Global Infrastructure Initiative

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Global Infrastructure Initiative

  1. 1. GLOBAL INFRASTRUCTURE INITIATIVENovember 29, 2012Mehmet ŞimşekMinister of Finance1
  2. 2. Outline2Why Infrastructure?Why PPP?PPP in Turkey• Energy• Transportation• Healthcare• Education
  3. 3. Why Infrastracture?3Promote economicprosperity and growthImprove quality of life
  4. 4. 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
  5. 5. 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
  6. 6. 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.
  7. 7. Why PPP?Investment needsare vastBudgetary resourcesare limited Private sectorcreativity &dynamism areneeded
  8. 8. Benefits of PPPReduce fiscal burden onpublic sectorProvide high-quality,efficient and productivepublic servicesTransfer know-how andtechnologyIncrease FDI inflows Accelerate investments Create jobsSupport growth
  9. 9. London UndergroundPPP in the WorldMinistry of Defense, UKCross City Tunnel, Australia
  10. 10. PPP Applications in TurkeyBuild-Operate-Transfer• Energy• Airports• PortsTransfer of Operating Rights• Energy (HEPP)• Highways• Bridges• PortsBuild-Operate • EnergyBuild-Lease-Transfer• Health• Education
  11. 11. Investment Project with PPP Models in Turkey* Based on 2011 prices.•$11 billion*Before 2002•$27 billion*After 2002
  12. 12. Key SectorsEnergyTransportationHealthcareEducation
  13. 13. Energy
  14. 14. 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
  15. 15. Investment in Energy SectorWe need to invest $ 120 billion by 2023.We invested $ 25 billion in energy over the last 9 years.
  16. 16. 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
  17. 17. 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.
  18. 18. 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.
  19. 19. PPP in Electricity Generation19PPP for New Electricity Generation Facilities• 27,250 MW Power• Costing $ 50 Billion ProjectApproximateCapacity (MW)Afşin-Elbistan (Lignite) 8,000Konya- Karapınar (Lignite) 6,000Thrace (Lignite) 2,000Kahramanmaraş-Elbistan (Lignite) 1,250Nuclear (Sinop+Other) 10,000Total 27,250
  20. 20. Privatization of Electricity Distribution Companies•$ 5.6 billionSale/Transfer of 12Electricity DistributionCompanies is Completed•$ 562 millionPrivatization of 3Electricity DistributionCompanies is Going on•$ 6.2 billionTOTALCost1 BaşkentElectricityDistributionCo. 1,2252 SakaryaElectricityDistributionCo. 6003 MeramElectricityDistributionCo. 4404 OsmangaziElectricityDistributionCo. 4855 UludağElectricityDistributionCo. 9406 ÇamlıbelElectricityDistributionCo. 2597 ÇoruhElectricityDistributionCo. 2278 YeşilırmakElectricityDistributionCo. 4429 FıratElectricityDistributionCo. 23010 TrakyaElectricityDistributionCo. 57511 (Menderes) AYDEMElectricityDistributionCo. 11012 (Göksu) AKEDAŞElectricityDistributionCo. 605,59213 AkdenizElectricityDistributionCo. 54614 KayseriandItsVicinityElectricityTurkishCompany(%20share) 165626,154TOTALPrivatizationofElectricityDistributionCompanies(Million$)CompanySale/TransferTransactions CompetedWaiting forthe Contractto be ApprovedandSignedSource: Privatization Board of Turkey, Ministry of Energy
  21. 21. Nuclear Power Plants21A deal is signed with RussiaNegotiations on a second plantcontinue
  22. 22. Source: European Wind Energy Association (EWEA)Wind Energy Capacity2002 2011Rising from # 35 to # 10 in Europe.35.10.
  23. 23. Transportation
  24. 24. Investment in TransportationWe have invested TL 134 billion overthe past 10 years
  25. 25. 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
  26. 26. 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
  27. 27. Target for 2015 26,500 kmTarget for 2019 31,000 kmTarget for 2023 36,827 kmTargets for Construction of Dual Carriageways
  28. 28. The 3rd Bridge in Istanbul
  29. 29. 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)
  30. 30. 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)
  31. 31. The 3rd Airport in Istanbul150 million passengersAn area of 90 million m2
  32. 32. 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
  33. 33. 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)
  34. 34. 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
  35. 35. Project of Century4 minutes: Commute between the two sides of Bosporus105 minutes: Transportation from Gebze to Halkalı75.000 passenger/hour in a single direction
  36. 36. Healthcare
  37. 37. PPP in Healthcare: TargetsIncrease the number of healthcare facilitiesEnhance the quality of the healthcare servicesApply state-of-the-art technologies in thehospital management
  38. 38. Healthcare Expenditures*Exclusive of Family Practice Service.Source: The Ministry of Finance0102030405060702002 20139,867,9Healthcare Expenditures (Billion TL)*
  39. 39. PPP in Healthcare SectorThanks to PPP, we will have 40,000new hospital beds by 2015.
  40. 40. PPP in Healthcare SectorExample: Ankara Etlik Healthcare Campus• A campus with 3,566 bed capacity.16 New Healthcare Campuses…
  41. 41. Health TransformationDoctor Consultations per CapitaHealthcare Center /Family PractiseHospitalTotal
  42. 42. Health TransformationTotal Closed Area Allocated to HealthcareInvestments (million m2)HealthcareFacilitiesHospitals andNew BuildingsPrimary HealthCare FacilitiesTotal
  43. 43. Emergency Healthcare Services2002 2011Ambulance 618 2.841Helicopter Ambulance 0 19Airplane Ambulance 0 4Sea Ambulance 0 4Snow Track Ambulance 0 224Emergency Motorcycle Response Team 0 52
  44. 44. Healthcare IndicatorsWe’ve achieved in 9 years what OECD countries did in 31 years!Infant Mortality Rate (per thousand)OECD(excluding Turkey)TURKEY31 years9 years
  45. 45. Increasing Life ExpectancyAverage Life Span (Year)Source: TURKSTAT, Ministry of Health
  46. 46. Education
  47. 47. 11.368.10102030405060702002 2013Source: Ministry of FinanceResources Allocated to EducationBillionTL47
  48. 48. Build-Lease-Transfer Model in Education40,000 additional classrooms by end-2016.42 education campuses in 22 cities
  49. 49. Source: Ministry of DevelopmentSchooling ratio is Improving (Gross Rate)4911.296.580.835.846.4108.492.681.61030507090110130pre-primary education primary education secondary education higher education2002-03 2011-12
  50. 50. Thanks to PPP1 1 3
  51. 51. THANK YOU!51

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