GLOBAL INFRASTRUCTURE INITIATIVENovember 29, 2012Mehmet ŞimşekMinister of Finance1
Outline2Why Infrastructure?Why PPP?PPP in Turkey• Energy• Transportation• Healthcare• Education
Why Infrastracture?3Promote economicprosperity and growthImprove quality of life
Infrastructure needs are shaped by4Economic growthDemographic developments: ageing, urbanization, singletons...Environmental factors: climate change, rising quality standards...Technological progress especially in information and communicationsTrends towards decentralization and growing local public involvementMaintenance, upgrade, and rehabilitation of existing infrastructure
5Some Estimates of Near-TermProject Finance NeedsUS€1 trnext 5-10 yearsrenewablesOECD€40 trillionnext 20 yearsinfrastructure, power & telecommunicationEU€2 trnext 10 yearsinfrastucture & powerINDIA€800 bnnext 5 yearsinfrastucture & power
Global Infrastructure$71 trillion is needed for globalinfrastructure investments by 2030$11 trillion is needed just fortransportation6OECD estimates infrastructure investment needs to be around3.5% of world GDP through 2030.
Energy DemandWorld energy demand is projected to grow by 40 % until 2030.Turkey’s energy demand is projected to grow by 146 % until 2030.Source: Ministry of Energy and Natural ResourcesTurkey ranks 2nd to China in energy demand growth
Investment in Energy SectorWe need to invest $ 120 billion by 2023.We invested $ 25 billion in energy over the last 9 years.
Installed Capacity of Electricity GenerationKaynak: Ministry of Energy and Natural Resources16MWCurrent Installed Capacity 2011 52,911Renewable Energy in Current Installed Capacity 2011 19,095Power Plants Under Construction 26,118Renewable Energy in Power Plants Under Construction 17,747
PPP in Energy SectorInvestment in energy infrastructure is a must considering theever-rising demandThanks to PPP, state can resort to private-sector financing for:• Establishment of new power plants• Recovery of available energy lines• Distribution of energy to customersState can sustain control and supervision of facilities.
Rising Private Sector Share in Energy Investments32%68%2002PrivatePublic 56%44%2011PrivatePublic14,300 MW out of 21,000 MW of power put into useduring our government is done by the private sector.
Investment in TransportationWe have invested TL 134 billion overthe past 10 years
Completed, Planned and On-Going PPPs• 35 PPPs• Total amount of investment: $ 12.1 billion• $ 595 million of public investment• $ 11.2 billion of private investment.COMPLETED &ON-GOING• 29 PPPs• Total amount of investment: $ 105.9 billion• $ 10.7 billion of public investment• $ 95.2 billion of private investments.PLANNEDPROJECTS
1,714 KmTotal of Motorways4,387 KmTotal of State andProvincial DualCarriagewaysTotal: 6,101 KmDual CarriagewayNetwork(January 1, 2003)2,236 KmTotal of Motorways19,864KmTotal of State andProvincial DualCarriagewaysTotal: 22,100 KmDual CarriagewayNetwork(September 15,2012)26
Target for 2015 26,500 kmTarget for 2019 31,000 kmTarget for 2023 36,827 kmTargets for Construction of Dual Carriageways
Airports Available forCivil Aviation Traffic in Turkey2920032012Airports serving ScheduledFlight (48)Airports under Construction (6)Airport Projects (2)The number ofairports servingscheduledflights=48The number ofairports servingscheduledflights=48The number ofairports servingscheduledflights=26The number ofairports servingscheduledflights=26Airports serving ScheduledFlight (26)
Passenger Traffic at the AirportsNumber of FlightsSource: General Directorate of State Airports Authority01002003004005006007008009001.0001.1001.2001.3001.4002003 20111542932184631575795291,335,185Overflıght International Domestic Total(Thousand)30020.00040.00060.00080.000100.000120.0002003 20119.14758.25825.29659.36234.444117.620Domestic International Total(Thousand)
The 3rd Airport in Istanbul150 million passengersAn area of 90 million m2
Targets for Construction of RailwaysBy 2023 $ 45 billion worth ofinvestment10,000 km worth ofnew high speed railwaynetwork4,000 km of newconventional line2023-35 1,480 km of high speedrailway lines956 km of conventionalline
Our RailwaysPRE-REPUBLIC RAILWAY NETWORK 4,136 km MAINLINEEARLY YEARS OF THE REPUBLIC (1923-1950) 3,764 km MAINLINE (134 km on annual average)1951-2003 945 km MAINLINE (18 km on annual average)2003 DEN GÜNÜMÜZE KADAR (2010 dahil) 1.076 km ANAHAT (Yılda Ortalama 135 km)UNDER CONSTRUCTION 3,434 km MAINLINE2003-11 1,086 km MAINLINE (136 km on annual average)İSTANBULEDİRNEESKİŞEHİRPOLATLIANKARAKONYAİZMİRSİVASAFYONKAYSERİBURSA ERZİNCANERZURUMKARSMERSİNADANA GAZİANTEPDİYARBAKIRELAZIĞMALATYAZONGULDAKSAMSUNBANDIRMAVANTATVAN2010 : 11.940 km ( Konvansiyonel + Yüksek Hızlı )Adapazarı33Source: Ministry of Transport2010:12,000 km (Conventional+High Speed)
High Speed Railway Projects34İSTANBULESKİŞEHİR POLATLIANKARAKONYASİVAS212km533km405kmYOZGATHST lines to be completed until 2015Completed High Speed Train (HST) Lines: Ankara-Eskişehir and Ankara-KonyaYerköyHST lines being under-construction in 2015AFYONİZMİRMANİSA 624kmBURSABİLECİK110 kmSource: Ministry of Transport
Project of Century4 minutes: Commute between the two sides of Bosporus105 minutes: Transportation from Gebze to Halkalı75.000 passenger/hour in a single direction