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TURKISH CONTRACTORS ASSOCIATION
Presentation by Leyla OZHAN Assistant Secretary
General lozhan_at_tmb.org.tr
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CONTENT

• Turkish Contractors Association (TCA)
• Facts and Figures About Construction Sector
• International Activities of Turkish Contractors
• Why to invest in Turkey
• Strengths of Turkish Contractors

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About TCA
Status Non-governmental, non-profit,
independent professional organization
established in 1952 Head Office Ankara
TURKEY Number of Member Companies
143 Members Profile ConstructionContracting
Companies Business Volume 70 of all domestic
and 90 of all international contracting
works International Memberships ICCF, UEPC,
FIEC, EIC, WWC
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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.
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Major Activities of TCA

• Information Management
• R D
• Strategic Alliances
• Training
• Public Relations Lobbying
• Special Events
• Social Responsibility Projects
• Publications

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International memberships
ICCF
European Union of Developers and House
Builders 1992 Full Member
European Construction Industry
Federation 2000 Full Member
European International Contractors 2002 Full
Member
World Water Council 2004 Full Member
Islamic Countries Contractors
Federation 1991 Full Member
TCA is full member to 5 international
organisations
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Construction Industry - 1
Share of Construction in GNP

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6,91
7
6,40
6
5,25
5,03
5,02
4,79
5
4,59
4,03
3,76
4
2,95
3
2
1
0
2006
2007
1990
1995
2000
2001
2002
2003
2004
2005
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Construction Industry - 2
Construction and GNP 1995-2007 Growth Rates ()
60,0
50,0
40,0
30,0
21,5
19,4
20,0
9,9
8,3
11,5
7,1
7,9
8,0
7,6
10,0
6,0
6,3
5,8
4,6
5,9
5,0
4,4
3,9
4,0
0,7
0,0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
-4,7
-5,5
-5,6
-6,1
-10,0
-9,0
-9,5
-12,5
-20,0
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Construction Industry - 3
Employment
Number of Employees (Million)
1,37
1,36
1,11
1,22
1,19
1,17
0,97
0,96
1,03
2006
2007
1999
2000
2001
2002
2003
2004
2005
2007 3rd Q
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Construction Industry - 4
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
Consumption Indicators
Source The Building Information Centre 2007
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Construction Industry 5
Shares of Housing, Non-residential Buildings and
Infrastructure in Turkish Construction Industry
(road, bridge, dam, tunnel, road,
harbour-airport-pipeline, cable networks)
infrastructure
25
housing
non-residential
60
15
(commercial, industrial, health, cultural,
administrative, religious, other)
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International Activities - 1
More than 4300 Projects in 69 countries Total
business volume of 105 Billion USD in 36 years
EUROPE 18 countries, (9,07)
THE CIS 12 countries, (36,87)
THE MIDDLE EAST 13 countries, (22,88)
AMERICA 3 countries, (1,66)
NORTH AFRICA, 5 countries, (26,08)
SUB-SAHARAN AFRICA, 11 countries, (0,31)
SOUTH ASIA FAR EAST 7 countries, (3,13)
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International Activities - 2
International Market Development by Periods
1972-1979
1980-1989
COUNTRY
()
COUNTRY
()
LIBYA
72,54
LIBYA
55,23
S.ARABIA
15,44
S.ARABIA
23,41
IRAQ
7,25
IRAQ
11,47
KUWAIT
4,71
THE RUSSIAN FED.
3,77
0,06
YEMEN
1,55
GREECE
0,01
OTHERS (11 Countries)
4,57
IRAN
1990-1999
2000-2007
COUNTRY
()
COUNTRY
()
THE RUSSIAN FED.
34,51
THE RUSSIAN FED.
14,89
LIBYA
13,75
LIBYA
9,66
KAZAKHSTAN
9,41
KAZAKHSTAN
7,83
TURKMENISTAN
6,67
S. ARABIA
8,01
PAKISTAN
6,59
QATAR
7,37
OTHERS (43 Countries)
30,65
OTHERS (46 Countries)
50,66
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International Activities - 3
1972 - 2007 4300 projects in 69 countries Total
volume 105 Billion US Dollars
19,5
15,9
International Contracting Services
9,8
6,5
3,5
1,7
2002
2003
2004
2005
2006
2007
Turkish International Contracting Services (USD
Billion)
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International Activities - 4

