1

Private Sector Perspective on Transport Project Apprisals: LIMAK’s Experience

Limak Construction

21 March 2019

22

From a Leading Contractor to a Leading Conglomerate

Established in 1976

$ 2.1 bn total revenues in 2018/06

$ 6.86 bn total assets in 2018/06

Limak Group at a Glance

Construction

Numerous dam, irrigation plant, highway, airport, port, railways, pipeline, treatment plant

and turn-key projects with a total value of over US$ 10.3bn in local and international

markets

Hotels

Owner and operator of 7 hotels in Turkey and 1 hotel in Cyprus

Total capacity of 6,098 beds

2 hotels in Turkey at the planning stage, 1 hotel in Macedonia at the construction stage.

Cement

2nd largest cement group in Turkey

1 new investment in Turkey

13 cement plants in Turkey, Côte d’Ivoire and Mozambique and 24 ready-mix-concrete

plants in Turkey.

18.4 million tons of cement production capacity

Infrastructure & Energy

16 electricity generation assets (8 operational HEPPs, 1 operational CCGT, 2 operational

coal fired power plant, 1 operational solar power plant, 1 operational geothermal project, 2

HEPP in construction phase and 1 solar power plant project in construction phase)

3 electricity trading companies

2 electricity distribution and retail companies

2 airports in operation, 1 airport under construction phase (partially operational)

1 port

1 high speed railway station

2 toll road projects in construction phase (partially operational)

1 bridge & toll road and motorway in construction phase

3Source: Company information

Current Projects

4

Limak Construction

Source: Company information

ENR Rankings Confirm Limak Construction’s Performance

Recently Awarded Projects

Ufa City Highway Construction, Russia

South Abdullah Al Mubarak Project, Kuwait

Jubail - Riyadh Water Transmission System, Saudi Arabia

Çetintepe Dam, Turkey

ISKI Istanbul Europe Side Tailrace and Pipe Cons., Turkey

Chelyabinsk International Airport, Russia

Khabarovsk International Airport, Russia

Backlog

US$10 bn

2014 2015 2016 2017 2018

Rank: 68

Rank: 135

Rank: 145

Rank: 163

Rank: 85

Major Ongoing Projects Country

Istanbul Airport (New) Turkey

Kahramanmaras Goksun Highway Turkey

Northern Marmara Highway (Kurtköy-Akyazı & Kınalı-

Odalı)Turkey

TANAP (Trans Anatolian Natural Gas Pipeline Project)

Onshore Pipeline ProjectTurkey

Cetin HEPP Turkey

Yusufeli Dam and HEPP Turkey

1915 Canakkale Bridge and Malkara-Canakkale

MotorwayTurkey

Devoll Hydropower Project 1-2 Albania

Kuwait International Airport Kuwait

CPEC Western Route, Hakla-D.I.Khan Motorway Pakistan

Iraq Gali-Zakho Tunnel Construction Project Iraq

Volgograd Int. Airport New Terminal Building Phase 2 Russia

Subway Construction Ukraine

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Purpose of the Northern Marmara Motorway Project

European side; Providing the transportation of the Thrace region to Istanbul, with the help of the

Yavuz Sultan Selim bridge and connection roads, the city traffic will be relieved and the July 15th

Bridge will reduce the traffic density on Fatih Sultan Mehmet Bridge. In addition, transportation to

the Istanbul New Airport will be quickly and comfortably.

Asian side; It will ease the transportation within the city by providing access to Istanbul and

reducing the traffic density in the existing transportation axles. In addition, Transit Traffic, which

passes through Istanbul, will shorten the transportation of Bursa-Izmir with Osmangazi Bridge and

facilitate transportation to Central and Eastern Anatolia regions with Izmit-Akyazi sections.

