ROLE OF CONSULTING AND CONTRACTING INDUSTRY IN ECONOMIC DEVELOPMENT OF TURKEY www.isdb-am42.org Presented by Demir INOZU Immediate Past President of Association of Turkish Consulting Engineers and Architects (ATCEA) Chairman of International Technical Consultancy Business Council of DEIK(Foreign Economic Relations Board) TURKIYE
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ROLE OF CONSULTING AND CONTRACTING … · •According to rankings announced in 2016 by the leading international industry magazine Engineering News Record (ENR), 40 Turkish contracting
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ROLE OF CONSULTING AND CONTRACTING INDUSTRY IN ECONOMIC DEVELOPMENT OF TURKEY
www.isdb-am42.org
Presented by
Demir INOZUImmediate Past President of Association of Turkish Consulting Engineers and Architects (ATCEA)
Chairman of International Technical Consultancy Business Council of DEIK(Foreign Economic Relations Board)
TURKIYE
Turkish Construction Industry is the main driving force in the economic uplift and
development of Turkey. Construction Industry with its three main stakeholders;
• Contractors,
• Construction Materials Producers
• Technical Consultants;
plays an essential role in the socioeconomic development of Turkey.
Located at the crossroads of three continents; Europe, Asia and Africa; Turkey has
historical and strong political and economic relations in the region. Geographical
proximity of Turkey to the potential markets, provides a great advantage to the
global competitiveness of the Turkish construction industry abroad.
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TURKISH CONTRACTING INDUSTRY
• 6% share in GDP of Turkey
• Employing 1.900.000 people
• 30% share in Turkish economy
• 10% of employment excluding agriculture
Since 1972 working abroad
• 115 countries
• 9000 projects
• Total value 342 billion USD
Ref: Turkish Contractors Association (TCA), April 2016
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• According to rankings announced in 2016 by the leading international
industry magazine Engineering News Record (ENR), 40 Turkish contracting
companies ranked among "The World's Top 250 International Contractors“,
based upon 2015 data by overseas operations outside their home countries.
• Turkish contractors ranked second in number in the world after China for
the last 9 years.
• As of 2015, total amount of overseas projects undertaken by the 250
international contractors in the ENR list is 500 billion USD; and the share of
Turkish contractors is 22.8 billion USD (4.6 percent), ranking 9th in total
values of international contracts.
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NUMBER OF TURKISH CONTRACTORS IN ENR “THE WORLD’S TOP 250 INTERNATIONAL CONTRACTORS LIST”
• 1999 and 2001 economic crises had a negative impact on the construction sector.
• After recovering, starting from 2002 the sector progressively grew until 2006,
• Then starting from 2007 economy entered into the recession period followed
by 2008 and 2009 crises, consequently construction sector shrunk 8,1% and
16,1% in these years respectively.
• Recovered quickly in 2010 in parallel with the start of large projects in Turkey
and grew by 18.3%; but after 2012 again the growth rate slowed down.
• Due to political uncertainities Turkish construction industry grew by 1.7% in 2015.
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• Due to the general geo-political problems in the region and negative impacts of global
crises; economic development slowed down at certain periods, and growth of Turkish
construction sector was negatively affected during these periods.
• Due to its interrelations with the other sectors;
• On one hand the inputs used in the construction sector help
developing the production, manufacturing and transport sectors;
• on the other hand the demand for other buildings (housing, education tourism,
industrial buildings) increase the volume of construction activities.
• The power of construction sector for stimulating other sectors accelerates the growth of
Turkish economy.
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• Construction sector has a potential for bringing foreign exchange and capital to Turkey
which supports Turkish economy during recession periods.
• It should be noted that because of the;
• diversification of markets and specialisations of the contractors,
• continuous demand from the domestic market for implementing
several grand challenging projects
• urban transformation program,
Turkish construction sector managed to overcome the difficult periods.23
Recently there are several ongoing and planned projects financed by
government as well as by local and foreign investors creating demand
for construction industry in domestic market :
With 7 PPP projects totalling USD 44,7 billion, corresponds 40 percent of global PPP investments
(including 3rd Istanbul Airport), Turkey is the global leader of Public Private Investments (2015 Global PPI
Update,WB)
Istanbul 3rd Airport (USD 35.6 bln) is under construction by PPP model.
Until 2023; 5700 km motorways will be constructed by BOT model, 6000 km long highways,
13.000 km railways will be constructed.
60 city hospitals (12 billion USD) will be constructed, most of them by PPP model.
Under the Urban Transformation Project 350 billion USD will be spent.
2 Nuclear power plants are planned to be constructed, total cost 45 bln$.
Trans Anatolian Natural Gas Pipeline is under construction.
Canakkale suspension bridge (3869 m long, the longest span 2023 m). will be constructed ( 3 billion $).
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As for the international markets:
there are huge investment opportunities in Africa, especially in infrastructure, where the benefits are
expected to be very high. In particular, Sub-Saharan Africa and East Africa are forecast to be the fastest
growing regions in the world over the next five years.
Africa’s absolute and relative lack of infrastructure necessitates establishment of international and regional
cooperation and strategic partnerships. In this regard, African countries are among the main targets for
Turkish contractors, consulting engineers and architects for several ongoing and prospective PPP
and EPC contracts.
Eurasian, Middle East and North African countries are the key markets for the Turkish contractors, as
before. Recently Turkish contractors entered into the Colombia, Venezuela and Peru in South America.
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CONCLUSION:Contribution of Turkish International Contracting and Technical Consulting ServicesIndustry together with the Construction Materials Industry to Turkish economy is veryimportant as it;• affects the foreign exchange input positively, • enhances economic growth,• contributes to the balance of payments, • increases the export volume, • increases the employment rate, • helps expanding construction machinery capacity of contractors,• contributes to transfer of technology and innovation, • improves quality of locally produced construction materials,• increases the power of competition of Turkey in the international markets.