Embed Size (px)
Citation preview
Experience of Turkey in Public Private
Partnerships for Infrastructure Development
by
Emre BASARAN
State Planning Organization
Motorways
Completed Projects
Service Areas on the existing motorways.
Göcek Tunnel
Bidding Stage
Bosphorus Highway Tunnel
Planned Projects
İstanbul – İzmir Motorway (including İzmit Bay Bridge)
Göcek Tunnel
Göcek Tunnel
Project Cost is 14 million dollars.
L=926 m.
Existing highway is 6.1 km. long with 29 curves.
It was constructed in 2 years.
The duration of contract is 26 years.
There is no minimum traffic guarantee.
Seaport Type Duration of Contract Cost ($)
Çanakkale Kepez Port 29 years 14.600.000
Güllük Pier 6 years 6 months 16.642.266
Muğla Turgutreis Marina 22 years 6 months 22.000.000
Bodrum Pier 12 years 9.660.000
Seaports (Completed Projects)
Seaport Type Duration of Contract Cost ($)
Didim Marina 22 years 6 months 12.000.000
Çeşme Marina 23 years 6 months 9.746.554
Sığacık Marina 23 years 6 months 5.296.960
Kaş Marina 23 years 6 months 11.607.480
Alanya Marina 23 years 6 months 5.302.474
Seaports (Ongoing Projects)
Çanakkale Kepez Port
Çanakkale Kepez Port
The substructure of the port was completed through
public procurement.
The Project Company constructed the superstructure
of the port in exchange for the operation revenues.
The construction cost is 14.6 million dollars.
Duration of contract is 29 years.
The Project Company pays a concession fee to the
government which is escalated at a constant annual rate.
Airports
Airport TerminalCapacitypass./yr
Duration of Contract
Start of Operation
EsenboğaDomestic& International 10.000.000
15 years 8 months October 13, 2006
Antalya 1 International 5.000.000 9 years April 1, 1998
Antalya 2 International 5.000.00045 months
26 days April 17, 2005
DalamanDomestic& International 5.000.000
77 months 20 days 2006
Adnan Menderes International 5.000.000
6 years 7 months N/A
Atatürk International 20.000.000 N/A January 10, 2000
Esenboğa Airport
Esenboğa Terminal
The total cost of the project is 189 million Euros.
The construction took 24 months.
The project includes the construction of the terminal
building, and a parking lot.
Duration of contract is 15 years and 8 months.
Power Plants
BOT Projects (Natural Gas)
Type Location
Contract
Duration
Start of
Operation
Project
Cost
Million
$
Capacity
MW
Annual
Generation
kWH
Treasury
Guarantee
Natural
Gas İstanbul 20 May 22, 1999 158,1 180 1.400.000.000 Yes
Natural
Gas Tekirdağ 20 June 4, 1999 532,7 478 3.600.000.000 Yes
Natural
Gas Tekirdağ 20 June 12, 1999 560,8 478,2 3.600.300.364 Yes
Natural
Gas Sakarya 20 January 21, 1997 70,4 253,4 1.963.604.357 Yes
Power Plants
BOT Projects (Natural Gas)
Type Location
Contract
Duration
Start of
Operation
Project
Cost
Million
$
Capacity
MW
Annual
Generation
kWH
Treasury
Guarantee
Natural
Gas İstanbul 20 May 22, 1999 158,1 180 1.400.000.000 Yes
Natural
Gas Tekirdağ 20 June 4, 1999 532,7 478 3.600.000.000 Yes
Natural
Gas Tekirdağ 20 June 12, 1999 560,8 478,2 3.600.300.364 Yes
Natural
Gas Sakarya 20 January 21, 1997 70,4 253,4 1.963.604.357 Yes
Power Plants
BOT Projects (Hydro Power)
Type Location
Contract
Duration
Start of
Operation
Project
Cost
Million
$
Capacity
MW
Annual
Generation
kWH
Treasury
Guarantee
Hydro
(Run of river) Sivas 20
September
12, 1999 6,5 4,5 22.000.000 No
Hydro
(Run of river) Isparta 50
November
1, 1989 3,3 13 36.000.000 No
Hydro
(dam) Urfa 15
October 4,
2001 1776,4 672 2.500.000.000 Yes
Hydro
(Run of river) Denizli 20
January
12, 2001 2,3 2,2 11.750.000 No
Hydro
(Run of river) Afyon 15
December
1, 2000 3,3 3 16.260.000 No
Power Plants
BOT Projects (Hydro Power)
Type Location
Contract
Duration
Start of
Operation
Project
Cost
Million
$
Capacity
MW
Annual
Generation
kWH
Treasury
Guarantee
Hydro
(Run of river) Muğla 15
December 1,
1999 17,7 16 90.000.000 Yes
Hydro
(Run of river) Erzincan 20
March 1,
2001 5,4 11,58 41.000.000 No
Hydro
(Run of river) Isparta 20
June 18,
1998 3,4 2 12.200.000 No
Hydro
(Run of river) Mersin 15
December
27, 1996 8,3 10 47.000.000 No
Hydro
(Run of river) Iğdır 20
November 7,
2002 7,6 11,1 50.600.000 No
Hydro
(Run of river) Çanakkale 20
March 7,
1998 5,9 10,6 47.191.400 Yes
Power Plants
BOT Projects (Hydro Power)
Type Location
Contract
Duration
Start of
Operation
Project
Cost
Million $
Capacity
MW
Annual
Generation
kWH
Treasury
Guarantee
Hydro
(Run of river) Düzce 20
May 17,
1991 5,6 9,35 41.600.000 No
Hydro
(Run of river) Kayseri 15
December
12, 1998 97,4 84 429.000.000 Yes
Hydro
(Run of river) Malatya 20
December
23, 1998 10,3 12,5 58.310.000 Yes
Hydro
(Run of river) K.Maraş 15
January 5,
1994 5,2 9,6 32.070.000 No
Hydro
(Run of river) K.Maraş 15
January
18, 2000 9,2 7 27.735.000 Yes
Power Plants
BOT Projects (Wind)
Type Location
Contract
Duration
Start of
Operation
Project
Cost
Million
$
Capacity
MW
Annual
Generation
kWH
Treasury
Guarantee
Wind İzmir 20,5
November
28, 1998 9 7,2 18.980.000 Yes
Wind Çanakkale 20,5
July 25,
2000 12 10,2 29.880.000 No
Power Plants
O&M Contracts
Power
Plant Type Loctn.