6

General Organization of Investment Project

State HighwayAuthority (Client)

Yüksel Proje (Consultant)

KMO

(Spesial PurposeVenture)

Europa

Kalyon-RSY-Pak

Section1-2-7

Asia

Limak

Section4

Cengiz

Section5

Kolin

Section6

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Northern Marmara Motorway

BOT of Kurtköy-Akyazı Section BOT of Kınalı - Odayeri Section

• Total period: 8 years 9 months and 8 days

• Consists of 3 sub-sections with respective guaranteed daily traffic

numbers:

• Sub-section 4: Kurtköy-Liman – 125,000

• Sub-section 5: Liman-İzmit – 90,000

• Sub-section 6: İzmit-Akyazı – 60,000

• Total period: 9 years 9 months and 10 days

• Consists of 3 sub-sections with respective guaranteed daily traffic

numbers:

• Sub-section 1: Kınalı-Yassıören – 75,000

• Sub-section 2: Yassıören-Odayeri – 100,000

• Sub-section 7: Habibler-Hasdal – 120,000

Note: * Partially started to operate on 11.12.2018. Rest part of the Section – 4 will be completed in Q1 2019.

Note: ** Started to operate on 13.11.2018

Note: ***Will be completed in 2019 and 2020.

20%

LIMAK

CONSTRUCTION

KMO Anadolu Otoyol İşletmesi A.Ş. & Avrupa Otoyolu Yatırım ve İşletme A.Ş.

CENGIZ

CONSTRUCTION

KOLIN

CONSTRUCTION

KALYON

CONSTRUCTION

20% 20% 20%

RSY

CONSTRUCTION

PAK

INVESTMENT

15% 5%

Section-4*

Section-5***Section-6***

Section-1***Section-2 **

Section-7***

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Roles & Responsibilities

• SPV / EPC Relations with Related Government Organizations, Client, Consultant and Local

Authorities/Companies (Municipalities, Utulity Companies)

Arranging of Finance

Expropriation

Design (Basic Design)

Relocation of Underground Facilities (partly)

Selection of Subcontractors for Secondary Works (Electric, Communication, Toll

Collection, Vertical/Horizontal Signage, Highway Guard Railing, Fence, etc.)

• Responsibilities of Contractors Construction of Motorway

Detailed Design

Provision of Manpower

Provision of Material & Equipment

Relocation of Underground Facilities

Management of Secondary Works Subcontractors

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Brief Information About Project (Section 4)

KU

RT

KÖ

Y

Istanbul Park

IntersectionGebze Industrial

Zone Intersection

Port

Intersection

D100 Gebze

Intersection

Mermerciler Industrial

Zone Intersection

Demirciler Industrial

Zone Intersection

TEM Gebze

Intersection

V01

L=480 m

V13

L=256 m

V07

L=838 m

V09

L=531 mV08

L=367 m

V16

L=177 m

Charasteritic Of Motorway

2 x 4 Lanes : 22 km

2 x 3 Lanes : 12 km

2 x 2 Lanes : 16 km

End of Section 4 and

beginning of Section 5

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Main Motorway

• Earth Works

• Excavation 34.000.000 m³

• Back Fill 32.000.000 m³

• Super Structure

• Sub Base + Base 2.600.000 ton

• Bitiminous Base + Binder + Stone

Mastic Asphalt 1.600.000 ton

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Expropriation

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General Itinerery of The Project

Devam Ediyor

•Asphalt Plants:• 340 ton/hr•340 ton/hr•160 ton/hr

•Concrete Batching Plants•120 m³/hr•120 m³/hr•90 m³/hr•90 m³/hr

Excavated Material Stroge Areas •Number Of Storage Area : 24 •Capacity : 12.300.000 m3 •Total Area 1.150.000 m2

km:

12

9+6

50

km: 150+560

0+000 km: +275

570 mt

14

0 m

t

km: 2+178

km: 1

46

+86

0

km: 1

46

+95

0

PB: +500

km: 2

+45

2

km: 137+250

km: 1

+39

4

km: 1

51

+50

0km: 142+325

km: 2+674

km: 1+778

km: 4+900

120 mt

40

0 m

t

km: 1+840

km: 7+258

km: 2

+73

2

km: 2+940

km: 10+204

km: 7+450

km: 7+500

km: 1

+82

5

km: 11+294

km: 11+747

NORHERN MARMARA MOTORWAY PROJECT - SECTION 4 GENERAL ITENERARY

İstanbul Park-1 Intersection

İstanbul Park-2 Intersection

Gebze Industrial Zone Intersection

Balçık-1 Intersection

Balçık-2 Intersection

Port Connection Intersection

Mermerciler Indusrial Zone Intersection

Demirciler Industrial Zone Intersection

D-100 Gebze Intersection

TEM Intersection

Concrete BatchingPlant-2

Crushing Plant-2

Quarry-2

Crushing Plant-1

Quarry-1

Concrete Batching Plant

De

vle

t Y

olu

35

67

m17

33

6 m

250 m

12696

11

70

m

Km:141Depo (Sol Eksen)

