Category: Business

  • A TRANSCONTINENTAL ALLIANCE

    A TRANSCONTINENTAL ALLIANCE

    Rwanda and Turkey share more than a desire to expand business relations

    rw cover

    It didn’t take long for Inanc Ciftci, a successful Turkish businessman and Rwanda’s current honorary consul in Turkey, to realize there was something distinct about this small, beautiful country. After accompanying Turkish President Abdullah Gul on a trip to Dar es Salaam in 2009 to explore the possibility of opening a consulate in Tanzania, Inanc found himself both inspired and determined to find a role for himself on the African continent. “My heart changed with that visit,” he recounts from his office in a quiet, residential neighborhood of Istanbul, Turkey’s commercial capital. “The people were poor but smiling and they looked up to us for help.”

    After making his fortunes in numerous sectors including real-estate and communications, Inanc had both the time and contacts to contribute, but when he inquired about Tanzania and Uganda, there were no positions available; Burundi, he says, proved to be a little too disorderly for his liking; but when he arrived in Rwanda for the first time a little over 20 months ago, he discovered a country that had “positive energy” and that was clearly in a class of its own.

    The first indication came when Inanc attempted to meet President Kagame. In other countries meeting top officials to express his interest in a diplomatic position and provide relevant documents had proved easy. In Rwanda, it did not. Nevertheless, after seeing Tony Blair casually walking around the lobby of the Kigali Serena during his first trip, “I immediately became convinced we needed to set up a consulate in this country,” he says. Inanc subsequently submitted his CV to the ministry of foreign affairs and when Foreign Affairs Minister Louise Mushikiwabo came to Istanbul roughly five months later Inanc was charged to facilitate meetings on her behalf. The two, he says, had a good rapport from the beginning and several months later on Feb. 14, Inanc was appointed honorary consul.

    Sitting in the crosshairs of Europe and the Asia (Istanbul is actually situated on both continents) you wouldn’t think that Rwanda and Turkey would have too much in common. But according to Inanc, Rwanda, in many ways, resembles the Turkey of 1985, when things in the country, he says, “we’re just starting to pick up.” Inanc also points out that both countries have many of their citizens living abroad, and as two countries that set standards for their region—Turkey in the Middle East and Rwanda in Sub-Saharan Africa—both are at once envied and somewhat isolated by their neighbours. “They’re like successful students,” he says. “Other students don’t always like you.”

    But the comparisons don’t end there. In a recent Time profile entitled “Erdogan’s Moment” it is made apparent that, in reputation at least, Turkish Prime Minister Recep Tayyip Erdogan and President Kagame share a good deal in common as well. Both men, for instance, have been widely praised for fixing their country’s troubled past—in Turkey an omnipotent military and in Rwanda a catastrophic genocide—and pursuing economic policies that have developed their economies beyond all expectations. Under Erdogan, Turkey’s per capita GDP has grown from $3,492 to $10,079 and its budget deficit has fallen by two-thirds. In 2010, Turkey’s GDP grew 8.9 percent compared to 1.9 percent in the European Union. In Rwanda, the country has achieved an average annual growth rate of six percent between 1995 and 2004 and 7.3 percent since 2004.

    Both leaders have also been criticized for what critics perceive as autocratic tendencies. In Erdogan’s case, according to Time, this has stemmed from “running roughshod over political rivals, tossing enemies into jail and intimidating the media.” 68 journalists, the publication reports, have been imprisoned for complicity in coup plots. In Rwanda, Kagame has notoriously been a target for human rights groups and in a recent speech delivered in Kigali by Susan Rice, the American ambassador to the U.N. noted that “the political culture in Rwanda remains comparatively closed [and] civil society activists, journalists, and political opponents of the government often fear organizing peacefully and speaking out.”

