Banks put $1.35 bln into road project

ISTANBUL - Hürriyet

Several of Turkey’s largest banks have agreed to finance half of the construction costs for the first part of the Istanbul-İzmir highway, officials from the General Directorate for Highways, who asked to remain anonymous, have said.

The total cost of the project is estimated at $2.7 billion, half of which will be provided by the contracting companies. This proportion of resource allocation on the part of the builders encouraged local banks to finance the remaining half of the financial need. The banks involved are Ziraat Bank, Halk Bank, Vakıfbank, İşbank, Garanti, Akbank, Yapı ve Kredi Bank and Finansbank. The 45-kilometer stretch of highway in question includes a giant suspension bridge. The officials expect the agreement will be finalized in October, following negotiations with the Treasury and related institutions. It will be one of the largest-ever domestic financing agreements if it is finalized.