Turkey Eyes ‘Build And Operate’ Model for Planned Istanbul Canal
Turkey Eyes ‘Build And Operate’ Model for Planned Istanbul Canal
(Bloomberg) -- Turkey is planning to adopt a “build and operate model” for a planned $15 billion waterway across Istanbul that’s been criticized by environmentalists, Transportation Minister Adil Karaismailoglu said in an interview last week.
Under the plan, Turkey will get the so-called Kanal Istanbul constructed with minimal upfront spending by the state, while the builder operates it for a specified amount of time and receives proceeds from vessel traffic.
Authorities are in talks with interested companies from the Netherlands, Belgium, Russia and China for contracting work on the canal, Karaismailoglu said, without elaborating.
Below are some highlights from the minister’s interview in Ankara, where he focused on his plans to build the 45-kilometer (28-mile) canal that will link the Black Sea with the Sea of Marmara:
- Around 70% of the canal’s planned route consists of lakes or valleys; construction work for the remaining area is less than what has been done to build Istanbul’s new airport.
- Authorities prioritize a version of the “build and operate” model used in other projects executed by the ministry; full details of the financing framework will be determined “over the next few months.”
- The project – criticized by opposition parties for threatening irreparable harm to the marine ecosystem and fresh water resources in Turkey’s most populous region – is necessary to divert vessel traffic away from Bosporus.
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