SK, Daelim win $3 bil. deal in Turkey

SK Engineering & Construction (E&C) and Daelim Industrial won a 3.5 trillion ($3 billion) contract to construct the world’s longest suspension bridge in Turkey, the two companies said Tuesday.

A four-way consortium, consisting of SK, Daelim and two Turkish builders, Limak and Yapi Merkezi, was selected as a preferred bidder late last month for the project to build the 3.7-kilometer Canakkale suspension bridge, outpacing the Japanese consortium of Itochu and IHI.

The contract is expected to be finalized in mid-February, according to an SK E&C official, who said each member has a 25 percent stake in the mega project.

“We will begin the work in March if everything goes as planned,” the SK official said. “We will take the necessary steps going forward to finalize the deal. Once completed in 2023, it will become the world’s longest suspension bridge.”

The consortium will build and then operate the Canakkale suspension bridge, which will link Lapseki to Gelibolu districts of Canakkale, for 16 years and two months to collect its investment before transferring ownership to the Turkish government.

“We competed hard to become a preferred bidder,” a Daelim official said. “We are glad that the Turkish authorities recognize our engineering, construction expertise and knowhow about building suspension bridges. As the leader of the consortium, we will do our best to successfully undertake the job.”

Daelim built the Yi Sun-shin Bridge and many other suspension bridges in Korea over the years, accumulating advanced knowhow in the field. This extensive track record enabled the consortium to secure the contract from the Turkish government, according to the official.

In addition, SK has been implementing a number of infrastructure developments in Turkey, establishing an extensive business network with government officials and corporate leaders.

For instance, SK opened a 5.4-kilometer undersea tunnel, linking Europe and Asia across the Bosphorus strait of Istanbul, last December. The builder opened the Eurasia Tunnel three months earlier than initially scheduled, displaying its superb construction capability, the company said.

Following the latest 3.5 trillion won contract, SK, Daelim and other Korean builders expect to win more orders in Turkey and other countries.

Korean construction companies garnered many lucrative overseas contracts in the late 2000s and early 2010s but they have struggled in recent years.

In particular, local firms lost many bids last year to Japanese and other foreign competitors in Turkey and other developing countries. (Lee Hyo-sik, The Korea Times)