Canada Consul General International PPP Platform Turkey 02 February 2012 Istanbul Av. Dr. Ahmet T. KEŞLİ (LL.M., LL.D.) Founding President

Transkript

1 Canada Consul General International PPP Platform Turkey 02 February 2012 Istanbul Av. Dr. Ahmet T. KEŞLİ (LL.M., LL.D.) Founding President

2 Billion Benchmarking Performance of the Turkish Economy Dynamic, Stable & Attractive Economy Turkey* Belgium Poland Sweden Austria Greece Denmark Portugal Czech Rep. Egypt Romania Irel and Nominal GDP Hungary Ukraine Slovakia Bulgaria GDP % Annual Average Real GDP Growth Source: IMF World Economic Outlook, April 2010; *TurkStat

3 Let your business blossom in a thriving economy and promising future The fastest growing economy among the OECD countries Source: OECD Economic Outlook No.86

4 Potential of the Turkish Economy - Young Population - Favorable Demographics Population by Age Groups (2008) Dynamic, Stable & Attractive Economy Turkey Slovakia 26% 16% 72% 67% 7% 12% Population Age EU 27 Poland 16% 15% 67% 71% 17% 13% Romania 15% 70% 15% Hungary 15% 69% 16% Russia 15% 72% 14% Spain 15% 69% 17% Czech Republic 14% 71% 15% Ukraine 14% 70% 16% Italy 14% 66% 20% Germany 14% 66% 20% Bulgaria 13% 69% 17% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0-14 Age Age +65 Age Source: EUROSTAT 26% of populations is under age 15

5 ABOUT PPP Between a Private and Public parties, Relating to public goods or services, Private sector runs/cooperates, 1. Private Contractual PPP 2. Together Institutional PPP Fair sharing of risks Risks of Private sector Building the infrastructure Maintenance / make available for use Serve public services Other risks: on the party who can best manage it, Flexible contracts Relatively long term contract Public sector is still liable for the services

6 PPP IN THE WORLD-1999

7 PPP IN THE WORLD-2012

8 PPP - PRIVATIZATION Second Generation Privatization PPP Investment: Privatization: Transfer of EXISTING Assets PPP: Transfer of Future investment Characteristics of the goods/services: Privatization : Private PPP: Semi-Public/Private Management: Privatization : Private PPP: Private or Private + Public Liability: Privatization : Private PPP: Private + Public Concessions Public Procurement (PP)

9 International PPP Platform Turkey Established: 2007 NEUTRAL Bridge Between Public & Private Sector Contribute to the PPP Atmosphere Contribute to the Projects Mach-Making

10 SOME OF THE MEMBERS & SPONSORS

11 Best practice PPP market development Political Interest in the advantages of PPPs Political will/pressure to use PPP models Legal framework to enable the use of PPPs Creation of a PPP Centre Approval of a National PPP Strategy Turkish PPP law NOT in force yet The Government PPP Central Administration is not formed yet Education of ministries and PPP units Development of guidance and directives Selection of PPP (pilot) projects Implementation and evaluation of PPP (pilot) projects Turkey has started and completed several projects but has not (yet) created a national PPP strategy Standardization of PPP contracts & procedures PPPs as generally accepted alternative Mature PPP market with steady PPP dealflow Dr. Ayhan SARISU, 4th Annual PPP in CEE and SEE Conference, Budapest, 17th October 2008

12 THE FIRST STEP : LEGAL FRAMEWORK

13 FUNDAMENTALS OF LEGAL FRAMEWORK BANKABLE LOCALLY APPLICABLE IN LINE WITH INTERNATIONAL STANDARDS

14 INTERNATIONAL STANDARDS OF A PPP LAW A PPP LEGISLATION DEFINITIONS PPP MODELS PPP ADMINISTRATION PRE-TENDER PHASE TENDER PRINCIPLES TENDER PROCESS POST TENDER PHASE

15 INTERNATIONAL STANDARDS OF A PPP LAW A LAW/CODE - SEPERATE A Separate PPP Legislation Framework Law Regulating All Areas Integration with Existing Laws Abolish the other PPP laws (if there are) Unify the Market Practice Central PPP Administration

16 INTERNATIONAL STANDARDS OF A PPP LAW DEFINITIONS: CLARITY PPP and Elements Scope of Law Private Parties of the Projects Public Parties of the Projects FORBID: Public to Public Tenders Project Goals Risk Allocation: Clarity + Fairness Value for money and affordability tests

