Astaldi heading €1 billion of Turkish contracts
By Thomas Allen18 April 2017
With a combined value of €960 million, two infrastructure projects in Turkey have been assigned to Astaldi, which will play a leading role in joint ventures with Turkish companies.
The EPC (engineering, procurement and construction) contract worth €627 million will involve carrying out the civil works and creation of electromechanical systems for the Kirazli-Halkali section of the Istanbul Underground on behalf of the Municipality of Istanbul.
A total of 10km of double-tube tunnel will be built, 7km of which will be dug using a tunnel boring machine. Along the stretch of line, a depot area will be made as well as nine stations with annexed car parks.
Construction work is due to begin soon and is estimated to be completed in two-and-a-half years.
Astaldi has a 15% stake, while Makyol has 29%, and İçtaş and Kalyon each have 28%.
For the BOT (build-operate-transfer) contract, €333 million out of a total investment of €392 million has been assigned to construction work on an 80km stretch of the Menemen-Aliağa-Çandarlı motorway in the province of İzmir.
The transaction’s financial structure calls for a private capital contribution equal to 20% of total investment, which for Astaldi translates to approximately €26 million, to be contributed by the end of the construction period.
The customer, KGM (the General Directorate of Motorways of Turkey’s Ministry of Transport), will guarantee a total revenue of €45 million per year – the minimum required by the contract.
Plans involve the building of 14 junctions, three service areas, seven motorways, ten viaducts and 11 bridges, in addition to operation and maintenance activities.
With a total concession duration of about ten years, 36 months will be spent on the construction phase and the remaining period will be dedicated to operating the motorway.
The contract is almost equally divided between Astaldi with a 33% stake, İçtaş with 34% and Kaylon with 33%.