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Ankara Gas Project

SMALL CANADIAN COMPANIES BIG WINNERS IN TURKISH NATURAL GAS PROJECT

More that 30 Canadian suppliers – some ofthem small and medium-sized companies and first-time exporters – are all profitingfrom the second-phase expansion project of the natural gas distribution network in thecity of Ankara.

In 1996 Attila DoganConstruction and Installation Co. Inc. (ADCI) of Ankara, Turkey, finalizedarrangements with the City of Ankara for a US$ 113-million turn-key construction projectthat included design, engineering and procurement from Canada. ADCI established a Canadiansubsidiary called Attila Dogan Design and Construction Ltd.Amsterdam accommodation(ADDC) to co-ordinate procurement of Canadian goods and services for the project.

Financing of the Canadian supply package wasprovided by Export Development Corporation, a crown corporation that provides riskmanagement and financing services to help Canadian exporters.

“Teaming up with EDC, with some goodstick-handling by the Canadian Embassy in Ankara, allowed ADCI to outbid competitors fromFrance, the United Kingdom, Italy and Germany,” says ADDC’s Director DaleRichards.

Responsible for the procurement of the equipmentand material, as well as provision of technical services in Canada, ADDC has had nodifficulty sourcing Canadian expertise and products during its first year of operation inCalgary. “ the list of Canadian companies ranges from well known B.C. GasInternational Inc. – to a first First Nation owned supplier of valves, ValgroLtd.,” comments an enthusiastic Richards.

CANADIAN COMPANIES BENEFIT

Participation in the project represents a foot inthe door to exporting overseas for many of the Canadian companies involved. Companies RahnPlastics Inc. of North Bay and Edmonton-based Can-Con Gas Services are being offered theirfirst chance to export beyond the United States. Other companies, such as Valgro, B.C.Gasand steel-pipe-manufacturer IPSCO Inc. are optimistic that this contract will lead toother opportunities in other cities and countries in the region.

A WIN-WIN PROJECT

Turkey has a high level of education andexpertise, according to Richards, who has over 10 years experience in that country.“When combined with top-notch Canadian expertise in project management, this projecttranslates into a perfect win-win situation for both countries,” says Richards.“The Turkish people are getting a high-quality proven Canadian gas distributionsystem. For the new Canadian exporters being brought on board, the experience, willsolidify their ability to export, giving them valuable experience with very little risk,thanks to EDC financing.”

“Turkey is a very safe country to dobusiness in,” says Richards, “yet misunderstood and undervalued by many. Thebest way to pursue projects,” he advises, “is to find a local partner or agent.Talk to other Canadian companies or to the Trade Commission at the Canadian Embassy inAnkara.”

For more information on the gas expansion project in Turkey, or on similar opportunities, contact ADDC Director Dale Richards, dale@adogan.com

Article reprinted from CanadExport Vol. 15, No. 14 September 1997

List of Canadian Companies involved in the Ankara Gas Project:

For More Information Contact: AD Canada Dale Richards, Director Tel: (403) 218-8600 E-Mail: dale@adogan.com

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