EURASIA TUNNEL: CONNECTING CONTINENTS Turkey Commissions New Infrastructure Masterpiece Linking Asia and Europe; Will Improve Commuting Times and Promote Cost Savings
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ISSUE 35JANUARY 2017 Image: Courtesy of Architect, GMW MIMARLIK of Architect, Image: Courtesy EURASIA TUNNEL: CONNECTING CONTINENTS Turkey commissions new infrastructure masterpiece linking Asia and Europe; will improve commuting times and promote cost savings The Eurasia Tunnel, a mega project Bridge on the Bosphorus in August, and route from 100 minutes to roughly 15 linking Istanbul’s Anatolian side to the now the Eurasia Tunnel, is the future minutes. In addition to the time-saving heart of its historical district on the of these projects. We are attending the benefit, the project should also help European side, was officially opened opening ceremonies for projects in lower pollution while increasing mobility, on December 20 during a ceremony the fields of energy, education, health, all of which will bring an economic attended by President Recep Tayyip sports, and infrastructure with the same boost along with social, cultural, and Erdoğan, Parliament Speaker İsmail excitement. Investments in basic services environmental benefits to the citizens Kahraman, Prime Minister Binali constitute the groundwork for other of Istanbul and to the whole city. The Yıldırım, and a number of guest enterprises needed for the growth and environmentally-friendly Eurasia statesmen. With the addition of the development of a country,” said Erdoğan. Tunnel has been built to withstand a Eurasia Tunnel to the three bridges The Eurasia Tunnel was constructed 7.5-magnitude earthquake and can even currently spanning the Bosphorus, in 4.5 years with a total investment be used as a shelter if required. Istanbul now boasts four intercontinental of USD 1.25 billion and a total length The contractors have the right to run motorways. of 14.6 km, including 5.4 km of twin- the tunnel for around the next 25 years Speaking at the inauguration deck tunnel crossing the Bosphorus within the scope of a build-operate- ceremony, President Erdoğan affirmed underneath the seabed. The tunnel has transfer model. After this initial period, that Turkey has never neglected its been constructed for motor vehicles only the tunnel will be transferred to the agenda of growth and development. and it will serve the Kazlıçesme-Göztepe state. The Eurasia tunnel is expected “What excites us so much about the route, which has some of the most to make an annual contribution to the Osman Gazi Bridge we opened on İzmit intense traffic in Istanbul. The tunnel is Treasury of around TRY 150-180 million Bay in June, the Yavuz Sultan Selim expected to decrease travel time on this during the 25-year term. Drawing attention to the advantages NEW SUPPORT of the tunnel, President Erdoğan said that EBRD MECHANISMS it allows a fast and safe transit through a very difficult mountainous region. ANNOUNCES UNVEILED He concluded by saying that the tunnel NEW FINANCING is the culmination of a chain of mega TO BOOST projects that began with the opening of FOR ENERGY ECONOMIC the Osmangazi Bridge in June, the Yavuz Sultan Selim Bridge in August, and the PROJECTS ACTIVITY Eurasia Tunnel in December. The European Bank for Reconstruction Prime Minister Binali Yıldırım and Development (EBRD) announced announced at a meeting of the a new EUR 400 million financing Economic Coordination Board on provision for small-scale sustainable December 8, new measures to support energy projects in Turkey. The funds economic activity and enhance will be utilized under the Turkey financing opportunities for SMEs. Sustainable Energy Financing Facility The new support mechanisms see (TurSEFF) of the bank. TurSEFF was the Credit Guarantee Fund increasing established to help finance small and its guarantee coverage for SMEs to medium-sized enterprises seeking to TRY 250 billion, KOSGEB ensuring TRY enhance their energy efficiency. 50,000 loans for SMEs with three- This initiative is also supported year maturity and a grace period of by the European Union in close one year, and the postponing of social PORT OF FILYOS, collaboration with Turkey’s Ministry security premium payments paid by CULMINATION of Energy and Natural Resources private sector employers. with regard to funding for technical Yıldırım also revealed some OF 150-YEAR assistance through its Instrument for measures to promote exports; among Pre-Accession. these would be an increase in capital OLD DREAM EBRD has invested over EUR 3.5 of Eximbank, Turkey's official export billion in more than 90 such energy credit agency. Envisioned nearly 150 years ago projects since 2009, including two of The decisions taken at the by Sultan Abdulhamid II, the Turkey’s largest wind farms and the Economic Coordination Board groundbreaking ceremony for the largest geothermal power plant. mainly focused on utilizing new Filyos Port, a long-awaited project support mechanisms for the real that is set to become Turkey’s third economy, implementing reforms, largest port