Joint Annual Conference: "Invest for Access" Thursday, April 8, 2004 Sponsor organizations: Sponsor organizations:
Jan 19, 2015
Joint Annual Conference: "Invest for Access"
Thursday, April 8, 2004
Joint Annual Conference: "Invest for Access"
Thursday, April 8, 2004Sponsor organizations:Sponsor organizations:
TURKEY-EU RELATIONS
Davut ÖkütçüChairman of the Board
Economic Development Foundation8 April 2004, TORONTO
IMPLICATIONS OF ACCESSION NEGOTIATIONS
on theINVESTMENT ENVIRONMENT IN TURKEY
33
TURKEY-EU RELATIONSTURKEY-EU RELATIONS--
MILESTONES MILESTONES
1963 Accession Partnership Agreement1963 Accession Partnership Agreement Jan.1, 1996 Completion of Customs Union Jan.1, 1996 Completion of Customs Union
with EU with EU 1997 Luxemburg Summit1997 Luxemburg Summit 1999 Helsinki Summit1999 Helsinki Summit 2002 Copenhagen Summit2002 Copenhagen Summit
44
Copenhagen CriteriaCopenhagen Criteria
Guaranteeing democracy, Guaranteeing democracy, The rule of Law, The rule of Law, Respect for human rights, Respect for human rights, Protection of minoritiesProtection of minorities Existence of a functioning market economy Existence of a functioning market economy Capacity to cope with the competitive Capacity to cope with the competitive
pressure from the EUpressure from the EU Full compliance with the European Union Full compliance with the European Union
acquis acquis
Political Criteria
55
Compliance with the political Compliance with the political criteriacriteria
The precondition for the The precondition for the launching of the accession launching of the accession
negotiationsnegotiations Since 1999, Since 1999, Turkey has undertaken various reforms in the Turkey has undertaken various reforms in the
political, economic and legislative spheres of the political, economic and legislative spheres of the integration process.integration process.
1/3 of Constitution amended, 1/3 of Constitution amended, 77 reform packages reform packages adoptedadopted
““Implementation” is now the key word.Implementation” is now the key word. Structural ReformsStructural Reforms Reform Monitoring GroupReform Monitoring Group Human Rights BoardHuman Rights Board Extensive training of security and judiciary staffExtensive training of security and judiciary staff
66
Precondition of Accession Negotiations Precondition of Accession Negotiations are the Copenhagen Political Criteria. are the Copenhagen Political Criteria.
YETYET
Economic criteria and harmonization Economic criteria and harmonization with the Acquis are the key to full with the Acquis are the key to full integration with the EUintegration with the EU. .
Turkey has covered Turkey has covered considerablconsiderable ground e ground in these areas to shorten the period of in these areas to shorten the period of negotiations on the path to full negotiations on the path to full membershipmembership
77
Ec. Growth Ec. Growth & Inflation& Inflation7,8
5,9
5
0
1
2
3
4
5
6
7
8
2002 2003 2004*
Growth
0
10
20
30
40
50
60
70
80
2001 2002 2003 2004*
Inflation
88
Golden Rules of CompetitionGolden Rules of Competition
Stable and predictable legislative environmentStable and predictable legislative environment Flexible and resilient economic structureFlexible and resilient economic structure Traditional and technological infrastructureTraditional and technological infrastructure Private savings and domestic investmentPrivate savings and domestic investment Quality, speed and transparency in governmentQuality, speed and transparency in government ProductivityProductivity Investment in education and life-long trainingInvestment in education and life-long training Preservation of the value systems of the Preservation of the value systems of the
citizenscitizens
Source: IMD
99
After Customs Union.....After Customs Union..... Concepts likeConcepts like
Productivity Total quality management, Customer satisfaction, Standardisation, Continuous improvement, Strategic thinking, Institutionalisation, Value-added, Human resources management Innovation
took their place on the agendatook their place on the agenda
1010
Award Winning Turkish Award Winning Turkish CompaniesCompanies
EFQM European Quality Awards 1996 BRISA (Award Winner), NETAS - Northern
Electric Telekomunikasyon 1997 Beksa (Award Winner)
1998 NETAS - Northern Electric Telekomunikasyon 1998 Beko Ticaret (Award Winner)
2000 Arçelik, Eczacibasi Vitra 2002 Bosch Sanayi ve Ticaret (Bursa / Turkey ) 2003 Kocaeli Chamber of Industry (Prize winner)
European Energy+ Award 2004 Arcelik
1111
Turkish Foreign Trade Turkish Foreign Trade
0
20000
40000
60000
80000
100000
120000
1400001980
1985
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
million U
SD
Exports Imports Total trade volume
Source: UFT, SIS
Customs Union
1212
““The real difficulty lies not The real difficulty lies not
in developing new ideas in developing new ideas
but in escaping from the old but in escaping from the old ones”ones”
J.M. KeynesJ.M. Keynes
Turkey is now full of determination on a Turkey is now full of determination on a clear path to EU. clear path to EU.
