Turkey Financial News » Tenders & IPOs

Turkey should renew 8 million houses in 20 years

meb — Thu, 03 Nov 2011 09:02:22 +0000

The number of buildings needing to be renewed in Turkey over the next two decades is estimated to be 8 million, according to a chief construction sector representative.

“The renovation of 8 million dwellings over the next 20 years will generate an annual value of 28 billion Turkish Liras for the Turkish economy and the employment of 1 million people,” Tahir Tellioğlu, chairman of the Construction Contractors Federation (TİM-FED), said in a recent interview.
The country’s annual construction capacity is around 400,000 buildings, according to Tellioğlu. “Estimations show there is a total of about 19 million buildings in Turkey, of which 50 to 60 percent are unsoundly built. They must be transformed,” he said, adding that if the construction capacity was doubled, the country would be able to renovate 4 million dwellings per decade.

“Twelve years have passed [since the 1999 Gölcük earthquake] and no building has been renovated. Had we repaired at least 40,000 houses a year, about 500,000 houses would be [soundly restored] today,” Tellioğlu said.

The average cost for the renovation of a building was about 70,000 liras, he said, adding that renovating 400,000 dwellings would generate 28 billion liras yearly.

Meanwhile, Chairman of the Istanbul Developers Association (İNDER) Nazmi Durbakayım said the cost to renovate 5 million 100-square-meter houses would be 425 billion liras. “If [all renovations are] realized within 10 years, this would generate 42.4 billion liras annually, which is about one-third of Turkey’s gross domestic product in 2010.”

The work would also boost suppliers for the construction sector, such as iron and cement, Durbakayım said. “Thus, we can easily forecast that Turkey may become a G-7 country due to the chain reaction in construction,” he said.

Istanbul’s traffic and parking problems could also be solved during the urban renewal in the framework of the old houses’ renovation, according to the chair of Turkey’s Ready-mixed Concrete Association, Ayhan Güleryüz.

Discussions on illegally and unsoundly constructed buildings heated up as Prime Minister Recep Tayyip Erdoğan said recently they would demolish all illegally built and unsound buildings, although this could bear a heavy cost for the ruling Justice and Development Party (AKP’s) popular support.
source: hurriyet daily news

Russians pledge Matryoshka like four-layer safety in Turkey plant

meb — Tue, 26 Apr 2011 09:34:48 +0000

As the entire world is now struggling to decide if states’ efforts to develop nuclear energy should continue after what recently happened in Japan’s Fukushima Daiichi nuclear power plant following the March 11 twin earthquake and tsunami disasters, there is also an ongoing public debate in Turkey: People wonder if the Justice and Development Party (AK Party) government is doing the right thing as it seems determined to go ahead with its ambitious nuclear energy program.

Russia’s Rosatom State Nuclear Energy Corporation is equally concerned with the outcome of this debate because it was awarded a $20 billion deal last year to construct a nuclear power plant in the southern Turkish province of Mersin’s Akkuyu district. A recent invitation extended to Turkish reporters to visit the Kalinin nuclear power plant that Rosatom officials say utilizes the same technology planned for the Akkuyu power plant is an effort to tame the growing distrust towards nuclear energy in Turkey.

Safest of all
Addressing reporters during that visit, Mihail Kanishev – the chief engineer at Kalinin – said the Akkuyu nuclear power plant will be the safest of its kind, the Cihan news agency reported on Sunday. What he proposed for the planned nuclear power plant in southern Turkey is “a four-layer Matryoshka doll safety system” used in Kalinin. “In case of an accident, heat absorption, natural circulation and cooling automatically start. These safety systems do not require human intervention to start working,” he was quoted as saying by the agency. For him, the Akkuyu nuclear power plant will pose a risk neither to the surrounding inhabitants nor the environment even in case of a magnitude 9 earthquake as happened in northeast Japan last month or even if a plane crashes into the yet-to-be constructed power plant. “The innermost doll is the reactor itself. What constitutes the second doll is the reinforced concrete surface of the reactor. The third doll is the safely cooling system. The water that circulates inside the reactor does not have any contact with the outside world, and neither does the water in the second cooling layer. Only the third cooling circuit uses water supplied externally. In that way, any possible radiation from an accident can only leak from the third layer. The outermost and fourth doll is a safety measure against any possibility of having the reactor badly damaged. Even if the nuclear fuel remains waterless and starts to melt down, the grid we placed at the bottom of the reactor catches this fuel. And because this grid is cooled down with a separate system, we make sure that no blast happens,” he explained.

