Board approves marina development plan hours after Koç withdraws

ISTANBUL - Doğan News Agency

The Turkish privatization board has announced a new development plan for the Kalamış Yacht Marina on the Asian side of Istanbul on March 20, just after the winner of the original tender, Koç Holding’s Tek-Art, had said it would not sign the deal as the promised development plan had not be published.
The privatization board will meet with the winners of the tender again and if they do not agree to sign the deal, it will then launch a new bidding process, according to sector professionals.

Tek-Art, the previous operator of the marina, said that it would not sign the transfer of operation rights contract due to problems in the development plan, although the company won the tender for $664 million last year.

“Since the motion for stay of execution has not been lifted on the development plan at the present time, the decision to reverse the signing of the transfer of operation rights contract as a part of the 19th article of tender specifications has been reported to the privatization board,” the statement read.

Tek-Art placed the highest bid of $664 million and emerged triumphant after a fierce auction competition with real estate company Safi Gayrimenkul in May 2014. A court then ruled for a motion of stay of execution for the Kalamış Marina. However, the development plan problem remained unsolved.

 “The confirmation of the new development plan does not mean that Koç Holding will reverse its decision on signing the transfer of operation rights contract. It is impossible. A new tender will be made and bids will be placed,” said an anonymous expert.

The privatization board is also expected to begin the new bidding process, source added.

“The board will ask Koç whether it wants to sign the deal upon the published development plan. If Koç says ‘no,’ then the authority will go to the second and then third winner of the tender. If all of them say ‘no,’ the tender will be canceled,” said another expert.

The privatization board had launched privatization efforts for the Kalamış Marina in February 2014, taking away Koç’s right to operate there. The amount of the bid security was set at $10 million.
Including Tek-Art, which operated the marina under the name Setur Marinas for 15 years, a total of seven bidders raced to acquire 30-year operational rights to the marina located on the Asian side of Istanbul.

With 1,291 berthing and 220 dry storage capacities, the Kalamış Marina is the largest in Turkey and one of 11 blue-flagged yacht ports.

Koç Holding is one of Turkey’s largest conglomerates and one of the leading companies in Europe. It encompasses over 110 firms in different sectors, employing 90,000 people. Its main areas of business include energy, trade, industry, finance, tourism and shipbuilding, among others, according to the website of the group.