We invite you to share and benefit from We invite you to share and benefit from our aspiration our aspiration
THANK YOU ALL…THANK YOU ALL…
April 8, 2004April 8, 2004
Presented by: Brenda Hawryluk, Trade Specialist, Asia PacificPresented by: Brenda Hawryluk, Trade Specialist, Asia Pacific
A UNIQUE PARTNERSHIP FOR TRADE AND BUSINESS DEVELOPMENT
1717
OUR SERVICES:OUR SERVICES: Trade developmentTrade development Market intelligenceMarket intelligence Export financing advice and guidanceExport financing advice and guidance
WHAT IS STEP?WHAT IS STEP?A non-profit, membership-based A non-profit, membership-based
organization designed to promote the organization designed to promote the growth of Saskatchewan’s export growth of Saskatchewan’s export industry.industry.
1818
Saskatchewan Exports as % of GDPSaskatchewan Exports as % of GDPSaskatchewan Bureau of Statistics (May 2003)Saskatchewan Bureau of Statistics (May 2003)
Millions of dollarsMillions of dollars 20012001 20022002
Export of goods & servicesExport of goods & services 22,96022,960 23,09323,093 Exports to other countriesExports to other countries 14,33214,332 14,67714,677 Exports to other provincesExports to other provinces 8,628 8,628 8,4168,416
Gross Domestic Product (GDP)Gross Domestic Product (GDP) 33,59333,593 34,70334,703
Total Exports as % of GDPTotal Exports as % of GDP 68.3%68.3% 66.5%66.5%
Exports to other countriesExports to other countries 42.7%42.7% 42.3%42.3%
Exports to other provincesExports to other provinces 25.7%25.7% 24.3%24.3%
1919
Top 10 Saskatchewan Exports *Top 10 Saskatchewan Exports * Crude Petroleum OilsCrude Petroleum Oils 25.62%25.62% Potassium ChloridePotassium Chloride 19.16%19.16% Meslin and WheatMeslin and Wheat 7.44% 7.44% Durum WheatDurum Wheat 6.93% 6.93% Rape or Colza SeedsRape or Colza Seeds 3.26% 3.26% Natural Uranium Natural Uranium 1.90% 1.90% Peas – Dried and ShelledPeas – Dried and Shelled 1.65% 1.65% LinseedLinseed 1.58% 1.58% Barley Barley 0.92% 0.92% Particle Boards of WoodParticle Boards of Wood 0.68% 0.68% OtherOther 30.86%30.86%
Source of data: Statistics Canada Report Date: 20-Jan-2004* In the last 24 months
2020
Saskcan Pulse Trading Inc. head office and processing Saskcan Pulse Trading Inc. head office and processing facility is located in Regina, Saskatchewanfacility is located in Regina, Saskatchewan
Through an extensive network of cleaning plants and Through an extensive network of cleaning plants and producers and its state of the art lentil splitting factory, producers and its state of the art lentil splitting factory, Saskcan will supply its global client base with premium Saskcan will supply its global client base with premium quality Canadian pulses.quality Canadian pulses.
Saskcan Pulse Trading:
A Saskatchewan Success Story
2121
The company has constructed a lentil splitting The company has constructed a lentil splitting plant with a 75,000 MT annual capacityplant with a 75,000 MT annual capacity
Products include a full line of:Products include a full line of: Red Split LentilsRed Split Lentils Futball Red LentilsFutball Red Lentils Whole LentilsWhole Lentils Chickpeas, andChickpeas, and PeasPeas
Saskcan Pulse Trading
2222
THE PARTNERSTHE PARTNERS Saskcan has strong financial partners. The Saskcan has strong financial partners. The
total project, including operating financing, total project, including operating financing, was about $12 million.was about $12 million.
Lenders include Farm Credit Canada and the Lenders include Farm Credit Canada and the Business Development Bank of Canada, CIBC, Business Development Bank of Canada, CIBC, Scotiabank, Crown Ventures Fund (a labour-Scotiabank, Crown Ventures Fund (a labour-sponsored venture capital corporation) and sponsored venture capital corporation) and SGGF (the Saskachewan Government’s SGGF (the Saskachewan Government’s immigrant investment fund). immigrant investment fund).