13568

26

5 m

7

2

76

0m

551 m

9

42

1m

4

80 m

109 m

3

307 m

150 m

1

350 14

8

11

110

m

290 m

21

250

300 m

5

6

10

10

0m

11

00

m

15

18

19

87

0m

Concrete Batching Plant-3

20

23

22

24

16

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Relocation of Underground Facilities

• Electricity, Telephone & Data Cable TEIAS (20)

TELEKOM Istanbul + Izmit (5 + 11)

SEDAS (9)

AYEDAS (7)

• Natural Gas & Crude Oil IGDAS (6)

BOTAS (7)

NATO (1)

PALGAZ (2)

• Water & Sewage Lines ISKI (9)

ISU (9)

TOTAL 86 Major Relocation

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Bridge & Upper/Under Passages

• Bridge 15 pcs

• Upper Passage 17 pcs

• Under passage 22 pcs

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Working In/Near Intensive Living & Industrial Zones

TEM Motorway

TEM Motorway

Gebze-İzmir

Motorway

Gebze-İzmir

Motorway

Nothern Marmara Motorway

D100 State Highway

Nothern Marmara Motorway

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Viaducts

• V01 (480 m)

• V07 (838 m, Combination of

Conventional & Balanced Cantilever

Systems)

• V08 (367 m, partly steel beams)

• V09 (531 m)

• V13 (256 m)

• V16 (177 m, partly steel beams)

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Toll Collection Systems

• 4 OGS/HGS/Cash Toll Collection Points

• 4 Free Flow Toll Payment Locations

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Intersections

Istanbul Park 1 & 2 Intersections

Gebze Industrial Zone Intersection

Balçık 1 & 2 Intersections

Port Intersection

Mermerciler Industrial Zone Intersection

Demirciler Industrial Zone Intersection

D100 Gebze Intersection

TEM Intersection

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Manpower Histogram

April 2018 August 2018 December 2018 March 2019

Management 4 4 5 5

Engineer 48 53 66 51

Technician 17 19 24 17

Foreman 38 38 70 33

Others 963 1194 1436 890

Subcontractor 1766 1444 1248 677

0

500

1000

1500

2000

2500

3000

Manpower Histogram

Management

Engineer

Technician

Foreman

Others

Subcontractor

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Machinery & Equipment Histogram

0

200

400

600

800

1000

1200

April 2018 August 2018 December 2018 March 2019

Machinery & Equipment Histogram

Roller Compactor

Concrete Truck Mixer+Pump

Mechanical Plant

Rock Driller

Truck

Grader

Asphalt Finisher

Excavator

Dozer

Others

Backhoe Loader

Asphalt Plant

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Super Structure

,0

100000,0

200000,0

300000,0

400000,0

500000,0

600000,0

Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

Super Structure

Sub Base + Base Bitiminous Base + Binder + Stone Mastic Asphalt

8.750 ton/day Stone Mastic Asphalt

Production at peak days

!! Rocord for TURKEY !!

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Earth Works

,0

500000,0

1000000,0

1500000,0

2000000,0

2500000,0

3000000,0

Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

Earth Works

Excavation Back Fill

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Conclusion

Construction Period for 1st Phase is 28 Months

Total Construction Period 36 Months (for Section 4)

Approval of Alignment, Expropriation, Basic Design and

Relocation of Underground Facilities in similar period

Execive Number of Manpower and Equipment to catch the

tight Work Program

Less productuvity due to late Court decisions, late relocation

of underground facilities and permits/provisions of dumping

areas

Working in/and close proximity of Crawded Areas of Istanbul

& Kocaeli (including Industrial Zones)

Working in/near Main Highways of Turkey (D100 State

Highway, TEM Motorway and Gebze-İzmir Motorway)

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Thank You