Consortium signs 4.5-billion-euro loan deal with six banks for Istanbul's third airport project

A total of six banks will provide 4.5 billion euros ($5.11 billion) to a consortium involving five Turkish construction companies that will carry out the construction of what is expected to be the third airport in Istanbul with a capacity of 150 million passengers. 

The Istanbul Grand Airport (IGA) consortium, which won a tender in 2013 to build Istanbul?s new airport, inked a loan agreement on Oct. 19 with six banks, namely state-run Halkbank, Ziraat Bankas? and Vak?fbank as well as foreign-financed Turkish banks DenizBank, Garanti Bankas? and Finansbank, to provide a sum of 4.5 billion euros for the first leg of the project.

The consortium included Turkish companies Cengiz, Mapa, Limak, Kolin and Kalyon.

According to the agreement, the loan maturity date has been set at 16 years. 

6 bln euros in investment for first leg

A total of 6 billion euros of investment has been planned for the first leg of the construction period. While some 4.5 billion euros of this investment will be made through the deal, the remaining one-fourth will be provided on the consortium?s equity, according to the follow-up press release. 

The first stage of the project is planned to be completed by 2018.

Speaking at the signing ceremony in Istanbul, Turkish President Recep Tayyip Erdo?an said construction would consist of four legs in total, the final of which would end in 2028.

Erdo?an noted the first leg of construction would result in the partial opening of the airport in the first quarter of 2018. ?[The project] will provide additional employment for approximately 80,000 [people] annually during the construction period,? he said, as quoted by Anadolu Agency
 
?This figure will increase to 120,000 people when...