SGGF and Crown Ventures are minority equity SGGF and Crown Ventures are minority equity partners. partners.
2323
CHALLENGESCHALLENGES Processing of this type with commodities has never been done in Processing of this type with commodities has never been done in
this climate. this climate. The furthest North this type of processing has been done is in The furthest North this type of processing has been done is in
Turkey. Turkey. Weather is a huge issue when you are splitting each individual Weather is a huge issue when you are splitting each individual
kernel for an average of 300,000 kg per day in –40 degree Celsius.kernel for an average of 300,000 kg per day in –40 degree Celsius. The technical expertise and knowledge of the processing and The technical expertise and knowledge of the processing and
systems was only resident in Turkey and they had difficulties with systems was only resident in Turkey and they had difficulties with immigration which took years to resolve.immigration which took years to resolve.
This company is in a landlocked jurisdiction and the world This company is in a landlocked jurisdiction and the world markets for these products are used to buying from a port-markets for these products are used to buying from a port-serviced source of supply. serviced source of supply.
2424
FOR MORE INFORMATION ON TRADE AND INVESTMENT IN FOR MORE INFORMATION ON TRADE AND INVESTMENT IN SASKATCHEWAN, PLEASE CONTACT:SASKATCHEWAN, PLEASE CONTACT:
Ms. Brenda Hawryluk, Trade Specialist, Asia PacificMs. Brenda Hawryluk, Trade Specialist, Asia PacificSaskatchewan Trade & Export PartnershipSaskatchewan Trade & Export PartnershipP.O. Box 1787P.O. Box 1787Regina, SaskatchewanRegina, SaskatchewanS4P 2C6 CanadaS4P 2C6 CanadaPhone: 306-787-9335; Fax: 306-787-6666Phone: 306-787-9335; Fax: 306-787-6666e-mail: [email protected]: [email protected]: www.sasktrade.sk.cawebsite: www.sasktrade.sk.ca
FOREIGN FINANCING OFFOREIGN FINANCING OF PUBLIC SECTOR PROJECTS PUBLIC SECTOR PROJECTS
by by
Serdar GüzeySerdar Güzey
Undersecretariat of TreasuryUndersecretariat of Treasury
Republic of TurkeyRepublic of Turkey
April 8, 2004April 8, 2004
2626
Declining inflation rateDeclining inflation rate
5
15
25
35
45
55
65
75
85
95
J 0
2 F M A M J J A S O N DJ 0
3 F M A M J J A S O N DJ 0
4 F M
(%)
CPI
WPI
2727
A powerful growth A powerful growth performanceperformance
6.3%
-9.4%
7.9%5.9% 5.0%
-15%
-10%
-5%
0%
5%
10%
2000 2001 2002 2003 2004P
GNP Change
2828
A strong fiscal balanceA strong fiscal balance
-2.0
2.3
5.5
3.9
6.5 6.5
-3.0
-1.0
1.0
3.0
5.0
7.0
1999 2000 2001 2002 2003E 2004P
Public Sector Primary Surplus (% of GNP)
2929
New investment climateNew investment climate
A Coordination Committe for the Improvement of the Investment Environment (CCIIE)
No Approval Requirement
No Minimum Capital Requirement
National Treatment
Guarantee to Transfer Proceeds
Key Expatriate Personnel
Protection Against Expropriation
Access to Real Estate
International Dispute Settlement
After the new Foreign Direct Investment LawAfter the new Foreign Direct Investment Law
3030
Key players in foreign Key players in foreign financingfinancing
State Planning Organisation (SPO)State Planning Organisation (SPO) Five Year Development PlanFive Year Development Plan Annual Investment ProgramAnnual Investment Program
prepared by SPOprepared by SPO covers all public sector institutionscovers all public sector institutions In line with Five Year Development PlanIn line with Five Year Development Plan total project costtotal project cost duration of the project duration of the project
3131
Key players in foreign Key players in foreign financing (continued)financing (continued)
appropriations for each projectappropriations for each project foreign componentforeign component local componentlocal component sufficient appropriation to start a projectsufficient appropriation to start a project
currently 10% of the total project costcurrently 10% of the total project cost
Implementing AgenciesImplementing Agencies Consolidated Budget InstitutionsConsolidated Budget Institutions
Ministries, KGM, DSI, Public UniversitiesMinistries, KGM, DSI, Public Universities OthersOthers
MunicipalitiesMunicipalities State Economic Enterprises (SEE)State Economic Enterprises (SEE)
