Bloomberg News

IC Holding Considers Bid With Fraport on Istanbul Airport

October 31, 2012

IC Yatirim Holding AS, the winner of a Turkish state contract to build a third bridge over the Bosporus, said it’s considering bidding to construct a new airport for Istanbul with German partner Fraport AG.

“We would like to take part in the auction,” Serhat Cecen, a board member at the Turkish company, said in an interview today in Istanbul. “If we do, we may do it with Fraport because we have a good partnership with them.” The two companies jointly operate the airport in the southern Turkish resort town of Antalya.

IC Yatirim would make an offer for the project should “the auction terms, which are yet to be announced, be suitable,” Cecen said.

The government is planning to invite bids later this year for the airport, which will cost about 10 billion liras ($5.6 billion) and open in 2016 with annual capacity for 60 million passengers, Transport Minister Binali Yildirim said Aug. 20. The airport would be the third serving Turkey’s largest city.

Mike Schweitzer, a spokesman at Frankfurt-based Fraport, wasn’t immediately available to respond to requests for comment made to his office by telephone today.

Third Bridge

IC Yatirim Holding’s unit IC Ictas Insaat Sanayi & Ticaret AS and its partner Astaldi Spa (AST) of Italy are also trying to complete the financing for a Turkish government contract they won this year to build a third bridge over Istanbul’s Bosporus strait and its connecting roads, Cecen said.

“We are in talks with seven banks to secure a club loan of $2.2 billion or $2.3 billion for the project,” Cecen said. “We are aiming to complete the financing by the end of the first quarter of 2013,” he said.

The consortium, which is also building a terminal at St. Petersburg’s airport in a $1 billion contract, is talking with Turkiye Garanti Bankasi AS (GARAN), Turkiye Is Bankasi AS (ISCTR), Turkiye Vakiflar Bankasi TAO (VAKBN), Yapi & Kredi Bankasi AS (YKBNK), TC Ziraat Bankasi AS, Turkiye Halk Bankasi AS (HALKB), Akbank TAS (AKBNK), Cecen said.

The cost of the project may rise to $3 billion from the earlier announcement by the government that it would be $2.5 billion, he said, without saying why.

IC Yatirim will increase its hydro power production capacity to 450 megawatts in 5 years from 250 megawatts now and plans a 500 megawatt coal-fired power plant in Yumurtalik, near the southern Turkish oil terminal of Ceyhan, Cecen said.

An airport it built in the western Turkish town of Kutahya for 70 million euros ($91 million) will begin operations in November, Cecen said. The company is also building airports between the Black Sea towns of Ordu and Giresun as well as Bulgaria’s Burgas and Varna, he said. “These five airport projects have a total investment cost of 1.25 billion euros,” he said.

IC Yatirim, which today signed a management accord with Hilton Worldwide (BX:US) to build Istanbul’s biggest hotel for 250 million euros, plans three more hotel investments in Turkey’s southern coastal province of Mersin and is considering purchasing a hotel in London in five years, he said, without specifying which one.

To contact the reporter on this story: Ercan Ersoy in Istanbul eersoy@bloomberg.net.

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net.


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