A sub-contract valued at about $150 million has been signed for the construction of the $735 million Izmit water supply project by France's Kloeckner INA and the German/French Europipe with the UK's PWT International. The project is being constructed on a build-operate-transfer (BOT) basis.
Several other construction contracts have also been signed recently for the project, which besides supplying water to Izmit, also aims to supply water to Istanbul. PWT with locals Gama Endustri Tesisleri Imalat & Montaj and Guns Insaat & Muhendislik are responsible for civil works, erection, and commissioning.
Gama will complete the Yuvacik dam and lay a pipeline from the dam to Izmit, while Guris will build a water treatment plant with a capacity of 480,000 cubic metres a day, plus two pumping stations, one at Gebze and the other at Yarimca.
The project's promoters are the UK's Thames Water with Gama and Guris. Shareholders in its BOT joint stock company are Izmit municipality, Thames Water, Gama, Guris and Japan's Mitsui & Company and Sumitomo Corporation.
A financing package arranged by The Chase Manhattan Bank including export credits from the UK, France and Japan for the project was signed up in London in January 1995 (MEED 5:1:96).
The project aims to supply a total 142 million cubic metres (mcm) of water annually, of which 20 mcm will be supplied to Istanbul. Construction will take three years, after which the BOT company will operate the project for 15 years, repaying construction financing and making its profits from the proceeds.