3232
Key players in foreign Key players in foreign financing (continued)financing (continued)
TreasuryTreasury General Directorate of Foreign Economic General Directorate of Foreign Economic
RelationsRelations Foreign borrowing authorisation Foreign borrowing authorisation
for all public institutionsfor all public institutions Treasury borrowingTreasury borrowing
for all consolidated budget institutionsfor all consolidated budget institutions Treasury guaranteeTreasury guarantee
for non-consolidated budget institutionsfor non-consolidated budget institutions Treasury on-lendingTreasury on-lending
for non-consolidated budget institutionsfor non-consolidated budget institutions
3333
Key players in foreign Key players in foreign financing (continued)financing (continued)
LendersLenders International Financial Institutions International Financial Institutions
(World Bank, EIB etc.(World Bank, EIB etc. Exceptionally their rules applyExceptionally their rules apply
Other GovernmentsOther Governments Export Guarantee Agencies (ECA)Export Guarantee Agencies (ECA) Commercial BanksCommercial Banks
3434
Cycle of a Typical Public Cycle of a Typical Public ProjectProject
Implementing Agency (IA)’s application to Implementing Agency (IA)’s application to the Treasurythe Treasury
international competitive bidding (ICB) international competitive bidding (ICB) authorisationauthorisation
Treasury is the borrowerTreasury is the borrower IA is the borrower under Treasury’s guaranteeIA is the borrower under Treasury’s guarantee IA is the borrower but no Treasury guaranteeIA is the borrower but no Treasury guarantee
Treasury asks for the SPO’s opinion, Treasury asks for the SPO’s opinion, whetherwhether
the project is in the Annual Investment Programthe project is in the Annual Investment Program there is sufficient appropriationthere is sufficient appropriation
3535
Cycle of a Typical Public Cycle of a Typical Public Project (continued)Project (continued)
Favourable opinion from SPOFavourable opinion from SPO Treasury makes its own decision Treasury makes its own decision Treasury issues its ICB authorisationTreasury issues its ICB authorisation Implementing Agency declares the bidding Implementing Agency declares the bidding Implementing Agency sends the Treasury Implementing Agency sends the Treasury
commercial contract and the financial commercial contract and the financial offeroffer
3636
Cycle of a Typical Public Cycle of a Typical Public Project (continued)Project (continued)
Treasury negotiates the terms and Treasury negotiates the terms and conditions of the offer and the loan conditions of the offer and the loan agreementagreement
Treasury signs the loan agreementTreasury signs the loan agreement Council of Ministers ratifies the loan Council of Ministers ratifies the loan
agreementagreement Loan agreement comes into forceLoan agreement comes into force Disbursement startsDisbursement starts
3737
Phases in the Foreign Phases in the Foreign Financing of Public ProjectsFinancing of Public ProjectsInternationalInternationalCompetitiveCompetitive
Bidding RequestBidding RequestDue DiligenceDue Diligence
FinancialFinancialAnalysisAnalysis
TechnicalTechnicalAnalysisAnalysis
(SPO)(SPO)
InternationalInternationalCompetitiveCompetitive
Bidding AuthorisationBidding Authorisation
Bidding ProcessBidding Processcompletedcompleted
Financial OffersFinancial OffersSubmitted to Submitted to
TreasuryTreasury
NegotiationNegotiationProcessProcess
EstablishmentEstablishmentof Debt Serviceof Debt Service
AccountAccount
Signing ofSigning ofAgreementsAgreements
(for Muni’s and SEEs)(for Muni’s and SEEs)
(for Muni’s)(for Muni’s)Signing ofSigning ofGuarantee Protocol/Guarantee Protocol/
Onlending AgreementOnlending Agreement(for Muni’s and SEEs)(for Muni’s and SEEs)
1122 33
44 5566
66 77 88
99 1010
3838
Sources of Foreign FinancingSources of Foreign Financing
Types of FinancingTypes of Financing
Financingprovided by the
InternationalCompetitive
Bidding
MultinationalFinancial
InstitutionsIntergovernmental
Protocols
EIBWorldBank
GermanyKfW
JapanJBICCommercial
BanksECAs
Treasury is eitherTreasury is eitherguarantor or guarantor or
borrowerborrower
Treasury is eitherguarantor or
borrower
Treasury is the sole