Rosatom started building the Kalinin nuclear power plant, which is about 200 kilometers northwest of Moscow, in 1974. Its third reactors became operational in 2004, and a fourth reactor is currently under construction. According to Rosatom officials, the planned nuclear power plant in Akkuyu and the one in Kalinin are very similar in terms of electricity production technology and safety systems. The only major difference according to Kanishev, is that Kalinin has 1,000 MW reactors, but the Akkuyu nuclear power plant will have 1,200 MW ones.

Rosatom plans to start construction in Akkuyu in 2013 and have its four planned reactors operational by 2021. Once completed, it is expected to employ 20,000 people. Turkey is presently heavily dependent on foreign energy supplies but aspiring to become self-dependent by 2023, the centennial of the Republic of Turkey. To that end, the AK Party government is planning to have three nuclear plants operational by the 100th anniversary of the republic, while also intensifying oil and natural gas exploration efforts across the country. The growing environmentalist sentiment seems not to have impacted the stance of the government, which says it will never approve any project environmentally hazardous while pursuing the country’s macro interests. According to government officials, people’s environmentalist feelings are used by certain groups who are not happy with the country’s centennial aspirations.
No to Chernobyl, Yes to Akkuyu

As the latest sign of Turkey’s commitment to its nuclear energy program, which the government says is also environment-friendly, Energy and Natural Resources Minister Taner Yıldız said on Monday that he supports protests organized against old-fashioned nuclear power plants that continue producing energy around the world; however, the planned nuclear power plant in Akkuyu should be supported because it poses no risk to the environment at all.

Noting that Greenpeace members often carrying banners reading “No to Chernobyl” during their demonstrations [in Turkey], Yıldız said the same banner should read “No to Chernobyl, Yes to Akkuyu.” “First generation nuclear power plants that are over 40-years old should be closed. But third generation power plants such as the one we plan to build in Akkuyu are necessary. I think Greenpeace will agree,” he said, speaking at a signing ceremony between the state-owned Turkish Pipeline Corporation (BOTAŞ) and the Swiss energy company EGL Group on the transportation and marketing of oil and natural gas.
source: todays zaman

Turkish ministry to spend 3.1 billion on Ankara subway

meb — Thu, 21 Apr 2011 07:12:13 +0000

Ankara’s subway system, which has yet to be completed despite 10 years of construction and 814 million Turkish Liras of investment, will receive another 3.1 billion liras from the Transportation Ministry to finish the line, authorities have said.

Subway work between Keçiören and the train station, Kızılay and Ümitköy, as well as between Sincan and Batıkent, will be launched simultaneously and completed within two years, according to the ministry’s plans, Transportation Minister Habib Soluk told journalists Tuesday.

The 44.4-kilometer-long Ankara metro line will cost the ministry 3.17 billion liras, Soluk said.

Although the ministry could take over the metropolitan municipalities’ subway projects as part of a recent legal arrangement, Soluk said the new regulation did not mean his office would take over all projects.

Ankara and Istanbul metropolitan municipalities initially applied to the ministry for a change, Soluk said, adding that procedures to take over the projects were at the final stage.

The project cost for the Istanbul metro was not yet clear, the transportation minister said.

Along with Ankara and Istanbul municipalities, Adana and İzmir metropolitan municipalities have also applied to hand over their projects to the ministry, Soluk said, but added that they were still considering their applications.

Metro constantly under construction

Ankara Mayor Melih Gökçek has repeatedly said the capital city’s subway project would be completed as soon as possible since it first began in 2001, but little progress has been made in recent years.

Contrary to statements, no previously-announced subway line has been completed and the municipality’s website indicates no information either on the estimated date of completion of the cost of the total expenditures so far.

Ahmet Çetin, from the municipality, said in 2009 that they had so far spent 814 million liras for the subway project.

Deadline for third bridge bid in August

Touching on the plans for the construction of a third bridge over the Bosphorus Strait in Istanbul, Soluk said the project would also include a railway.

“But we will see whether the railway will share the same platform with the highway once we receive the proposals on Aug. 23,” Soluk said.

Overall, 12 companies, including six local ones and six international ones, have purchased tender specifications for third bridge. The foreign companies are from Russia, France, Italy, Spain and Austria, the official said.
source: hurriyet

RWE among possible bidders for grids

meb — Sat, 18 Jul 2009 08:25:20 +0000

Germany’s RWE and EnBW Energie Baden-Wuerttemberg applied to bid for Turkish electricity distribution grids, Turkey’s Privatization Administration, or ÖİB, said in a statement Thursday.

