Public sector route large infrastructure projects

Public sector route will be major infrastructure projects: Highlights are railway, port, logistic center. According to the Medium Term Program (MTP), public investments will be focused on the economic and social infrastructure areas that the private sector cannot realize.

According to the compilations made by the MTP, in the period covering 2015-2017, public investments will be carried out to support growth and private sector investments. Public investment appropriations will be directed towards infrastructure investments that will support the productive activities of the private sector. In this context, prominent investments will be areas such as railway, port and logistics center.

In this process, public investment projects will be prioritized and the investments will be completed in a short time. The process will also focus on maintenance-renewal, maintenance-repair and rehabilitation expenditures.

Public and private sector investments will be carried out with a holistic approach to complement each other, and public investments will be intensified in economic and social infrastructure areas that cannot be realized by the private sector.

Public-private sector cooperation will continue in the mentioned period and priority will be given to investments in education, health, drinking water and sewage, science-technology, informatics, transportation and irrigation.

Within the scope of the MTP, private sector investments will be supported in giant projects such as GAP, DAP, KOP and DOKAP.

In this respect, the coordination of policies and practices will be strengthened and the design and management capacity of the organizations that use this model intensively will be increased.

Borrowing will be in TL

The government has also made some changes in public borrowing policy under the OVP.

In this context, the implementation of borrowing policies based on strategic criteria will be continued in order to meet the financing needs at the most appropriate cost.

Maintaining borrowing mainly in Turkish Lira and fixed rate instruments will be the main elements of the policies to be implemented.

Exchange and repurchase tenders can also be held in order to ensure a balanced distribution of the debt service between periods and to increase the price efficiency in the secondary market.