The 2022nd Joining Meeting of Mersin Metropolitan Municipality Council in February 2 was held under the chairmanship of Metropolitan Mayor Vahap Seçer. One of the most important agenda items of the Assembly was President Seçer's request for borrowing authorization for the Metro project. Seçer's request for an authorization of 2 billion 489 million 543 thousand liras was rejected by the members of the Parliament from the People's Alliance.
“We haven't borrowed a penny more for the subway because it wasn't signed”
Speaking about the request for borrowing authority, which some Assembly members annotated, President Seçer said, “First, let's correct this mistake; Today, we want borrowing authority from the City Council, we don't get into debt because we can't get into debt. 900 million TL borrowing authority was given to me on 16 August 2021. It's been 6 months and I still haven't been able to borrow money. Why didn't I borrow money? Because things do not end with the Parliament giving me the authority to borrow money. This has an approval period in the Presidential Strategy Department. Then there is the approval period in the Treasury. Therefore, our municipality has not borrowed a penny more for the metro, since it has not been signed out of there at the moment. Let's fix this mistake once. 'We have given a loan of 900 million TL, consume it for once, then we will look for a new loan'. I say it again; We haven't been able to use it yet so we can consume it," he said.
“Even if I get this authorization today, the best chance is I can use this money next year”
Explaining the reason for the request for borrowing authorization, President Seçer stated that the process continued for months. Seçer said:
“Six months is hard to get out of signing. According to the promise given to me, I say; it will come to the Treasury from the President of the Presidential Strategy Department this week and it will be signed without delay. We are talking about 6 months ago and today. 6 months have passed. At the moment, I already have a justification for requesting that borrowing authority, I will issue bonds. This period will take at least 6 months. I don't think it will happen before 4 months. 6 months have passed. In 6 months, if I get it this week; I got the signature, sold the bond or if it is a foreign loan; As in the offer I want today; I went looking for financing. It goes like this for 6 months, 6 year. In other words, even if I get this authority today, the best possibility is that I can start using 1 billion 2 million liras at this time next year. I guess I explained clearly. In other words, this work is an authorization request for the money I will use if everything goes normal after 400 months. In a situation where I do not have the authority, financial institutions do not even sit across the table. 'Are you competent?' 'No.' So why do I want this, am I making it up out of my head? This project has been accepted by the relevant ministries, this project has been approved by the Presidency, and it has been included in this year's investment program.”
President Seçer, who added that there are 118 bus and Metro projects to be purchased with EBRD loan, and 2 projects that require external financing in the Presidency Investment Program, reminded that they went through the same stages for the purchase of buses. President Seçer emphasized that he could not find financing and conclude a contract without the approval of the Assembly.
“This is a vision project, it's a sin, don't do it”
Explaining the tender and contracting process of the metro project, President Seçer said that the site was delivered on October 19, 2021, 15 days after signing the contract. Seçer said, “So 3.5 months ago. More than 100 million dollars have been spent since then. Construction sites are being built; And there's also the thing that you call the metro underground, the TBMs will pierce or you will open and close, that construction is complete. But the actual construction of the TBM; that is, the drill that will open that underground tunnel; their order, deposit, and application projects of the stations you will build have all been done; ready now. In March, we start from January 3, according to the decision of the Conservation Board. We start the cut-and-cover from the railway station and the Marina junction towards the west, towards the Fair junction. So this work continues. You all know the construction business. If there is money, construction continues. We put the drill underground, that is, the TBM, and it started working. It's digging 20 meters a day. If you don't pay your progress, friends, it won't stop. Not at the point where it stopped, the project will fail. This is a vision project, it's a sin, don't do it," he said.
