Rönesans Seeks Additional Tenders in the HWBP Project to 'Safeguard the Netherlands for 100 Years'
Rönesans, which generates more than 50% of its revenue from international projects, is engaging its Dutch subsidiary, Ballast Nedam, to work on a 1.2-kilometre section of a 1,500-kilometre dike reinforcement project. Looking ahead, Rönesans plans to bid on additional tenders over the next three years to secure involvement in at least 25-30% of the overall HWBP project.Ranked among the top 10 construction companies in the Netherlands and fully acquired by Rönesans Holding in 2015, Ballast Nedam is participating in a dike reinforcement project designed to protect the Netherlands from flooding for the next 100 years.
The company, which has secured the tender for a 1.2-kilometre section of the project involving the reinforcement of over 1,500 kilometres of dikes, plans to bid on additional tenders within its three-year strategic plan to secure involvement in at least 25-30% of the overall project.
The project aims to raise existing dikes by five meters, providing the Netherlands, which is frequently affected by flooding, with protection for another 100 years. Ballast Nedam is set to complete its 1.2-kilometre section by 2025. Speaking about the project and Rönesans's international operations in general, Rönesans Holding Chair İpek Ilıcak Kayaalp revealed that the total contract value for the dike reinforcement project is €24.5 million.
Ilıcak Kayaalp highlighted that 80% of the materials extracted during the project are being reused, marking a significant contribution to the circular economy. She also noted that the initiative is the 'first' infrastructure project to use entirely electric equipment. Describing Ballast Nedam as Rönesans' largest subsidiary in Europe, Ilıcak Kayaalp stated that, in addition to construction, the company also develops residential properties, with an annual turnover of €1.3 billion.
“Expanding Rönesans' Influence Across Europe”
Highlighting that Rönesans is undertaking projects not only in Türkiye but also in various other regions, Ilıcak Kayaalp stated: “Europe is a key focus for us. Ballast Nedam, our largest subsidiary in Europe, accounts for approximately one-third of our consolidated revenue. Beyond implementing diverse and strategic projects such as bridges, tunnels, public buildings, ports, housing, and motorways, Ballast Nedam creates sustainable living spaces through innovative solutions aimed at enhancing economic development, mobility, and accessibility. We aim to drive sustainable transformations in key sectors such as energy, water, housing, transportation, and industry. We focus on establishing clean and renewable energy-based systems resilient to climate change. With this sustainability vision, we are committed to achieving 100% carbon neutrality at our construction sites by 2030 and energy-neutral construction by 2040. Ballast Nedam plays a pivotal role in extending Rönesans's ambitions in Europe and amplifying our global impact.”
Ilıcak Kayaalp noted that, with the contributions of Ballast Nedam to the group's sustainability efforts, Rönesans successfully issued a $350 million 'Sustainable Eurobond' last month. “This issuance marks a first in our sector in Türkiye. The funds raised through the Eurobond will be used for sustainable projects. We expect the sustainable finance market to grow rapidly in the coming years. We also anticipate that our current and future sustainability investments will enable us to secure financing under more favourable terms in the future.”
"Generating Revenue Abroad, Investing in Türkiye"
Ilıcak Kayaalp highlighted that over 50% of the group's revenue comes from international markets, with operations spanning 33 countries and a workforce of more than 35,000 employees. “Rönesans is a Turkish company, and we will always be proud of that fact,” said Ilıcak Kayaalp, adding: “Since 2015, we have been ranked among the largest 50 contractors globally and are featured in the top 10 in Europe. Today, we operate in 33 countries across five key sectors: real estate, healthcare, energy, industrial investments, and construction. We undertake the most challenging projects in the most difficult geographies and have successfully delivered numerous innovative and groundbreaking engineering projects.”Ilıcak Kayaalp highlighted that the world has changed and that in this new order, global partnerships have become the most critical factor when it comes to competitiveness for both companies and nations. “We collaborate with multinational partners, including IFC, Meridiam, Samsung, and Total. With the support of these partners, we have generated €40 billion in international revenue to date, €8 billion of which has been reinvested in Türkiye. We have also brought approximately €2 billion in direct foreign investment and around €4 billion in foreign financing to our country,” she stated.
“Increasing Investments to €12 Billion in Five Years”
Outlining Rönesans's future plans, Ilıcak Kayaalp stated, “Over the next five years, we will focus on expanding and diversifying our investment portfolio. If we execute our planned investment period as anticipated, Rönesans will emerge as a more substantial and diversified company in revenue-generating capacity. Considering our investment agenda, we project that our total investments in Türkiye will surpass €12 billion in five years. We also estimate that direct foreign investment will reach €2.5 billion, and foreign financing will approach €7 billion.”Ceyhan to reduce Türkiye's Trade Deficit
Describing the polypropylene production facility, Ceyhan PdhPP, to be built in partnership with Algerian oil company Sonatrach, as a strategic project, İpek Ilıcak Kayaalp stated: “Türkiye's annual consumption of plastic raw materials is 8 million tonnes, of which only 1 million tonnes are produced domestically, while the remaining 7 million tonnes are imported. The foreign trade deficit in this sector has reached $10 billion, with polypropylene making up the largest share of imports, amounting to 4.5 million tonnes annually. Using environmentally friendly technologies, our facility in Ceyhan will have an annual production capacity of 470,000 tons and contribute $250 million annually to reducing Türkiye's trade deficit. Raw material supply is critical for the success of the Ceyhan PdhPP project, and Sonatrach has committed to providing uninterrupted raw material supply until 2040.”
Source: Nurdoğan A. Ergün / Dünya Gazetesi