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Revenue Distribution in Turkey's PPP Road and Bridge Projects Revealed: 40% Goes to Companies

Revenue Distribution in Turkey's PPP Road and Bridge Projects Revealed: 40% Goes to Companies

From Cumhuriyet · (7m ago) Turkish

Translated from Turkish, summarized and contextualized by DistantNews.

TLDR

  • A response from Turkey's Minister of Transport and Infrastructure revealed how revenue from toll roads and bridges built under the public-private partnership (PPP) model is distributed.
  • Of the total collected revenue, 60% goes to the general budget, while 40% is transferred to the operating companies.
  • This information was provided in response to a parliamentary question regarding fines collected from vehicles with 'violating passages' on these routes.

The Turkish Ministry of Transport and Infrastructure has shed light on the financial mechanics of major infrastructure projects operating under the build-operate-transfer (BOT) model, often referred to as public-private partnerships (PPPs). In response to a query from CHP Istanbul Deputy Gamze Akkuş İlgezdi, Minister Abdulkadir Uraloğlu detailed the revenue-sharing arrangement for highways and bridges managed by private consortiums.

İlgezdi's questions focused on the total fines collected from vehicles with 'violating passages' – essentially, toll violations – over the past decade, and crucially, how these collected sums were distributed between the state and the private operators. The inquiry aimed to scrutinize the financial benefits accruing to private companies from these public infrastructure assets.

The Ministry's response clarified that revenue collection adheres to the Law on Highways General Directorate Services. Notably, a significant portion, 40%, of the collected revenue from these PPP projects is allocated directly to the accounts of the operating companies. The remaining 60% is registered as revenue for the general budget. This distribution model is a key aspect of the BOT framework, designed to ensure profitability for private investors while also generating returns for the state.

Furthermore, the response indicated that legislative changes have been made to facilitate the collection of violation fees from foreign-plated vehicles at customs gates. Additionally, vehicles with outstanding violations on PPP projects are not permitted to exit the country without settling their debts. This suggests a concerted effort to maximize revenue collection and enforce compliance within the BOT infrastructure network, a critical component of Turkey's transportation development strategy.

KÖİ projeleri kapsamında tahsil edilen tutarların, yüzde 60’ı hizmet payı olarak genel bütçeye gelir kaydedilmekte, yüzde 40’ı ise görevli şirketlerin hesabına aktarılmaktadır.

— Ministry of Transport and InfrastructureThis quote details the revenue distribution from PPP projects, stating that 60% goes to the general budget and 40% to the operating companies.
DistantNews Editorial

Originally published by Cumhuriyet in Turkish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.