Bank of China contributes to EUR 2.265 billion syndicated loan for the Çanakkale (Dardanelles) 1915 Bridge and Motorway PPP Project (Linked to Record ID#73229)

BOC and ICBC contributions to EUR 2.265 billion syndicated loan for Çanakkale (Dardanelles) 1915 Bridge and Motorway PPP Project In June 2018, 21 banks, including the Industrial and Commercial Bank of China (ICBC) and Bank of China (BOC), provided a EUR 2.265 billion syndicated loan to Çanakkale Otoyol ve Köprüsü İnşaat Yatırım Ve İşletme A.Ş. (Çanakkale Motorway Bridge Construction Investment Management Inc.) — a special purpose vehicle (SPV) and a joint venture of Limak (limak.com.tr), Yapı Merkezi (ym.com.tr) of Turkey, Daelim (daelim.co.kr), SK E&C (skec.com) of South Korea — for the Çanakkale (Dardanelles) 1915 Bridge and Motorway PPP Project.

These banks included ICBC, BOC, Siemens Bank, Natixis, Standart Chartered, ING, KEB Hana, KDB, Shinhan Bank, Intesa Sanpolo, DZ Bank, Deutsche Bank, EKF, ICIEC, Kuwait Finance House, Kuveyt Türk, Isbank, Garanti, Vakıfbank, Akbank, Finansbank, and Yapı Kredi. Various branches of ICBC reportedly contributed EUR 200 million.

Bank of China reportedly contributed $151.8 million.

Bank of China’s contribution is captured via Record ID#67330 and ICBC’s contribution is captured via Record ID#73229.

The interest rate is unknown.

The Government of Turkey issued a sovereign guarantee on March 16, 2018, covering 85% of the debt in the event that the borrower/project company (Çanakkale Otoyol ve Köprüsü İnşaat Yatırım Ve İşletme A.Ş.) defaults on its repayment obligations (down on the 100% offered in the past but still comforting given that the other 15% is covered by parent sponsor guarantees).

The Government of Turkey also provided a minimum traffic guarantee to the project company (to secure the payback of the debt and equity if the generated revenue is not enough).

The purpose of this EUR 3.14 billion PPP project is the construction and operation of the 1915 Dardanelles Bridge and Motorway in Çanakkale, Turkey.

The project involves the construction of an 88 km three-lane motorway between Malkara and Çanakkale, 48 km of connection roads, and the EUR 1.68 billion 1915 bridge – the world’s longest and Turkey’s second tallest upon completion. The bridge that is being built has the potential to be a landmark which connects the continents of Europe and Asia.

The project route passes by the southern tip of the Malkara settlement and the western border of Şarköy, then turns towards the southwest and reaches the Gallipoli Peninsula via the eastern part of Evreşe.

Passing through the northern end of Gallipoli, the motorway reaches the region of Umurbey on the Asian shore via the 1915 Çanakkale Bridge located between Sütlüce Village in Europe and Lapseki in Asia.

Besides the 1915 Çanakkale Bridge, the project also includes the construction of 2 approach viaducts, 4 viaducts, 55 bridges and overpasses (including 1 ecological overpass), 40 underpasses, 238 culverts of various sizes, 12 junctions (including those on the state road), 4 motorway service areas, 2 operation and maintenance centers, and 7 toll plazas.

Since the project was tendered under the Build-Operate-Transfer (BOT) model, the construction and operation of the project are being carried out within the limits of the period that Çanakkale Highway and Bridge Construction Investment and Management Inc. (ÇOK A.Ş.) had bid in the tender.

At the end of this period, the 1915 Çanakkale Bridge and Motorway will be transferred to Turkey’s General Directorate of Highways. A groundbreaking ceremony for the project took place on March 18, 2017. The legs of the 1915 Çanakkale Bridge Tower were officially completed on May 16, 2020. The construction for the Çanakkale (Dardanelles) 1915 Bridge and Motorway is expected to be completed by 2023.

The project was officially completed on March 18, 2022.