    The men’s sensitive, outspoken temperaments have also been the subject of much debate and scrutiny. During a 2009 panel discussion in Davos, Switzerland, months after Israel launched a three week assault in Gaza that had jeopardized Turkey’s efforts to bridge a peace agreement between Israel and Syria, Erdogan publically reprimanded Israeli President Shimon Peres, telling him, “You know very well how to kill,” before angrily walking off the stage. Comparatively, Kagame has also not been shy to express his contempt; in June he responded to Human Rights Watch and Amnesty International allegations that he was denying Rwandans basic freedoms by saying that he didn’t, “give a damn what they say or do,” and that such organizations should just “get lost.”

    But despite their at times contentious reputations, the achievements and influence of both leaders cannot be denied. During the recent U.N. General Assembly in New York Erdogan was applauded by US President Barack Obama for showing “great leadership” in the region, while praise for Kagame’s achievements have been repeatedly highlighted by such individuals as Bill Clinton and Tony Blair. Both men have also used their international clout to push for a greater regional influence; Erdogan has repeatedly been at the centre of Arab-Israeli mediations, and this year the Turkish PM personally flew into Mogadishu to underscore his country’s commitment to Somalia’s reconstruction. Kagame, meanwhile, has dispatched peacekeepers to places such as Darfur and Haiti.

    The two leaders have also proven undaunted to take potentially unpopular political stands: Erdogan called for Syrian President Bashar al-Assad’s immediate resignation weeks before the Arab League developed a similar position, and Kagame called on the African Union to support Libyan rebels in the overthrow of Muammar Qaddafi when the bloc still stood behind the former Libyan strong man.

    Perhaps, subconsciously it was Kagame’s similarities to Inanc’s own prime minister that endeared him to the Rwandan president. During a visit to Kigali in June, Inanc was hosted by the president to discuss investment opportunities for Rwanda in Turkey and Inanc says he was thoroughly impressed with Kagame’s intelligence and seriousness. Inanc naturally keeps photos of Kagame in his office and enthusiastically refers to the president as a “father” and a “brother” before adding that in Rwanda, “you can sense that everyone is part of the same family.”

    But in his brief time as honorary consul Inanc has given Kagame reason to consider him family as well. As honorary consul, Inanc works “voluntarily” often putting in long hours and exhausting his extensive network of contacts for Rwanda’s benefit because he believes in Kagame’s vision and values the appreciation he receives for his work when he visits Rwanda.

    One telling example of this commitment took place on Feb 25, 2011—just 11 days after Inanc was appointed honorary consul—when he received a phone call from Mushikiwabo seeking his assistance to rescue 30 stranded Rwandan students caught in the violent upheaval in Libya.

    “Have you not tried to call on your ambassadors in Italy or France or Belgium,” Inanc asked Mushikiwabo. “What can I do? I’m a businessman in Turkey.”

    But the minister was adamant, he recounts. Support was not forthcoming in those countries and Inanc’s help was required.

    Combing through a list of contacts in his mind, Inanc called on a friend at the Turkish ministry of foreign affairs who called on another friend who worked as an assistant to Turkey’s ambassador in Libya. After lengthy back and forth conversations it was agreed that the 30 students were to gather at the airport in Tripoli under a Turkish flag and wait to be evacuated. “I spent three days without sleeping,” recalls Inanc, “calling each student individually, telling them to go to the airport.”

    Meanwhile, he says, he was on the phone with his “big brother,” Turkish Airlines CEO Dr. Temel Kotil. Kotil, who was busy helping his government evacuate Turks from Libya, was initially reluctant to get involved. “I kept telling him,” says Inanc, “that if you do this Rwanda will never forget.” Eventually Kotil relented and a Turkish Airlines plane was dispatched to pick up the group of Rwandans along with a group of Turks, many of whom questioned why 30 Rwandans were joining them back home on their national carrier. When the Rwandans reached Kigali two days later, celebrations were held and Inanc was inundated with thank you letters. “Everyone wanted to meet me,” he recalls.

