The Export and Import Bank of Korea (Eximbank) announced March 18 it will provide 600 million Euro worth of credit, including 300 million Euro in loans and 300 million Euro in guarantees, to finance the 3.1 billion euro Turkish Canakkale Suspension Bridge and Highway Construction and Management Project won.
It will be lead by a consortium consisting of SK E&C and Daelim Industrial.
The suspension bridge is 3,563 meters long with a highway stretching for 88.4 meters leading to the bridge, also to be built as part of the project.
A consortium made up of South Korean and Turkish contractors has finalized a deal to build a 3.6km suspension bridge over the Dardanelles Strait between European and Asian Turkey. The team, composed of Daelim, SK, Limak and Yapi Merkezi will build the crossing for 10.35 billion Turkish lira ($2.8bn). The four partners will share 25 percent interest each in the project.
The South Korean and Turkish construction joint venture last March signed a contract to undertake the Turkish project. The group will operate the infrastructure for just over 16 years before transferring it to the Turkish government.
The completion date for the mammoth project set for 2023 coincides with the centennial anniversary of the Turkish Republic.
The Eximbank did everything in its power to help the Korean construction firms win the project. The bank sent letters of interest to provide financial support to the Korean construction firms to help them win the project. An Eximbank official said the bank’s financial support will enable the exports of Korean construction materials for the project, creating jobs, in addition to earnings from dividends from the project.
The ceremony was attended by Korean transport minister Kang Ho-in, who was visiting Ankara to promote Korean companies’ expertise in large-scale infrastructure projects. On March 18, he signed a memorandum of understanding on railroads, roads, research and development, according to the Turkish state Anadolu agency.
The Korean team had been expected to win the build, operate, transfer contract since the end of January. Its main advantage was that it had offered to recoup its expenses and hand the bridge back to the Turkish government in 16 years, faster than its rivals.
Kang said: “The Canakkale 1915 Bridge can facilitate the country’s transportation. This project will enable Turkey to show its geopolitical position, natural beauty and cultural richness to foreigners.”
He added that Korea was ready to help Turkey improve its economic growth by improving its level of technological development and “modifying the structure of its industrial sector.”
Ahmet Arslan, the Turkish minister of transport, told Anadolu Agency that Turkey was hoping to learn from Korea and then to use its knowledge to improve the competitiveness of Turkey’s construction industry. He said: “We will develop technology, which is essential for these kinds of megaprojects, by constructing the world’s biggest bridge.
After completing this, we will be able to do similar projects in all around the world.”
Three other consortiums were in the running for the Canakkale bridge.
A team made up of IHI and Itochu of Japan and Makyol and Nurol of Turkey offered $2.72bn, with a 17-year, 10-month lease. A consortium made up of China Road and Bridge Consortium and Cengiz and Kolin of Turkey bid $2.67bn with an 18-year, eight-month lease. Astaldi of Italia and Ictas of Turkey bid $3bn with an 18-year, five-month construction and lease time.
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