17 INTERNATIONAL STANDARDS OF A PPP LAW MODELS: FLEXIBLE Defined Main Components of the PPP Models Construction/Design/Maintenance Operational Rights Lease/Rent Partnership (Institutional PPP) Securitization (Bonds) Rights in Rem (Utility) Allow any Combinations of the Elements

18 INTERNATIONAL STANDARDS OF A PPP LAW PPP ADMINISTRATION A Central Unit (Lose Executive) Clarity in the Project Initiative and Bureaucracy Reasonable Time for Preparations Clear Administrative Procedural Rules Including Timing

19 INTERNATIONAL STANDARDS OF A PPP LAW PRE-TENDER PHASE Business case Advisory Services Legal-Financial-Technical Separately Use of English Tender Documents Public Notice of Plans Public Advertisement Use of Foreign Currency ( /$) in the Tender Fixed Tender/Evaluation Rules Real Estate / Zone Planning / Expropriation Project Rating

20 INTERNATIONAL STANDARDS OF A PPP LAW TENDER PRINCIPLES Eligibility of Foreign Firms (Nondiscrimination) Equal treatment Transparency Competition Cost-effectiveness/efficient use of resources Reliability (Legality, Stability, Unification)

21 INTERNATIONAL STANDARDS OF A PPP LAW TENDER PROCESS: TRANSPARENCY Qualified/Independent Evaluation Board Objective Evaluation Rules Notice of Award Appeals Process Independent Appeals Board Public Notice of Appeals Judicial Review of Appeals Anti-Corruption

22 INTERNATIONAL STANDARDS OF A PPP LAW POST-TENDER PHASE: TRANSPARENCY Binding Force of the Contract (T+C) Term of Agreement (T+C) Fair Investor s Termination Rights Fair Step-in Rights Performance Standards Performance-based Approach Post-Award Monitoring Audited Project Finances Adaptation of the Contract Dispute Resolution

23 PPP MARKET POLITICAL Use of PPP Model National PPP Program Create and Develop LEGAL In Line With International Standards Integrated With Domestic Law ADMINISTRATIVE Powerfull Central PPP Unit Capasity in the Contracting Authorities TECHNICAL Experts in the PPP Unit Coordination/Cooperation with Contracting Authorities Use of Experienced PPP Advisors

24 DRAFT CODES SPO Central Task Force Standard Documents Advisory Services to Contracting Authorities International PPP Platform Turkey Central PPP Administration Standard Documents Central Authority for the Tender Process

25 CURRENT LEGAL FRAMEWORK 1 Menafii Umumiyeye Müteallik İmtiyazat Hakkında Kanun, Sayılı, Telgraf ve Telefon Kanunu, Sayılı, Telsiz Kanunu, Sayılı, Türkiye Elektrik Kurumu Dışındaki Kuruluşların Elektrik Üretimi, İletimi, Dağıtımı ve Ticareti ile Görevlendirilmesi Hakkında Kanun, Sayılı, Karayolları Genel Müdürlüğü Dışındaki Kuruluşların Erişme Kontrollü Karayolu (Otoyol) Yapımı, Bakımı ve İşletilmesi ile Görevlendirilmesi Hakkında Kanun, Sayılı, Bazı Yatırım ve Hizmetlerin Yap-İşlet- Devret Modeli Çerçevesinde Gerçekleştirilmesi Hakkında Kanun, 1994 (4047 SK-1994, 4180 SK 1996, 4493 SK-1999, 5335 SK-2005, 5762 SK-2008).

26 CURRENT LEGAL FRAMEWORK Sayılı Özelleştirme Uygulamaları Hakkında Kanunun, 1994 (3291 SK-1994, 3974 SK-1994, 5335 SK-2005). 96/8269 Sayılı, Elektrik Enerjisi Üretim Tesislerinin Kurulması Hakkında Bakanlar Kurulu Kararı, Sayılı, Yap-İşlet Modeli ile Elektrik Enerjisi Üretim Tesislerinin Kurulması ve İşletilmesi ile Enerji Satışının Düzenlenmesi Hakkında Kanun, , 5222, 5393 Sayılı (Büyükşehir) Belediye Kanunu, 2004, 2004, sayılı İl Özel İdaresi Kanunu, Sayılı, Sağlık Hizmetleri Temel Kanununa Bir Ek Madde Eklenmesi Hakkında Kanun, 2005.

