Turkey to Fund USD 5 B Bosphorus Bridge with Own Money

Turkey is set to build a third bridge in the Bosphorus Strait with state money. File photo

Turkey will carry out an estimated USD 5 B road project that includes building a third bridge over the Bosphorus Strait between Europe and Asia with its own resources, the Turkish government announced.

The decision comes after Turkey had to cancel a tender due to the lack of bids. Turkish Transport Minister Binali Yildirim said a tender for the North Marmara Highway project would be issued shortly.

"In a short time a tender will be launched. We plan to use our own resources directly," he was reported as saying on the TV8 channel.

Turkey canceled the tender on Jan. 10 after builders blamed an international funding crunch for scaring off bids for the scheme, which loops north of Istanbul near the Black Sea.

The tender for the 414-km North Marmara Highway project initially drew interest from 18 companies from Japan, Russia, Spain, Austria, Italy and Turkey. The winner would have had operating rights for 25 years.

In a press release published by the Hurriyet Daily News Monday, Turkey's Transport Minister Binali Y?ld?r?m clarified the "Plan B" after the failed tender for the Northern Marmara Highway Project, saying that project will be financed from the national budget

"The bridge and a 65 to 70-km-long highway will be included in the first tender. Then the remaining highways will be put to tender later on," he explained.

The mega transportation project, which spans 414 km from Adapazar? to Tekirda?, failed to attract any bids from a total of nine Turkish and nine foreign companies Jan. 10.

The project, described as Turkey's second-biggest build-operate-transfer scheme, was decided to be put to tender March 9, 2011.

Some bidders had asked for a three month or six month delay, said the minister. "We did not think it was reasonable and decided not to extend the time [to hold bidding]," he said, adding that "We will finance it from the national project." The build-operate-transfer scheme was tried, Y?ld?r?m said.

"We will put the project to tender very soon. We plan to work with local resources. It takes a long time to get credit financing warranty in build-operate-transfer schemes. ... We are revising the project. We will do it in stages."

The project will begin in 2012, the minister said. It is not a project that only Turkey needs, but it is a transit route that will connect Europe to Caucasus, the Middle East and Far East, he said.

"It will contribute to inner city traffic of Istanbul, but there will not be many connections to the city center."

"A single Turkish firm will not be enough [to handle the entire project] due to its vastness," Y?ld?r?m said. They [Turkish firms] will form groups. Maybe even then that may not be enough. They may have to include a foreign firm as a solution partner."

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