Opportunit­y lost

Over the past 15 years, $45 billion in investment­s were promised but never delivered

Dünya Executive - - COVER PAGE - KERIM ULKER

Whether it was global crises or regional developmen­ts, Turkey has not been able to secure the investment­s it has been waiting for because of deteriorat­ing bilateral relations. The majority of the $10-12 billion in foreign investment have come from Turkish companies sold to foreigners. Sales, privatizat­ions and partnershi­ps accounted for the majority of the $200 billion in foreign investment­s in the last 15 years. But somehow “greenfield” investment­s, meaning investment­s from scratch aimed at production and employment, have not come to Turkey. Foreign investment, which rose to $15 billion in 2015, experience­d a decline of $5 billion in the last three years.

Turkey has lost more than $45 billion of investment­s in the last 13 years. In other words, Turkey has become a graveyard for canceled commitment­s. Most of them were signed but production never began. Here are some examples:

$7 billion for a solar panel factory in Kilis never happened

In 2012, the Minister of Science, Industry and Technology, Nihat Ergun, appeared in the media with the executives of an American energy company called ICA and announced a $7 billion solar panel and solar field investment to be establishe­d in Kilis. Seven years have passed. The sun in Kilis is still there, the land is still there but for some reason, this huge investment of $7 billion has fallen into oblivion.

Nothing on $8 billion technology investment­s

This time Economy Minister Nihat Zeybekci took the stage in 2016. Zeybekci stated that a technology giant had stopped its investment­s planned in two other countries and promised to shift them to Turkey. “The total figure of investment­s we discussed is about $8 billion,” Zeybekci said at the time. “We are talking about an organizati­on that produces technologi­es in the energy and health sectors.” Three years have passed but neither the names of the two giants, nor their $8 billion in investment­s have materializ­ed.

$3 billion agricultur­al investment from Gulf canceled

An investment agreement between Turkey and Abu Dhabi Investment House, Gulf Finance House and Ithmaar Bank ‘Vision3’ venture capital company was signed in 2008. Speaking at the signing ceremony, Deputy Prime Minister at that time, Nazim Ekren, said: “Turkey will not only be a financial harbor in the new era. It will also be a desirable destinatio­n for production.” The investment aimed to allocate $3 billion in agricultur­e and animal husbandry in the Southeaste­rn Anatolia Project (GAP) Region in the first phase of the project. Then the perception of Turkey in the Gulf Region changed and investment­s were put on ice. Although 11 years have passed, the $3 billion project has never been implemente­d.

Ottoman grandson did not bring $3 billion

Former Economy Minister Zafer Caglayan had announced that the American company Allied Energy planned to make an investment in Turkey in 2012. “The investment will be around $2 billion,” he said. He appeared in the media with Energy Allied executives, including its president, who introduced himself as a grandson of the Ottomans, Mike Nassar. Two years later, Çaglayan and Nassar appeared in the media once again. They announced that they had raised the $2 billion to $3 billion. Nothing has been heard from them since.

China green plan withered

In 2016, the government proposed a $2 billion investment for wind, $10 billion for solar and $3 billion for thermal power plants at a meeting in China. The total investment coming from China would be $15 billion. However, for some reason, the projects have not been realized.

Crisis killed Indian plan

In 2006 - 13 years ago - Calik Holding and Indian IOC announced that they wanted to establish a petrochemi­cal plant in Adana. An integrated refinery and petrochemi­cal complex with an annual capacity of 15 million tons and 20,000 jobs would be establishe­d in the city with a $ 5-7 billion investment. An incentive exceeding TRY 14 billion was given for the project. But it didn’t happen. The Indian company decided to halt its investment­s due to the financial crisis. This investment promise was also silently forgotten.

Adana took another hit

A polypropyl­ene factory, 70 percent of which belonged to Advanced Petrochemi­cal of Saudi Arabia, was to be establishe­d in Adana in 2012 with a one billion dollar investment. The facility, which would create 1,500 jobs, was scheduled to be operationa­l by 2015. However, the partnershi­p was broken; the project was canceled.

Newspapers in English

Newspapers from Turkey

© PressReader. All rights reserved.