IMPLEMENTATION REGULATION FOR CIVIL AVIATION TARIFF SYSTEM ISSUED BY ROYAL DECREE NO. M/55 DATED 20/10/1426H. CHAPTER 1   DEFINITIONS

Article 1 : The following words and expressions - wherever mentioned in this system - shall have the meanings that immediately follow them unless the context requires contrary to: Charter Flights: means the flight operated on an irregular basis within a limited period for meeting the demand on seasonal traffic such as Hajj, Umra and tourism seasons. Special Flights: means the flights operated with aircraft for commercial or noncommercial purposes without tickets. Such flights include the carriage of businessmen and VIPs. Authorized Air Freighter:means a cargo agent or consignor or any other body who deals commercially with an air carrier or his agent and provides the concerned authority with security measures with respect to the carriage of cargo, mail, parcels and similar items. Air Cargo Offices: means the offices or agencies duly licensed to practice air cargo activities, receive consignments and process the shipping thereof through authorized forwarders. 

CHAPTER 2 CHARGES

Article 2 : A landing charge of SR30 shall be levied for each thousand (1000) kilograms or fractions thereof starting from (500) kilograms of the weight of the aircraft. Article 3 : An aerodrome control charge shall be levied after the first two hours from landing as follows: 1- An aerodrome control charge of SR10 shall be levied for each thousand (1000) kilograms or fractions thereof, starting from (500) kilograms of the weight of the aircraft, against its stay in the airport, per every eight (8) hours starting from the time of its landing up to 24 hours, and afterwards the same amount shall be charged for every 24 hours. This applies to the aircraft which are not registered in the Saudi National Register of Aircraft. 2- A charge of six (6) Saudi Riyals shall be levied for each thousand (1000) kilograms or fractions thereof, starting from (500) kilograms of the weight of the aircraft against its stay in the aerodrome, per every eight (8) hours starting from the time of landing up to 24 hours, and afterwards the same charge shall be levied for every 24 hours. This applies to the aircraft registered in the Saudi National Register of Aircraft. Article 4: Air navigation facilities and services utilization charge with respect to the aircraft overflying or landing in the Kingdom's FIR shall be calculated in accordance with the following formula: Charge = S X D X W Where: S = Service unit rate, calculated to the amount of SR100. D = Distance factor, representing the distance between the point of entry and the point of exit in kilometers, divided by (100). W = Weight factor which is calculated on the basis of the maximum take-off weight in according to the following table:

Based on the above, the number of service unites = DxW Article 5: Charges for the transport of passengers from aircraft to the lounges and vice versa, including the loading bridges, shall be levied for each aircraft as follows: 1- One hundred (100) riyals for each aircraft weighing not more than (50,000) kilograms. 2- Two hundred (200) riyals for each aircraft weighing more than (50,000) kilograms and with maximum weight of 100,000 kilograms. 3- Three hundred (300) riyals for each aircraft weighing more than 100,000 kilograms and with maximum weight of 200,000 kilograms. 4- Four hundred (400) riyals for each aircraft weighing more than 200,000 kilograms and not more than 300,000 kilograms. 5- Five hundred (500) riyals for each aircraft weighing more than 300,000 kilograms and not more than 350,000 kilograms. 6- Six hundred (600) riyals for each aircraft weighing more than 350,000 kilograms. Article 6: 1- Charges for security services shall be levied for each aircraft departing from one of the Kingdom's airports. Exempted from such charges are the connecting planes in international transit flights and cargo planes, as follows:

