Türkiye makes nearly $100 Billion investment via public-private partnership

Türkiye has so far signed contracts worth nearly $100 billion through 270 public-private partnership (PPP) projects from 1986 until the end of September this year, according to the data compiled by Anadolu Agency (AA) from the Presidency of Strategy and Budget (SBB) Sunday.

The projects worth precisely $98.6 billion have been made through PPP projects, utilizing four fundamental models of partnerships between the sectors, including build-operate-transfer (BOT), build-operate (BO), build-lease-transfer (BLT) and operations transfer agreement (OTA),according to AA report.

The public-private partnership model is particularly important as an alternative financing model for infrastructure investments such as highways, bridges, airports and the provision of public services like hospitals.

This method aims to expedite the completion of investments and enhance the quality of services by involving the private sector in projects, thereby improving service quality and reducing project costs.

Currently, 250 projects are operational, and construction continues for 20 projects within the scope of PPP projects introduced in the country over three decades ago.

In the distribution of projects, when looking number-wise, the energy sector takes the lead with 102 projects conducted via public-private partnerships.

It is followed by 46 projects in the road sector, 24 in ports, 23 in customs facilities, and 20 each in airports and yacht marinas/tourism facilities.

During this period, some 18 healthcare facility investments were made through this model, while other investment areas include mining, culture-tourism facilities, industrial facilities, railways and solid waste.

The total investment size of the projects for which contracts have been signed reached $98.6 billion in September prices.

Road investments took the first place within this figure with $32.5 billion. Moreover, other notable areas include airports with $24 billion in worth, while the energy sector’s projects resulted in a total investment worth $21.7 billion.

Furthermore, healthcare facilities came in next with $13 billion, while port projects were evaluated at $2.5 billion, industrial facilities at $1.7 billion, and yacht marinas/tourism facilities at $1.5 billion.

The transfer fee for operational rights to be paid to the public for these projects was $106.2 billion.

In distributing operational rights transfer fees by sectors, airport investments took the lead with $75.76 billion. This was followed by energy investments with $22.73 billion, port investments with $3.25 billion and yacht marina and tourism facility investments with $3.18 billion.

Among the 270 investments for which contracts were signed, build-operate-transfer and concession rights transfer models took the lead with 127 and 120 projects, respectively. These were followed by build-lease-transfer with 18 projects and build-operate with five projects.

Source: dailysabah

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