“A vision project is being done, but everyone will share it politically”
Reiterating that the project has nothing to do with winning elections, but a vision project, President Seçer said:
“No mayor wins an election just because he built a subway. In fact, if things go wrong, there will be different results, as in the case of Antalya. Of course, a vision project is being done, but everyone will share it politically. The Assembly will also share it, but you are leaving a permanent legacy in Mersin. Maybe in 10 years you can do another stage. 20 years later, 5 years later, you do different stages. We have already calculated three stages. Let the municipality continue. This is a 3-stage 30-kilometer run. We just started the work of a 13.4-kilometer stage, friends, and it has been included in the Presidential Investment Program. In other words, it is a political policy of the government. It makes an investment program, adjusts its budget, and considers investments appropriate. On the other hand, the decisions taken by the Parliament in such a way as to disrupt this project also hinder the political policies of the government. Isn't it the power that governs the state? So if this is a state policy, it is also a government policy in a sense. Otherwise, the President will not allow it. He says, 'No, brother, I do not allow Mersin metro', but he sees this as a correct projection. That's why he's getting it."
“Borrowing power opens the way for us”
Stating that the preliminary preparations for the construction of the metro have been completed, President Seçer shared the information that the contractor has not made progress so far and said:
“So the gist of it is; In this sense, our site delivery started on October 19 and the preliminary preparations were completed. With the month of March, an enormous construction process begins and the progress payments will come one after another. The contractor has spent 100 million, waiting until today, he did not make progress. He has to justify. We have to pay this person. Look, no money has come yet from 900 million. I say it will come in 6 months. I will pay some from my own resources. In fact, this investment is 4 billion TL in total for the construction. Just construction. Wagon, not counting the other outbuildings. We will pay 600 million of this out of equity; 15% of it. We will borrow the remaining 3 billion 389 million. We got the authorization of 900 of them. We haven't used it yet. Let's get the rest now, let's go sit at the table and negotiate. Let's say, 'Look, we got the authorization, the process continues. We have now sent it to the Presidency.' Look, if there is an incorrect borrowing, the Presidency Strategy Department and the Treasury will not approve.”
Seçer stated that they wanted the support of the Parliament for the project to be realized without delay and without forcing the people of Mersin, and said, “We will of course chase the remaining processes and we will be on the subject with sensitivity day and night so that there is no mishap.”
“If I had mints to print 600 million, I would never waste so much breath here”
Responding to a member of the Assembly's claim that when a loan of 900 million and an equity capital of 600 million are combined, they can realize the construction of 5 kilometers, President Seçer said, “If I had a mint to print 600 million, I would never waste so much breath here anyway. I don't have a mint. In other words, you are going through such a simple calculation that it has nothing to do with reality. Please do not make false and misleading calculations. So we don't print money. In other words, if the municipalities had an institution affiliated to the President such as the Central Bank, you would say, 'Push money to the Metro', but I would not have such an opportunity," he said. President Seçer told the members of the Assembly, “You want the Metro project, right? Tell me, when is it convenient? Next month, next month, which month? Do you have such a work? Is there a study under which conditions and when these 2 billion 400 million foreign loans will be obtained and entered into our account? No. But I have. If you have too, convince me, I'll wait. But no,” he called out.
“Mersin believes in this project”
Upon the allegations of some Assembly members that the borrowing authority was premature, President Seçer explained the issue by giving examples. President Seçer said, “You are building a 10-storey apartment building. You will spend 10 million liras. He has 1 million liras in his pocket. Let's just get started. Bismillah, we started. You started well and you will finish the apartment in 2 years. A month has passed, the money is gone. What happens if you don't take your precaution, construction? If the master does not receive his money; does not put brick on brick, concrete worker does not send concrete, cement maker and blacksmith do not sell, workers do not work. How can a man work, contractor? The contractor will see himself in warranty. 900 million is about to come out. The President received the approval of the Assembly. It means things are running. Mersin believes in this project. You demoralize everyone. So I don't understand. If you're calling me an 'early President', I'm convinced. When, then shall I bring it? Tell me about it. Tell me about the cash flow," he said.
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