, pulled out of the project in February.
It is understood that the project was hampered by the reluctance of international banks to provide finance, given the Trump administration’s hostility to Iran and the possibility of further US sanctions.
Bouygues’ fortunes contrast with its rival Vinci, which is going ahead with two deals at Mashhad and Isfahan airports.
Image: Khomeini airport currently handles about 6 million passengers a year (Prince of Persia)