TURKISH CONTRACTORS ASSOCIATION Sunum...Turkish Contractors Association - TCA To increase the competitiveness of its members , To contribute to the achievement of sustainable development

Turkish Contractors Association - TCA

TURKISH CONTRACTORS ASSOCIATION

Haluk BÜYÜKBAŞ

Secretary General


Status : Non-governmental, non-profit,

independent professional organization

established in 1952

Head Office : Ankara – TURKEY

Number of Member Companies : 145

Members’ Profile : Construction – Contracting Companies

Business Volume : 70% of all domestic and 90%

of all international contracting works

About TCA


TCA is a full member to 5 professional organisations

European Union of

Developers and

House Builders

1992

Full Member

European

Construction

Industry Federation

2000

Full Member

European

International

Contractors

2002

Full Member

World

Water

Council

2004

Full Member

Islamic Countries

Contractors

Federation

1991

Full Member


TCA’s Vision

Our vision is ;

to contribute to the sustainable development of

the Turkish construction sector, which is;

knowledge-based

competitive

innovative

market driven


To increase the competitiveness of its members ,

To contribute to the achievement of sustainable development in

the construction industry,

To provide counsel to the Government Agencies on legal,

economic and technical issues related to the construction

industry,

To build and enhance strategic alliances with public and private

bodies both within and outside of Turkey.

To defend and promote the interests of its members,

To encourage cooperation and mutual support among its

members,

To promote professional standards and business ethics,

To raise public awareness on industry related issues.

TCA’s Objectives


Main Activities of TCA

Information Management

R and D

Strategic Alliances

Training

Public Relations & Lobbying

Special Activities

Social Responsibility Projects

Publication


International Contracting Services

Main Factors Encouraging Turkish Contractors to Concentrate More

on the International Markets :

Experience gained in the domestic market on large infrastructures

(motorways, dams, pipelines etc.) between 1985-2000.

The effects of Turkey’s political and economic environment on

construction sector, (2001 financial crisis and shrinkage of

domestic investments.)

Political and economic developments in market countries,

(September 11, oil price increase etc.)

Turkey’s geographical location and socio-cultural structure

International Activities - 1



THE MIDDLE EAST

13 countries, (22,88%)

THE CIS


EUROPE


SOUTH ASIA & FAR EAST


AMERICA


SUB-SAHARAN AFRICA,


5000 Projects in 70 countries

Total business volume of 130 billion USD

NORTH AFRICA,



International Market Development by Periods


1972-1979 1980-1989

COUNTRY (%) COUNTRY (%)

LIBYA 68,28 LIBYA 54,56

S.ARABIA 14,32 S.ARABIA 21,79

IRAQ 6,72IRAQ 14,38KUWAIT 10,62

RUSSIAN FED. 3,51

YEMEN 1,50

OTHERS (11 Countries) 4,26

1990-1999 2000-2008

COUNTRY (%) COUNTRY (%)

RUSSIAN FED. 34,69 RUSSIAN FED. 18,90

LIBYA 14,22 10,73

KAZAKHSTAN 8,07

TURKMENISTAN 6,66 U.A.E. 7,05

KAZAKHSTAN 7,31

LIBYA

OTHERS (42 Countries) 30,49 OTHERS (53 Countries) 48,68

GREECE

IRAN

0,05

0,01

PAKISTAN 6,62 QATAR 6,57



OTHER : JORDAN, OMAN, BULGARIA, AFGHANISTAN, ALGERIA, PAKISTAN, UKRAINE, MOROCCO, IRELAND, UZBEKISTAN,

KUWAIT, TUNISIA, THE U.S.A., GEORGIA, ALBANIA, EGYPT, POLAND, SUDAN, CROATIA, LATVIA, GERMANY, YEMEN, BELARUS,

IRAN, T.R.N.C., TAJIKISTAN, ISRAEL, LEBANON, KYRGYZSTAN, BAHRAIN, MACEDONIA, LITHUANIA, HOLLAND, INDIA, BOSNIA-

HER., SYRIA, DJIBOUTI, MALI, MOLDOVYA, CHILE, ETHIOPIA, GHANA, NEPAL, GUINEA, CAMEROON, SIERRA LEONE, MALEZYA,

MOZAMBIQUE, ARMENIA, THE PHILIPPINES, GREECE, ITALY, MEXICO, KOSOVO, ARGENTINA, NIGERIA, MALAWI, THAILAND,

INDONESIA

Distribution of Activities by Country (1972 – 2008)

