Turkey’s 'megaprojects' off to disappointing start
In an outcome that many have long feared, Turkey’s “megaprojects” are underperforming, meaning the government now has to compensate the construction companies under contract terms.
The Turkish government’s megaprojects have never been short of controversy, especially after 2011 when they formed the backbone of the Justice and Development Party’s (AKP) election platform that year.
The latest project to build a suspension bridge over the Dardanelles Strait kicked off with fanfare earlier this month, touted as a message of “Turkey’s greatness” to the world. A common feature of the projects, which are built as public-private partnerships (PPP), is their voter-centered political motivation, which seems to take precedence over other considerations, such as feasibility and public interest.
Recently completed megaprojects have already begun to inflict damage on public finances. The loan debts of companies involved in the projects are also cause of concern, with Ankara’s fledgling sovereign wealth fund expected to throw some lifesavers.
The main criticism against the projects stems from the lack of accountability and transparency. Though the projects make a significant part of public investments, both parliament members and the Court of Accounts, which functions as public auditor on behalf of parliament, are struggling to gain access to the contracts.
