SİNEM SENKAYA FOREIGN AFAIRS EXPERT MARCH 2012 THESSALONIKI Foreign Trade Volume of Turkey $ 375 Billion 40 % of this volume is conducted through THE LAND BORDER GATES Increasing number of vehicles and passengers passing through the border gates The services given in the BCPs must be effective and rapid. Modernizing the border gates, which are ineffective and inefficient, becomes one of the most privileged issues. Lack of Finance from the Public Budget Build – Operate – Transfer Model BOT Model in Turkey Legal Framework : Law No. 3996 Concerning the Realization of Certain Investments and Services by the BuildOperate-Transfer Model Dated 1994 LAW No.3996 The application of the BOT model to the projects and services requiring advanced technology and significant financial resources. LAW No.3996 CONCEPT: The financing of the initial investment of the private company by selling the related product or service to the users. LAW No.3996 The Implementation Decree dated 6 / 8 / 1994 Regarding the Codes of Practice of Law No.3996 As being the highest private sector representative of Turkey, TOBB has undertaken the modernization projects in collaboration with the government and the public institutions. TOBB ; The Union of Chambers and Commodity Exchanges Umbrella organization for the Turkish Private Sector 1.3 million members TOBB High Sensitivity of Border Gates Organisation with public institution Status According to the Build – Operate - Transfer Act, TOBB has established a company to carry out the modernization projects. WHO IS GTİ? Incorporated: 2005 Private Company Partners: TOBB & 137 Local Chambers Modernization of Border Crossing Points with BOT model Purpose of Modernization Projects To change the existing ineffective and inefficient structure into a new one which, Enables a suitable architecture, Custom formalities easier, Facilitates technological innovations, Provıdes a contemporary environment for the users. BUILD • The border gate facility is rebuild. • Financed by GTI OPERATE • Operation of commercial facilities • Operating activities TRANSFER • Transfer of facilities to the public free of charge “Build-Operate-Transfer” No burden for public treasury!!! BOT Model Avoids additional financial burden on the public budget, Enables implementations of effective management patterns of private sector, Transfer of a modern facility to the government after the concession period. BOT Model For each project, a «Concession Agreement» including: The cost of the project, The concession perıod, The rights and responsibilities of both sides. BOT Model During the concession period the revenues from commercial activities such as: Free-shops, Fuel sales, Bank-offices, Restaurants, Markets, Souvenir shops, Outlet shops, BOT Model And revenues from fees such as: Weigh-bridge, Parking fees from vehicles waiting in the area, COMPLETED PROJECTS HAMZABEYLİ PROJECTS COMPLETED SARP KAPIKULE HABUR CİLVEGÖZÜ RECENT PROJECTS DEREKÖY TÜRKGÖZÜ PROJECTS COMPLETED ÇILDIR – AKTAŞ DİLUCU KAPIKÖY ESENDERE NUSAYBİN AKÇAKALE KARKAMIŞ ÖNCÜPINAR YAYLADAĞI These projects are in the approval process Advantages: Investment Made So Far $200.000.000 Tax Paid to Government $90.000.000 Eskisehir Yolu, TOBB Ikiz Kuleler, C Blok, Kat: 25-26, Ankara – Turkey +90 312 218 8200 For Info: Ms. Sinem ŞENKAYA – Foreign Affairs Expert www.gtias.com.tr