Will bridges and highways be opened to the stock market?
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Privatization claims have surfaced regarding bridges and highways operated by the General Directorate of Highways. Claims from foreign media indicate that at least nine toll roads, including the Fatih Sultan Mehmet Bridge and the July 15 Martyrs' Bridge, will be privatized. Dilek Güngör of Sabah newspaper suggested that this privatization could be carried out through a public offering on the stock exchange .
'CONSULTANCY PROCESS STARTED'The relevant part of Güngör's article is as follows:
According to information I've received, there's no decision yet on the sale method or timing. Therefore, the consulting process has been initiated. A tender invitation has been sent to investment banks. Bids for the consulting tender will be collected in October. The strategy will become clearer after this. In other words, whether privatization will be undertaken through a limited-term transfer of operating rights, or whether an IPO will be considered, will be shaped. Of course, if a sale decision is made, the international conjuncture will also be considered. The timing will be determined accordingly.
'IPO IS A GOOD OPTION'Experts say that if a privatization decision is made, an initial public offering (IPO) would be the better option. They point out that the tender for the transfer of operating rights for two bridges and a highway would be Türkiye's largest privatization, and that financing the sale of such a large asset would be difficult, and that either a divisional sale or an IPO should be considered.
"BRIDGES AND HIGHWAYS WILL BE CORPORATED, AND THAT COMPANY WILL BE LISTED ON THE STOCK EXCHANGE"Following the 2012 tender, the Law on the Organization and Duties of the General Directorate of Highways was amended accordingly. The legal framework was prepared stipulating that if the privatization method for the July 15 Martyrs' Bridge, the Fatih Sultan Mehmet Bridge, and some other highways was determined to be publicly traded, a company would be established under the management of the Privatization Administration (ÖİB). In other words, if the IPO option were to be considered, the bridges and highways would be incorporated, and that company would be floated on the stock exchange.
'IT'S A LOT OF HEADACHE'Of course, regardless of the privatization method, transitional tariff rules must be formulated, annual increase rates must be indexed, the "golden share" to be retained by the state must be defined, and infrastructure, maintenance, and repair investments must be outlined from the outset. Otherwise, if privatization is implemented and problems arise afterward, it will be a major headache!
The privatization process for bridges and highways was also attempted in 2012. A tender was opened for the operation of the 2,000-kilometer-long highways built in 2012, but the tender was canceled because the $5.7 billion bid was deemed too low.
Officials speaking to NTV stated that research into the privatization of bridges and highways is routine. They noted that the Privatization Administration periodically receives consulting services and that the privatization of bridges and highways has been on the agenda for many years.
'ON THE AGENDA FOR MANY YEARS'Sources stated that if the figures obtained from the consultancy service for privatization are positive, it could be evaluated whether privatization will be carried out or not, but the plan has been in place for many years but has not been implemented.
As a result of the research, it was also suggested that the tender could be held if the price was feasible.
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