Turkey has been developing and urbanizing rapidly for the last 20 years. With the start of full membership negotiations with the European Union (EU), a new era has been entered in this development speed and need. For these reasons, Turkey’s need for infrastructure investments has increased tremendously and is increasing. Different business models have been developed for these investments, which have been made almost entirely by the public, due to the current internal and external debt burden and the limitations imposed on the budget capacity. The country’s increasing need for infrastructure investment needs to be met partially with the participation of the private sector in Turkey as well as in the rest of the world. Chief among these is the PPP model called Public Private Partnership.
Many infrastructure (Highway, Bridge, Tube Passage) and Facility (Airport, City Hospitals, Power Plants, Environmental Facilities) investments made with this model have been realized in Turkey. Many other Projects that can still be done can be realized with this model.
City Hospitals or integrated health campuses are made with a financing model on the basis of public-private partnership, known internationally as Public Private Partnership (PPP). Although its essence has not changed, different international institutions have brought different definitions to the public-private partnership model. While the number of countries that have implemented this model in the last two decades was around 10, today it has exceeded 100.
In Green Paper on Public-Private Partnerships and Community Law on Public Contracts and Concessions, which creates European Union Policy in PPP; Four basic features are listed, these are: long-term cooperation between the public and private sector, the project financing is on the private sector partner, the public undertakes the supervision and the public risks are shared with the private sector.
The PPP model can be applied with different models in the world, these are;
- BOT (Build-Operate-Transfer) Build-Operate-Transfer,
- DB (Design- Build)
- BTO (Build-Transfer-Operate) Build-Transfer-Operate,
- BOOT (Build-Own-Operate-Transfer) Build-Own-Operate-Transfer,
- BOO (Build-Own-Operate) Build-Own-Operate,
- DBFO(Design-Build-Finance-Operate) Design-Build-Finance-Operate,
- BLTM (Build-Lease-Transfer-Maintain) Build-Lease-Transfer-Maintain,
- LROT (Lease-Renovate-Operate-Transfer) can be listed as Rent-Renew-Operate-Transfer.
Legal Structures in PPP:
PPP is modeled under 3 different headings according to its legal structure;
concession agreements; In the model of transferring public infrastructure or service management to the private sector, the service fee to be paid is collected by the investor, and all goods related to the service related to the expiration of the concession are directly transferred to the public.
Build-Operate-Transfer Model; It is a financing model in which the investment costs are paid to the investor in return for the sale of the products and services produced by the investor, and it is applied to projects that require special knowledge and high costs.
Build – Operate Model; It is organized for the construction and operation of production facilities belonging to investors and is mostly used in the field of energy.