upon completion, took and introducing new opportunities to place in the province of Zonguldak IFC TO INVEST increase employment in Turkey. with the participation of Turkish Prime Minister Binali Yıldırım. IN HEALTHCARE Considered to be a dream come FACILITIES IN true, the Filyos Port will be completed ILGAZ JULY 15 at a total cost of USD 154 million. TURKEY Several other infrastructure projects INDEPENDENCE are slated to follow the port’s The International Finance TUNNEL completion, and together they will Corporation (IFC), a member of the play a vital role in making the region World Bank Group, announced a OPENS, LINKS an industrial zone. new bond issuance in Turkey. The According to Prime Minister EUR 80 million bond will be used to BLACK SEA Yıldırım, the project is not only about fund healthcare facilities in Turkey’s Zonguldak itself, but Turkey as a Elazığ province. TO CENTRAL whole as the port will be the gateway According to World Bank Group to the Anatolian lands from the officials, the bond will mature in 20 ANATOLIA eastern Black Sea. It is expected that years and will reach EUR 288 million The Ilgaz July 15 Independence Filyos will be a shining star in terms in total. This financing method is Tunnel, a project that began in of maritime transportation. unique in Turkey as it is the first 2012, was officially opened to traffic As per plans, at least 10 large project bond financing of a hospital on December 26. Turkish Prime facilities will be erected in the under a public-private partnership Minister Binali Yıldırım presided industrial zone, while some scheme. The bond is also the first over the opening ceremony, with 12,000 people will be offered job green project bond in Turkey. Turkish President Recep Tayyip opportunities. The 3,000 m-long The proposed healthcare facilities Erdoğan also making an appearance port of Filyos will have a loading and in Elazığ covered by this bond are via video conference. unloading capacity of 25 million tons part of Turkey’s broader city hospitals Built within the Ilgaz Mountain per annum, and will be backed by a project. Within the scope of that and connecting Central Anatolia road and rail network. Around 4,000 project, 29 city hospitals with a to the Western Black Sea region of people will work on the construction combined capacity of 41,000 beds will Turkey, the tunnel reduces travel of the Filyos project, which is be built by 2019 in Turkey at a total time from 35 minutes to 8 minutes. scheduled for completion in 2017. investment cost of TRY 30 billion. SAMSUNG LAUNCHES INNOVATION CENTER FOR SEAMLESS B2B ENTERPRISE SOLUTIONS South Korean electronics giant Samsung recently inaugurated an innovation center in Istanbul, continuing the company’s commitment to conducting R&D in Turkey following its February 2015 investment in Istanbul Teknopark. TURKEY'S BUNGE The Samsung Innovation Center will provide seamless B2B enterprise MADO INKS ACQUIRES solutions. Speaking at the opening ceremony DEALS WITH TURKEY’S ANA on December 13, ISPAT President Arda Ermut said that fifty years after the VENTURE GIDA beginning of the information age, CAPITAL BANK US-based agricultural products trader the world is undergoing a substantial Bunge, operating in more than 40 transformation fueled by automation, AND AL SRAIYA countries including Turkey, entered R&D, and productivity. “This period, into an agreement to acquire Turkish called the fourth industrial revolution HOLDING seed and olive oil producer Ana Gıda. and which drives economies, is Ana Gıda is owned by Anadolu also having an influence on Turkey. Turkish deserts-and-food franchise Endüstri Holding and SEEF Foods, and In this sense, investments that Mado signed a strategic partnership has three famous olive oil brands in will give rise to R&D activities and agreement with Bahrain-based Turkey; Komili, Madra, and Kırlangıç. enable the transfer of technology are Venture Capital Bank (VCBank) and The share transfer will be concluded prioritized. As the Agency, we attach Qatar-based Al Sraiya Holding. during the first quarter of 2017. Under great significance to sectors that The USD 150 million-deal allows the terms of the agreement, Bunge will support the development of this Mado's owners to retain a 60 percent will acquire 55.25 percent of the shares process in Turkey, which is defined as stake in the company, while the from Anadolu Endüstri Holding and Industry 4.0,” said Ermut. remainder of the shares will be owned the remaining 44.75 percent from Samsung is one of the ten most by VCBank and Al Sraiya Holding. The SEEF Foods. valuable brands in the world and it deal also includes further expansion of Commenting on the deal, CEO of is the global market leader in 17 of the franchise in the GCC region. Bunge EMEA Tommy Jensen said the areas in which it operates. In At the signing ceremony in Ankara, that the acquisition of Ana Gıda will addition to its centers in Turkey, VCBank CEO Abdullatif Janahi said empower Bunge to diversify into the the company’s global R&D network that they are delighted to announce higher value olive oil category.