RUSSIAN FED.19,81%

LIBYA18,12%

S. ARABIA7,64%KAZAKHSTAN

6,81%

BAE4,63%

QATAR4,26%

IRAQ4,13%

TURKMENISTAN3,85%

AZERBAIJAN3,19%

ROMANIA2,60%

OTHER24,96%



Nature of International Work by Periods

1972-1979 1980-1989

FIELDS OF ACTIVITY % FIELDS OF ACTIVITY (%)

HOUSING 29,80 HOUSING 36,75

SEAPORT

17,07 URBAN INFRASTR. 16,15

INDUSTRIAL PLANT

16,79 ROAD/BRIDGE/TUNNEL 6,57

ROAD/BRIDGE/TUNNEL

15,49

IRRIGATION

6,57

URBAN INFRASTR. 7,60

DAM

5,30

OTHER 13,25 OTHER 28,66

1990-1999 2000-2008

FIELDS OF ACTIVITY (%) FIELDS OF ACTIVITY (%)

HOUSING 25,44 ROAD/BRIDGE/TUNNEL 15,80

ROAD/BRIDGE/TUNNEL 12,70

9,80INDUSTRIAL PLANT 9,03

INDUSTRIAL PLANT

11,81

COMMERCIAL CENTER 7,79

PIPE LINE

8,82

TOURISM FACILITIES 5,92

COMMERCIAL CENTER

8,32

OTHER 39,11 OTHER 45,45

HOUSING



OTHER : SEAPORT, ADMINISTRATIVE BUILDING, TOURISM FACILITIES, HEALTH FACILITIES, IRRIGATION, DAM, RAILWAY,

MILITARY FACILITIES, TREATMENT PLANT, DEPOT, DRINKING WATER, ENERGY TRANSMISSION LINES, TELECOMMUNICATION

International Activities by Nature of Work (1972-2008)

HOUSING16,57%

ROAD/BRIDGE/TUNNEL13,67%

COMMERCIAL CENTER

10,11%INDUSTRIAL PLANT

7,45%SOC. CULT. FACILITIES6,36%

PIPE LINE5,71%

AIRPORT5,03%

URBAN INFRASTRUCTURE

4,79%

POWER PLANT4,20%

PETROCHEMICAL PLANT

3,67%

OTHER22,44%


Between 1972-2008 ; changes in the performance of the

Turkish construction companies

worldwide experience in over 5000 projects

diversification of the activities and markets

turning into internationally recognized powerful brands

NEW CHALLENGES in CONSTRUCTION SECTOR



1972 - 2008

5000 projects in 70 countries

Totaling to 130 billion USD

Turkish International Contracting Services (USD billion)

Inte

rna

tio

na

l

Co

ntr

acti

ng

Se

rvic

es

1,7

2002

3,5

2003

6,5

2004

9,8

2005

15,9

2006

19,5

2007

23,6

2008



COUNTRY 2008 2007

Turkmenistan 5.375.902.770 1.594.499.615

Russian Fed. 3.387.864.932 3.605.053.006

U.A.E. 3.069.010.489 122.000.000

Libya 2.065.280.207 4.924.728.877

Iraq 1.436.001.931 435.719.278

Azerbaijan 1.088.282.553 849.022.061

Saudi Arabia 893.410.100 982.745.090

Sudan 850.000.000 41.000.000

Kazakhstan 688.564.354 1.091.836.157

Ukraine 680.186.231 N/A

Others (28 countries) 4.150.727.809 (25 countries) 5.848.870.939

Grand TOTAL 23.685.231.376 19.495.475.023

Top 10 International Markets (2007 – 2008) (USD)



CountriesNumber of

ProjectsTotal Business Volume (USD)

