Approved by High Planning Council (HPC). 3. 2,700. Antalya ... To be Submitted to HPC for Approval. 1. 800 .... Turkish
INVESTING IN INFRASTRUCTURE AND PUBLIC PRIVATE PARTNERSHIP IN TURKEY April 2018
Agenda
• Executive Summary • Need for Infrastructure Investment • Track Record • Opportunities • Benign Investment Climate
Executive Summary
Turkey has a strong case for investment in infrastructure..
• Turkish economy is robustly growing with an average annual GDP growth rate of 5.7%.
Investment Need for Development
• Turkey’s 81-million strong population is growing with additional 1 million every year coupled with a rapid urbanization process which has resulted in more than 20 urban centers with populations over 1 million. • Turkey’s growing trade volume and strategic location compels Turkey to develop its infrastructure.
Track Record with Significant Opportunities in the Pipeline
• Turkey has implemented $135 Billion worth of Public Private Partnership (PPP) projects in a variety of sectors. This trend has picked up in recent years with a bright prospect. • Turkey has set ambitious targets to upgrade its infrastructure by 2023, the centennial of the Republic of Turkey. • From transportation to healthcare and energy, ample opportunities are available in the pipeline.
• Turkey has a favorable investment legislation for PPP investments that can be realized through various models, such as buildoperate, build-operate-transfer, transfer of operational rights.. etc.
Favorable Investment Climate
• Turkey’s investment climate is further strengthened by domestic and international laws that protect investments and provide international arbitration. • Turkey’s macroeconomic policies, investments and more importantly, strong public finance management support PPP investments that require guaranteed purchase.
Agenda
• Executive Summary • Need for Infrastructure Investment • Track Record • Opportunities • Benign Investment Climate
Infrastructure Need
Turkey has a significant investment need in infrastructure development..
$569 Billion
2016-2040
$975 Billion
Investment current trends
$405 Billion
Investment needed
Investment Need by Sector (2016-2040)
Turkey’s Infrastructure Current Trends and Need ($Billion) 50
Investment gap
Need
Water $53.4
45
Telecom $98.8
40
Airports $18.2
35
30
Trend Transport $581.1
25 20
Rail $62.7 Ports $1.1
15 10 Energy $241.5
5
Road $499.2
Source: Global Infrastructure Hub
2039
2037
2035
2033
2031
2029
2027
2025
2023
2021
2019
2017
2015
2013
2011
2009
2007
Investment Gap by Sector: $335.5 bn in Road, $48 bn in Energy, $19 bn in Rail, $2.2 in Water, $0.7 bn in Airports and Ports
Infrastructure Need
5.7% GDP GROWTH PER YEAR
Turkey’s investment need in infrastructure is driven by several factors..
GROWING ECONOMY
Turkish economy has been robustly growing with an average annual GDP growth rate of 5.7 from 2002 to 2017
22
URBAN CENTERS WITH POPULATIONS OVER 1 MILLION
URBANIZATION
As Turkish economy has developed, people from rural areas have migrated to urban centers..
81 MILLION 2017
GROWING POPULATION
Turkey’s population has been rapidly growing by 1 million every year
STRATEGIC LOCATION Turkey is strategically located in the proximity of energy resources and trade routes
$391 BILLION TRADE VOLUME
GROWING TRADE
Tukey’s foreign trade volume has increased from $88 billion in 2002 to $391 billion in 2017
GROWING NEED FOR EFFICIENCY In order to maintain competitiveness, Turkey needs to enhance efficiency and productivity by investing in infrastructure
Robust Economy
Turkey has sustained stellar economic growth over the past 15 years and continues to grow..
Average Annual GDP Growth (%), 2003-2017 Turkey Poland Romania Czechia Hungary
5.7
3.8
3.7
Number of individuals by annual disposable income per capita
1.8
2.8
13th largest economy in the world
Real GDP Growth (Index: 2002=100)
Ranking of Economies by GDP at PPP 2003
275
2016
2021
2002 1 million 3.3 million 17.8 million
250
23 million
High income Upper-middle
Middle income Low income
225
21.3 million 200
Poor
2016
Source: TurkStat, OECD, World Bank, IMF, PPP: Purchasing Power Parity
2022
2021
2019 2020
2018
2017
2016
2015
2013 2014
2012
2011
10.8 million
2010
100
2009
40 million
2007 2008
125
2006
21.2 million
2005
150
2004
5
2002 2003
175
High income Upper-middle Middle Low income
3 million High income (>$55K); High income (>$55K) Upper-middle ($25K Middle ($10K – $25K); Low ($5K – $10K); Poor (