1-1 An amount of SR500 for each aircraft weighing 7000 kilograms or less.
1-2 An amount of SR100 for each aircraft weighing 7001 kilograms as minimum and136,000 kilograms as maximum.
1-3 An amount of SR1,500 for each aircraft weighing 136,001 kilograms or more. 2- An aircraft guarding charge shall be levied as follows: 2-1 An amount of SR50 per hour for each aircraft weighing 7000 kilograms or less. 2-2 An amount of SR100 per hour for each aircraft weighing 7001 and not more than 136,000 kilograms. 2-3 An amount of SR150 per hour for each aircraft weighing 136001 or more. 3- A charge shall be levied for pulling along an aircraft for every hundred (100) meter distance or fractions thereof, should the owner requests such service, as follows: 3-1 An amount of SR 20 for an aircraft weighing 7000 kilograms. 3-2 An amount of SR40 for an aircraft weighing 7001-1136000 kilograms. 3-3 An amount of SR60 for an aircraft weighing 136001 kg and above. Article 7: The following amounts shall be charged in return for the issuance of licenses for the ground equipment assigned for the service of aircraft per every year or a part thereof: Article 8: 1- An amount of SR50 shall be levied per each year or a part thereof against issuance of gate passes for areas which subjected to security check for persons authorized to enter the apron area, arrival and departure terminal and such areas an amount of SR150 for a replacement of a gate pass and amount of SR300 for a second replacement.

2- An amount of SR400 shall be charged per each year or a part thereof against the issue of an entry pass to the airside for the vehicles authorized to enter the apron area, and SR500 for a replacement of such pass. 3- An amount of SR300 shall be charged per each year or a part thereof against the issue of an entry pass to the airside for the vehicles working in the apron area, and SR400 for a replacement of such pass. 4- An amount of SR50 shall be charged per each year or a part thereof against the issue of an entry pass driving to the airside apron area, and SR150 for a replacement of such pass. Article 9: 1- Charter Flight and Private Flight with Foreign Registration Licenses (Overfly and Landing): 1-1 An amount of SR100 shall be charged for the issuance of overflying and landing permit for each flight. Such permit shall be valid for (72) hours. 1-2 An amount of SR3,000 shall be charged for the issuance of each overflying and landing permit. Such permit shall be valid for one month per one flight daily. 1-3 The requesting party shall be responsible for payment of the permit charges. 2- Annual Licenses (for Private Flight with foreign registration) (overflying of landing). 2-1 A charge of SR10,000 shall be levied against the issue of an annual license for private aircraft with foreign registration to transit the Kingdom's FIR without landing in its airports. 2-2 A charge of SR20,000 shall be levied against the issuance of an annual authorization for private aircraft with foreign registration to transit the Kingdom's FIR and landing in its all airports. 3- Licensing of Air Freight and Ground Services Agencies: A non-refundable amount of SR1,000 shall be levied against obtaining an application form for practicing air freight activity or for providing ground services. 3-1 Air Freight Agency Offices: 3-1-1 An amount of SR50,000 shall be charged for the issue or renewal of a head office license for practicing the authorized air freight activity for two years.

3-1-2 An amount of SR20,000 shall be charged for the issue or renewal of a branch office licence for practicing authorized air freight activity for two years. 3-1-3 An amount of SR10,000 shall be levied against the issue or renewal of a main office license for practicing grouping air freighter activity for two years. 3-1-4 An amount of SR5,000 shall be charged for the issue or renewal of a branch office license for practicing grouping air freighter activity for two years. 3-1-5 An amount of SR2,000 shall be levied against processing the transfer of the agency ownership. 3-1-6 An amount of SR1,000 shall be levied against processing the change of the office address or agency. 3-2 Ground Handling Services: 3-2-1 A charge of SR50,000 shall be levied against the issue or renewal of an office license for practicing ground handling service activity at one of the international airports for three years. 3-2-2 A charge of SR25,000 shall be levied against the issue or renewal of an office license for practicing ground handling services activity at a regional airport for three years. 3-2-3 A charge of SR15,000 shall be levied against the issue or renewal of an office license for practicing ground handling services activity at a domestic airport for three years. Article 10: 1- Charges for Registration of Aircraft in the Saudi Register. 1-1 An amount of SR10,000 shall be charged against: 1-1-1 Issuance of an aircraft registration certificate. 1-1-2 Changing the registration mark. 1-1-3 Changing the ownership of a registered aircraft. 1-2 An amount of SR2,500 shall be charged for: 1-2-1 Re-issue of an aircraft registration certificate due to damage or loss of the original certificate. 1-2-2 Invalidation of an aircraft registration.

