turkish contractors association - tca presentation by : leyla ozhan assistant secretary general...

Turkish Contractors Association - TCA

Presentation by : Leyla OZHAN

Assistant Secretary General

[email protected]

TURKISH CONTRACTORS ASSOCIATION


Turkish Contractors Association (TCA)

Facts and Figures About Construction Sector

International Activities of Turkish Contractors

Why to invest in Turkey

Strengths of Turkish Contractors

CONTENT


Status : Non-governmental, non-profit,

independent professional organization

established in 1952

Head Office : Ankara – TURKEY

Number of Member Companies : 143

Members’ Profile : Construction–Contracting Companies

Business Volume : 70% of all domestic and 90%

of all international contracting works

International Memberships : ICCF, UEPC, FIEC, EIC, WWC

About TCA


Our Vision is :

to contribute to the development of a sustainable and knowledge-based Turkish construction sector, which is competitive, innovative, market driven, meets user and societal needs, by providing the best living and working conditions for all people where ever we do business.

About TCA


Information Management

R & D

Strategic Alliances

Training

Public Relations & Lobbying

Special Events

Social Responsibility Projects

Publications

Major Activities of TCA


TCA is full member to 5 international organisations

European Union of Developers and House Builders

1992

Full Member

EuropeanConstruction

Industry Federation

2000

Full Member

EuropeanInternationalContractors

2002

Full Member

WorldWater

Council

2004

Full Member

Islamic Countries

Contractor’s Federation

1991

Full Member

International memberships

ICCF


Construction Industry - 1

Share of Construction in GNP

%

6,406,91

5,03 5,254,59

2,95

0

1

2

3

4

5

6

7

8

1990 1995 2000 2001 2002 2003

3,76 4,03

2004 2005

4,79 5,02

2006 2007



Construction and GNP : 1995-2007 Growth Rates (%)

-4,7

5,8 5,00,7

-12,5

4,4

-5,5 -5,6-9,0

4,6

21,519,4

8,0 7,1 8,3

3,9

-6,1

6,3

-9,5

7,95,9

9,97,6 6,0

-20,0

-10,0

0,0

10,0

20,0

30,0

40,0

50,0

60,0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Construction GNP

11,5

4,0



Employment

Nu

mb

er

of

Em

plo

yees

(Million

)

1999 2000 2001 2002 2003 2004 2005

1,37 1,36

0,96 0,97 1,03 1,171,11 1,19

2006 2007*

1,22

* 2007 3rd Q



Ready - Mix Concrete : 70,7 Million m3 / year

Prefabrike Beton : 1,6 Million m3 / year

Cement : 47,6 Million ton / year

Clinker : 38,2 Million ton / year

Ceramic : 280,0 Million m2 / year

Sheet Glass : 0,8 Million ton / year

Iron – Steel Bar : 11,5 Million ton / year

Brick : 4.700,0 Million unit / year

Plastik Profil : 0,3 Million ton / year

Con

su

mp

tion

In

dic

ato

rs

Source : The Building Information Centre – 2007


Shares of Housing, Non-residential Buildings and Infrastructure

in Turkish Construction Industry

Construction Industry 5

housing

60%non-residential

15%

infrastructure25%

(road, bridge, dam, tunnel, road, harbour-airport-

pipeline, cable networks)

(commercial, industrial, health, cultural, administrative, religious, other)


International Activities - 1

THE MIDDLE EAST13 countries, (22,88%)

THE CIS 12 countries, (36,87%)

EUROPE18 countries, (9,07%)

SOUTH ASIA & FAR EAST7 countries, (3,13%)

AMERICA3 countries, (1,66%)

SUB-SAHARAN AFRICA,11 countries, (0,31%)

More than 4300 Projects in 69 countriesTotal business volume of 105 Billion USD in 36 years

NORTH AFRICA, 5 countries, (26,08%)


International Market Development by Periods


1972-1979 1980-1989

COUNTRY (%) COUNTRY (%)

LIBYA 72,54 LIBYA 55,23S.ARABIA 15,44 S.ARABIA 23,41IRAQ 7,25 IRAQ 11,47KUWAIT 4,71 THE RUSSIAN FED. 3,77

YEMEN 1,55OTHERS (11 Countries) 4,57

1990-1999 2000-2007

COUNTRY (%) COUNTRY (%)

