The evaluation process has begun following the submission of bids by 10 contracting groups for construction of a wastewater treatment plant in Izmir. The plant is the major component of the Izmir Great Channel Project.

The client, the General Directorate of Izmir Water & Sewerage Administration, is expected to make an award by the end of September.

The bidders are:

the local Yuksel Insaat with Uhde of Germany

the local Alsim Alarko with Emit of Italy

the local Ata Insaat with Italy's Ansaldo Industria

the local Aydiner Insaat with Berliner Wasser Betriebe (BWB) of Germany

Enka Insaat and Dogus Insaat, both local, with France's Degremont

the local Entes with Spain's Techicas Reunidas

Von Norden Skjold, BAB, FEE, and BINOVA, all of Germany

Sistem Yapi, Limak Insaat, and Intes, all local, with CDM of the US

the local Tekser Insaat with AEE of Austria and Post Buckely of the US

the local Yapi Merkezi with Lurgi, Siemens and Ways & Freytag, all of Germany.

Some seven prequalified contracting groups declined to bid.

Banks picked for Eurobond issue

The government has selected Morgan Stanley and Salomon Brothers to arrange a 10-year Eurobond issue which is expected to be worth $400-500 million, bankers say. The issue may take place in September and bankers are expecting the bonds to be priced at just over 300 basis points over comparable US Treasuries.

This pricing will reflect a tighter spread than Turkey's last dollar bond - a $400 million, five-year issue in May which was issued at 348 basis points over the equivalent US Treasury. Since then, the spread on these bonds has tightened to 270 basis points. Turkey has already borrowed almost $1,400 million from the international markets this year, having also issued twice in deutschemarks and once in Italian lira (MEED 13:6:97).