Turkish contractors are focusing on the post-pandemic period following a dip in the global economy due to the COVID-19 outbreak by diversifying the market abroad and accelerating existing cooperation.
According to the quarterly Construction Sector Analysis report by the Turkey Contractors Union (TMB), which was published in July 2020, new projects are set to be carried out within the framework of development plans that will gain momentum after the pandemic. The report also pointed to the opportunities offered by sub-Saharan African countries for Turkish contractors to emerge out of the crisis.
The TMB, with financing and market diversification efforts, has also increased contact with regional development banks and country Exim banks to get a significant share of projects that will be implemented after the pandemic in Africa as well as in Asian countries. The union has maintained its annual project target of $20 billion (TL 137.34 billion) announced earlier this year, despite the outbreak.
The report projected that Turkish contractors – who stand out due to their entrepreneurial spirit – are likely to benefit from being present in high-risk regions with their reasonable cost and high-quality work in the development and infrastructure sector. They will be on the agenda of African and Asian countries following the normalization process.
Webinars for collaboration
The report also stressed that there is a need to reduce the credit costs of Türk Eximbank, as well as diversifying the products for the construction industry.
"It is expected that programs such as risk insurance, bail bonds and overseas letters of guarantee will be put into effect as soon as possible," the report revealed.
The sector is already in contact with multilateral international institutions, including African and Asian development banks, while the report noted that efforts are underway to implement the existing memorandum of understanding between the Türk Eximbank and the American Eximbank.
The TMB is also working with similar organizations worldwide such as the International Contractors Union Confederation (CICA) and the European International Contractors Association (EIC).
To create new initiatives and partnerships in the post-pandemic period, European international contractors and TMB member companies conducted a webinar recently to discuss possible collaborations.
The sector has undertaken a total of 85 projects worth $3.9 billion abroad in the first half of 2020, according to the data of the Ministry of Commerce. Turkish contractors carried out a total of 109 projects totaling around $5.1 billion in the January to June period of 2019. In the first half of this year, the leading market for the sector was again Russia, with 12 projects worth $1.5 billion carried out by Turkish contractors in that country. Other countries in the top five markets were Ukraine with five projects totaling $628 million, Iraq with five projects totaling $364 million, Croatia with a $358 million project and Qatar with three projects worth $237 million. The total project portfolio of the sector abroad to date was announced as $405.2 billion.
The value of the projects that have been undertaken abroad and currently under construction was also announced as nearly $40 billion.