Tree public and three foreign-financed banks will provide 4.5 billion euros to a joint venture involving five Turkish construction companies that will construct Istanbul's third airport. The signing ceremony for the financing of the first phase of the airport, which is expected be the world's largest in terms of passenger capacity, was held in Istanbul on Monday with the attendance of President Recep Tayyip Erdoğan and Prime Minister Ahmet Davutoğlu.
Mavi Boncuk |
Finance agreements signed over 3rd Istanbul airport project’s first leg
The IGA Havalimanı İşletmesi A.Ş. consortium, which won a tender held in May 2013 to build Istanbul's new airport, signed an agreement with six banks, including state-owned Halkbank, Ziraat Bankası and VakıfBank as well as the foreign-financed banks DenizBank, Garanti Bankası and Finansbank. The consortium includes Turkish construction companies Cengiz, Mapa, Limak, Kolin and Kalyon. According to the agreement, the loan maturity date will be in 16 years. Moreover, 3.5 billion euros belong to state-owned banks, while the rest are provided by private banks.
The total investment cost of the project is 10.2 billion euros, which is the highest investment amount Turkey has ever spent in this area. According to the IGA website, the airport will contribute 22.2 billion euros, in addition to value-added taxes, over 25 years to the state. The third airport, which is being built under the build-operate-transfer model, will be managed by the IGA for 25 years.
The total budget of the project's first phase is about 6 billion euros, and 25 percent of this budget will be financed by the consortium's equity capital. The four phases of the project will be financed by bank credits totaling 80 percent and equity capital totaling 20 percent. Moreover, it is not expected to be a burden on the Treasury.
The airport is planned to serve an average of 200 million people annually when all four phases become operational. Currently, a total of 8,000 people are employed on the project; however, when the construction work reaches the most intensive level, it will offer jobs to a total of 100,000 people. Also, there are 2,500 trucks and heavy equipment machines deployed at the site.
No comments:
Post a Comment