Portuguese connection emerges in privatization process for bridges and highways in Istanbul
As part of efforts to privatize bridges and highways in Istanbul, Turkish officials have accelerated contacts with leading European highway operators; it has been learned that significant meetings were held in Portugal.
12punto
International dialogues have come to the fore in the bridge and highway privatization plan initiated in the capital to increase revenue. It was reported that during this preparatory phase, the Privatization Administration (ÖİB) and the consulting firm EY visited Portugal's leading highway companies in recent weeks. It was stated that these contacts with Europe-based firms, made before the tender announcement has even been published, are laying the groundwork for future stages.
The government plans to provide a significant amount of revenue to the budget with this privatization step. In the coming months, with the finalization of the transaction, high amounts of revenue are expected, particularly from the two Bosphorus bridges and highways in Istanbul. In this context, the tender calendar is expected to be announced in May or June.
While approximately 3,800 kilometers of the public road network are under state administration, the remaining highways continue to be operated by private companies. Ministry of Transport data shows that traffic density is largely concentrated on state-owned bridges and highways. The bridges over the Bosphorus stand out as strategic revenue sources.
It was reported that the Portuguese highway giant Brisa also held a private meeting with Turkish officials, and that the company had been interested in privatization initiatives in Turkey in the past. The institutions in question refrained from making a statement regarding the meetings. Minister of Transport and Infrastructure Abdulkadir Uraloğlu had emphasized that work was being carried out only for the transfer of operating rights of bridges and highways for a certain period, and that this did not mean a direct sale.
During the privatization debates, the words of AK Party Chairman and President Recep Tayyip Erdoğan regarding the subject in 2013, "This figure did not satisfy me. I had a study done on this. What could be the highest figure this tender should reach? A figure twice this amount appeared before me. Friends, after it came out like this, if I give it, I would be committing treason to the homeland, I would be betraying my people," were brought back to the agenda. Following the rejection of the 5.7 billion dollar bid in 2013, the announcement of a total privatization revenue target of 4.4 billion dollars in the new Medium-Term Program has caused question marks in the public eye.
In the comments of economists and industry experts, it is emphasized that the revenue to be obtained from privatizations in the short term may provide temporary economic relief; however, in the long term, a significant portion of the revenue flow will have been transferred to new operators. As a result, the revenue sharing within the process is expected to be reshaped between the public and private sectors.