TURKEY MEGA PROJECTS TOWARD THE VISION OF 2023

     

Turkey's Mega Projects Toward the Vision of 2023

 

The third airport, which was previously opened on October 29, 2018, is one of the largest projects of the Justice and Development Party (AKP), with an investment value of approximately $35.6 billion. The decision to continue with the megaprojects started in the June 24 elections. It was very important to the Turkish economy, the golden age of megaprojects began with the growth momentum in Turkey, looking forward to achieve its goal of becoming one of the ten largest economies in the world step by step with these mega projects in line with its vision for 2023.

Turkey is making great strides in various fields from transportation to energy, and from domestic cars to the defense industry, toward its vision for 2023. Infrastructure has been modernized and mega projects such as “Istanbul Third Airport”, “Istanbul Tunnel” and “Istanbul Canal”. To reduce foreign dependence on energy, with nuclear power plants to be built in Akkuyu, Sinop and Canakkale. In addition, Turkey is on its way to becoming one of the ten largest economies through its "domestic electric vehicle" project, in line with major energy projects "TANAP" and "Turkish Stream".

In addition, Turkey is proving its prominence through projects implemented in the field of defense industries. By adding national and local technology products and working to increase their stock, the percentage of localization of products used in the defense industry increased from 20% to 65%.

Turkey seeks to be one of the top ten countries in the field of satellites by launching its original satellite in 2021 With the “Türksat 6A” project, Turkey continues its mega projects of high economic and strategic value that will bring Turkey closer to its 2023 target. These projects will contribute. In the growth of the Turkish economy and its rise above the global average, and it plays an important role in many areas of technology and product export.

 

Completion of Istanbul's Third Airport:

The third airport, which opened on October 29, 2018, is one of the largest projects of the Justice and Development Party, with an investment value of approximately $35.6 billion. However, the construction stages of Istanbul's third airport are yet not 100% done, as the most part will be completed in 2023, at a cost of approximately 23.4 billion euros. Istanbul's third airport has direct, indirect impacts on the accelerating economy. The airport has become the largest in the world, it is calculated that its share in GNP will reach 4.9 percent when it starts operating at full capacity in 2025. In addition, it is expected to provide job opportunities for many people in different fields, about 225,000 job opportunities.

The third airport is of great importance as it will connect the world with Turkey and vice versa. The new airport will have a positive impact on Turkey by enhancing its characteristics in both transportation and centralization. besides, a 10 percent increase in air transportation increases the investment by value 1.6 percent. However, in one study, 25 percent of companies stated that their sales depend on good air transport connections. This rate rises to 40 percent for high-tech companies.

Concerning efficient air transport connections, 63% of companies said they are essential to their investment decisions. As a result, it is understood how this mega project is one of the driving forces of Turkey's growth vision over the next years.

 

Domestic Electric Cars

Developed countries need to produce high-value products in high-tech sectors and sell them in international markets to move up the development growth. In this respect, domestic and national cars are an indispensable part of economic growth in terms of technological progress and the economic value they provide. The Turkish electric car planned to be launched in 2021 and expected to contribute about 50 billion euros to GDP and reduce Turkey's dependence on oil.

 

Given the direct and indirect effects of the auto sector on overall economic activity in developed countries, it is calculated that an increase of $1 in this sector brings an added value of $3 to the overall economy. The reason why its value provided by the auto sector is so great is that sectors such as iron and steel, petrochemicals, and plastics are suppliers of the auto sector. For this reason, the impact of the auto industry on the economy is so great.

 

Car production and installation is not a new thing in Turkey and it is one of the most exported sectors in Turkey over the past ten years. With the production level reached in 2017, Turkey ranks 5th in Europe and 14th in the world in terms of car production. However, Turkey aims to fully produce locally made Turkish electric cars in 2023. It is understood that electric cars are important in terms of strengthening Turkey's position in this category. Thanks to its geographical location, infrastructure, and human labor force, these factors enhance Turkey's success in producing domestic cars and achieving Vision 2023.

 

Huge Energy Projects

“NGS” (Nuclear Power Plant) is one of Turkey’s mega-important projects in Vision 2023. These nuclear projects, which will increase job opportunities in the regions of Mersin, Sinop, and Canakkale, will make a significant contribution to employment by providing thousands of job opportunities in the construction and operation phases. While negotiations for the third NGS project are still in progress, the cost of the two nuclear plants to be built in Sinop and Mersin has been calculated at $42 billion.

 

Turkey has made a great achievement in the field of energy by establishing an energy bridge between East and West with Azerbaijan, through the Energy Bridge "TANAB". Which forms the Southern Gas Corridor with the South Caucasus Pipeline (SCP) and the Adriatic Pipeline (TAP), and aims to transport natural gas produced from the Shah Deniz 2 field located in Azerbaijan in the Caspian Sea to Turkey and Europe. The cost of the project is $45 billion after the completion of all its phases. In addition, there is the Turkish Stream project, which is a project to transport natural gas from Russia to Turkey and Europe, and it is a huge project that will increase Turkey's influence in the energy field worldwide. This includes the construction of two pipelines, each with a capacity of 15.75 billion cubic meters/year.

The Ministry of Energy is working to produce 10 thousand megawatts in the next ten years resulting from solar and wind energy stations in Turkey, and the goal of these projects is to increase Turkey's ability to produce renewable energy. To achieve these goals, a plan has been drawn up for the construction of the 1,000-megawatt solar power plants to be constructed in Karabiner, which will reduce foreign dependence on energy. It will increase Turkey's ability to invest in its renewable energies.

 

Istanbul Canal Project

The story of the Istanbul Canal project began when President Recep Tayyip Erdogan introduced it in 2011, "Istanbul Canal" is an important mega project that will pass through the regions of Avcilar, Kucukcekmece, Basaksehir and Arnavutkoy. A 45-kilometer canal will be opened between the Black Sea and the Sea of Marmara to reduce the density of ships and tanckers crossing the Bosphorus and create a new attraction in the city. Thus, the movement of oil tankers on the strait will be reduced. The cost of the Istanbul Canal was studied, and it is expected that it will provide a large profit return to the Turkish economy, ranging between 10 and 15 billion dollars, and the number may reach 50 billion dollars. While it aims to create an economy worth $100 billion within the scope of the project, which is built around artificial islands, residential projects and ports.

 

Industry and Space Technology

The project "Türksat 6A", which will enable Turkey to be among the ten countries in the production of communication satellites. In addition, the newly established "mega industrial zones" will pave the way for large-scale investments. Turkey revealed before the elections that it aims to be among the top ten economies by adding many mega projects in the fields of defense, space technology, energy and industry. As a result, it is observed that Turkey is on an accelerated path towards achieving Vision 2023.

02/05/2021
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