Turkish construction firms ink projects worth $2.3 billion

ANKARA/ ISTANBUL

Turkish construction firms undertook the largest number of projects in Turkmenistan during the first seven months of the year, with a total of 33 projects. The country was followed by Russia with 19 projects for $1.4 billion, Azerbaijan with five projects for $1.4 billion and Kazakhstan with nine projects. REUTERS photo

Turkish construction companies undertook 40 projects worth $2.3 billion in 27 countries in July, out of a total of 154 projects, worth $14 billion, undertaken in the first seven months of 2013, Economy Minister Zafer Çağlayan announced yesterday in a written statement.

The most ambitious projects were determined as two power plants in Turkmenistan worth $545 million, a real estate development project in Kazakhstan for $370 million, two hydro power plants in Albania for $256 million, and three highway projects both in Azerbaijan and Kazakhstan for $217 million in total.

Turkish construction firms undertook the largest number of projects in Turkmenistan during the first seven months of the year, with a total of 33 projects.

“Our contactors had signed the deals worth $5.6 billion of projects in Turkmenistan from January to the end of July,” Çağlayan said. The country was followed by Russia with 19 projects for $1.4 billion, Azerbaijan with five projects for $1.4 billion, Kazakhstan with nine projects for $1.3 billion and Iraq with 31 projects for $1 billion.

7,181 projects until now

Turkish construction companies have thus undertaken 7,181 projects across the world for $253 billion until now.

“A majority of these projects was undertaken after 2002. While our contractors undertook 110 projects for $2.4 billion in 2001, they reached 40 projects for around $2.3 billion only in one month now, in July,” Çağlayan noted.

The number of the Turkish construction firms increased to 33 in 2012 from 31 in 2011, in the list of top 225 international contractors in the world of the Engineering News Record (ENR) magazine.

Global opportunities, risks

Among the 225 firms’ business volume, Turkey is the second with most contractors in the list, after China. Iraq, both during and after the war, has been a very good customer of Turkish construction companies. Likewise, Turkish construction firms, exploiting their cultural and religious advantages, have won many contracts especially in the North Africa and the Middle East. The companies have however been suffering from dramatic losses due to the civil unrest in the countries, including Libya.

Around 100 Turkish contractors are reportedly owed some $10 billion in back payments and compensation for their losses in the Libyan civil war sparked in 2011. Libya promised to pay the first half of its government debt to Turkish contractors, but demanded more time to make the other half of the payment in February.

In the meantime, Turkish Eximbank has slashed the interest rates for the construction loans, extended the loan terms and provided opportunities to restructure loans both in Libya and Syria.