Proceedings of the 14th Meeting of the
Transport and Communications Working Group
31
bodies, such as currency risk, income risk, corruption or bankruptcy of the incumbent company,
minor and major risk events that can affect the construction period and or operation period. He
said that in order to ensure investment risks, a %80/%20, credit/equity ratio limits the amount
of credit to be used by the private body in BOT projects, which limits the public body to give
guarantee up to % 80 of the investment amount. In exchange for private investment, the public
body gives an income guarantee to counterpart. In order to eliminate operational risks and
ensure operational readiness, a test period for the facility is followed with respect to
internationally recognized institutions’ safety, operability standards. After certification is
completed, the commencement of the operation is allowed.
Furthermore, Ms. Elif ORHAN, Deputy Branch Manager, General Directorate of Highways,
Ministry of Transport and Infrastructure of Turkey, delivered a presentation BOT Projects of the
General Directorate of Highways.
Firstly, she briefed the participants about the Gebze-Orhangazi-Izmir Motorway. She stressed
that the total construction cost $7,0 billion including financing costs $8,5 billion. The total lent
of the motorway is 426 km with 384 km of motorway 42 km connection roads. She said that
Marmara and Aegean Regions which form the spine of the Turkish economy will be connected
to each other with a complete access-controlled motorway. The industrial, commercial and
touristic traffic between Istanbul, Kocaeli, Yalova, Bursa, Balıkesir, Manisa, and Izmir, where
one-third of the Turkish population lives, will be more comfortable and secure. This will
generate major benefits in terms of savings in travel time, reductions in traffic through towns
and cities, and improved safety and economic efficiency.
Secondly, she briefly mentioned about Kınalı-Tekirdağ-Çanakkale-Balıkesir Motorway including
1915 Çanakkale Bridge. She said that1915 Çanakkale Bridge will be the world’s longest span
suspension bridge with 2.023 m middle spans, 770 m side spans, 3.563 m bridge length, 318 m
tower height, 45,06 m deck width, 70 m x 1.600 m navigation width.
Lastly, she touched upon the assessment of the contract due to the exchange rate update and the
payment of guaranteed income every six months during the year of assessment. She mentioned
that updating the exchange rate twice a year will reduce the foreign exchange risk, which
significantly affects the cash flows of the appointed company. It will reduce financial costs by
reducing hedging costs. Also, with the reduction of financial costs, more effective contract
periods will be introduced during the tender stage and the existing investment will be
transferred to the administration in a shorter period of time.