TL 8.7B expected from privatization in 2015

Published 04.11.2015 22:35
Updated 04.11.2015 22:36

Prime Ministry Privatization Administration Deputy President Ahmet Aksu said Wednesday they aim to collect TL 8.7 billion ($3.07 billion) from privatization in 2015. Moreover, despite the central government budget not being determined yet, Aksu said they expect TL 10 billion in revenue from privatization in 2016.

Speaking at the ninth Turkey Infrastructure Financing Meeting held by Italian finance group UniCredit, Aksu said they plan to privatize the National Lottery Administration (Milli Piyango) by the end of 2015. The administration, which runs lottery games in the country, was auctioned off twice – in 2009 and 2014. In 2009, all offers were under the minimum bid of $1.6 billion. In July 2014, it was privatized for $3.2 billion; however, the company that won the tender failed to make payments on time, leading to its annulment.

Aksu said 50 different companies submitted 10 tender applications for energy production projects in 2015, which shows the belief of investors in Turkey's long-term plans. He added that they aim to privatize most electricity production plants in the next three-to-four years. Economic conditions affect privatization programs, as an economic slowdown leads to a slowdown in long-term credits that fund privatization, Aksu said. Stressing that there are several ports, such as İzmir and Tekirdağ, waiting in their portfolio, Aksu said they plan to conduct tenders for these in 2016. He added that the privatization of 31.68 percent of the government's share in Türk Telekom is currently not on their agenda.

UniCredit Central and Eastern Europe Division President Carlo Vivaldi said Turkey continues to remain an attractive country for the banking sector, and their affiliate in Turkey, Yapı Kredi, is among the best performing companies in the group.

Underscoring that UniCredit ranks first in project financing in Eastern Europe, as of the third quarter of 2015, Vivaldi explained their projects in Turkey and indicated their will to take part in more projects. There are currently 35 health projects in Turkey worth $12 billion, Vivaldi said, adding that such projects comprise the largest public-private partnership in the world.

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