Malkara- Canakkale Motorway PPP

Active

Prospective

The project entails the construction of a 88-km three-lane motorway between Malkara and Çanakkale, 48-km of connection roads, 35-km of access roads, six junctions, four viaducts, 36 overpasses, 33 underpasses and 140 culverts, as well as four service areas and tolling facilities. Çanakkale Otoyol, a consortium made up of Yapi Merkezi, Limak, SK Corp., and Daelim won the BOT project in January 2017 with a 16-year concession from the General Directorate of Highways (also known as KGM) following a competitive bidding process based on the shortest concession period proposed in the bids. The group outbid Japan's IHI, China's CRBC, and Turkey's Cengiz and Kolin. Investment in the project will be recouped by collecting toll fees. In addition, Turkey’s Ministry of Transport is guaranteeing payment under the concession for a minimum amount of traffic. If the bridge’s tolls do not meet the minimum, the MoT will top up revenues to the defined amount. Total investment in the project (motorway and bridge) is $2842.32 million and is being funded by debt (93%) and equity (7%). The amounts are $2655.17 million and $187.15 million, respectively. Project financing was provided by 23 lenders - Standard Chartered, Natixis, ING, Deutsche Bank, Bank of China, DZ Bank, ICBC, Intesa SanPaolo, Siemens Bank, Islamic Corporation for Insurance of Investment and Export Credit (Islamic Development Bank), Korea Development Bank, Kuwait Finance House, KEB Hana Bank, Shinhan Bank, Denmark’s export credit agency EKF, Korea Eximbank, Finansbank, Garanti, Akbank, Isbank, Vakifbank, Yapi ve Kredi Bankasi, Kuveyt Turk. Since sponsors have equal share in the consortium, each will provide equal amount in equity (approximately $46.78 million). 70% of the debt was provided by international lenders – €1.58 billion, and 30% by Turkish banks – €683 million. Financial close was achieved on June 6th, 2018. http://www.hurriyetdailynews.com/turkeys-canakkale-bridge-highway-project-secures-2-3-bln-euro-financing-128858 https://en.wikipedia.org/wiki/%C3%87anakkale_1915_Bridge http://www.infrapppworld.com/news/megaproject-1226-us-2-8-billion-financing-for-bridge-highway-project-in-turkey http://pulsenews.co.kr/view.php?year=2018&no=300668 https://r2t.global/2018/03/16/canakkale-1915-bridge/ https://www.dailysabah.com/business/2018/03/19/7th-megaproject-to-connect-turkeys-gulfs-straits-canakkale-1915-bridge-to-start-operating-in-2022 http://www.hurriyetdailynews.com/turkeys-canakkale-bridge-highway-project-secures-2-3-bln-euro-financing-128858

Transport

World Bank Group

Project

Road, Tunnel, Bridge, Government, Manufacturing (Industrial), Commercial