As global private infrastructure investment in 2015 mostly remained steady year-on-year at USD 111.6 billion, Turkey raised the bar with the financial closure of seven projects totaling a record USD 44.7 billion according to data released by the World Bank Group’s Private Participation in Infrastructure Database.
The data show that Turkey attracted around 40 percent of all global investments thanks to two megadeals in the transportation sector: Istanbul’s USD 35.6 billion IGA Airport (including a USD 29.1 billion concession fee to the government), and the USD 6.4 billion Gebze-Izmir Motorway.
Though on par with the previous year, global private infrastructure investment in 2015 was 10 percent lower than the five-year average due to dwindling commitments in China, Brazil, and India. However, the World Bank did point out that project sizes have become larger in the last four years, with 2015 witnessing the highest-ever average size of USD 419.3 million.
“In fact, megadeals ruled in 2015, where a record 40 projects exceeded USD 500 million,” said the World Bank. “The top five countries with the highest investments in 2015, respectively, were Turkey, Colombia, Peru, the Philippines, and Brazil, garnering USD 74 billion or 66 percent of global commitments in the developing world.”
Regarding the aforementioned mega projects in Turkey, the signing ceremony for the financing of the first phase of the IGA Airport convened in October 2015. Upon completion, the airport is slated to become the largest in the world in terms of annual passenger capacity. The 150-million-passenger capacity terminal will be connected to the Third Bosphorus Bridge via the North Marmara Highway, and will play a vital role in making Istanbul a global travel hub.
Meanwhile, the Gebze-Izmir Motorway will shorten the overland travel distance between Istanbul and Turkey’s third largest city, Izmir. The motorway also features the 3-km Izmit Bay Bridge, the fourth longest suspension bridge in the world.
With new giant infrastructure projects in the pipeline, Turkey is set to contribute even more to global investment growth.