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.

The Turkish General Directorate of Highways (KGM) has selected a consortium formed by ERG Insaat and Seza Insaat as the preferred bidder for the Ankara-Niğde Motorway PPP Project.

The tender process for the project was launched by the KGM in late December. The deadline for submitting proposals was April, 14. In addition to the above mentioned consortium, KGM received other four bids from:

• A consortium formed by Cengiz and Kalyon
• Limak
• Makyol
• A consortium formed by IC Ictas, Kolin, Mapa and Fernas.

The project has not drain interest from international bidders.

The circa 300-km motorway project will link the country’s capital with the city of Nigde in the central Anatolia region. Project includes construction, operation and transfer of the motorway on a BOT basis and consists of (i) Ankara – Acıkuyu, (ii) Acıkuyu - Alayhan and (iii) Alayhan - Gölcük intersections. 

The operation term was determined as a result of the tender process, as Turkish BOT projects are awarded on the basis of the shortest construction period. The winning bid featured a concession time of almost 12 years, including construction (3 years), for a total investment amount of more than TRY4 billion (US$1,084 million)

The project will benefit from a “traffic guarantee” to be provided by KGM. The minimum number of vehicles using the intersections of the highway will be guaranteed on an annual basis. The tariff for using the intersections will also be set in the Implementation Contract (IC), subject to an annual adjustment mechanism.

A number of similar infrastructure projects have been tendered and developed in Turkey especially over the past five years in both transport and other infrastructure sectors. In the transport sector, Gebze-Izmir Highway Project (including Izmit Bay Suspension Bridge), 3rd Istanbul Bridge Project and Eurasia Tunnel Project are among of such precedent projects where, similar to the Çanakkale Bridge Project, the relevant public authority was KGM, a debt assumption agreement was signed with the Treasury, and the project model was BOT.

Istanbul 3rd Airport Project is also one of the precedent deals as it was a BOT project with similar direct agreement and debt assumption structure, although the relevant public authority was not KGM.