Turkey absorbs 40% of global private infrastructure investments in 2015

By bne IntelliNews June 15, 2016

Global private infrastructure investment in 2015 remained steady at $111.6bn when compared to the previous year, but Turkey raised the bar with the financial closure of seven projects for a record $44.7bn, absorbing 40% of global investment, the World Bank said on June 14 citing figures from the Private Participation Infrastructure (PPI) database.

A major portion of commitments in Turkey was comprised of Istanbul’s $35.6bn IGA Airport (including a $29.1bn concession fee to the government) and the $6.4bn Gebze-Izmir Motorway, the World Bank noted. The project that envisages the construction of Istanbul’s third airport is the largest ever entered into the PPI Database.

The $43.1bn in transport is Turkey’s highest ever investment, while the $1.6bn investment in energy is 80% below the five-year average of $8.0bn, the World Bank said, adding that all three energy deals were in power generation: one geothermal, one wind, and one natural gas-fired power plant.

Large infrastructure projects have been the hallmark of President Recep Tayyip Erdogan’s rule since 2002. His governments have encouraged the growth of the construction sector through public housing, highway and other infrastructure projects. The sector’s growth averaged 6.9% between 2002 and 2012. Last year, the construction sector grew by 1.7% and accounted for 5.7% of the country’s GDP. But, the ongoing political and economic problems are raising questions marks over the future of Turkey’s mega projects.

 

 

Related Articles

Record decline in Turkish central bank’s gross forex reserves pushes holdings to $89.9bn

The Turkish central bank reported on December 7 that its gross forex reserves last week experienced a record drop, declining to $89.85bn on December 1 from $96.35bn a week earlier. ... more

EU governments reportedly agree to cut Turkey’s pre-accession funds

EU governments have agreed with the European Parliament to withdraw €105mn that would have gone to help finance political ... more

Mystery deepens over Zarrab's role in Iran sanctions case reverberating in Turkey

Reza Zarrab, the wealthy Turkish-Iranian entrepreneur who allegedly masterminded an extensive conspiracy to help Iran evade US sanctions will not stand trial in New York this week as scheduled, even ... more

Dismiss