2- Airworthiness Certificate Fees: 2-1 An annual charge shall be levied against the issue of an airworthiness certificate or a certificate of aircraft suitability for export according to the following table: 2-2 Seventy five percent (75%) of the charges specified in Paragraph (2-1) shall be levied against the renewal of the airworthiness certificate. 2-3 Twenty five percent (25%) of the charges specified in Paragraph (2-1) shall be levied for second request for a replacement in case of loss or damage of the original certificate. 3- Special and Provisional Flying License: In special technical cases a charge of SR5,000 shall be levied for the issue of a special and provisional flying permit, and SR500 shall be charged for the re-issue of such permit when requested. 4- Supplementary Type Certificate (STC) : A charge will be levied for the issue of a Supplementary Type Certificate STC, which may involve the amendment of the basic specifications of the aircraft, as follows: 4-1 An amount of SR2,000 upon submission of the application.
4-2 An amount of SR400 for each working hour, until the issue of the requested certificate, provided that the required working hours should be approved by decree of the president of GACA. 5- Repair Station Certificates: 5-1 A charge of SR20,000 shall be levied upon issue or renewal of an aircraft servicing and repair station certificate, or upon changing the location or the ownership of the repair station. Such certificate shall be valid for one (1) year. 5-2 An additional charge of SR10,000 shall be levied per each request submitted for adding a certain service to the certificate.

6- Charges for the Issue of One Year Valid Licenses/Authorizations: 6-1 A charge will be levied for the issue or renewal of one year valid licenses/authorizations as follows: 6-2 One Hundred percent (100%) of the charges specified in the above Paragraph (6-1) shall be levied upon issuing a replacement / damage of the certificate. 7- The Examination Procedure: 7-1 A charge shall be levied for any of the following Tests as follows:

7-2 The above charges do not include the means and instruments used such as (the aircraft, simulators…… etc.) 8- Schools and Flight Institutes Licensing Charges: 8-1 A charge of SR20,000 shall be levied upon issuing licensing or changing the ownership for school or aviation institutes, in addition to SR400 levied for each working hour necessary for the issue of the licensing, provided that the required working hours should be approved by the president in the General Authority of Civil Aviation. 8-2 A charge of SR10,000 shall be levied for assessment and approval of the cockpit simulator valid for one year. 9- TDY Allowances (Per/diem) If the requested service requires the assignment of a specialist to accomplish a task outside the city where the head office of the concerned authority is located, he shall receive SR2000 per day along with round trip tickets on at least business class to the place of the requested service whether inside or outside the Kingdom by providing the ground transportation from/to the site.

10-Other Charges: 10-1 A charge of SR400 shall be levied for each working hour required for the review of the amendments or updating of the aircraft Minimum Equipment List (MEL), provided that the required working hours should be approved by the president of civil aviation. 10-2 A charge of SR5,000 shall be levied upon requesting the first extension for the Aircraft Minimum Equipment List (MEL) in order to maintain the continuity of aircraft operation. 10-3 A charge of SR15,000 shall be levied upon requesting any other extension of the MEL after the first extension for each case. 10-4 A charge of SR50 shall be levied for each page when amendments and updating of operation manuals and specifications are requested, for approval thereof. 10-5 A charge of SR300 shall be levied for special code service at the aircraft transmission and receiving system ( MODE/S). 10-6 A charge of SR300 shall be levied for special code service at the site transmission equipments (ALT) at the emergency case. 10-7 A charge of SR300 shall be levied upon issuing for special license of Reduce Vertical Separation Minimum (RVSM) or using the reduced navigation equipment (NAT/MNPS, RNP, BRNAV). 10-8 A charge of SR20,000 shall be levied yearly upon subscription in Aeronautical Fixed Telecommunication Net (AFTN) and this including providing the technical Support during the subscription period. Article 11: A charge of SR10 shall be levied on annual bases for each linear meter of the fuel lines intended for supplying the aircraft with fuel within the airside. Article 12: It is not permissible for the Air Control units at the airport to give permission to any aircraft to take-off unless it makes sure that the aircraft has an authorized agent in the Kingdom, or that the captain of the said aircraft has paid the entitled charges. Article 13: The Air Control Unit at the airport shall provide the Financial Administration, or its sections in the various airports, with a daily detailed report about the take-off and landing traffic for all kinds of aircraft according to the approved form designed for that purpose, in addition to another report about the aircraft overlying the Kingdom's territories without landing therein, using the relevant approved form.