RWE, ENBW and EWE were among 22 applicants who may place bids in a tender for Osmangazi Elektrik Dağıtım, a grid that serves the central cities of Eskişehir and Afyon, the ÖİB said in an e-mailed statement.

EWE may also bid for Yeşilırmak Elektrik Dağıtım, a grid covering northern Black Sea regions, along with 16 other applicants, and was one of 13 possible bidders for Çoruh Elektrik Dağıtım in the northeast of the country.

Akenerji Elektrik Üretim, the Turkish unit of Czech power company CEZ, Çalık Enerji and Zorlu Holding were also among the applicants, the ÖİB said.
source: Hurriyet daily news

Tender announced for Izmit Gulf bridge

meb — Fri, 20 Mar 2009 20:40:33 +0000

The General Directorate of Highways has announced that it will hold a tender for the construction of a new highway stretching from the town of Gebze in the northwestern province of Kocaeli to the Aegean province of İzmir, including a bridge over the Gulf of İzmit, on April 9.

The project will be carried out through the build-operate-transfer method. Many Turkish and foreign firms have expressed interest in the tender, which has been postponed a number of times already. The directorate will ask companies submitting bids to specify how long they want to operate the bridge and highway. The firm that fulfils the conditions of the bid specifications and commits to the shortest period of operation will win the tender.

The Bursa-Balıkesir-İzmir highway will begin in the town of Gebze and cross to the town of Orhangazi in Bursa over the Gulf of İzmit. It will proceed from Bursa to the northwestern province of Balıkesir and end in İzmir. The highway will be 420 kilometers long and the suspension bridge on the İzmit Gulf will be 3,000 meters long.

Once the projects are finished, the time required to travel between Bursa and İzmir will be almost halved to two and a half hours.
source: Today’s Zaman

Georgian investments may earn Turkish contractors up to $1.5 bln

meb — Wed, 25 Feb 2009 22:34:48 +0000

Turkish contractors could share in $1-1.5 billion from projects in Georgia after the country secured $4.5 billion in investment credit from international institutions, Trade Minister Kursad Tuzment said on Wednesday.

Georgia would soon start to implement important infrastructure projects regarding $4.5 billion investment credit procured from international institutions, the Anatolian Agency reported Tuzmen as saying.

Georgia plans to make investments in motorway, energy, housing, public buildings as well as infrastructure investments with the credit.

Turkish State Minister Kursad Tuzmen, currently in Georgia with a delegation of businessmen met with Georgian President Mikeil Saakhasvili.

The minister also said the tax audit and transit passage fees that Turkish companies operating in the country complain affect business, would soon be solved after the Georgian President sent instructions on solving the issue.

Georgian Prime Minister Nikoloz Gilauri, who addressed a Turkish-Georgian Business Forum on Tuesday, also invited Turkish businessmen to invest in energy projects in the country.

Turkey’s Anadolu Group, the first company to invest in the energy sector in Georgia, signed a contract with the country’s Energon company for the construction of a hydroelectric power plant worth of $140 million.

The power plant, to be constructed on Pravani river, is planned to take effect in 3-1/2 years. Some 40 percent of the electricity produced at the plant is expected to be sold to Turkey under the agreement, the agency reported. The foundations of the dam are expected to be laid in May.
source: Hurriyet daily news

U.S. Lockheed gets $797 million contract for Turkish F-16 fighters

meb — Wed, 25 Feb 2009 11:41:07 +0000

The U.S. Air Force said on Tuesday that it has modified a $797 million contract with Lockheed Martin Corp that covers the purchase of fighter jets by the Turkish government, AP reported.

Under the change, Lockheed will provide 14 F-16C variants and 16 F16D models for Turkey.

The Pentagon approved the sale of 30 fighter jets, engines, radar and electronic warfare equipment, a deal valued at $2.9 billion if all options are exercised, in September 2006. The deal would improve Turkey’s ability to defend its own borders and better contribute to U.S.-led anti-terrorism efforts and NATO operations.

The U.S. military frequently acts as an intermediary for weapons sales to overseas governments.
source: Hurriyet daily news

Consortium bids new price in nuclear tender

meb — Fri, 06 Feb 2009 03:19:30 +0000

The Russian-led consortium that won the tender to build Turkey’s first nuclear power plant and supply energy to the national grid has revised its price offer in an attempt to prevent its bid from collapsing.