    But this was just the first of Inanc’s impressive deliveries. A month later when Mushikiwabo arrived in Istanbul seeking meetings with Turkish Airlines officials, Inanc surprised her with an informally arranged lunch meeting with Kotil himself. The two discussed the prospect of an Istanbul-Kigali route, but Kotil, says Inanc, remained skeptical. How much interest and traffic, questioned Kotil, could that route generate? When Inanc showed his “big brother” that the Dutch carrier KLM was flying from Amsterdam to Kigali four times a week, Kotil became increasingly interested and within days a Turkish team arrived in Kigali for a six hour visit. During that brief time, says Inanc, a verbal agreement was reached between the airline and Kagame, and two days later Rwandair CEO John Mirenge was amongst a delegation that flew to Istanbul to sign a Memorandum of Understanding (MOU) with Turkish Airlines, marking April 1, 2012 as the first Istanbul-Kigali bound flight.

    The Istanbul-Kigali flight connection is only likely to embolden business ties between the two countries, which commenced even before Inanc’s appointment. According to John Gara, Rwanda Development Board CEO, trade between Rwanda and Turkey in 2010 amounted to $7.5 million, with Rwanda importing a sizeable quantity of construction materials and equipment, plastics as well as edible products from Turkey. Products from Turkey, explains Faustin Mbundu, chairman of the Private Sector Federation (PSF), are attractive to Rwandans “because of their very high European quality, but they don’t have European prices.”

    But with Inanc’s help and the cultivation of relations between the two countries, both Gara and Mbundu are confident that these figures will only grow. “We expect recent positive developments in relations,” wrote Gara in an email to The Independent “to result in greater opportunities in agricultural exports. Among these are certainly coffee exports.” Mbundu goes even further, arguing that Rwanda can even become a source of meat for Turkey—a country where cows cost several times more than they do in Rwanda. “Argentina is able to export their meat to Turkey,” exclaims Mbundu. “Why can’t we?”

    Since assuming his position, Inanc has led numerous groups of Turkish businessmen to Rwanda in order to help them personally unearth the potential of the country. Trips can include meetings with ministers and RDB representatives, and also cultural attractions such as Kwita Izina, the ceremony for naming baby gorillas.

    According to Minister of Trade and Industry Francois Kanimba two clear large-scale commitments from Turkish businesses—a pit ground project to generate approximately 300MW of energy and a mining project to explore gold—have resulted as a product of such interactions, and many more are expected. “Turkey is a very strong, emerging economy,” says Kanimba, “and there is a very dynamic group of international investors looking to invest in developing countries.” In addition to meeting prospective Turkish investors in Rwanda, Kanimba , together with Minister Mushikiwabo, Infrastructure Minister Albert Nsengiyumva, RDB’s Gara and 15 Rwandan businessmen, had the opportunity to cultivate relations on Turkish soil when they visited the country in mid-Sept. for the unveiling of Rwanda’s new consulate and RDB office in Istanbul.

    Murat Ozis, the general director of Atlantis Gold and Mining Co., is one Turkish investor eager to get to work in Rwanda. After being approached by Inanc—a man he considers a trusted businessman and valuable friend—about opportunities in Rwanda, Ozis visited the country for himself and was immediately impressed with how safe and organized it was and how informed local officials were. Atlantis, says Ozis, applied for and received its company registration in a single day, started to draft a business plan and in no time at all was able to observe positive outcomes. The company has already conducted an expedition to determine the geological characteristics and precious metal potential of the Burera region and hopes to start production no later than 2013.

    “We have never took Rwanda as a regular African country and came with expectations,” writes Ozis from Istanbul. “Still we had to see about the state`s position regarding foreign investment. I can truly say that with our first visit our expectations were lifted even higher. We observed the opportunities and clean environment for making business.”

    Rwanda’s reputation, he adds, is beginning to cause a buzz in Istanbul’s business community. “I know that besides our company there is around fifty big-scale investors from Turkey that are interested in and visiting Rwanda,” he says. “I believe this interest will have continuity because I frequently receive phone calls from the businessmen asking about the environment, economy and opportunities of Rwanda and my observations. Rwanda is making its name as a trustworthy country in the minds Turkish businessmen.”