Article 14: The financial department at the airports shall prepare a report on the movement of revenues and what collected in the airport at the end of each lunar month and submit the original report to GACA Financial Department. Article 15: The financial department at the airports shall maintain an accounting record for each airline or its authorized agent within the airport area, to show the amounts due from the airline or its authorized agent and the copy of the invoices, and the amounts paid according to the copy of disbursement vouchers. Article 16: 1- The duties and responsibilities of the authorized airline agents towards the financial obligations of the airlines which they represent, under the law and its Implementation Regulation, shall be subject to the provisions of the Civil Aviation Law issued by the Royal Decree No. M/44, dated 18/07/1426H., its Implementation Regulation and the further relevant instructions, rules and procedures. 2- Immediately after his relationship with the airline which he represents is terminated, and before the liquidation of the company's business in the Kingdom, the authorized airline agent shall so notify GACA, otherwise he shall be responsible, jointly with the airline, for the payment of all the amounts and other liabilities accrued under this Implementation Regulation and other related regulations. Article 17: Fees and Charges shall be levied on monthly basis from the national airlines and from international airlines which operate regularly to the Kingdom and have authorized agents therein. As for the aircrafts which do not operate regular flights to the Kingdom, the established charges shall be levied before their take-off, and they shall not be allowed to depart before payment of the charges due from them Article 18: Overfly charges shall be levied from the airlines whose aircraft cross the Saudi airspace and have no authorized agent in the Kingdom, by sending the invoice to the owner or the operator airline's headquarters abroad. Article 19: 1- Each airline or its authorized agent shall pay the charges due from them within thirty days from the date of claim; yet the airline or its authorized agent reserves the right to object to the submitted invoice during the said period, and if no written demurral is submitted within that period, the invoice shall be deemed correct and payable, and no further demur shall be accepted after that period.

2- A period of thirty (30) days shall be added to the periods specified in paragraph -1 of this Article with respect to the airlines which have no offices or authorize agents in the Kingdom, and for which the invoices of their overfly charges and other service charges are sent to their head offices abroad. 3- If the period mentioned in paragraph (1 & 2) of this Article – according to the condition - has elapsed without payment of the due charges or objection thereto, the delay penalty provided for in Article 4 of the Law shall be applied proportionally by percentage assessed by a decree from the president of GACA for the delay period. Article 20: The following shall be stated in the invoice: 1- The airline and its authorized agent have the right to verify this invoice and object to it within thirty days from its date of issue. 2- Upon expiration of the specified verification and objection period without payment of the invoice the established penalty shall be imposed spontaneously. Article 21: If after three months from the date the invoice is issued, neither fees and charges nor the delay penalties have been paid, GACA will have the right to stop the aircrafts of the defaulter airline. Article 22: If the deadlines specified in this Implementation Regulation coincide with an official holiday in the Kingdom, they shall be extended to the first working day following the holiday. Article 23: Without prejudice to the previous article (21) of this law and the provisions of Article 14 of the State's Money Collection Law, it is possible through administrative actions to attach by garnishment any debts and amounts due to the debtor from third parties, whether such liabilities are deferred or conditional, and any moveable property he may have in the hands of third parties, inasmuch as is sufficient to settle his debt. Article 24: No entry passes to the terminals and airside for person, vehicle and ground equipments assigned for aircrafts shall be granted unless the charges due are paid. Article 25: Requests for obtaining passes for ground equipment shall be submitted to the airport manager concerned, stating the type and number of the required units and owner name, accompanied by the documents relating to each equipment along with the required insurance policies. Upon approval of airport manager the request shall be referred to the

