Pro-gov't consortium paid $33 mln for Ankara train station under income-guaranteed model
A main opposition CHP deputy has revealed that the Turkish state railways (TCDD) has made a payment of $33 million dollars in the last five years to the pro-government construction consortium of Limak-Cengiz-Kolin under a guaranteed-income model for the Ankara high-speed train station.
Duvar English
Turkey's main opposition Republican People's Party (CHP) has revealed that the Turkish State Railways (TCDD) has made a payment of 33.3 million dollars plus value-added-tax to the pro-government companies of Limak, Cengiz and Kolin in the last five years to cover guarantees for the Ankara high-speed train (YHT) station.
CHP İzmir deputy Atila Sertel said that the TCDD had given a guarantee of 22 million passengers for five years to the Limak-Cengiz-Kolin consortium under the project, which went into service in 2016, but that only 8.6 million passengers had so far used it. Since the passenger quota was not achieved, the pro-government consortium was paid for the difference, according to reporting by ANKA news agency.
“TCDD made a loss of 4.34 billion liras in 2021. And this year, a loss close to 4 billion is expected. Its loss within the last nine years has surpassed 24 billion liras. The cause of the loss is bad management, incapable cadres and contractors that are given lucrative tenders. Some 33.35 million liras have been paid by the TCDD due to the passenger guarantee given for the YHT train station constructed by the Kolin-Limak-Cengiz consortium,” Sertel said.
“The TCDD has made a commitment of a dolar guarantee payment for 106 million pasengers for 14 years. Wheter this train station is used or not used, millions of dollars will be continued to be made for the remaining nine years,” the lawmaker said.
Turkey’s private-public partnership (PPP) system has been used to fund megaprojects that include bridges, ports, roads and airports. The system turned into a way of giving out handouts to the companies close to President Recep Tayyip Erdoğan's ruling Justice and Development Party (AKP). It allows private companies granted tender on the projects to make an initial investment and construct the infrastructure, after which they are granted the license to operate it for periods often reaching decades.
The guaranteed income the government often grants these companies during their tender period is also a subject of debate. Agreements stipulate that, in the event that a tender-operating company’s revenues from the infrastructure projects do not reach a certain level, the government will pay the difference.