THE RUSSIAN FED. 34,51 THE RUSSIAN FED. 14,89LIBYA 13,75 9,66

KAZAKHSTAN 9,41TURKMENISTAN 6,67 S. ARABIA 8,01KAZAKHSTAN 7,83

LIBYA

7,37OTHERS (43 Countries) 30,65 OTHERS (46 Countries) 50,66

GREECEIRAN

0,060,01

PAKISTAN 6,59 QATAR


1972 - 2007

4300 projects in 69 countries

Total volume :105 Billion US Dollars

Turkish International Contracting Services (USD Billion)

Inte

rnati

on

al

Con

tracti

ng

Serv

ices


1,73,5

6,5

9,8

15,9

19,5

2002 2003 2004 2005 2006 2007



Major Factors Encouraging International Contracting

Location of Turkey on the crossroads of 3 continents

Rich experience gained in the international market

Internal factors such as “slow-down” in public investments

Increasing investments in the oil exporting countries

Familiarity with the local business environments in North African, Eurasian and Middle Eastern countries


Distribution of International Works By Regions - 2007

Asia0,8%

Other 0,3%

Middle East 24,3%

CIS38,3%

Europe6,6%

Africa29,7%



Nature of International Work by Periods


1972-1979 1980-1989FIELDS OF ACTIVITY % FIELDS OF ACTIVITY (%)

HOUSING 32,14 HOUSING 36,69SEAPORT 18,11 URBAN INFRASTR. 17,21INDUSTRIAL PLANT 15,59 ROAD/BRIDGE/TUNNEL 6,96ROAD/BRIDGE/TUNNEL 11,67 IRRIGATION 5,37URBAN INFRASTR. 8,19 HEALTH FACILITIES 4,12OTHER 14,30 OTHER 29,65

1990-1999 2000-2007FIELDS OF ACTIVITY (%) FIELDS OF ACTIVITY (%)

HOUSING 24,89 ROAD/BRIDGE/TUNNEL 14,24ROAD/BRIDGE/TUNNEL 12,66 12,12INDUSTRIAL PLANT 8,96

PIPE LINE10,83

COMMERCIAL CENTER 8,05

AIRPORT

8,32TOURISM FACILITIES 5,90

COMMERCIAL CENTER

8,31OTHER 39,53 OTHER 46,17

HOUSING


OTHER: PAKISTAN, OMAN, ALGERIA, BULGARIA, AFGHANISTAN, MOROCCO, UZBEKISTAN, IRELAND, JORDAN, UKRAINE, KUWAIT, USA, TUNISIA, EGYPT, GEORGIA, CROATIA, GERMANY, YEMEN, BELARUS, LATVIA, TRNC, ALBANIA, IRAN, POLAND, SUDAN, ISRAEL, TAJIKISTAN, KYRGYZSTAN, BAHRAIN, MACEDONIA, INDIA, MOLDOVA, SYRIA, CHILE, ETHIOPIA, NEPAL, LEBANON, GUINEA, BOSNIA-HER., CAMEROON, MALI, SIERRA LEONE, MALAYSIA, MOZAMBIQUE, ARMENIA, THE PHILIPPINES, GHANA, ITALY, MEXICO, KOSOVO, ARGENTINA, GREECE, MALAWI, THAILAND, INDONESIA, LITHUANIA

Distribution of Activities by Country (1972 - 2007)


OTHERS

(57 Countries)

25,0%

LIBYA

19,3%

THE RUSSIAN

FEDERATION

18,1%

TURKMENISTAN

4,2%

QATAR

4,1%

AZERBAIJAN

3,6%

ROMANIA

2,3%

UAE

3,3% IRAQ

3,5%

KAZAKSTAN

7,4%

S. ARABIA

9,3%


OTHER : ADMINISTARTIVE BUILDING, TOURISM FACILITIES, IRRIGATION, SEAPPORT, DAM, RAILWAY, TREATMENT PLANT, MILITARY FACILITIES, DEPOTS, ENERGY TRANSMISSION LINES, TELECOMMUNICATION

International Activities by Nature of Work (1972-2007)


HOUSING

17,7%

COMMERCIAL CENTER

8,4%INDUSTRIAL PLANT

7,4%AIRPORT

7,4%

PIPE LINE

5,7%

URBAN INF.