27 CURRENT LEGAL FRAMEWORK 3 More than one Code Sector specific codes (Health-Electricity etc) Model specific codes (BO-BOT) Administration specific codes (PA, Municipalities) More than one authority Almost all ministries and municipalities

28 TURKEY S FIRST PPP PROJECT YEAR 1874 The worlds second underground called Tünel was build in Istanbul by the French engineer Eugene-Henri Gavand and an English company in the year 1874 in form of BOT project. Tünel started its first cruse between Karaköy and Beyoğlu on 17 January 1875 and after 42 years of operation the property was transferred to the local authorities of the Ottoman Empire. The project value was French Francs. Even the track is only 500m long it has an average usage of nearly 5 million people in the last years.

29 PPP IN TURKEY ENERGY Electricity Generation, Distribution & Trade TRANSPORTATION Toll Roads, Bridges, Railways Sea Ports and Airports Urban Public Transport WASTE & WATER Water Waste HEALTH Hospitals PUBLIC SERVICES Customs Facilities MINING Mine TORs ADUCATION Schools ENVIRONMENT Investments in Environment Protection AGRICULTURE Irrigation

30

31 SOME OF THE PROJETS IN TURKEY

32 100th Anniversary of Republic of Turkey

33 Take place among the top 10 economies in the world gross domestic product: $2 trillion Annual Turkish exports: $500 billion per capita income: $ Foreign trade volume: $1 trillion Reduce unemployment rate in Turkey to 5 percent. (Energy) Build MegaWatt installed capacity for wind energy and 600 MegaWatt installed capacity for geothermal energy Have at least 3 operating nuclear power plants (Transport) Build 11 thousand kilometers of new railway Expand high-speed train network Build 15 thousand kilometers of divided highway Have one of the 10 largest ports in the world (Health care) No citizens will be outside the health insurance system Raise the number of physicians per 100,000 people to 210 physicians

34 Beijing London Bridge. Samsun-Kavkaz Kars-Tbisi-Baky Marmaray Başkentray Tekirdağ-Muratlı Van Lake Kemalpaşa-Turgutlu Kars-Nahçivan-Iran North Africa Kurtalan- Iraq & Nusaybin- Iraq Pakistan / India S. Arabia

35 Access to Multiple Markets Total 1,5 Billion People & 17,9 Trillion GDP Dynamic, Stable & Attractive Economy Population International Hub Access to Multiple Markets Energy Corridor Structural Reforms EUROPE GDP 14,9 Trillion Population 660 million RUSSIAN FEDERATION GDP 1 Trillion Population million Source: IMF World Economic Outlook April 2010 MIDDLE EAST AND NORTH AFRICA GDP 1,95 Trillion Population 602 million CENTRAL ASIA & CAUCASUS GDP 187 billion Population 80 million

36 Turkey As An Energy Corridor And Terminal Dynamic, Stable & Attractive Economy Existing Natural Gas Pipelines Existing Oil Pipelines Natural Gas Pipelines under Construction Natural Gas Pipelines Underway Proposed Natural Gas Pipelines Population International Hub Access to Multiple Markets Energy corridor Structural Reforms Oil Pipelines under Construction

37 Last 7 Years in Transport 70 Billions TL... Reference in the Transport Sector: Kenan Bozgeyik, UNECE TIKA BSEC INTERNATIONAL PPP PLATFORM TURKEY Addressing the Challenge of DOING PPP in The Black Sea Region, The Caucasus and Central Asia: Bridging the Gap in PPP Knowledge and Skills, Istanbul April 2010.

38 RAILWAYS

39 RAILWAYS SINCE 1856 Kapıkule TOTAL : km Tiflis Kırklareli Pityon İSTANBUL Batum Karabük Samsun Tekirdağ Arifiye İzmit Adapazarı Ülkü Çankırı Amasya Çarşamba Kars Doğukapı E G E D E N İ Z İ İZMİR Bandırma Mudanya Bursa Balıkesir Tunçbilek Soma Aliağa Dumlupınar Manisa Uşak Menemen Çatal Ödemiş Çivril Torbalı Ortaklar Tire Goncalı Nazilli Aydın Söke Denizli Eskişehir Alayunt AFYON Eğirdir ANKARA Polatlı Konya Karaman Irmak Yerköy Boğazköprü Ulukışla Yenice Mersin Kayseri ADANA Turhal Kalın Hanlı Kahramanmaraş SİVAS Bostankaya Divriği Çetinkaya MALATYA Hekimhan Narlı Gaziantep Karkamış Erzincan Yolçatı Elazığ Diyarbakır Şenyurt Mardin Erzurum Horasan Muş Tatvan Batman Kurtalan Nusaybin Van Gölü Van Kapıköy Musul İskenderun Kerkük Halep A K D E N İ Z BEFORE km MAIN km MAIN (Annual 134 km) km MAIN (Annual 18 km) km MAIN (Annual 135 km) UNDER CONSTRUCTION 1630 km MAIN