    Turkish businessman Aydin Basyart, CEO of Tahincioglu Holding Company and Nova Group, one of the leading European companies in the indoor and outdoor visual communications and shop fitting industries, echoes Ozis’ enthusiasm. “To develop your business you need local alliances to help with contacts and research,” explains Aydin. After a recent visit to Kigali, procured and organized by Inanc, of course, Basyart says he got the sense that Rwanda was a good place to establish these networks. “It’s a peaceful and organized country and the government is quite sincere about attracting foreign investment and parties. They listen to you and want to make things lucrative to you. This attracted us,” he says. “They also communicate that they don’t allow corruption.”

    In Kigali, Basyart foresees opportunities in contract and urban construction in particular. The former, he explains, refers to furnishing new buildings or hotels with custom made furniture, while urban construction entails building park benches, bus stops billboards and trash cans. “I think there will be a need for this to give the city a specific character, to reflect local images and symbols,” he says. “I have seen the master plan for the city and such a setup of city furniture will be integral.”

    Nevertheless, no relationship is absolutely perfect, and Inanc admits that the formal establishment of bilateral Rwanda-Turkish relations and the opening of embassies in each country—something that is currently under discussion—would go a long way in fostering more confidence. “Every Turkish investor asks me if I do business in Rwanda is my capital secure? Is there any universal agreement?” he explains.

    For the moment, however, Turkish investors will have to be content to trust Rwanda’s reputation as a dependable business destination. By February next year, adds Mbundu, an international arbitration centre will be operational in Kigali, staffed with arbitrators from Europe and around the world to deal with any trade issues that arise.

  • For Turkey, lure of EU is fast fading

    For Turkey, lure of EU is fast fading

    Dan Bilefsky, NYT:

    Turkey’s economy is projected to grow at a 7.5 per cent annual rate while Europe’s are sputtering.

    As economic contagion tarnishes the European Union, a newly assertive Turkey is increasingly looking east instead of west, and asking a vexing question: Should Turkey reject Europe before Europe rejects Turkey? When Recep Tayyip Erdogan, the charismatic prime minister, first swept to power in 2002, he made Turkey’s entry into the EU his overriding goal. Determined to anchor the country to the West, Erdogan’s Muslim-inspired Justice and Development Party tackled thorny issues like improving minority rights and easing restrictions on free speech to move Turkey closer to Western norms.

    But Turkey’s bid got anything but a warm reception from many members of the union, not least because of Turkey’s large, almost entirely Muslim population. The negotiations dragged on endlessly without ever yielding a clear pathway to membership.

    Weilding nee clout

    Now it is Turkey that has soured on the idea, analysts here say. With Europe roiled by a spiraling credit crisis and the tumult of the Arab Spring creating opportunities for Turkey to wield new clout as a regional power, people here are weighing a step that would have been unthinkable only a few years ago: walking away from the EU altogether.

    “Prime Minister Erdogan wanted to be the first conservative Muslim leader who would bring Turkey to the West, but after Europe betrayed him, he abandoned those ambitions,” said Erol Yarar, the founder of a religiously conservative business group of 20,000 companies that is close to the prime minister. “Today, the EU has absolutely no influence over Turkey, and most Turks are asking themselves, ‘Why should we be part of such a mess?”’

    Turkey’s increasingly muscular foreign policy in the Middle East was in evidence last week when it imposed tough sanctions on Syria and made preparations for possible military intervention. And Turkey has become a powerful voice of regional outrage over Israel’s treatment of the Palestinians, especially since it froze its ties with Israel over a deadly commando raid on a flotilla of vessels that tried to reach Gaza from Turkey.

    Meanwhile, Turkish officials say relations with the EU have reached a state of hopeless disrepair, made worse by the prospect of Cyprus taking over the rotating presidency of the union next year.

