Thames in Turkish venture

THAMES WATER has joined a consortium in Turkey to build and operate a dollars 700m ( pounds 500m) water plant. The project, in which Thames will have a 25 per cent equity stake, involves building a dam, constructing a treatment plant and pumps, and laying 100km of mains to Istanbul, writes Mary Fagan.

The scheme will be financed by 15 per cent equity and 85 per cent borrowing. Thames will invest around dollars 27m, to be met with funds raised outside its core utility business. Other partners include two Turkish companies, Gama and Guris. Equity will also be contributed by a joint venture between Mitsui and Sumitomo of Japan.

The financial adviser to the consortium, Chase Investment Bank, expects loan syndication to be complete in time for construction to begin by the middle of the year.