4,7%

SOC. CULT. FACILITIES

4,6%

OTHERS

19,2%

ROAD/BRIDGE/TUNNEL

12,6%

HEALTH FACILITIES

3,4%

PETROCHEMICAL PLANT

4,2%

POWER PLANT

4,5%


Top 10 International Markets (2006 – 2007) (USD)

COUNTRY 2007 2006

Libya 4.924.728.877 1.580.127.590

Russian Fed. 3.605.053.006 4.328.712.290

Qatar 1.899.394.077 2.469.914.985

Turkmenistan 1.594.499.615 458.899.206

Kazakhstan 1.091.836.157 1.119.519.556

Jordan 995.000.000 N/A

Saudi Arabia 982.745.090 862.514.496

Azerbaijan 849.022.061 115.040.610

Romania 592.582.916 N/A

Ireland 550.000.000 N/A

Others(24 countries) 2.410.613.224

(20 countries) 5.056.357.524

Grand TOTAL 19.495.475.023 15.991.086.257



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

Why to invest in Turkey-1

East Europe

North Africa Middle East

North East


93%of population is 65 and younger

65% of population is 35 and younger (20 % 17-25 years old)

population growth rate 1.72%.

decreasing household size (to less than 5) is a significant factor in the increase of house demand.

65 % urbanization (growing need for health, education and transportation facilities)

85 % highway-based transportation

Why to invest in Turkey-2


Rapid growth in demand for housing, infrastructure and modernisation

Turkey’s being in the accession process to the EU

Increasing economic stability

Increasing EU funding

Increasing private investment and public-private partnerships

Why to Invest in Turkey - 3


Outlook for growth in infrastructure investments :

IMF Program and budget restrictions limited public infrastructure investments.

Government policy is to increase the share of private sector in infrastructure

• New opportunities created by privatization (such as major highways and bridges)

• Legal framework for PPP,

• Direct private sector investments.

Turkey’s membership negotiations with the EU which started in 2005 introduced:- New legislations, - New infrastructure requirements in several areas where there is a big lack - New funds

Why to invest in Turkey - 4


GROWTH IN DEMANDFOR

INFRASTRUCTURE !

Why to invest in Turkey -5

Government policy to transfer the infrastructure investments to private sector

Privatization and wider use of PPP

EU Accession period: new legistation, infrastructure requirements

and EU funding

Internal reasons: population increase, urbanization

additional housing demand


INVESTMENT OPPORTUNITIES THAT WILL CREATE POSITIVE EFFECTS ON CONSTRUCTION INDUSTRY

• Privatization of Bridges and Motorways

• Bridge over Izmit Bay and Izmit-Bursa-Balıkesir- Izmir Motorway

• Energy projects

• Third Bridge over the Bosphorus

• Railway Projects (new + uprgading of existing network)

• Regional integrated development projects (“SAP”, Konya Plain and Eastern Anatolia Projects)

• Private sector investments (such as refineries and petrochemical plants)



Credibility in partnerships

Rich experience in diverse markets and project types

First hand knowledge of the business culture in the surrounding regions

Logistic advantages due to geographic location of Turkey

Cost effective service at international standards

Delivery of the final product prior to contract deadlines

Strengths 1



A calculated risk-taker approach to business

Experience in international partnerships

Experience in working with Japanese contractors on large scale projects (e.g.Bosphorus Bridge, Marmaray Project, Dubai Metro)

Hardworking, qualified , relatively low-cost labor force available for works abroad

Strengths 2


TCA MEMBER COMPANIES ARE READY TO JOIN FORCES WITH THEIR JAPANESE COUNTERPARTS

AND

TAKE ADVANTAGE OF THE RICH BUSINESS OPPORTUNITIES BOTH IN TURKEY AND IN THE THIRD COUNTRIES


Thank you …

For more information please contact :

Turkish Contractors [email protected]

turkish contractors association - tca presentation by : leyla ozhan assistant secretary general...

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