The Turkish-Russian joint venture Atomstroyexport-Inter Rao UES JSC-Park Teknik submitted a new offer, one much cheaper than its unexpectedly high bid of 21.16 cents per kilowatt hour (kWh), to the Turkish Electricity Trading and Contracting Company (TETAŞ) in a letter submitted on Wednesday.

The company originally sent a revised offer last month in a closed envelope, attempting to modify its offer for the tender, after its original price offer met with harsh criticism from public opinion as it was several times higher than current prices for electricity. TETAŞ sent the new envelope back to the company without even opening it, explaining that any new offer would not be allowed by the strict tender specifications.

The newest price offer that has been presented to TETAŞ envisages 15 cents per kWh, gradually decreasing to 13 cents. Since this offer was submitted in the form of an independent application separate to the tender process, TETAŞ has started to consider the content of the offer. It is now contemplating the possibility of accepting this new offer. Energy experts are speculating that TETAŞ may go for the new offer, on the grounds of it being in the public’s best interest.
source: Today’s Zaman

Russian-Turkish consortium revises initial bid for nuclear plant

meb — Mon, 19 Jan 2009 21:32:41 +0000

Turkish energy minister said the consortium, which offered 21.16 cents kWh for the construction and management of Turkey’s first nuclear power plant, revised its initial offer on Monday.

Turkey’s government has received a revised offer from the consortium, formed by Russia’s state-run Atomstroyexport, Inter RAO and Turkish Park Teknik to the nuclear plant, Dogan News Agency reported Turkish Energy Minister Hilmi Guler saying in Ankara.
Guler declined to say whether an initial bid to provide electricity from the 1,200 megawatt plant to the Turkish grid at 21.16 cents per kilowatt hour was acceptable or not.

The consortium offered 21.16 cents kWh for the construction and management of nuclear power plant.

After the bid is opened at the Energy Ministry, Turkey’s state-run power company, TETAS, will assess the submitted price and finalize the tender process. The final decision of TETAS will then be submitted to cabinet for approval.

The chairman of the tender commission said the consortium will submit another bid for the price, CNNTurk reported.

The consortium was the sole bidder in a tender to build and operate the country’s first nuclear power plant. The tender was described as disappointing by some analysts, because a number of foreign and local companies that had previously expressed interest did not submit bids, making the Russian consortium the sole bidder.

Turkey plans to build three nuclear power plants as part of efforts to reduce a costly dependence on energy imports.
source: Hurriyet daily news

Turkey earns 6.3 billion USD from privatization in 2008

meb — Fri, 12 Dec 2008 16:10:40 +0000

Turkey earned 6.3 billion USD from privatization in 2008. Also it will gain 4.2 billion USD after hand over procedures of other privatized companies are completed.

Turkey earned 2.04 billion USD from privatization of Petkim Petrochemical Holding, 2.2 billion USD from TEKEL (state-owned tobacco company), 1.9 billion USD from public offering of Turk Telekomunikasyon and 89.2 million USD from its hand over procedures in 2008.
source: Today’s Zaman

Turkish-Korean venture to build second Bosporus tunnel

meb — Fri, 05 Dec 2008 13:08:28 +0000

The Turkish-Korean Joint Venture (TKJV) has won a tender for construction of a vehicle tunnel underneath the Bosporus. The TKJV released a written statement Thursday saying the project, expected to cost $1 billion, could be finished within the next four-and-a-half years.

The project will be based on the build-operate-transfer (BOT) model. The tube is anticipated to ease traffic in the city of 15 million.

The new tunnel will be constructed on a two-tier system with traffic flowing in opposite directions. At 14.6 kilometers long, including sections both underwater and above ground, it will start in Sirkeci on the European side and end in Göztepe on the Asian side of the city.

The new tube differs from the first Marmaray tunnel, the construction of which started in 2004, in that it will allow vehicular traffic. Also, in contrast to the first tunnel, which was constructed using the submersion method, the second tunnel will be constructed by use of tunneling equipment.
source: Today’s Zaman

SK Engineering consortium wins $1 bln Turkey order

meb — Thu, 04 Dec 2008 10:58:56 +0000

South Korea’s SK Engineering & Construction Co said on Thursday its consortium won a underwater tunnel order worth $1 billion in Istanbul.

SK Engineering, an unlisted unit of SK Group, said in a statement it partnered with a Turkish company, Yapi Merkezi, and four South Korean builders to bid for the project.

The deal calls for SK’s consortium to design, build and operate the tunnel, which would connect Asian and European sides of Istanbul.
source: Hurriyet daily news