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Overview

ICBC Turkey contributes EUR 68.81 million to EUR 1.1 billion syndicated loan for 330 km Ankara–Niğde Motorway Construction Project

Commitments (Constant USD, 2023)$81,461,533
Commitment Year•2018Country of Activity•TurkeyDirect Recipient Country of Incorporation•TurkeyOverseas Jurisdiction•TurkeySector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 7, 2018
Start (actual)
Feb 2, 2018
End (actual)
Dec 16, 2020
First repayment (originally scheduled)
Jun 6, 2022
Last repayment (originally scheduled)
Jun 4, 2031

Geospatial footprint

Map overview

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The purpose of the project is to construct a 330 km motorway that crosses the provinces of Ankara, Aksaray, Konya, Kirsehir, Nevsehir and Nigde, which are located in Central Anatolia. The motorway includes a main route (measuring 275 km in length) and the connection roads (measuring 55 km in length). It consists of three sections: the Ankara-Acıkuyu Kavşağı section (about 105.41 km), the Acıkuyu-Alayhan Kavşağı section (about 112.75 km), and the Alayhan-Gölcük Kavşağı section (about 56.72 km). More detailed locational information can be found at: Ankara-Acıkuyu Kavşağı section: https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=39.7808%2C32.7443%3B39.1201%2C33.4330#map=7/41.415/31.836 Acıkuyu-Alayhan Kavşağı section: https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=38.51469%2C34.33781%3B39.11984%2C33.43409#map=10/38.8188/33.8860 Alayhan-Gölcük Kavşağı section: https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=38.1284%2C34.7167%3B38.5192%2C34.3335#map=10/38.3273/35.0121

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • ICBC Turkey Bank A.Ş.

Cofinancing agencies

Private Sector

  • Credit Suisse AG
  • Kuveyt Turk Participation Bank
  • Türkiye İş Bankası (İşbank)
  • Yapı ve Kredi Bankası A.Ş. (Yapı Kredi)

State-owned Banks

  • Türkiye Vakiflar Bankasi T.A.O. (VakıfBank)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Otoyol Yatırım ve İşletme A.Ş.

Implementing agencies

Private Sector

  • ERG İnşaat Ticaret ve Sanayi A.Ş.
  • SSB Sauerwein & Schäfer Bau AG (SSB)

Guarantors

Government Agencies

  • Turkey Ministry of Treasury and Finance

Loan desecription

ICBC contribution to EUR 1.1 billion syndicated loan for 330 km Ankara–Niğde Motorway Construction Project

Grace period•4 yearsInterest type•UnknownMaturity•13 years

Narrative

Full Description

Project narrative

On June 7, 2018, a syndicate of banks (including ICBC) and ERG Otoyol Yatırım ve İşletme A.Ş. — a special purpose vehicle — signed a set of senior facility agreements worth EUR 1,114,962,012 syndicated loan for the 330 km Ankara–Niğde Motorway Construction Project. ICBC Turkey was the lead arranger for the loan, and it contributed EUR 68.81 million. The loan carries a 13 year maturity and 4 year grace period. Other financial institutions that participated in the syndicate include Türkiye İş Bankası, Yapı Kredi Ban Türkiye Vakıflar Bankası, and Kuveyt Turk Participation Bank. A sovereign guarantee was provided by the Turkish Treasury on June 7, 2018. Additionally, Export Credit Agency (ECA) financing to the project was arranged by Credit Suisse, Zurich and guaranteed by the Danish Export Credit Agency (EKF) & the Swiss Export Credit Agency (SERV). The 1.465 billion Public Private Partnership (PPP) project is being implemented on a BOT (Build, Operate, Transfer) basis and financed according to a debt-to-equity ratio of 75:25. The Turkish Government awarded a concession agreement to ERG Otoyol Yatırım ve İşletme on April 14, 2017, following a competitive bidding process. The length of the concession period is 11 years, 10 months, and 17 days (included a 3-year investment period). The purpose of the project is to construct a 330 km motorway that crosses the provinces of Ankara, Aksaray, Konya, Kirsehir, Nevsehir and Nigde, which are located in Central Anatolia. The motorway includes a main route (measuring 275 km in length) and the connection roads (measuring 55 km in length). It consists of three sections: the Ankara-Acıkuyu Kavşağı section (about 105.41 km), the Acıkuyu-Alayhan Kavşağı section (about 112.75 km), and the Alayhan-Gölcük Kavşağı section (about 56.72 km). The project is intended to facilitate safer, shorter travel times and contribute to the development of tourism, industry, and inter-regional trade between Asia, Europe, and Africa by improving the regional transportation network. The motorway will complete the missing link of the Turkish TEM (Trans-European Motorways) Project, allowing for an uninterrupted road connection from Turkey’s Bulgarian border in Edirne province to Sanliurfa near the Syrian border. Salt Lake and historical Cappadocia are the destinations the motorway is expected to make more accessible to tourists. ERG İnşaat Ticaret ve Sanayi A.Ş. and SSB Sauerwein & Schäfer Bau AG (SSB) are the EPC contractors responsible for implementation. A groundbreaking ceremony was held on February 2, 2018. The 1st section of the motorway between Ankara-Acıkuyu Junction and the 3rd section of the motorway between Alayhan Junction-Gölcük Junction were completed and opened to traffic on September 4, 2020. With the opening of the 2nd section (including Kırşehir Connection Road) between Acıkuyu Junction and Alayhan Junction to traffic on December 16, 2020, the entire highway was put into service. The 2020 ICBC Turkey Annual Report characterizes the completion of the project of "great importance in terms of promoting the implementation of the Belt and Road Initiative. Project photos are available via https://www.kgm.gov.tr/Sayfalar/KGM/SiteTr/Projeler/OtoyolProjeleri/AnkaraNigde.aspx

Staff comments

This project is also known as the 330 km Ankara–Niğde Motorway PPP Project or the Ankara-Nigde Motorway Project. The Turkish project title is Ankara-Niğde Otoyolu or Ankara-Nigde Otoyolu Projesi.