Will Turkey further privatize hydroelectric power plants, ports, highways, bridges, and land properties?

Minister of Treasury and Finance, Mehmet Şimşek, announced that hydroelectric power plants (HES), ports, highways, bridges, and land properties owned by the Electricity Generation Co. (EÜAŞ) would be privatized in the near future. Hayri Kozanoğlu (a prominent economist), who participated in a broadcast on TV discussing this matter, evaluated statements of Şimşek.

After the 2024 budget discussions in the Turkish Grand National Assembly’s Planning and Budget Committee, Şimşek responded to questions from members of parliament. He stated that, for now, the privatization scope included certain hydroelectric power plants (HES), some ports, highways, and bridges, but he did not disclose the specific names of these facilities.

Şimşek said, “There are no plans to include any newly acquired assets in the privatization scope.”

“Selling Assets as Much as Possible…”

Professor Dr. Hayri Kozanoğlu, who discussed Şimşek’s statements on Cumhuriyet TV, said, “At this stage, it is not about privatizing those included in public-private partnership projects. So, one can naturally think of projects like the Bosphorus Bridge (15 July Martyrs Bridge) and the Istanbul-Ankara Highway. The Bosphorus Bridge was opened on October 29, the 50th anniversary of the Republic, during challenging times for the country. Now, during its 100th year, the possibility of selling this bridge is being considered. The budget is in such dire straits that it will have to sell these kinds of assets, which provide income to the budget every year, like selling silver treasures.”

Will the Year-End Inflation Forecast be Revised?

Kozanoğlu made predictions regarding the inflation report to be released tomorrow. He said, “The economic management’s claim is that the inflation rate for the year 2024 will be 33%. It will be understood whether this inflation forecast will be revised in tomorrow’s report. Regardless of the outcome, there is a significant risk to the credibility of the economic management. It will be seen that shortly after taking office, they revised their own targets. To avoid a revision, the inflation rate for October should be announced as 3%, but this doesn’t seem realistic. The year-end inflation forecast of 33% seems likely to approach 40%.”