Pro-gov't Cengiz Holding receives nearly 50 mln liras from state for luxury hotel in Turkey's Rize
Cengiz Holding, known for its chairman's close ties to the ruling Justice and Development Party (AKP) and President Recep Tayyip Erdoğan, received 50 million liras in a tourism grant. The grant reportedly covered almost one third of five-star Ricosta Hotel's costs.
A pro-government company has received nearly 50 million Turkish Liras in a state grant for a luxury hotel in northern Turkey.
Known for their close ties to the ruling Justice and Development Party (AKP) and President Recep Tayyip Erdoğan, Cengiz Holding received the money for his hotel in the Black Sea province of Rize, which was opened with Erdoğan's attendance on Aug. 16, daily Cumhuriyet reported.
A November 2018 issue of Turkey's Official Gazette listed 12 tourism projects where Ankara was offering up funds to incentivize investment.
Cengiz was the recipient that received the largest fund with 49,630,000 liras "contributed" for Ricosta Hotel, where the state grant covered almost one third of construction costs.
On top of the grant, Cengiz Hotel received pensions to cover interest fees, exemption from value-added taxes and a 70-percent discount on taxes, along with insurance premiums for six years.
Some 160 million liras overall were invested for the construction of Ricosta Hotel, its General Manager Necdet Vural said in the past, adding that it would "fill a gap" in the local industry with its 138 rooms and 300 beds.Pro-gov't Turkish company purchases copper mine in contested Kaz Mountains