borrower
Others Others
3939
Public Investments in 2004Public Investments in 2004
SectorSector
Number Number ofof
ProjectsProjects
2004 2004 InvestmentInvestment
Foreign Foreign SpendiSpendinngg(000 US$) (000 US$)
2004 2004 InvestmentInvestment
Total Total SpendingSpending(000 US$)(000 US$)
AgricultureAgriculture 350350 179.987179.987 727.837727.837
MiningMining 6969 31.79631.796 238.170238.170
ManufacturingManufacturing 135135 23.69323.693 237.277237.277
EnergyEnergy 9191 432.681432.681 1.267.1291.267.129
TransportationTransportation 345345 810.266810.266 1.924.2811.924.281
TelecommunicationTelecommunication 2020 00 29.30229.302
TourismTourism 6161 00 53.54853.548
HousingHousing 1919 00 12.21912.219
EducationEducation 12821282 76.14776.147 1.212.1601.212.160
HealthHealth 394394 39.04539.045 610.156610.156
Other Public Other Public ServicesServices 789789 121.809121.809 1.155.2171.155.217
TOTALTOTAL 3.5553.555 1.715.4241.715.424 7.467.2967.467.296
CIDA’s Private Sector CIDA’s Private Sector DivisionDivision
INDUSTRIAL INDUSTRIAL COOPERATION PROGRAM COOPERATION PROGRAM
(“CIDA-INC”)(“CIDA-INC”)Presentation to the Canadian-Presentation to the Canadian-Turkish Business Council’s Turkish Business Council’s
Annual Conference, Toronto Annual Conference, Toronto
April 8, 2004April 8, 2004
4141
CHANGES in CIDACHANGES in CIDA
April 2003 – New Private Sector April 2003 – New Private Sector Development Policy - New Private Sector Development Policy - New Private Sector Division (PSD) Division (PSD)
Fall 2003 – Transfer of REE Program to Fall 2003 – Transfer of REE Program to PSD-New Eastern Europe and Central Asia PSD-New Eastern Europe and Central Asia (EECA) Bureau in the PSD(EECA) Bureau in the PSD
April 2004 – Turkey Program has a New April 2004 – Turkey Program has a New Home with the EECA Bureau- Merged with Home with the EECA Bureau- Merged with the Asia Bureau the Asia Bureau
4242
CHANGES in CIDACHANGES in CIDA
March 2004 – Launch of the Report March 2004 – Launch of the Report by the UN Commission on the Private by the UN Commission on the Private Sector – co-lead by PM MartinSector – co-lead by PM Martin
April 2004 – Announcement of new April 2004 – Announcement of new PSD Mechanism - PSD Mechanism - The Local The Local Enterprise Investment Centre PEnterprise Investment Centre Pilot in ilot in Bangladesh Bangladesh
4343
CIDA-INC: MISSIONCIDA-INC: MISSION
Supports the Canadian Private SectorSupports the Canadian Private Sectorin International Ventures in International Ventures
Promotes Economically sound Private Promotes Economically sound Private Sector-led Projects Sector-led Projects
Ensures Developmental Benefits for Ensures Developmental Benefits for the Host-Countrythe Host-Country
4444
THE SUPPORT THE SUPPORT MECHANISMSMECHANISMS
Investment
Professional Services
Viability Study
Start-up Support
Feasibility Study
ImplementationSupport
4545
CIDA-INC: THE INVESTMENT CIDA-INC: THE INVESTMENT PROJECTPROJECT
Typical support Typical support
Study$150,000
Support$250,000
enables improves
CIDA-INC
Your project
$1M +
4646
INC: Financial Contribution INC: Financial Contribution to lay the to lay the
GroundworkGroundwork
Environmental Impact Assessment Study
Corporate Social Responsibility (Gender)
Mngt and tech Training Assessment
Agreement NegotiationsCost
Analysis
Regulatory Framework
Market Study/ Project Engineering
Technical Feasibility
Start-up/ Implementation
4747
CIDA-INC: UNSUITABLE PROJETSCIDA-INC: UNSUITABLE PROJETSNo straight salesNo straight sales, and no…, and no…
Product/service demo
General Mgmt plans
Straight sales/exports
Business Agency ServicesPreliminary Market Analysis
Speculative ActivitiesMilitary Activities
Nuclear Projects
4848
CIDA-INC: Eligible companies CIDA-INC: Eligible companies have…have…
3 yrs of experience
Proven track record
$700,000 in sales for 2 yrs
Financially sound
Own technology to transfer
Human & Technical resources
Access downstream financing
4949
HOW TO REACH USHOW TO REACH US
DiAnne Masson-Yensen DiAnne Masson-Yensen Phone:Phone:
1-800-230-63491-800-230-6349 1-819-994-05381-819-994-0538
Email :dianne_massonyensen@acdi-Email :[email protected] cida.gc.ca
Web: Web: wwwwww..acdiacdi--cidacida..gcgc..caca//incinc FAX : 819-953-5024FAX : 819-953-5024