The Turkey Wealth Fund Management Company will construct a $10 billion refinery and petrochemical complex in the Ceyhan district of Turkey's southern Adana province, Wealth Fund officials told Anadolu Agency (AA) Tuesday.
Ceyhan is touted as a hub for petrochemical products and already has one petrochemical project under development in the region.
The decision to develop the complex marks the fund's first greenfield investment in the energy sector. It is also in line with Turkey's Treasury and Finance Ministry's New Economic Program for 2020-2022 to reduce dependency on energy imports, for which Turkey pays $43 billion on an annual basis.
The design and engineering work for the refinery and the petrochemical complex will be completed by 2021, when the construction of the facility will start.
During the construction phase of the complex, 10,000 people will be employed, while 5,000 employees will work at the facility when it opens.
According to the management company's website, the fund aims to develop and boost the value of the country's strategic assets and provide resources for primary investments.
A number of public assets – including those from Turkey's Pipeline Corporation Company, Turkish Airlines, Turkish Petroleum, Halkbank, Ziraat Bank and Borsa Istanbul – were transferred to the wealth fund.
The complex is also expected to help reduce Turkey's current account deficit by $1.5 billion annually by decreasing the country's petrochemical imports, which reached $13 billion last year.
Turkey aims to decrease its dependence on imports in the energy, mining, refinery and petrochemical sectors, considered strategic areas that the fund is targeting for investments.
The Wealth Fund Management Company will lead the facility's investment; however, it will also be open to partnerships from the private sector, including institutional players.