Samsung C&T consortium wins $1.6bn highway project in Turkey

Samsung C&T CEO Oh Se-chul (left) and Rönesans Holding Chairman Erman Ilicak at the signing ceremony for the Nakkaş-Başakşehir highway project in Turkey. (Samsung C&T)

A South Korean consortium led by Samsung C&T Corp. has won a $1.6 billion project to construct a highway in Turkey.

According to Samsung C&T on Monday, the consortium, which also includes Korea Expressway Corp., Korea Overseas Infrastructure & Urban Development Corp. (KIND), and the PIS Fund, a government policy fund, will participate in the Istanbul Nakasi to Başakşehir highway investment and operation project with Turkish construction firm Rönesans Holding.

This project involves the construction of the 8th section of the Northern Marmara Highway, which connects the southern urban area of Istanbul’s new airport to Europe.

A total of 31 kilometers of a new six- to eight-lane highway, including a suspension bridge, will be built. Completion is expected by 2027.

The Turkish government will grant the Korean consortium the right to operate the highway for 15 years after its completion, while guaranteeing a minimum traffic volume and toll fees in euros.

Samsung C&T will be responsible for design and procurement in the construction process.

The company will also participate in the post-construction operation with Korea Expressway and KIND through an equity investment.

The total project cost is approximately $1.6 billion, with the highway expected to generate more than $4.4 billion in toll revenue over the 15 years of operation.

Accordingly, Samsung C&T expects to earn additional operating revenue in addition to the 260 billion won ($188.75 million) from the construction contract.

The Korean company plans to actively engage in investment-development projects that involve equity investment and operation beyond construction moving forward.

Korean builder Daewoo Engineering & Construction Co. also announced on Monday that it secured a mineral fertilizer plant project in Turkmenistan, which is valued at about 1 trillion won.

The project, commissioned by Turkmenistan‘s state-run chemical corporation, involves building facilities capable of producing 350,000 tons of phosphate fertilizer and 100,000 tons of ammonium sulfate annually, along with related infrastructure, in Turkmenabat, about 450 km east of the capital, Ashgabat.

This marks Daewoo E&C’s first foray into Central Asia.

Turkmenistan, with its rich natural resources, is considered to have high growth potential.

Daewoo E&C plans to actively explore the local market and seek additional project opportunities in the petrochemical and fertilizer sectors.

The company also aims to discover new business opportunities in various fields, such as infrastructure and new town development.

“We will continue to expand our overseas operations based on eco-friendly technology and innovation, playing a leading role in the global engineering, procurement, and construction (EPC) market,” said a Daewoo E&C official.