    Turkey has been locked in an intractable political fight with Cyprus since 1974, when it invaded the island to prevent a proposed union with Greece and set up a rival government in the ethnic Turkish part of Cyprus that only it recognizes. In London last month, President Abdullah Gul disparaged Cyprus as “half a country” that would lead a “miserable union,” Milliyet, a Turkish newspaper, reported. Then, when France took the unusual step last week of proposing that Turkey be invited to take part in a meeting of the union’s foreign ministers to discuss Syria, Cyprus vetoed the idea.

    A century ago when the Ottoman Empire was crumbling, Turkey acquired the unwelcome nickname “the sick man of Europe.” Now many Turks cannot help but gloat that Turkey’s economy is projected to grow at a 7.5 per cent annual growth rate this year while Europe’s are sputtering.

    Public opinion in Turkey has already turned away. According to surveys by the German Marshall Fund, 73 percent of Turks saw membership as a good thing in 2004, but only 38 percent felt that way by 2010.

    The country’s minister for EU affairs, Egemen Bagis, said in an interview that Turkey remained committed to joining. With its young and dynamic work force, large domestic market and growing regional role, he said, Turkey would be a bigger asset than ever to the teetering union.

    Cooler relations with Turkey are costing Europe influence in the Arab world, where Turkey, a NATO member bordered by Iran, Iraq and Syria, is fast becoming an important interlocutor for the West. For the first time in decades, analysts say, Europe needs Turkey more than Turkey needs Europe.

    To the protesters in the streets of Cairo or Tripoli or Homs, Erdogan, a pious Muslim leading a prosperous country of 78 million, is a powerful symbol of the compatibility of democracy and Islam, while Europe’s perceived hostility to its Muslim residents undercuts its influence in the region.

    Senior Turkish officials say Erdogan himself has turned away from Europe and embraced Washington instead, a development signaled by Turkey’s announcement of sanctions against Syria. While Erdogan coordinated closely on the issue with President Barack Obama, the officials said, Europe played only a supporting role.

    via For Turkey, lure of EU is fast fading.

  • Turkey to EU: say goodbye to democracy and start printing money

    Turkey to EU: say goodbye to democracy and start printing money

    By Andrew Rettman

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    BRUSSELS – Eurozone countries will have to give up on normal democracy and the European Central Bank (ECB) will have to print money if the euro is to survive, Turkey’s ambassador to the EU has said on the eve of the EU summit.

    Noting that EU leaders are going in “the right direction” by proposing central control over national budgets in return for help from the ECB, Selim Kuneralp told EUobserver in an interview on Wednesday (7 December) that traditional democratic structures have no future in post-crisis Europe.

    “In an election campaign, you have one party that says ‘I’m going to reduce taxes and invest in this or that, to build nuclear power plants or spend money on renewable energy, build more schools and better hospitals.’ And the other party says ‘I’m going to do everything this guy is promising, but more.’ So you have a race on who is going to spend more. But if you have this kind of mechanism [of central control] they won’t be able to do it.”

    “That means you would have such a loss of sovereignty as to make election campaigns meaningless,” he added.

    “I don’t see any other option – either you have a single currency with fiscal union or you don’t have a single currency at all.”

    With Germany in the driving seat on EU reforms, Kuneralp said German society has set a good example over the past 10 years by keeping wages low and making sure banks lend responsibly: “They’ve been good boys. They’ve been Germans … They are responsible people. In Greece, you can go to the bank and borrow money to go on holiday. In Germany you can only borrow money for some productive purpose.”

    He noted that if EU institutions are in future to police national spending, they will have to do a better job than in the past, however.

    Looking back to the Greek statistics fiasco in 2010, when Athens admitted to lying for years about debt and GDP, Kuneralp said EU officials must share the blame: “When I talk to people in the commission, they say ‘Well, you know, the Greeks lied and that was it.’ Well, they may have lied, but your job was to find them out. The commission were not doing their job properly and you need a mechanism that makes sure they do their job properly and expose liars and fiddlers.”

