US$2.8 billion financing for bridge-highway project in Turkey

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
US$2.8 billion financing for bridge-highway project in Turkey

This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

Çanakkale Otoyol, the owner of the 1915 Çanakkale Bridge and Highway project, has announced that it has secured EUR2.3 billion (US$2.83 billion) financing from a consortia of 24 banks and institutions from ten countries. The project involves the construction of the longest suspension bridge in the world in north-west Turkey. The total estimated value is EUR3.1 billion (US$3.85 billion).

Çanakkale Otoyol was formed by the South Korean-Turkish consortium that won the project in February 2017, which includes SK Engineering & Construction Co. and Daelim Industrial. The team will build and operate a 3.7km highway connecting Malkara to Çanakkale, the majority of which will cross the Dardanelles Straits through the 1915 Çanakkale Bridge.

With 2,023m between the towers, the bridge will be the longest suspension bridge in the world. It will connect the Gelibolu and Lapseki districts of the Çanakkale province. The consortium will operate it for 16 years, after which time ownership will be transferred to the Turkish government.

The countries represented in the financing transaction include South Korea, Germany, France, Italy, U.A.E., Kuwait, China, Britain, Denmark and Turkey. Among the group of lenders are high-profile project financiers Deutsche Bank, Bank of China and ICBC. Denmark’s export credit agency EKF also participated.

The loan will be paid in 15 years with a five-year grace period.

Around 70% of the financing was secured from foreign institutions. Though substantial contributions were made by Turkish lenders, including Akbank, Finansbank, Garanti Bank, İş Bank, Vakıflar Bank, Yapı Kredi and Kuveyt Türk.

According to Çanakkale Otoyol's statement, Export-Import Bank of Korea (KEXIM) and Korea Trade Insurance Corporation (K-Sure) together offered the biggest loan package that any Turkish project has ever secured.

Prior to Çanakkale Otoyol's announcement, K-Sure announced that it was providing EUR400 million (US$491.9 million) to the project. This financing has been offered with a medium and long-term export insurance that allows the project owners to get a long-term loan at a low rate of interest, on the condition that South Korean firms participate in the project. 

Construction of the bridge began last year, with a groundbreaking ceremony held on the 102nd anniversary of the Çanakkale War. It is due to be completed in 2022.

List of country news

Country news

  • March 12, 2018

    TAV Airports to operate Antalya Airport alongside Fraport

    TAV Airports has announced that it is buying IC İçtaş' 49% stake in ICF Antalya, the joint venture that manages Antalya Airport. Located on the south-west coast of Turkey, 13km north-east of the city centre of Antalya, the airport is the second biggest in the country in terms of international passenger traffic, having served more than 26 million passengers in 2017.

    Read more
  • February 01, 2018

    Turkey announces route for canal PPP

    The Government of Turkey has announced the route for a canal to be developed through a public-private partnership. The 45-km Kanal Istanbul will link the Black Sea and the Sea of Marmara west of the Bosphorus, running from the Durusu region on Istanbul's Black Sea coast to Kucukcekmece Lake on the Sea of Marmara.

    Read more
  • January 04, 2018

    EUR715 million financial close for medical research centre in Ankara

    CCN Yatırım Holding Anonim Şirketi has achieved financial close of its contract to finance the design, construction, operation and maintenance of a medical research centre in Ankara. The estimated value of the project is EUR715 million (US$858 million).

    Read more
  • November 10, 2017

    EBRD and partners disburse funds for new hospital in Bursa

    The first disbursement under a comprehensive long-term financial package for the construction of a new €490 million high-tech hospital in Bursa, Turkey’s fourth most populous city, has been made.

    Read more
  • November 06, 2017

    Turkey invites bids for Tekirdag Port privatisation

    Turkey Maritime Organization Inc. has started a tender process for the privatization of the Tekirdag Port via "Operating Rights Transfer" for a period of 36 years. The deadline for submitting proposals is December 20, 2017.

    Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.