North AFRICA

ALGERIA 85 2.147.881.326

22.944.939.100

MOROCCO 21 1.236.255.280

LIBYA 347 18.291.149.050

TUNUSIA 7 712.125.959

EGYPT 24 557.527.485

SUB-SAHARAN AFRICA

SUDAN 28 1.171.012.138

1.728.403.099

ETHIOPIA 5 246.307.906

NIGERIA 1 128.000.000

GHANA 3 42.749.994

MALI 2 39.555.305

CAMEROON 1 25.800.000

GUINEA 2 25.037.150

SIERRA LEONE 1 24.200.000

KENYA 1 12.300.000

MOZAMBIQUE 1 10.334.000

DJIBOUTI 3 1.457.071

MALAWI 1 910.000

GAMBIA 1 739.535

Projects in Africa534 Projects, Total business volume of 24,7 billion USD


Projects in North Africa

Total business volume of 8,5 billion USD in 2007 and 2008

in the North African Countries

Countries 2008 2007

LIBYA 2.065.280.207 4.924.728.877

ALGERIA 510.082.035 56.237.810

TUNUSIA 112.075.959 546.243.000

MOROCCO -- 209.900.000


Projects in Libya


Projects in AlgeriaProjects in Morocco


Projects in Egypt

Projects in Tunisia


The Experience of TCA Members in PPP/ BOT Models

The Turkish construction and contracting companies adapted

themselves to the global tendency and realized also big scaled

infrastructure projects by PPP / BOT models.

They have undertaken

seaport,

airport,

water supply,

energy,

highway,

tunnel,

waste water

projects financed by PPP / BOT models both in Turkey and abroad.


MAJOR PROBLEMS FACED BY THE TURKISH CONSTRUCTION COMPANIES

IN THE NORTH AFRICAN COUNTRIES

Non- acceptance of the letter of guarantee of the Turkish Banks,

Obligation in obtaining letter of guarantee from a local bank,

Banking system,

Quota for bringing Turkish workers to the country,

Difficulties in obtaining visa and working permits,

Delay in the progress payments,

Heavy bureaucracy and slow bureaucratic mechanism,

Obligation of having a local partner in the establishment of a company

or setting up a branch office,

Conclusion of the necessary agreements between the two countries


(*) ENR, August 2009

Distribution of The Top 225 International Contractors (*)

• China…………...50

• Turkey …………31

• Italy …………….26

• U.S.A. ………….25

• Japan ………….15

• S. Korea ……….13

• Spain …………..11

• Other …………..54

http://enr.ecnext.com/coms2/summary_0271-52286_ITM


North East

• Armenia

• Azerbaijan

• Georgia

• Kazakhstan

• The Russian Fed.

• Tajikistan

• Turkmenistan

• Uzbekistan

Middle East

• Afghanistan

• Bahrain

• Iran

• Iraq

• Israel

• Jordan

• Oman

• Pakistan

• Qatar

• Saudi Arabia

• Syria

• UAE

• Yemen

East Europe

• Albania

• Bosnia - H.

• Bulgaria

• Croatia

• Greece

• Kosovo

• Macedonia

• Moldavia

• Poland

• Romania

• Serbia

• Slovenia

• Ukraine

Africa

• Algeria

• Egypt

• Libya

• Morocco

• Sudan

• Tunisia

Turkey’s strategic location on the crossroads of 3 continents

Strengths - 1

East Europe

North AfricaMiddle East

North East


Strengths of Turkish Contractors

First hand knowledge of the business culture in the surrounding regions

Credibility in partnerships

Rich experience in diverse markets and project types

Cost effective service at international standards

Delivery of the final product prior to contract deadlines

Turkish contractors are risk-taker, competitive and dynamic businessmen experienced to work in international partnerships

Turkish construction labour force is hardworking, relatively low-cost and available for works abroad

Strengths - 2


for more information : www.tmb.org.tr

Thank you …

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TURKISH CONTRACTORS ASSOCIATION Sunum...Turkish Contractors Association - TCA To increase the competitiveness of its members , To contribute to the achievement of sustainable development