Samsung C&T Participates in Turkey Highway Development Project

by Kim Hye Min

Published 21 Oct.2024 16:19(KST)

Samsung C&T Corporation's Construction Division will participate in the investment, construction, and operation project of a highway in T?rkiye.

At the signing ceremony for the Nakas-Basaksehir road construction project held in Turkey, O Se-cheol, CEO of Samsung C&T Construction Division (third from the left), and Erman Ilicak, founder and chairman of Renaissance (fourth from the left), are posing for a commemorative photo. (Provided by Samsung C&T)

On the 21st, Samsung C&T announced that it will form a consortium with Korea Expressway Corporation, Korea Overseas Infrastructure & Urban Development Corporation (KIND), and the government policy fund (PIS), and participate in the investment and operation project of the Istanbul Nakas-Basaksehir highway together with the local construction company Renaissance.

This project corresponds to Section 8 of the Northern Marmara Highway, which connects the southern city center of Istanbul's new airport in T?rkiye to Europe, and will establish a new 31 km, 6-8 lane highway including a cable-stayed bridge.

Completion is scheduled for 2027, and it is a public-private partnership (PPP) project where the highway will be transferred to the Turkish government after a private operation period. The Turkish government will grant operating rights to the Korean consortium for 15 years after completion, while guaranteeing minimum traffic volume and tolls in euros.

Samsung C&T will perform design and procurement in highway construction based on its global execution capabilities and technical expertise. It will also participate in operation after completion through equity investment. The total project cost is approximately 1.6 billion USD, and toll revenue exceeding 4.4 billion USD is expected during the 15-year operation period. The contract amount for construction is 260 billion KRW.

Samsung C&T plans to strengthen its capabilities to participate in investment and development-type projects beyond construction-centered roles based on this project.

A Samsung C&T official stated, "We expect this project to serve as an opportunity to elevate the level of economic cooperation between the two countries," adding, "We will continue to succeed in this project and use it as a chance to expand cooperation into the T?rkiye, Commonwealth of Independent States (CIS), and Eastern European markets."