Contract
Duration
Start of
Operation
Project
Cost
Million
$
Capacity
MW
Annual
Generation
kWH
Treasury
Guarantee
Çayırhan
Thermal
(Coal) Ankara 20
June 30,
2000 275 620 3.632.000.000 Yes
Hazar
Hydro
(Run of
river) Elazığ 22
December
9, 1996 11,1 29,8 56.000.000 No
Power Plants
BO Projects
Type Location
Contract
Duration
Start of
Operation
Capacity
MW
Annual
Generation
kWH
Treasury
Guarantee
Thermal
(Coal) Hatay 16 June 1, 2003 1210 9.133.467.500 Yes
Natural Gas Ankara 16
January 1,
2003 770 6.167.133.687 Yes
Natural Gas Sakarya 16
October 10,
2002 770 6.424.023.125 Yes
Natural Gas Kocaeli 16
October 26,
2002 1540 12.885.766.625 Yes
Natural Gas İzmir 16
March 28,
2003 1520 12.682.715.000 Yes
Birecik Dam and Hydropower Plant
Birecik Dam and Hyrdopower Plant
The sponsors offered to implement the project with
BOT model in 1986.
The project and the contract were modified several
times.
The project company was established in 1993. 30% of
the shares were owned by a State Enterprise.
The project company borrowed 416 million DM of
commercial credit and 1,266 million DM of export
credit. The repayment of both credits were guaranteed
by Treasury.
Birecik Dam and Hyrdopower Plant
The construction was initiated in 1996, and took five
years.
Duration of contract is 15 years.
Every 6 months, the expected flow is determined by
taking the average of the past 3 years. According to that
flow, the amount of electricity to be produced is
calculated.
The tariff is calculated by dividing the predetermined
revenue of the company by the electricity produced.
Customs Service
Border Gates
İpsala
Gürbulak
Habur
Cilvegözü (under construction)
Sarp
Kapıkule
in operation
in planning stage
Gürbulak Border Gate
Gürbulak Border Gate
Gürbulak Border Gate
The gate and the customs office have been renovated by
International Freight Companies Association in exchange
for operation revenues.
The duration of contract is 15 years.
The construction cost is 7.5 million dollars.
Yuvacık Dam
1st PPP Project in Turkey
Purpose of Project
Project History (1)
General Directorate of State Water Works (SWW)
completed its feasibility study about the water demand
in Izmit Bay Area in 1983.
Yuvacik Dam is designed to provide 142 million cubic
meter of water annually.
The construction was initiated in 1987.
A group of sponsor companies offered to implement
the project with BOT in 1989.
Project History (2)
In 1995, a Project Company was established, the
project was transferred to the Izmit Municipality, and
the contract between the Municipality and the Project
Company came into effect.
BOT Law was enacted in 1994 in order to encompass
the project in legal aspects.
In 1999, the operation was initiated.
Conditions of Contract
The duration of contract is 15 years.
Take or Pay Contract: The Municipality pledged to pay
for 142 million cubic meter of water each year whether
it took delivery or not.
Treasury provided guarantee for the payment in case
the municipality was not able to purchase.
The tariff would be determined by the Project
Company each year regarding a certain level of revenue.
Financial Arrangements
The total cost is 890 million dollars.
757.7 million dollars of syndicated loan was borrowed
by the Project Company.
The Municipality borrowed from the international loan
market in order to contribute to the equity of the
Project Company. The repayment of the loan was
guaranteed by Treasury.
Risk Allocation
Risk Party
Public Private
Availability ✔
Completion (construction&design) ✔ ✔
Financial ✔
Force Majeure ✔
Demand ✔
Operating ✔
Revenue ✔
Technical (engineering&design) ✔ ✔
Project Results (1)
Due to escalated cost of construction and devaluation
of Turkish Lira, the unit price of water is set very high.
Istanbul Municipality and industrial organizations
renounced consuming water of Yuvacik Dam due to
high tariff.
Izmit Municipality was obliged to pay for the amount
of water which was not completely delivered according
to the off-take agreement.
Project Results (2)
Izmit Municipality fell into financial difficulties.
Treasury, the guarantor of the last resort, paid for the
water which was not being consumed.
Since 1999, Treasury paid around 1.5 billion dollars to
the Project Company in accordance with the off-take
agreement.
Due the drought in the region, the dam cannot provide
142 million cubic meter of water annually.
The Municipality is seeking new resources.
Lessons
A consistent, well-defined legal framework is a must.
Public Sector Comparator should be applied.
There must be a thorough definition of risks and well-
defined scheme for risk allocation.
The bidding process should be transparent and
competitive.
The institutional capacity must be at adequate level for
managing PPP projects.
Emre BAŞARAN
T.R. PRIME MINISTRY
STATE PLANNING ORGANIZATION
Necatibey Cad. No: 108
06100 Yücetepe-ANKARA-TURKEY
Phone #: +90 312 294 63 03
Fax #: +90 312 294 63 78
