ENERGY INFRASTRUCTURE

1. Energy strategy

. Turkey’s strategy in the energy sector is to provide consumers with security and higher service quality.
. In addition to unused energy resources such as hydraulic power and lignite, Turkey’s renewable energy potential is a great opportunity for investors. The new law promoting renewable energy, encourages these types of investment and makes them even more attractive.

1.a. Installed power in Turkey (2006)

1.b. Energy resources (2007)

1.c. Industry electricity prices in Turkey and EU

Energy prices in Turkey (EUR 0.0832/kWh) are very competitive with respect to the global market.

1.d. Pipeline projects in Turkey

Turkey’s priority is to secure its energy resources. In order to achieve this goal, Turkey is realizing many pipeline projects for both natural gas and oil. When they are completed, the following projects will provide secure energy resources for both Turkey and Europe.

. Baku-Tbilisi-Ceyhan* COPL Project
. Turkey-Greece NGTL Project
. Transcaspian Turkmenistan-Turkey Europe NGTL Project
. Azerbaijan-Turkey NGTL Project
. Iraq-Turkey NGTL Project
. Egypt-Turkey NGTL Project
. Turkey-Bulgaria-Romania-Hungary-Austria NGTL Project (Nabucco Project)
. Eastern Black Sea NGTL
. Western Black Sea Project
. Natural Gas Underground Storage Project

*Construction of the Baku-Tbilisi-Ceyhan pipeline was completed in 2005. The annual carriage capacity of this pipeline is 50 million tons of crude oil. It is an internationally recognized facility that will transport Caspian crude oil to the Mediterranean region via Turkey.

2. Telecommunications Infrastructure

Communication technology (voice and data) meets business requirements

The Telecommunication sector in Turkey has evolved considerably in recent years, starting with the privatization of 55% of Turk Telekom stock. The diversification of services within the telecommunication sector via mobile phones and the Internet has created new economies that form attractive areas for further investment.

3. Transportation Infrastructure

Turkey’s advantages include its logistics industry, which has developed significantly since its entry into the EU Customs Union. Its geographic, physical, and corporate infrastructure is one of the key attractions for potential investors, as seen below:

. The length of divided highways reached 12,717 km at the end of 2007.
. In order to develop a more efficient railway transport infrastructure, the five year plan, covering the period 2005-2009, aims to renew 2,304 km and construct 2,320 km of railroad as well as manufacture 2,500 freight and 340 passenger cars.
. In 2007, international flight passenger traffic reached 38 million. Domestic flight passenger traffic reached 32 million, an annual increase of 15%.
. Turkey’s proximity to major markets such as the CIS, the Middle East and North Africa means that 1.34 billion consumers can be easily reached.
. Important reductions in airline costs and price levels were made possible by rescinding a special consumption tax on aircraft fuel. Accordingly five firms started domestic operation in the last few years to meet the increasing demand for air travel.
. Turkey, one of the most important members of the Black Sea Economic Cooperation (BSEC), has a pivotal role in connecting Pan-European transport corridors to Central Asia. Additionally, the Mediterranean basin to which Turkey is a natural conduit has gained greater prominence in both East-West and North-South connections.
. The national road and railroad networks are completely integrated into the Eurasian infrastructure. The Silk Road connection project will ensure a uniform railway connection between Europe, the Middle East, the Turkic Republics, and the Far East through Turkey. Regular truck transportation and Ro-Ro ferry routes are continuing to increase logistic services capacity.
. Two important gas export projects to Europe are underway, namely the “Interconnecter”, developed by Turkey, Greece, Italy, and “Nabucco”, developed by Turkey, Austria, Bulgaria, and Romania.