Turkish Government to Cover Costs of GP

The Turkish government said it will cover the costs of hosting a Formula One Grand Prix on a newly-built track in Istanbul from 2005.

Deputy prime minister Mehmet Ali Sahin said this weekend that a seven-year contract had been signed in London on Friday, paving the way for Turkey to host an F1 race by 2005. "The government supports holding Formula One in Turkey. It will definitely be held here," he told Reuters.

"We have guaranteed the track will be completed by 2005. Every year $13.5 million is needed (for annual rights to hold the race). Because we consider promoting Turkey a priority, we have also guaranteed this."

The government granted the use of state land for the $60 million track in Istanbul, a sprawling metropolis of some 10 million people. Groundbreaking is set for September 10, Sahin said.

Construction was to begin last month, but was delayed because of bureaucratic wrangling and sponsorship concerns. Turkey is labouring under tight budgetary concerns agreed with the International Monetary Fund after a punishing 2001 recession.

But hosting a Formula One event is expected to bring in millions of dollars in tourism receipts, a key source of revenue for the European Union candidate.