Izmit Water Supply Project

Active

Prospective

In March 1996, the local government of Izmit, Turkey, granted a 15 year build-own- transfer (BOT) contract for a new water supply system to private consortium Izmit Su AS. The project included the construction of a 110 meter high and 400 meter wide earth damn with a 60 billion liter reservoir. The dam was designed to have a catchment area of 258 square kilometers and connect to a treatment plant with a capacity of 480 million liters a day and a pipeline network with a total length of 146 km. Along the way, some 38 service reservoirs and 6 pumping stations would complete the water delivery system. The project included a three year building period followed by a 15 year period in which the private concern would operate the system. The water system was designed to serve some 1.2 million people using 50% of its capacity. The remaining 50% of the water was to be used by the local industry. In 1996 this was the largest privately funded water project in the world. Izmit Su AS was a special purpose joint venture company created by Thames Water (25%), local private contractors Gama Endustri (25%) and Guris Insaat (25%), and Japanese trading houses Mitsui and Sumimoto (25%). The Japanese trading houses raised debt finance guaranteed by the Turkish government for 85% of the project cost. The remaining 15% was financed by equity. There was an indirect guarantee via sub loans from the Municipality of Izmit. By March 2001 Thames had increased its stake in the project to 55%. No information on the remaining sponsors was available. Thames Water became a subsidiary of RWE in 2001. The project was expected to cost some $900 million. The construction phase of the project was completed in November 1998, five months ahead of schedule. Operation began in January 1999.

Water and sewerage

World Bank Group

Project

Hydro, Water Supply and Storage, Power Transmission, Government, Manufacturing (Industrial), Waste Processing and Treatment, Power Generation (CCGT), Commercial