The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Sung-soo Eun, “Korea Eximbank”) announced on March 18 that it would provide a total of EUR 600 million, including EUR 300 million in lending and EUR 300 million in guarantee, for the Canakkale Suspension Bridge and Expressway Construction Project in Turkey where SK Engineering & Construction (“SK E&C”) and Daelim Industrial (“Daelim”) jointly participate.
The project was awarded to a consortium of Turkish companies, Yapi Merkezi and Limak, and SK E&C and Daelim which will undertake the entire process from construction to operation of the project.
The project, considered as a mega-scale project valued at EUR 3.1 billion, aims to construct the longest suspension bridge linking Asia and Europe across the Dardanelless Strait in Canakkale province, with a total length of 3,563m including a main span of 2,023m, and an expressway with 88.4km in length. The construction is projected to be completed in 2023.
As the project was planned as part of the Turkish government’s commemoration of the 100th anniversary of the foundation of the Turkish Republic in 2023, the competition to win this monumental project was quite fierce among a number of bidders from Korea, China and Japan.
Korea Eximbank has devoted all-out support for Korean firms to be awarded as preferred bidders by expressing its intention to provide project financing during the bidding process.
Unlike other mega projects in Turkey which had been supported by multilateral development financiers, this project is to receive the largest share of financing from Korea Eximbank which effectively proved its capability to build a secure financial structure for the project during the negotiations.
A Korea Eximbank official remarked “With Korea Eximbank’s financial support for this project, Korean companies are expected to increase their exports of equipment and material, create more jobs, and earn dividends.” He added “As the majority of equipment and material are steel products, the project is anticipated to help vitalize the distressed steel industry in Korea.”
