Loan request for Turkish bridges and toll roads
According to three people with knowledge of the requests the bidders for the rights to operate Turkish bridges and toll roads have approached banks to raise at least $3 billion of funding. The Rome-based toll specialist Autostrade per l’Italia SpA and Europe’s biggest builder, Vinci SA (DG) will bid alongside Turkish contractors for the 25-year rights to operate eight toll roads about 2,000 kilometers long and two crossings over the Bosporus.
The government’s sale of toll highways is part of a privatization drive to pull in 12.5 billion liras selling assets including the national lottery and electricity grids next year. Turkey seek to sell state-owned businesses to help pay down debt. It is even as the global financial crisis makes it more difficult for the potential buyers to borrow. The people, who didn’t want to be identified, said the loans being sought from European, U.S. and Japanese banks would cover most of the price for the rights. According to three other people familiar with the government’s plans the auction is expected to raise at least $3 billion and as much as $6 billion.
The people said four groups of companies are expected to take part in the auction. The final bidding deadline is on Feb. 16 while prequalification applications due by Jan. 19, the people said.