40 PPP RAILWAY PROJECTS BURSA-OSMANELİ FAST TRAIN PROJECT BURDUR-ANTALYA TRAIN PROJECT ANKARA FAST TRAIN STATION PROJECT ESKİŞEHİR FAST TRAIN STATION PROJECT İSTANBUL FAST TRAIN STATION PROJECT İZMİR FAST TRAIN STATION PROJECT KONYA FAST TRAIN STATION PROJECT İSTANBUL LOGISTIC VILLAGE (ISPARTAKULE) KOCAELİ LOGISTIC VILLAGE (KÖSEKÖY) BAŞKENTRAY PROJECT

41 RAILWAYS BY 2023

42 PPP RAILWAY PROJECTS - 2

43 PPP TRAIN STATIONS

44 ROADS & BRIDGES

45 12 PPP TOLL-ROADS km, 35 BILION $

46 TOR OF MOTORWAYS & BRIDGES & THE BOT TENDER Bosphorus Bridge A FSM Bridge B C D MOTORWAY MAP OF TURKEY Expected Projects to be tendered: 1. Orhangazi- Izmir Mway * 2. Izmit Bay Bridge * 3. Ankara - Izmır Mway ** 4. Ankara - Niğde Mway ** Source: General Directorate of Highways UNDER CONSTRUCTION COMPLETED Motorways under Privatization as TOR: A. Bosphorus & FSM Bridges B. Edirne - Ankara Mway C. Izmır Cesme and Izmir-Aydın Mway D. Pozantı Tarsus Mersin Mway Tarsus Adana Gaziantep Toprakkale Iskenderun Mway Gaziantep Şanlıurfa Mway Ankara & Izmir Ring Roads

47 TOR OF THE EXISTING MOTORWAYS AND RELATED SERVICE AND MAINTENANCE FACILITIES AND TOLL COLLECTING CENTERS Transfer of the Operating Rights ( TOR ) of the Existing Motorways and Related Service and Maintenance Facilities and Toll Collecting Centers Bridges Bosphorus Bridge and Ring Road 5 km Mway + 1km approach roads = 6 km FSM Bridge and Ring Road 37 km Mway + 10 km app. roads = 47 km Motorways Edirne-Istanbul-Ankara 626 km Mway + 88 km approach roads = 714 km Izmir-Çeşme 77 km Mway + 12 km approach roads = 89 km Izmir-Aydın 104 km Mway + 18 km approach roads = 122 km Pozantı-Tarsus-Mersin 135 km Mway + 21 km approach road = 156 km Tarsus-Adana-Gaziantep 258 km Mway + 75 km approach road = 333 km Toprakkale-Iskenderun 76 km Mway + 46 km approach road = 122 km Gaziantep-Sanliurfa 131 km Mway + 35 km approach road = 166 km Ring Roads Izmir Ring Road with the app. roads (53 km main body + 5 km app. road) Ankara Ring Road with the app. roads (110 km main body + 6 km app. road) Facilities Related service and maintenance facilities and toll collecting centers Total 53 km 925 km 777 km 174 km 1,929 km

48 PPP TOLL ROAD PROJECTS Gebze Orhangazi - İzmir Otoyolu (421 Km) Kuzey Marmara Otoyolu (361 Km) Ankara Samsun Otoyolu (421 Km) Tekirdağ - Çanakkale - Balıkesir Otoyolu (433 Km) Ankara - İzmir Otoyolu (549 Km) Afyon Antalya-Alanya Otoyolu (490 Km) Sivrihisar - Bursa Otoyolu (202 Km) Şanlıurfa - Habur Otoyolu (385 Km) Gerede Gürbulak Otoyolu (1265 Km) Ankara - Niğde Otoyolu (326 Km) Aydın - Denizli Antalya Otoyolu (365 Km) Şanlıurfa - Diyarbakır Otoyolu (60 Km)