Airport financial department for the determination of the regulation charges to be levied before issuing the passes. Article 26: The financial department of the airport shall issue a pass for each equipment, and the owner company shall be instructed to affix such pass on a conspicuous part of the equipment. Article 27: The competent security authorities of the airport shall not allow any equipment or vehicle to enter the airside unless it has the security pass affixed to it. Article 28: Each financial department of the airports shall keep a record for registering the type, number and size of the equipment granted access to the airside, their owner, pass serial number, receipt number, issue date and validity of the authorization. Article 29: The financial departments of the airports shall maintain a record for registering the names of the persons to whom entry passes have been issued in addition to their addresses, employers, pass serial number, charge receipt number, issue date and validity of the pass, and another registration record for number of vehicles granted passes to access to the airside together with their type, color, model, number and date of their ownership documents and their departments and serial number of the passes and its validity. Article 30: Requests for obtaining passes to the airside for persons and vehicles shall be submitted to the airport director accompanied by the necessary documents related to the persons and vehicles involved, along with the required insurance policies. Upon approval, the request shall be referred to the airport financial department for specifying the due charges to be levied according to regulations. Article 31: All insurance policies provided must include liability for any damage to aircraft and their passengers, equipment and persons within the airside. The minimum liability shall be determined by GACA from time to time. Article 32: GACA shall determine the shape and type of all cards/permits that will be issued whether for persons, equipment or vehicles, with serial numbers for each category. Such cards/permits will be approved by GACA President.

Article 33: All permits and cards shall be in the custody of the Finance Department which will provide the financial department at the airports with the required quantities of permits and cards pursuant to a receipt specifying the quantity, serial numbers and delivery date. Such permits shall be issued to the users only in accordance with the provisions stipulated in the Law and this Implementation Regulation. Article 34: Requests for obtaining aircraft guarding service shall be submitted to the airport director who will refer the same to the financial department for collecting the established regulation charges. Article 35: Requests for the registration of new aircrafts, and applications for issue or renewal of permits and certificates shall be submitted to GACA President. Upon approval the requests shall be referred to the airport financial department for collecting the established charges. The financial department shall maintain records to include the names of persons to whom permits and certificates have been issued in addition to the numbers, issue dates and expiration dates of such documents as well as the serial numbers of the relevant charge receipts and other necessary information. The competent authority in GACA may not issue the requested permits and certificates unless a notification is received from the financial department that the established charges have already been paid. Article 36: The airport financial department shall collect the established charges for aircraft fuelling lines after approval of the relevant requests by the competent authority.. Article 37: Requests for aircraft trailing shall be submitted to the airport administration, stating the required distance to which the aircraft needs to be pulled. Upon his approval the fixed charges should be collected. Article 38: Concerning the airports where no financial departments are available GACA Finance Department shall assume all the duties of financial departments as set forth in this Implementation Regulation. Article 39: All GACA departments and sections shall provide the Finance Department and airport financial departments with all information, data and statistics as maybe required to facilitate their jobs.

CHAPTER 3 RENTAL VALUES

Article 40: Airports leasing rates will be as follows: 1- Passengers Terminals:      1/1 Luggage Handling Unit at departure lounges which include the counter and the back space and the distance between it and the neighboring counter from one side and the luggage conveyer belt SR 1700 per sq.m annually      1/2 The Underground Luggage Handling Area SR 1600 per Sqm annually      1/3 Luggage receiving area SR 1200 per Sqm annually      1/4 Other areas in the lounges           1/4/1 Air conditioned at the ground floor or above           1/4/2 Air conditioned at the underground floor           1/4/3 Without air-conditioning at the ground floor and above           1/4/4 Without air-conditioning at the underground SR 1700 per Sqm annually SR 1500 per Sqm annually SR 900 per Sqm annually SR 800 per Sqm annually 2- Air freight facilities:      2-1 Storage areas:           2-1-1 Cooled..........................................................................SR 1200 per Sqm annually           2-1-2 Refrigerators ................................................................SR 1800 per Sqn annually           2-1-3 Air-conditioned ...........................................................SR 1300 per Sqm annually           2-1-4 Without air-conditioning ............................................SR 0900 per Sqm annually      2-2 Other areas at the shipment facilities:           2-2-1 Air-conditioned ............................................................SR 1300 per Sqm annually           2-2-2 Without air-conditioning .............................................SR 0900 per Sqm annually 3- Flight operation services facilities:      3-1 Areas within the airside:           3-1-1 Air-conditioned ............................................................SR 1500 per Sqm annually           3-1-2 Without air-conditioning .............................................SR 0900 per Sqm annually

