TURKISH CONTRACTING SERVICES
Turkish Contractors’ Association
The Turkish Contractors Association (TCA) was founded in 1952 as a businessman's lobbying club serving the needs of the prominent contractors. Gradually, especially after the late 80's, this organisation has become an important professional institution and recognised through its services as a representative of the construction sector both home and abroad. TCA provides technical counsel in the determination of short and long term policies concerning the construction sector. Today, TCA has 106 members representing 96 Turkish construction companies. TCA became a full member to the European Construction Industry Federation (FIEC) in 2000.
Union Of International Contractors, Turkey
After the increase in foreign contracts, a new need arose and TCA planned to set up a sister body, for the benefit of those member contractors who were active abroad in order to better promote their jobs. Thus in 1991, TCA gave birth to the Union of International Contractors (UIC) - Turkey. UIC is a member of the European Union of Developers and House Builders (UEPC) since 1992, thus being the 12th member of UEPC and the only body coming from a non-European Union state. UIC is also a member of the Islamic Countries Contractors Federation (ICCF). UIC signed a cooperation agreement with the European International Contractors (EIC) in March 2000. UIC gathers information from various sources about the tenders in foreign countries and advises member companies of such by the most expeditious means. Besides, UIC also organises and participates in international seminars, conferences, panels and lectures on the related topics and exchanges views with international organisations on matters regarding the construction industry. Today, UIC has 53 member firms. (Total number of firms in TCA and UIC is 106)
Turkish Construction Activity
Investment in fixed capital, which fell by 3.9% in 1998 and by 16% in 1999, increased by 15.8% during the first half of 2000. This increase was accounted for by + 15.3% in the private sector and + 17.8% in the public sector.
The increase in investment in fixed capital - which probably fell by 16% in 1999 - is likely to have been 14.5% during 2000. The main reasons for this recovery are to be found in: less economic uncertainty because of the success of the macroeconomic programme put in place; an increase in domestic and external demand; and a smaller burden placed by the public sector on financial markets.
Estimates for 2001 indicate that public-sector investment should fall by 3.1% while private-sector investment should increase by 8.2%, i.e. a total of increase of 5%. Thus, in current prices, the share of private-sector investment should account for 23.6% of GNP.
During 2000, construction activity fell by 0.4%. There were two main reasons for this decline: firstly, a postponement in the issue of construction permits during the period April to July (due to a revision of the law relating to liability and insurance in the field of construction); secondly, the delay which occurred in the construction of sustainable dwellings in the region affected by the earthquake.
During 2000, private-sector investment also grew by 15.7% in real terms and this had a knock-on effect on all sectors - especially transport, education and health - with the exception of the construction sector.
According to forecasts for 2001, at 23.6% the share of investment in GNP is likely to remain virtually unchanged as compared with 2000. While the share of public-sector investment is likely to fall by 0.5%, the figure for the private sector should increase by 0.5%.
During the period 1993-1999, the share of construction in GNP was 5.35% and the growth rate during the same period was 5.61%.
Following growth of 5.8% in 1996 and 5% in 1997, construction activity stagnated in 1998 and eventually decreased by 12.7% in 1999. This decrease continued during the first quarter of 2000, and the construction industry was therefore the only sector which registered a decline during that period. However, a recovery took place during the second quarter of 2000.
Turkish Construction Activity Abroad
Exportation of Turkish contracting services started in the second half the 1970s. The first country to which our contractors offered their services was Libya. At that time Libya was prosperous with high oil revenues and had launched a vast building programme. Turkish contractors started their Libyan projects by importing the necessary technology from European countries. Later on, following Libya the growing Turkish contracting activities extended to other international markets, first to the Middle-East, to countries such as Iraq, Jordan, Saudi Arabia, Kuwait, the Emirates, Yemen and Iran.
In the 1980s the Turkish contractors entered the former USSR market and after the formation of the Commonwealth of Independent States (CIS), more contracts were obtained. More than half of the volume of construction projects undertaken abroad by the Turkish contractors after 1990 originated from the Russian Federation and the other CIS countries. The total value of contracts executed by the members of Union of International Contractors, Turkey (UIC) in the CIS is 11.3 billion US Dollars (568 projects) up to December 2000.
The Turkish Republics of Central Asia are also growing new markets. These countries and Turkey have historic relations in terms of common cultural and linguistic origins.
Turkish contractors have established very good relations with clients, gained first-hand knowledge of the region and its business environment, and successfully completed a wide variety of projects, employing Turkish labour and using Turkish goods and building materials.
Today Turkish Contractors are working in 49 countries across 4 continents. Furthermore, our market initiative is presently oriented towards Southeast Asia. Some contracts were recently won in India, Morocco, Pakistan, Philippines, Thailand, Malaysia and Indonesia. The next steps could be other ASEAN countries as well as towards Eastern and South-eastern Europe in the framework of the Stability Pact programmes.
Total work already performed or being performed throughout the world by Turkish Contractors is estimated as 45 billion US dollars.
Turkish contractors are using the most advanced technologies in the market and constructing all kinds of major infrastructure and building projects. Their area of experience covers a large variety of activities such as the construction of motorways, tunnels, bridges, dams, ports, airports, refineries, pipelines and all kinds of sophisticated buildings.
Turkish contractors have successfully constructed about 1500 km. of motorways within 8 years, having a total project value of 11 billion US$, together with the 400 km. which is currently under construction. These projects have been financed both by national and international funds.
With the full membership of Turkish Contractors’ Association in FIEC, Turkish contractors’ joint projects with European firms will be developed in various regions, especially in the South-east of Eastern Europe.
(January 2001)
TURKISH CONTRACTING SERVICES ABROAD
( ESTIMATION BY DECEMBER, 2000 )
VALUE of the WORKS REPORTED by TCA/UIC MEMBERS
31.5 BILLION USD
VALUE of the UNREPORTED WORKS of TCA/UIC MEMBERS
7.5 BILLION USD
VALUE of the WORKS UNDERTAKEN by TCA/UIC MEMBERS
39 BILLION USD
VALUE of NON MEMBERS’ WORKS
6 BILLION USD
VALUE of the TOTAL TURKISH CONTRACTING SERVICES ABROAD
45 BILLION USD
VALUE of the WORKS COMPLETED by TCA/UIC MEMBERS
25.5 BILLION USD
PERCENTAGE SHARE in the INTERNATIONAL CONTRACTING MARKET
2 %
TOTAL AMOUNT of FOREIGN EXCHANGE IMPORTED TO TURKEY by MEANS of CONTRACTING SERVICES ABROAD
15 BILLION USD
AMOUNT of FOREIGN EXCHANGE IMPORTED TO TURKEY by TCA/UIC MEMBERS
13 BILLION USD
AMOUNT of FOREIGN EXCHANGE IMPORTED TO TURKEY by NON MEMBER FIRMS
2 BILLION USD
INTERNATIONAL WORKS OF MEMBER FIRMS OF TURKISH CONTRACTORS ASSOCIATION (TCA) and UNION OF INTERNATIONAL CONTRACTORS, TURKEY (UIC) (FORMER USSR COUNTRIES) - (Excel Database for download)
Developments In The Domestic Labor Market - (Excel Database for download)