Privatization of Airport in Turkey, Malaysia Participated in a Consortium to Buy

Istanbul, Turkey | February 09, 2008 by D-8 Secretariat

The Undersecretariat for the Defense Industry (SSM) will sign a contract with the Limak-led consortium to finalize the transfer of Sabiha Gökçen Airport following the prime minister’s approval of the sale yesterday, reported by a media source in Turkey.

The consortium of Limak İnşaat AŞ, GMR Infrastructure and Malaysia Airport Holding Berhad will receive the operation rights of the airport a maximum of 90 days after the contract is signed. The consortium won the tender in a bid of 1.93 billion euros on July 9, 2007. According to the bid specifications, the winner will begin making payments three years after the transfer and the entire amount will be paid off in 20 years. The tender file was sent to Prime Minister Recep Tayyip Erdoğan for his signature last week after it was approved by the Supreme Planning Board (YPK). The consortium has employed a 50-person team to prepare the investment projects for the airport, and this team has been pressed to decide on the most urgent steps necessary for efficient operation of the airport. When these projects are completed, the passenger capacity of the airport will increase to 10 million annually.

D-8 Working Group on Civil Aviation meets regularly each year to discuss privatization and investment in airport sectors. The recent cooperation between Turkey and Malaysia is an encouraging example of collaboration for the investor and companies in aviation sectors within D-8 countries. D-8 Organization believes that this development will also thrust tourism and trade cooperation, considering that D-8 countries cover a very huge and rich potentials with more than 800 million peoples.

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