Turkey: Antalya Alanya Motorway

approved

The Project involves design, finance, construction, operation, maintenance and repairs of the Antalya - Alanya motorway in Turkey's Mediterranean coast (the Project). The motorway is 117.8 km in length with mostly 3 lanes in each direction (2x3). The new proposed motorway will run parallel to the existing toll-free D400 state highway. It will not only provide a faster direct connection between the regions of Antalya and Alanya, but also significantly alleviate the congestion on the state highway, thus improving travel time and road safety for both the residents and the tourists. Antalya is the fifth most populated city in Turkey, given its proximity to the Antalya international airport, a major international hub (ranked second in terms of the number of foreign visitors in Turkey and the third busiest airport in the country). The Antalya province has witnessed a significant increase in foreign tourist arrivals, reaching over 20.6 million (in 2023), making it the fourth most visited city in the world. As such, the location of the Project strategically addresses a need for an efficient motorway in the region, which is experiencing a rapid growth of tourism, both from local and international traffic. The Sponsor of the Project is Limak Insaat Sanayi ve Ticaret A.S. (Limak Insaat or the Sponsor), the construction arm of Limak Holding. Limak Insaat is the largest contractor in Turkey and has extensive experience in infrastructure sectors such as highways, bridges, airports, ports, dams and hydroelectric power plants. The Project was awarded to the Sponsor by the General Directorate of Highways (the KGM or the Authority) under a Build-Operate-Transfer (BOT) model. The Implementation Contract (IC) between the Sponsor and the KGM was signed on October 14, 2024. The concession period is 15 years, which includes 3 years of construction followed by 12 years of operation period, post which the Sponsor shall transfer the motorway back to the KGM free of charge. As per the IC, the Project benefits from Traffic Guarantee Revenue from the KGM, which covers 100,000 automobile equivalent per day. If, at any point throughout the concession period, the actual traffic is less than the guaranteed level, the KGM will guarantee a shortfall of up to 100,000 automobile equivalent per day. The Project benefits from the Debt Assumption Agreement (DAA) from the Turkish Treasury.