The international consortium selected to carry out the estimated $1,800 million Izmit bay crossing project southeast of Istanbul is still discussing final details of its contract in light of objections raised by the supreme administrative court, the Danistay. Consortium sources say an agreement had been finalised in November with the client, the State Highways Directorate (KGM), but the Danistay subsequently introduced changes which made it impossible to proceed (MEED 24:10:97).

The consortium picked in 1997 to carry out the project includes the UK/Norwegian Kvaerner Construction, the local Enka Insaat and Marubeni Corporation, Itochu Corporation, Ishikawjima-Harima Heavy Industries, Mitsubishi Heavy Industries and NKK Corporation, all of Japan. Dresdner Kleinwort Benson is working as financial adviser.

'The Danistay changes mean the project is not bankable financially,' says one consortium executive. 'The conditions required by the lenders do not apply.' At issue is a section of the constitution that requires the state to provide infrastructure services to the public. A few private water and electricity schemes have managed to get round this problem, but the court is said to have plugged the loopholes that allowed this to happen. 'Turkish political leaders have told us that the only real way to tackle the issue is to change the constitution,' says the executive. However, discussions are still continuing with KGM to try to find a way to allow the project to go ahead.

It involves building a 2,808-metre suspension bridge over the bay and some 40 kilometres of highways. The consortium will operate the crossing for 27 years.