Out-Law News 1 min. read

Turkey "planning major infrastructure developments" in military security zones, according to reports


The Turkish Government is pressing ahead with plans for new infrastructure on undeveloped land, including areas currently designated as military security zones, according to press reports.

The Financial Times said that some of the land would be used for housing projects and government buildings, and that existing military sites would be moved from the rich areas of western Turkey towards the east to make way for the works.

The new proposals were announced by the country's defence minister, Ismet Yilmaz, shortly after national protests over development plans for Istanbul's Gezi Park came to an end, according to the paper. The Turkish Government has proposed replacing the park with a shopping mall and a reconstruction of the Taksim Military Barracks, which was demolished in 1940.

Global infrastructure expert Graham Robinson of Pinsent Masons, the law firm behind Out-Law.com, said that further announcements could be expected ahead of the centenary of the Turkish Republic in 2023. These would be driven by the country's rising population and move towards urbanisation, with the number of city-dwellers expected to increase by one third between 2010 and 2025, he said.

"Regionally, Turkey is the fastest growing construction market, exceeding growth in Russia over the longer term," he said. "Growth in construction is expected to be supported by better long-term fundamentals and strong trade links with fast growing emerging markets, such as those in East Asia."

"Turkish contractors are very capable, especially in terms of engineering and infrastructure, and are working across central Asia and Russia and expanding their already internationalised footprints globally. We expect to see increased competition from Turkish international contractors across the Middle East, sub-Saharan Africa and in Asia," he said.

National infrastructure projects would likely include health, education, transportation and energy, he said.

Major infrastructure projects currently underway in Turkey include the construction of one of the world's biggest airports in the north of Istanbul, which was tendered for almost €22 billion in May, and new harbour projects in Galata and on the Golden Horn, according to the Financial Times.

Earlier this month the European Bank for Reconstruction and Development (EBRD) announced that it would be investing in Turkey's first ever infrastructure bond to support the Mersin International Port project. The bond will be used to refinance an existing loan facility as well as to fund part of the redevelopment capital investment programme. To date, the EBRD has invested more than half a billion euros in Turkish infrastructure, including Eurasia Tunnel and the new domestic terminal at Izmir Airport, it said.

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