Kategori : ELECTRICITY ENERGY NEWS, ENERGY AGENDA NEWS, OIL & FUEL SECTOR NEWS - Tarih : 11 July 2021
The Turkish Contractors Association, one of Turkey’s most rooted non-governmental organizations, has published the July 2021 issue of its report titled Construction Industry Analysis. It was pointed out that Turkish contractors undertook projects worth 6.5 billion dollars abroad in the first 6 months of the year, according to the data of the Ministry of Commerce.
The Turkish Contractors Association (TMB), one of Turkey’s most rooted non-governmental organizations, has published the July 2021 Construction Industry Analysis Report, which is followed with interest by the economic circles and the sector. “Axis Shift in the Global Economy: The ‘Narrow 
Income Spiral’ After the ‘Middle Income Trap’?” In the analysis titled, data on the global and national economy and the construction sector were comprehensively evaluated.
In the report, according to the data of the Ministry of Commerce; It was pointed out that Turkish contracting companies undertook 100 projects worth 6.5 billion USD in 33 countries as of the end of June 2021. Thus, as of the first six months of the year, the amount of projects undertaken since 1972 in international contracting services has reached the level of 428 billion USD. The top five countries with the highest number of projects undertaken in the first six months of 2021 are Zambia (with 1 project worth 1.3 billion USD), Slovenia (with 2 projects worth 748 million USD), Kazakhstan (with 7 projects worth 674 million USD), Azerbaijan (with 11 projects worth $543 million) and the Russian Federation (with 3 projects worth $405 million).
‘The annual target of 20 billion dollars is protected abroad’
In the report, which draws attention to the fact that the prominent Turkish construction sector and companies that have become brands are of great importance for the Turkish economy in the international market, where conditions are uncertain, risks are high and competition is tough, the report said, “Foreign contracting services, which provide net foreign currency inflow to our country and are one of the prominent service export items. It is important in terms of its contribution to the employment of our country and its impact on technology transfer, machinery park and foreign opening processes. The following statements were made in the study: “The fact that the sector maintains its share in traditional markets and reaches a significant size in new markets strengthens the expectations for the future. Within the scope of overseas contracting services, traditional markets in Eurasia and the Middle East on the one hand, and African, Far East and Latin American countries, especially Sub-Saharan Africa, are closely followed on the other. As of this year, it is evaluated that the sector can play an important role through the development plans to be implemented and major infrastructure projects to be realized within the framework of the expectations of returning to growth in the world economy. In this respect, Turkish contractors maintain their target of undertaking projects abroad of US$ 20 billion annually and over US$ 50 billion in the medium term. In this context, financing and regulating cash flow are of great importance.”
‘High oil prices can create new investment potential’
In the report, it was emphasized that geopolitical developments also affected projects and financing opportunities with their effects on commodity and oil prices, and it was stated that the course of oil prices, which had been on the rise in recent months, affected the foreign activities of the sector. In the report, which stated that the oil prices, which have been at the highest level of the last 2 years, may create a potential for new investments for Turkish contractors, who are strong in oil producer and exporter countries, it was stated that “On the other hand, if the central banks of developed countries take tightening steps in their interest rate policies, the difficulty in project financing may increase.” .
‘There is a need for an ecosystem that will enable digitalization’
In the study, it is also stated that in order to protect the competitiveness of the industry, a process that does not have the luxury of falling behind the digitalization agenda, otherwise the delay in this area would be very difficult to compensate, and the great motivation of China, the prominent rival of the industry abroad within the framework of “Construction 4.0 and beyond” in the digitalization race, and focused on the target. It was stated that their work was critical in this context. In this context, it was stated, “At this point, Turkish contractors, who sometimes undertake billion-dollar projects in a single contract, urgently need an ecosystem that will enable them to participate in the digitalization race in the post-pandemic period in order to maintain their success.”
In the report, in which the Turkish Contractors Association evaluated the first half of 2021, the following determinations were made regarding the general economy and the domestic situation of the sector:
THERE IS A DECREASE IN THE PROJECTS REALIZED WITH THE PPP MODEL: The epidemic accelerated the slowdown in investments. Projects realized with the Public-Private Partnership (PPP) model have also recently decreased. According to the data of the Presidency of Strategy and Budget; PPP mode, which has been frequently preferred in large public investments in recent years
