Between the administrative capital of Ankara and the southern city of Niğde, the Ankara to Niğde Motorway (ANO project) is a missing section of the Trans-European Motorways (TEM) route network in Türkiye. TEM masterplan was developed to address gaps in the motorway network between Western Europe and the Eurasian subcontinent. When completed in 2021, ANO will improve connectivity and contribute to Türkiye’s economic growth.
The Turkish state appointed ERG Otoyol Yatirim ve İşletme Anonim Şirketi (ERG) to design, build, operate and transfer ANO under a Public Private Partnership (PPP) arrangement involving a 12-year concession contract. Arup was appointed by ERG in 2018 as Lenders Technical Advisor (LTA) during the project’s financing and construction phases.
Providing financial expertise
Arup helped the client to achieve financial close by minimising delays. We carried out contractor construction proposal reviews, as well as reviews of project contract documentation with a view to ensure appropriate pass through of key risks and assessments for any risks remaining with the SPV of Lenders. Arup performed site visits and undertook a benchmarking process for Lenders to assess programme and construction costs against similar projects, ensuring the commercial arrangements were in line with market norms.
Arup prepared a Technical Due Diligence report for Lenders to support the credit application process, with Financial Close successfully achieved in June 2018. Our report highlighted key risks associated with the programme for the works, and we worked closely with Lenders’ representatives to reassure them that the construction programme was achievable.
Programme and project management
Following Financial Close, Arup’s role has been to monitor construction on behalf of Lenders. The scope of this engagement includes quarterly site visits and reporting. Key areas for review are progress against the construction programme and the quality of workmanship. Videos illustrating the full project scope is available here.
In addition to the mainline Motorway carriageway and side roads, the Ankara-Niğde Motorway (ANO) includes the construction of 13 intersections, 4 viaduct structures, 139 underpass structures, 47 overbridge structures, and the installation of toll collection, lighting, ITS signalling, traffic counting systems and roadside facilities.
Monitoring activities involve visits to all parts of the 278km long motorway, whilst visiting areas of key construction activities occurring with the timing of each visit. This enables us to witness construction activities and assess construction progress against the programme.