Astaldi Group, a leading general contractor in Italy, said its Turkish joint venture firm has been awarded two big orders - a €627 million ($696 million) EPC contract for Istanbul Underground project and construction of a €392-million ($435 million) motorway project.

For the first project, Astaldi Group (15 per cent stake) will team up with Turkish companies Makyol (29 per cent), Ictas (28 per cent), and Kalyon (28 per cent) to carry out the civil works and the electromechanical systems of the Kirazli-Halkalı section of the Istanbul Underground.

The contract has been awarded by the Municipality of Istanbul.

The project calls for building 10 km of double-tube tunnel, 7 km of which will be dug using TBM (Tunnel Boring Machine), as well as nine stations with annexed car parks and a depot area.

The work is set to begin in coming days, and is scheduled to take about two and a half years for completion.

The second is a BOT contract for a motorway project for which Astaldi (33 per cent stake) has joined forces with Turkish companies IC Içtaş (34 per cent) and Kaylon (33 per cent).

A total of €333 million will be set aside for construction activities, for building approximately 80 km of the Menemen-Aliağa-Çandarlı Motorway in the province of İzmir.

The transaction’s financial structure calls for the contribution of private capital for an amount equal to 20 per cent of the total investment, which for Astaldi translates to approximately €26 million to contribute by the end of the construction period, said the statement from Astaldi.

Operation activities call for a minimum guaranteed revenue guaranteed by the grantor, totalling €45 million/year.

The scope of work includes construction of 11 bridges, 14 junctions, three service areas, seven motorway toll booths and 10 viaducts in addition to all O&M (Operation and Maintenance) activities.

The duration of the concession is equal to approximately 10 years, with 36 months for the construction phase and the remaining period for operation.

The project’s customer is KGM, the General Directorate of Motorways of Turkey’s Ministry of Transport, which operates as Grantor.

The Astaldi Group has been operating for more than 30 years in Turkey, where it is currently engaged in completing the projects under concession for the construction and subsequent operation of Phase 2 of the Gebze- Orhangazi-Izmir Motorway, as well as of the Etlik Integrated Health Campus in Ankara (one of Europe’s largest healthcare facilities).

It also holds the multi-year concession for the construction and operation of the Third Bosphorus Bridge (the world’s longest and widest hybrid bridge, with towers soaring higher than the Eiffel Tower, in operation since September 2016).-TradeArabia News Service