     3-2 Outside the airside:..................................................................SR 1500 per Sqm annually 4- Food service facilities: ...................................................................SR 1500 per Sqm annually 5- Aircraft Hangers including all areas within the hangars, offices .. etc. .... SR 1500 per Sqm annually 6- Other areas:      6-1 Without air-conditioning .......................................................SR 0900 per Sqm annually      6-2 Air-conditioned......................................................................SR 1500 per Sqm annually      6-3 Shaded and paved............................................................SR 0700 per Sqm for one term      6-4 Unpaved shaded or paved Unshaded areas .....................SR 0520 per Sqm for one term      6-5 The specified rent value for areas to be utilized by the contractors to achieve their works and projects of GACA should be approved by a decision issued by GACA president. 7- Open lands:      7-1 Outside the airport fence: ......................................................SR 0015 per Sqm annually      7-2 Within the airport fence:........................................................SR 0010 per Sqm annually      7-3 Excluded from para 7/1 & 7/2 above, are the open lands that may only be leased as per a decision issued by the GACA president, which specify annual rent at value per square meter according to the type of business or utilized           intended to be practiced at these lands.      7-4 In case the leaseholder intends to utilize the airport services, (electric power, water, telephone) … etc, he shall be charged the cost thereof, and he shall bear the costs of connecting these services from the main sources in the             airport to the leased site.      7-5 An amount of one ( 5 ) Saudi Riyal shall be collected per every 10 sqm annually, against installation across the airport land of any public utility lines (Installation of pipes, cables or electric posts .. etc). 8- An amount of SR 1000 shall be collected per each year or part thereof, from every taxi/limousine car for using the airport facilities. Article 41: The president, as per the nature of business, its importance to the airport and its revenues, will have the right to reduce the leasing rates included in this regulation with a view to attract the investors/users as follows: 1- Up to (75%) for the domestic airports. 2- up to (50%) for the regional airports 3- Up to (30%) for the private flight facilities at all airports excluding open areas lands. 4- Up to (25%) for government departments at all airports.

Article 42: The following facilities relating to the commercial investment shall be leased out through public competition or direct contracting, as per the rules and procedures which will be specified by the president: 1- Commercial stores
2- Bank services.
3- Restaurants, auto-selling machines
4- Luggage conveying trolleys
5- Car renting & hotel information counters
6- Vehicle parks
7- Area of commercial and educating advertisements boards
8- Hotels
9- Any new investment facilities Article 43: The GACA concerned department with coordination with the assigned airport will determine the type of facilities assigned for commercial investment that are included in article 42 of this Regulation, the number of stores in each category, the minimum leasing rate for commercial activity. This shall be stated in the tender booklet which should be approved by the president. Article 44: Areas assigned for temporary commercial shows shall be leased thru negotiations and direct leasing by decision from the president, provided that the price of the squire meter shall not be less than (SR2200) monthly or part of this for areas inside the lounges, and (SR1300) for areas outside the lounges as per the following principles: 1- contracts of the commercial shows shall be short term contracts, (not more than three months). 2- Areas assigned for this type of shows, shall be determined according to each airport's circumstances. 3- Contracts of commercial shows shall be for one term and renewable for same period subject to the president's approval. Article 45: In case the rented area is shared between more than one beneficiary, each one shall bear a part of the rental value proportionate to his share in using the leased area. Such proportion shall be determined according to a decision by the president.