    He added that Germany will have to drop its opposition to letting the ECB create money to prop up eurozone debt.

    Kuneralp pointed out that the US and the UK have done better than euro countries in the crisis by adding zeros to central bank reserves – $1.4 trillion in the case of the US, the equivalent of Turkey’s GNP for two years.

    “The Americans have added zeros to their ledgers and it has had no visible impact on inflation … The lesson is that you can do it,” he said. “In the end, the Germans will have to move in the direction of more flexibilty and allow some buyback or some other instrument that is a euphemism for printing money … You have to reduce your debt by having a little bit more inflation – you print your way out of this conundrum.”

    The ambassador noted that while Turkish banks have almost no exposure to bad eurozone debt, the Turkish economy is at grave risk if the euro goes down – 50 percent of Turkish trade is with the Union, 80 percent of foreign investment and 70 percent of its tourist income also come from the bloc.

    “We are not rejoicing. There’s no schadenfreude. We’re not saying: ‘Oh well. You deserve this for not taking us into the EU’,” he told this website.

    On a note of optimism, the veteran 60-year-old diplomat, who was Ankara’s sherpa for three G20 summits in 2008 and 2009, said the climate of panic in the media is over the top.

    “I read one comment which said ‘This is the most historic, the most crucial summit since … the summit of 26 October.’ So, all this hype, I don’t know how far to take it seriously,” Kuneralp said. “They [EU leaders] can’t allow this whole structure to collapse. I can’t believe this is going to happen, so they will take the right decisions in the end.”

    via EUobserver.com / Economic Affairs / Turkey to EU: say goodbye to democracy and start printing money.

  • Turkey breaks historic record as exports reach $134 billion

    Turkey breaks historic record as exports reach $134 billion

    Speaking at a conference hosted by the Ankara Chamber of Commerce in Ankara, Çağlayan said Turkey had reached the highest level of exports in its history as of Thursday. (Photo: AA)

    08 December 2011, Thursday / TODAY’S ZAMAN, ANKARA

    Turkey’s exports have reached $133.97 billion in the past 12 months, indicating that the country has now broken a new record with the highest level of exports in the history of the republic, Economy Minister Zafer Çağlayan said at a meeting in Ankara on Thursday.

    Turkey sold $114 billion worth of goods to overseas markets last year. It witnessed a record in export volume in 2008 with $132 billion, but saw the same figure plunge below $100 billion the following year due to the 2009 global financial crisis. Observers argued this year’s exports data could mean a new record and that the latest figures are proof of this. The country aims to reach $500 billion in exports by 2023, the centennial of the foundation of the republic.

    Speaking at a conference hosted by the Ankara Chamber of Commerce (ATO) in Ankara, Çağlayan said Turkey reached the highest level of exports in its history as of Thursday, adding that the country is poised to maintain this performance. “This is a success which many could not even dream of … but we are here to work harder, and even exceed these figures in exports,” he stressed.

    Underlining that the government has intensified efforts to diversify export markets, Çağlayan said the government will increase the number of trade offices abroad to 250, currently at 109. The minister also said these offices will work to help attract more foreign direct investment (FDI) to Turkey than in the past. “Our trade representatives in Europe tell us that investors, particularly from the UK, Italy and France, are interested in new investments in Turkey,” he explained.

    Making mention of improvements in attracting foreign investment in Turkey, the minister recalled that Turkey received $10.9 billion in FDI in the first nine months of this year, more than twice the amount for the same period a year ago. “One important fact was that 87 percent of international capital inflows to Turkey in the given period were from financially troubled EU countries. … Turkey maintained its appeal to European investors despite the ongoing crisis,” he said.

    Çağlayan cited political stability in the country as the driving factor behind Turkey’s economic success and growth. Regarding the EU crisis, he said the government expected EU leaders to reach a healthy solution at today’s summit in Brussels before the troubled eurozone could maintain a speedy recovery. As regards an International Monetary Fund (IMF) estimate of a 2.5 percent growth rate for the Turkish economy in 2012, the minister said the government believes the IMF will revise this figure following positive developments in the economy.

