Financing for new Istanbul airport to be signed on October 19

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Financing for new Istanbul airport to be signed on October 19

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Nihat Özdemir, Limak Holding Chairman, has announced plans to sing project financing for the Istanbul's new airport on October 19.

According to Mr. Özdemir the loan package amounts a total of €4.5 billion (US$5.12 billion). He recently said that three state-owned banks, Ziraat, Halkbank and Vak?fbank, will provide about a 70 percent of the total project financing package. He added that the remaining 30 percent will be provided by three private banks, Finansbank, Garanti Bankas? and Denizbank.

Istanbul New Airport or Third Airport is an international airport under construction in Arnavutköy district on the European side of Istanbul, Turkey. The airport is poised to be the largest airport in the world, with a 150 million passenger annual capacity. It will be the third international airport to be built in Istanbul, however, Istanbul Atatürk Airport will be closed down once the new airport is operational.

The total project investment is estimated at €6.25 billion (US$7.1 billion).

The project is being developed by Cengiz-Kolin-Limak-Mapa-Kalyon OGG consortium, a joint venture of Turkish companies, that won a tender process for the project in May 2013. At that time, the selected team agreed to pay the state €22.1 billion over 25 years starting in 2017.

The preferred bidder has established the Istanbul Grand Airport company (IGA) to develop the airport, which is expected to be operational by the first quarter of 2018.

Throughout this month we have reported on several airports PPP projects globally:

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