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Submitted by Nilgun Gokgur on
This blog just came to my attention now as I was just expressing my doubts about the close ties between one majority state-owned bank in Turkey, Vakif Bank, and a private construction company, Limak. At a Public Private Partnership (PPP) Conference last week in Zagreb, Croatia, the PPP Agency of Kosova presented the competitive tendering process for a PPP to its national airport. Apparently Limak, the Turkish construction company, had managed to raise the financing, close of US$ 1 billion, from the majority state-owned Vakif Bank. This no doubt must have changed the playing field for all other competitors for Kosova's national airport. Moreover, the Turkish Treasury must have agreed to bear the liabilities for this very loan.... Those of us working on PPPs in infrastructure projects should not ignore the role of the state-owned banks behind the so-called private sector (selectively available to few only) and how the liabilities one day might hurt the taxpayers (if not properly calculated and entered into the budget). More research is needed to explore the implications of the close ties between PPPs and state-owned banks and if we can even properly call them public private partnerships where even the source of the funding is public from one country to another county's state-owned airport.