• 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

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International Activities - 5
Distribution of International Works By Regions -
2007
CIS
38,3
Europe
6,6
Africa
29,7
Middle East
Asia
Other
24,3
0,8
0,3
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International Activities - 6
Nature of International Work by Periods
1980-1989
1972-1979
()
FIELDS OF ACTIVITY

FIELDS OF ACTIVITY
36,69
HOUSING
32,14
HOUSING
17,21
SEAPORT
18,11
URBAN INFRASTR.
6,96
INDUSTRIAL PLANT
15,59
ROAD/BRIDGE/TUNNEL
5,37
ROAD/BRIDGE/TUNNEL
11,67
IRRIGATION
4,12
URBAN INFRASTR.
8,19
HEALTH FACILITIES
OTHER
29,65
14,30
OTHER
2000-2007
1990-1999
()
FIELDS OF ACTIVITY
()
FIELDS OF ACTIVITY
14,24
HOUSING
24,89
ROAD/BRIDGE/TUNNEL
12,12
ROAD/BRIDGE/TUNNEL
12,66
AIRPORT
10,83
COMMERCIAL CENTER
INDUSTRIAL PLANT
8,96
PIPE LINE
8,32
COMMERCIAL CENTER
8,05
8,31
HOUSING
TOURISM FACILITIES
5,90
OTHER
OTHER
46,17
39,53
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International Activities - 7
Distribution of Activities by Country (1972 -
2007)
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
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International Activities - 8
International Activities by Nature of Work
(1972-2007)
OTHER ADMINISTARTIVE BUILDING, TOURISM
FACILITIES, IRRIGATION, SEAPPORT, DAM, RAILWAY,
TREATMENT PLANT, MILITARY FACILITIES, DEPOTS,
ENERGY TRANSMISSION LINES, TELECOMMUNICATION
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International Activities - 9
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
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Why to invest in Turkey-1
Turkeys strategic location on the crossroads of
3 continents

• North East
• Armenia
• Azerbaijan
• Georgia
• Kazakhstan
• The Russian Fed.
• Tajikistan
• Turkmenistan
• Uzbekistan
• Middle East
• Afghanistan
• Bahrain
• Iran
• Iraq
• Israel
• Jordan
• Oman
• Pakistan

• East Europe
• Albania
• Bosnia - H.
• Bulgaria
• Croatia
• Greece
• Kosovo
• Macedonia
• Moldavia
• Poland
• Romania
• Serbia
• Slovenia
• Ukraine
• Africa
• Algeria
• Egypt
• Libya

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Why to invest in Turkey-2

• 93of 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

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Why to Invest in Turkey - 3

• Rapid growth in demand for housing,
  infrastructure and modernisation
• Turkeys being in the accession process to the
  EU
• Increasing economic stability
• Increasing EU funding
• Increasing private investment and public-private
  partnerships

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Why to invest in Turkey - 4

• 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.
• Turkeys 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

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Why to invest in Turkey -5
Government policy to transfer the infrastructure
investments to private sector Privatization and
wider use of PPP
GROWTH IN DEMAND FOR INFRASTRUCTURE !
EU Accession period new legistation,
infrastructure requirements and EU funding
Internal reasons population increase,
urbanization additional housing demand
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INVESTMENT OPPORTUNITIES THAT WILL CREATE
POSITIVE EFFECTS ON CONSTRUCTION INDUSTRY

• Privatization of Bridges and Motorways
• Bridge over Izmit Bay and Izmit-Bursa-Balikesir-
  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)

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Strengths 1
Strengths of Turkish Contractors

• 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

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Strengths 2
Strengths of Turkish Contractors

• 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

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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
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Thank you
For more information please contact Turkish
Contractors Association www.tmb.org.tr tmb_at_tmb.org
.tr