Article 46: The leasing areas of informative, commercial & notice boards will be by the direct leasing or by public competition, should be a decision of president. Article 47: The leasing Contract of informative & commercial boards should determine, the board's location, space, conditions and specifications to be fulfilled. No amendments may be made on the board without GACA's prior approval. Article 48: The advertisement language the commercial and notice boards shall be the Arabic, and a translation into other language could be attached. Article 49: The lessee of the informative & commercial boards areas shall observe the following: 1- Not to include in the board any materials contradict the Islamic Shariaá, Public Order or the Rules of Conduct. 2- Not to include in the board incorrect information or contrary to any regulations or instructions issued in this respect. 3- The leaseholder will be responsible for any information included in the board. 4- GACA will have the right to utilize a percentage agreed with the investor not more than (20%) of the total areas assigned for advertisements, in advertising any materials that serve its business or serve national or social purposes. Article 50: Main and secondary fuel supply activity shall be leased through competition, or by direct leasing, as GACA may deem suitable, on condition that the leasing rate must not be less than (SR20) for every 1000 liter of the main supplier sales, (The main supplier of aircraft fueling companies), and not less than (SR6) for every 1000 liter of the secondary supplier sales (Suppliers of airlines companies). Article 51: The operator of fueling service activity is committed to take all necessary arrangements & preventive actions to avoid endangering personnel, public health, constructions, and properties or to expose them to pollution, injuries & damages. He shall also make sure that all the equipment in use satisfy all technical conditions relating to industrial safety and security.

Article 52: The provider of fuelling services shall regularly provide GACA with detailed information and data about his operations. Article 53: In case of any violation of the provisions of Article 51 of this Implementation Regulation, which may result in any damage to property, public facilities and constructions or others, the operator involved shall be obligated to remove such damage at his own expense and/or compensate the party on whom the harm or damage is inflicted according to the applied regulations. Article 54: In case of failure by the investor/lessee of any facility to meet the contract conditions and his contractual obligations, GACA shall have the right to cancel the contract, and the failure party shall be prevent to enter into any commercial activity with GACA for a period equivalent to that of the cancelled contract. The Tender qualifying Committee shall take this into consideration and include it in its minutes. Article 55: The President shall issue a decision regarding the formation of a committee for qualifying the potential bidders for competition not less than (3) members. This committee shall make sure whether the bidders are meeting the specified standards and conditions in order to accept their tenders. Article 56: The President shall make a decision enjoining the formation of a committee or more of three members at least to evaluate the bidding processes and complete the procedures of the successful bidders. Article 57: 1- It is not permissible for civil service employees or public corporations personnel to participate in the competition whether directly or indirectly. 2- Any person other than those who are banned under regulations, may bid by himself or through an authorized representative. Article 58: Interested persons who wish to participate in the competition should fulfill the following: 1- Fill out the specified application form for participating in the competition with all required information.

2- Deliver the application form to the airport management concerned within the period specified in the competition manual. 3- Attach a valid certified true copy of the valid Commercial Registration or the occupational license. 4- Attach a certified copy of the valid Zakat and Income Tax Certificate. 5- Attach a certificate of experience in the field of the activity for which he intends to competed for. 6- Any other documents required in the competition booklet. 7- Sign the inspection report prepared by GACA regarding the facilities for which competition are invited. Article 59: The successful competitor shall pay 20% of his tender value provided and he shall pay the remaining amount according to the terms of the competition upon contract signature. If . he fails to sign the contract and pay the remaining amount , then GACA President shall have the right to award the contract to the bidder with the second best offer, or cancel the competition and invited for new bids with the amount paid be confiscated. Article 60: Unless otherwise mentioned in the tendering document the successful competitor shall provide the following bank guarantees: 1- A bank guarantee in an amount equivalent to 20% of the annual rental value, which must be valid for the whole contract period and extra ninety (90) days following the expiration date of the principal contract period. This guarantee is required for meeting the rehabilitation costs of the facility after departure of the current lessee and/or for the settlement of any entitlements that might become due to GACA from the lessee. 2- A bank guarantee equivalent to 50% of the annual rental value, valid for the contract period, to be used as collateral for settlement of half of the annual rental value when due. 3- A bank guarantee equivalent to 100% of the estimated costs of the required development works if any, and it must be valid for the period required for carrying out such works. This guarantee shall be released proportionally to the completion of each phase of the development works. Article 61: Declaration of the successful competition shall be approved by the President within maximum thirty days from the date the of that declaration.

