Government launches 'East Package' to develop region's economy

Published 13.06.2016 23:15
Updated 13.06.2016 23:16

In order to ensure economic stability in Turkey's eastern region in the face of terrorist attacks, Prime Minister Binali Yıldırım will soon announce a package that will allow the region to be converted into a manufacturing hub, meeting the needs of the public sector in non-technological fields by forming Public-Private Partnerships (PPPs), according to Economy Minister Nihat Zeybekci. To foster a secure environment that is conducive to private sector investments and potentially meet the state's need for compensation on medical, military and judiciary levels, the state will grant a purchase-and-sale guarantee for goods related to those investments. Also, to establish PPP firms that target such needs, the state will buy 50 percent of the enterprise's total shares, becoming a partner.

Regarding the package devoted to the country's east, Economy Minister Zeybekci underlined that the package will include incentives that vary compared to those given for conventional investments. Zeybekci reiterated that the package essentially aims to ensure product manufacturing and meet the needs of private sector firms with incentives. According to his remarks, focusing on the manufacturing of specific products that are in high demand in the public sector by providing incentives to the private sector is possible. He also said that the public sector will thereby report which goods it needs, giving the guarantee of both investment and purchase to the enterprises by taking on the 50 percent partnership and providing them with a certain investment location and the necessary land. According to Zeybekci's remarks, the state will invest in the private firms without being concerned with managerial authority.

Through this package, Zeybekci said that the public sector will satisfy all of its needs with regards to health, the judiciary and military fields, adding that the production taking place in the eastern provinces will contribute to the region's economy while also addressing unemployment.

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