49 THIRD BOSPHORUS BRIDGE 6 Billion USD

50 MARITIME

51 ÇANDARLI HARBOUR Container One of the biggest harbour in the world More than 5 bilion $ To be tendered in 2012

52 LARGEST CRUISE PORT OF TURKEY GALATA PORT IS A B.O.T (Build, Operate & Transfer) and T.O.R (TRANSFER OF OPERATIONAL RIGHT) PROJECT. TOR WILL BE UP TO 49 YEARS. THE BIDDER HAVE TO COMMIT TO DEVELOP THE WHOLE REGION BY BUILDING A CRUISE TERMINAL INCLUDING FIVE STAR HOTELS, SHOPPING MALLS AND FREE SHOPS. TOTAL PROJECT AREA c. 101,264 M2 THE TENDER WILL BE RENEWED IN 2012.

53 Capasity; (After Construction), (After the Tenders) (Vision 2023) YATCHING UNDER PPP; In Use 2, Capasity:1800 Yatch 95 Milion $ Under Construction 11, Capasity: 3770 Yatch 120 Milion $ To be Tendered 9, Capasity: 3085 Yatch 230 Milion $ Alanya Yat Limanı Yalova Yat Limaı

54 PPP PROJECTS ÇANDARLI HARBOUR ONE OF THE BIGGEST IN THE WORLD FİLYOS HARBOUR KARABURUN YACHT HARBOUR KUMKUYU YACHT HARBOUR YENİFOÇA YACHT HARBOUR TRABZON YACHT HARBOUR MUĞLA ÖREN YACHT HARBOUR SİLİVRİ YACHT HARBOUR AVŞA ADASI TÜRKELİ YACHT HARBOUR

55 AIRPORTS

56 GROWTH IN THE AVIATION SECTOR ( ) WORLD 5 % WORLD 5 %

57 POTENTIAL PPP PROJECTS KOCAELİ CENGİZ TOPEL AIRPORT NEVŞEHİR/KAPADOKYA AIRPORT SAMSUN/ÇARŞAMBA AIRPORT SİNOP AIRPORT TOKAT AIRPORT

58

59 ISTANBUL THE SECOND Land:74 Km 2 Population: 3 Milion Metro Fast Tram Roads Social Infrastructure.

60 ISTANBUL THE SECOND THIRD BRIDGE & NORTH MARMARA TOLL ROAD PPP 5th April 2012 North Marmara (3. Bridge) Odayeri-Paşaköy

61

62 CANAL ISTANBUL 25 BILLION USD PPP PROJECT

63 HOSPITAL PPP PROJECTS

64 THE KAYSERİ PPP PROJECT Location: Beds: Kayseri Province: 2,800,000 people No. 1,548 of which: 1,048 general hospital 200 physiotherapy and rehabilitation 200 psychiatric hospital 100 high security forensic psychiatric hospital Capacity: Duration: Expected access to healthcare services by 10,000 people per day 3 years construction 25 years operation Francesco Ferrari, 4th Annual PPP in CEE and SEE Conference, Budapest, 17th October 2008

65 HOSPITAL PPPs Adana Entegre Sağlık Kampüsü Ankara Bilkent Entegre Sağlık Kampüsü Ankara Etlik Entegre Sağlık Kampüsü Bursa Entegre Sağlık Kampüsü Elazığ Entegre Sağlık Kampüsü FTR, Psikiyatri ve Yüksek Güvenlikli Adli Psikiyatri Hastaneleri Gaziantep Entegre Sağlık Kampüsü İstanbul İkitelli Entegre Sağlık Kampüsü Kayseri Entegre Sağlık Kampüsü Konya Karatay Entegre Sağlık Kampüsü Manisa Eğitim Araştırma Hastanesi Mersin Entegre Sağlık Kampüsü Yozgat Eğitim ve Araştırma Hastanesi

66 TOTAL: MORE THAN 6 BILION USD

67 NATIONAL ELECTRICITY GENERATION SYSTEM & NUCLEAR 27 Hydro Electric Plant MW 18 Thermal Power Plant MW Expected to be within 2 years time. There will be at least 2 nuclear plant.

68 PUBLIC PRIVATE PARTNERSHIPS

69 Other Projects in the Pipeline: There are many others

70 Thank you for your kind attention. Av. Dr. Ahmet T. KEŞLİ (PhD, LL.M.) Group Law Firm, Founding Partner International PPP Platform, Founding President Tel : Fax :