    With reference to ongoing political instability in Syria, Çağlayan called on the Syrian government to reconsider an earlier decision to suspend a free trade agreement with Turkey. “Syria is facing economic difficulties every month due to sanctions, particularly on oil,” Çağlayan said, adding that “it is not a wise move” for Syria to also place obstacles before Turkish trucks entering the country. “We are looking for new trade routes bypassing Damascus and negotiations are under way with Egypt, Lebanon and Iraq to this end. … We will launch a ro-ro service from the Port of Mersin to Beirut and Alexandria in a few days,” he added.

    via Turkey breaks historic record as exports reach $134 billion.

  • Astaldi Seeks $3.5 Billion in Loans for Turkish Bridge Project

    Astaldi Seeks $3.5 Billion in Loans for Turkish Bridge Project

    By Louise Meeson and Ercan Ersoy

    Dec. 7 (Bloomberg) — An Astaldi SpA-led group building the world’s second-longest suspension bridge in Turkey is seeking $3.5 billion of loans, according to the Italian builder.

    Astaldi, Japan’s Itochu Corp. and IHI Corp. and five Turkish contractors are seeking the first slice of a loan to finance the $6 billion project which includes a highway linking Istanbul to Izmir and a crossing over Turkey’s Izmit Bay.

    The consortium may seek more funds later, a spokeswoman for the Rome-based builder said.

    The 420-kilometer (260-mile) Gebze-Izmir Highway and 3 kilometer (1.8 mile) suspension bridge is designed to cut travel time between Istanbul and Izmir by more than half to about three hours and boost trade with adjacent regions.

    Izmit Bridge’s length is surpassed only by Japan’s Akashi- Kaikyo Bridge, according to Turkey’s state-run Anatolia news agency.

    –With assistance from Ali Berat Meric and Emre Peker in Ankara. Editors: Cecile Gutscher, Andrew Reierson

    To contact the reporter on this story: Louise Meeson in London on lmeeson@bloomberg.net and Ercan Ersoy in Istanbul at eersoy@bloomberg.net

    To contact the editor responsible for this story: Faris Khan at Fkhan33@bloomberg.net

    via Astaldi Seeks $3.5 Billion in Loans for Turkish Bridge Project – Businessweek.

  • The Crazy Project – Canal Istanbul

    The Crazy Project – Canal Istanbul

    Trimestrale del Laboratorio
    Territorio Mobilità e Ambiente – TeMALab

    ISSN 1970-9870
    Vol 4 – No 3 – settembre 2011 – pagg. 53-63
    Dipartimento di Pianificazione e Scienza del Territorio
    Università degli Studi di Napoli Federico II
    © Copyright dell’autore.

    bogaz

    It was late April 2011 when the Canal Istanbul Project has been proposed by the Prime Minister (PM) Erdogan. The origins of the canal idea traces back through the 16 th
    century, during the Ottoman reign that the PM emphasized in his speech as “… a dream comes true…”
    Although an alternative sea route used to be a necessity for the transportation of timbers during the Ottoman Empire, this contemporary project targets great alterations in economic growth and to enhance the strategic position of Turkey in the global arena. The Canal Istanbul Project is grandiose not only because of its objectives, but also of the location choice, the financial model to be used in construction and because it provokes international maritime conventions. Since the facts on the Canal Istanbul Project are just referred to the speech of the PM Erdogan during the election campaign, in this paper, we speculate on the
    probable features of the Canal related to the current situation and assets of Istanbul. Next chapter focuses on the scope and motivation of the Canal Istanbul. Hereby, the speech of the PM has been mostly decoded in order to better presume basic reasoning of the canal. The following chapter underlines challenges and limitations on the realization of the project. The chapter four covers several speculations we developed on the implementation
    approach of the project. A critical question arises at the chapter five such as “Istanbul will be a winner or loser due to the canal project?”.

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