Turkish reconstruction initiative presents $50 billion worth of construction projects for Turkish companies in Ukraine
In a bid to access cheaper loans and expand their global footprint, Turkish firms are looking towards collaborating with international counterparts, particularly in the realms of Ukraine's post-war reconstruction and Syria's stabilization efforts.
The focus on infrastructure investments in both countries is not new for Turkey. According to Eyüp Vural Aydın, these investments are a priority for the nation. In Ukraine, many key Turkish firms are already involved in major infrastructure projects, and this trend is expected to continue following the end of the war.
Ukraine's reconstruction presents a significant opportunity for Turkish firms, with up to $7.5 billion in financing already provided by global financial institutions for its development. This funding is expected to increase fourfold, making it a promising landscape for Turkish firms. The sectors expected to benefit most from this funding include housing, transportation, energy, trade, industry, and education.
Recent developments in Ukraine include the passing of a new Build-Operate-Transfer (BOT) law, outlining a roadmap for post-war reconstruction projects. This law is crucial for investments in Ukraine as it ensures that all this infrastructure cannot be built with public resources alone.
Ukraine also received training on the public-private partnership (PPP) model from Turkey in 2017, which could pave the way for more collaborative projects between the two nations. Moreover, Europe is set to provide Ukraine with cheaper credit for its redevelopment efforts.
Syria's stabilization and reconstruction efforts also present infrastructure investment opportunities for Turkish firms. While details are still emerging, these opportunities could provide a significant boost to Turkish firms looking to expand their global reach.
Recognizing the need for regional cooperation, Turkish firms are encouraged to establish consortia and partnerships with firms from Korea, Japan, Europe, Canada, Britain, and America. Ukraine has offered $50 billion in projects for Turkish firms during its reconstruction, making such collaborations all the more appealing.
Turkish firms have been operating in Ukraine for 30 years, and this experience, combined with the influx of funding and collaborative opportunities, positions them well for a significant role in the redevelopment of both Ukraine and Syria. Regional cooperation is crucial for trade, peace, security, development, and progress in the region, and Turkish firms are poised to play a key role in this endeavour.
