Bechtel and ENKA obtain loan guaranteed by UK Export Finance for project in Serbia
Bechtel ENKA UK Limited, a joint venture between Bechtel and ENKA, has entered into its first export agreement with UKEF to secure a secured loan of 430 million euros (around Â£ 363 million) for the construction of a 5G ready highway in Serbia.
The UKEFThe Sustained Buyer’s Credit Facility will help Bechtel and ENKA create value of â¬ 150 million (around Â£ 126.5 million) in the UK economy, by stimulating investment in local communities and by supporting jobs. It is also the first export credit agreement concluded by UKEF for the Ministry of Finance of Serbia.
The Morava Corridor (Infrastructure Corridor E-761) will be the second major transport artery in Serbia, connecting communities and businesses from Pojate in the east to Preljina in the west, and connecting the north-south highway from the country to the Hungarian and North Macedonian borders. .
The announcement was made at this week’s UK Government’s World Investment Summit, hosted by Prime Minister Boris Johnson in London.
Brendan Bechtel, CEO and Chairman of Bechtel, said:
This welcome support from UK Export Finance will enable Bechtel, together with our partner ENKA, to deliver this transformative infrastructure project using goods and services exported from the UK.
In a time of post-COVID recovery, this investment in the supply chain will benefit both the UK and Serbian economies and also allow Bechtel to continue to develop its partnerships in the two countries.
Mehmet Tara, President and Chairman of the Executive Committee, ENKA Insaat, said:
I am very happy to see one more UKEF project supported with ENKA which has reached financial closure.
This project is not only important for Serbia, but also for the UK because, with the support of UKEF, our joint venture with Bechtel, will create value for the UK economy and implement the project in Serbia.
Anne-Marie Trevelyan, UK Secretary for International Trade, said:
This partnership between Bechtel ENKA UK Limited and UKEF boost UK exports, boost investment, support jobs and strengthen local economies, helping us to rebuild better after the pandemic.
This week’s Global Investment Summit draws the world’s top investors to the UK, showing why the UK is the best destination for foreign investment. There is no better time to invest in the UK.
Bechtel Enterprises, the project development and finance arm of Bechtel, has supported the Republic of Serbia throughout the financing process with JP Morgan Chase Bank as the principal mandated arranger of the facility.
Keith Hennessey, President of Bechtel Enterprises, said:
This transaction is exemplary of the creative results that can be achieved for our clients when export credit agencies, development finance institutions, international banks and the supply chain work together.
We are proud to partner with the Government of Serbia and UKEF in this transformation project and we look forward to bringing energy and creativity to deliver this world-class motorway in this strategically important part of Europe. We thank the government of Serbia for its active engagement throughout the funding process.
A major flood defense system is included in the design of the highway to protect surrounding areas from flooding, erosion and the resulting water pollution.
It is the first flood mitigation system of this magnitude to be built along a highway in the Balkans, reflecting the Serbian government’s commitment to building the resilience of the national infrastructure in the face of extreme weather conditions.
Ilhan Gucuyener, Executive Committee Member, ENKA Insaat, said:
I am very grateful for this exciting opportunity and UKEF support to Bechtel ENKA UK Limited for this Morava corridor project in Serbia.
With this second engagement of Enka with UKEF, we will continue to add value to the UK economy. Export financing is one of the most beneficial tools we offer our clients.
I would like to thank everyone who participated in UKEF and Department for International Trade with their professional and business-oriented approach.
Bechtel is a trusted engineering, construction and project management partner for industry and government. Differentiated by the quality of our employees and our relentless drive to achieve the best results, we align our capabilities with our clients’ goals to create lasting positive impact.
Since 1898, we’ve helped clients complete more than 25,000 projects in 160 countries across seven continents that have created jobs, developed economies, improved the resilience of global infrastructure, increased access to energy, resources and vital services, and make the world a safer and cleaner place.
Bechtel serves Energy; Infrastructure; Nuclear, Safety and Environment; and the mining and metals markets. Our services range from initial planning and investment to start-up and operation. www.bechtel.com
ENKA has been one of ENR’s best international entrepreneurs since 1981 and with a solid experience of 64 years, ENKA operates in 4 main segments; Engineering and construction, power generation, real estate and trade. ENKA employs 20,000 people worldwide and generates approximately $ 450 million in annual EBITDA. With a net cash position of 4.6 billion dollars, it enjoys a healthy financial position.
ENKA is a publicly traded company listed on Borsa Istanbul and with a focus on sustainability, it has been listed in the Dow Jones Sustainability Index and the Borsa Istanbul Sustainability Index. ENKA is also part of the FTSE4Good index series and is a signatory of the United Nations Global Compact.
ENKA had already undertaken and completed single cycle parts of two power plant projects in Iraq, which were also fully supported by UKEF. The main value of the support was $ 737 million.
About UK Export Finance
UK Export Finance is the UK’s export credit agency and government department, working alongside the Department of International Trade as part of its strategy and operations.
Established in 1919, it exists to ensure that no viable UK export fails for lack of private market funding. It provides financing and insurance to help exporters win, complete and get paid for export contracts.