Article 62: The competent authority in GACA shall prepare a standard lease specifying the rights and obligations of the lessee/investors and the fines imposed on them due their failure to comply with the terms of contract, contract may be in many kinds according to the nature of the leased facilities and the purpose of leasing, and it must be approved by the President. Article 63: 1- GACA shall specify the lease period for the whole facilities referred in article (42) of this regulation according to the nature of the activity to be performed. This shall be set forth in the competition manual and in the contract which will be concluded with the investor/Lessee. Such lease may be renewed for a similar period or periods if it is in the interest of GACA to do so, otherwise new competitors shall be invited subject to a decision by the President. 2- The President has the right, if necessary, to issue a decision for extending the lease on monthly basis, and the lessee/investor shall abide by this extension, provided that the monthly rental shall be the quotient of the annual rental value divided by 12 in addition to the percentage of the income or profits according to the contract. Article 64: The leasing contract may not be subject to waiver, assignment to others or subleasing unless a prior written approval is obtained from GACA. Article 65: Taking into consideration the article No. (62) of this regulation, GACA has the right to cancel the leasing contract due to violation of the terms of the contract thereof by lessee/investor or just for the public interest . Article 66: The lessee shall strictly comply with security and safety instructions and taking into consideration the healthy terms, maintain the areas assigned to him always clean and put the wastes on the places specified for that purpose.

CHAPTER 4 GENERAL PROVISIONS

Article 67: Each lessee of airport facilities shall receive one key or more for each facility as needed, and he shall be charged SR100 for a replacement of a key. However, in case of repeated requests for replacements, SR200 shall be charged for each request. Article 68: GACA reserves the right to get a certain percentage of the earnings or the profits of the commercial activity or the investment projects executed at airports, in addition to the rental values mentioned in the Implementation Regulation. This percentage, contracting period, and the other terms shall be determined by direct negotiation with the lessee/investor and in the light of the feasibility study of the activities under decision of GACA President. Article 69: Subject to a decision by GACA President, the annual rental value set forth in the commercial agreements may be raised at the end of the contract period should the lessee expresses his desire to have the lease extended for another period. Article 70: Subject to a decision by GACA President, and upon signing the leasing contract, the lessee may be allowed to introduce, at his own expense, some improvements or complete some constructions in the facility which is the object of leasing, provided that the ownership of all such improvements or the constructions erected by the lessee on the open space shall revert to GACA at the end of or upon termination of the leasing contract if GACA has no desire to remove them, otherwise they will be removed at the expense of the lessee. Article 71: The amounts due to GACA under the provisions of the Law and its Implementation Regulation will be considered as privileged debts and shall be levied in accordance with the State's Money Collection System. Article 72: GACA President may deputize some employees to inspect the following: 1- All leased facilities to make sure that all the contract terms and provisions of this Implementation Regulation are complied with. It is the duty of the lessee to facilitate the mission of this inspection team, and provide them with any information required by GACA about his commercial operations at airport facilities.

2- Fueling facilities, sites of operations, operator's documents and records, and fuel measuring instruments, to ascertain the conformity of the provided data and information with the true state of affairs. 3- Inspect commercials and bulletin boards and remove all that which is in violation of the provisions of the Implementation Regulation or the contract terms at the expense of the lessee, without any claim for damage of such boards against GACA. Article 73: The President shall determine the rental values to be applied for the industrial areas at airports, provided that such industries should be related to the aviation industry and its services or be of high technology or help to promote air traffic movement. Article 74: Leases concluded before the issue of this Law and its Implementation Regulation, shall remain valid until expiration of their periods. Article 75: GACA President shall make the necessary decision to exempt the groups according to the international conventional from the (SR50) departure fees which levied from each passenger departing the kingdom through its airports. Article 76: Taking into consideration the article No. (15) of this regulation , GACA President may reduce the charges stated in this regulations with percentage not more than (50%). Article 77: GACA President may authorized some competences granted to him according to the system and this regulation to one of GACA employee . Article 78: GACA President shall make the necessary decisions for the enforcement of this Implementation Regulation. NOTE : Our AIC No. 04/07 Dated 28 Jul. 2007 is hereby replaced.

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