Research: The Reality Of “Mega Project” İn Turkey

While the infrastructure requirement of the developing world is increasing rapidly, the public budgets are not enough to meet the demand. Public-private partnership (PPP) is one of the most important initiatives to achieve this and is successful especially in areas where the user can receive a contribution margin or money.

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While Turkey is in the first place in public-private sector cooperation in Europe, it is a candidate for great difficulties in not planning the projects well, solving the need for financing, and not being competitive.

Mega Project İn Turkey

In order to reach the global economic growth values estimated by the OECD to be 3.8 %, an infrastructure investment of around 59 trillion dollars should be completed by 2030, while an average of 3.5 to 4 trillion dollars annually has to be allocated for infrastructure outgoings.

public-private-partnership

In middle income countries like Turkey, demand of infrastructure that will be formed until 2030 is expected to increase to 2.5 times of supply of infrastructure. By the year 2050, it is thought that the population in the cities will be 50 percent higher than current population and that there will be problems in finding sufficient resources to respond to the demands of the cities.

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Public-private partnership (PPP) is also developing rapidly from day to day, while limited public resources are opposed to the increasing demand for infrastructure. According to data of the World Bank, between 1990 and 2015, a total of 6,977 projects worth $ 2.5 trillion were spent.

 

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    yasemin Written by:

    Yasemin Kılıç yaseminkilic@istanbulinvestments.com

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