Bbk waste management report turkey

Market report

WASTE MANAGEMENT IN TURKEY

OFFICIAL PROGRAM

P

WASTE MANAGEMENT AND WASTE WATER MANAGEMENT IN TURKEY The goal of this study is to analyze and assess the current situation in the waste management and waste water management market in Turkey and make an outlook with regard to future developments in these markets.

Today, in Turkey, still about the half of the total population of 73.7 Mio is not served with waste disposal / recovery and waste water treatment services. Moreover, only about a quarter of the industrial waste water is discharged to receiving bodies after treatment.

Turkey’s objective of an EU integration and thus shaping all of its waste management regulations and policies towards harmonisation with EU’s standards, the various strategic plans of ministries, Turkey’s economic growth forecasts, the raising awareness in the industry for an integrated waste management approach, the waste-to-energy concept, various expected population growth scenarios and many other lucrative factors, will lead to a substantial growth of both the municipal and industrial waste management and waste water treatment industry in future.

Hence, based on these analyses and positive market trends, potential investment and cooperation opportunities for Swiss SMEs within these industries will be highlighted. Moreover, a comprehensive SWOT analysis and concrete recommendations for business and marketing strategies will be provided, illustrating how Swiss SMEs could enter into these lucrative industries.

Thereby, the main business potentials of Swiss companies in the increasing Turkish waste management and waste water treatment industry - which, at the same time incorporate their comparative business advantages , - are their project management competence as well as the supply and technology transfer of their High-Cleantech products, processes and services.

Consequently, in order to optimally make use of these lucrative Swiss-Turkish business and cooperation potentials in the waste management and waste water treatment industry, the participation in events as well as the launch of joint initiatives are essential issues.

Language: English Number of pages: 106 Author: Commercial Office Turkey, Green Consult and Finance, Erkan Kalayci, Ph.D. FRM DISCLAIMER The information in this report were gathered and researched from sources believed to be reliable and are written in good faith. S-GE and its network partners cannot be held reliable for data, which might not be complete, accurate or up-to-date, nor for data which are from internet pages/sources on which S-GE or its network partners do not have any influence. The information in this report does not have a legal or judicial character, unless specified noted.

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Contents

4.2. Regulatory framework and legislative requirements __ 49

1. EXECUTIVE SUMMARY _______________________4 2. TURKEY AND ITS KEY ECONOMIC INDICATORS__7 Growth within a decade _________________________ 7 Real sector __________________________________ 9 Financial Sector _____________________________ 10

3. SECTOR ANALYSIS – WASTE MANAGEMENT ___13 3.1. Key sectors ______________________________ 13 3.2. Policy and regulation within the waste management industry _____________________________ 13 3.2.1. Legal Regulation ________________________ 13 3.3. Current situation and future outlook for the waste management market ____________________ 17 3.3.1. Waste Management in Turkey ________________17 3.3.2. Outlook for potential changes within the waste management industry ________________________ 33 3.3.3. Key issues within the waste management market __ 36 3.4. Competition analysis _______________________ 37 3.4.1. Key drivers for competitive advantage in the Turkish market 37 3.4.2. Market fragmentation and key players _________ 37 3.5. potential investment and cooperation opportunities within the industry _____________________ 41 3.5.1. In the Public Sector ______________________ 41 3.5.2. In the Private Sector _____________________ 45

4. THE REGULATORY DRIVERS FOR WASTE & RENEWABLE ENERGY FROM WASTE _____47 4.1. Main regulatory stakeholders __________________ 47

4.3. Product standards & end of waste criteria _________ 61

5. THE TURKISH WASTE MANAGEMENT INDUSTRY 71 5.1. Current size and future investments _____________ 71 5.2. Key players and market structure _______________ 74 5.3. Market pricing and future trends _______________ 87

6. TURKISH MARKET OPPORTUNITIES __________ 89 6.1. Trends and future developments _______________ 89 6.2. Market developments and market niches _________ 89 6.3. Project structures & key issues _________________ 90 6.4. Available grants and investment opportunities ______ 92 6.5. SWOT analysis for Swiss firms in turkey __________ 95 6.6. Event marketing opportunities ________________ 97

7. MARKET ENTRY STRATEGIES ______________ 105 8. CONCLUSION _____________________________ 106 9. SUMMARY AND KEY TAKEAWAYS ___________ 107

1. Executive Summary Today, in Turkey, still about the half of the total population of 73.7 Mio does not have access to any waste disposal / recovery and waste water treatment services, thereby being exposed to threats to their health and environment. Moreover, 44% of the municipal solid waste is still dumped into open dumping sites of municipalities, therefore implying the release of the very potent greenhouse gas methane into the atmosphere and incorporating explosion risk of sites. On average, only about 24% of the industrial waste water discharged is treated. Due to Turkey’s expected economic and population growth, the absolute amount of municipal and industrial solid waste as well as municipal and industrial waste water discharged are even expected to further increase substantially in the future.

Turkey’s goal of a sustainable development, giving increasing awareness and importance to environmental issues, which is additionally enhanced by Turkey’s objective of an EU accession, have resulted in giving main priority to the development of the waste management and waste water treatment industry, which constitute more than half of Turkey’s total environmental expenditures today.

Since the start of the EU accession in 2005, Turkey has been defining and adapting all its regulations with regard to waste management and waste water treatment corresponding to the existing EU Directives and in line with the “EU Integrated Environmental Approximation Strategy for Turkey (2007-2023)”. In addition, several regulatory stakeholders, in particular the Ministry of Environment and Urbanization (MoEU) with its “Strategic Plan 2013-2017” being in accordance with Turkey’s EU path, have defined concrete strategies, targets and action plans for bringing the Turkish waste management and waste water treatment industry to EU standards.

According to MoEU’s “Strategic Plan 2013-2017”, 61 controlled landfill sites, 550 waste bringing centers and 63 dual waste collection systems will be established until 2017. In addition, 460 waste water treatment projects will be approved, 50% of which will be paid by the state as investment incentive of the energy bills. All these projects will very likely be publicly tendered under the responsibility of Municipalities and Metropolitan municipalities and based on public-private partnership (PPP) structures.

Municipalities and Metropolitan municipalities are in public charge by law and have the sole responsibility for the implementation of waste management and waste water treatment services for domestic type of waste and waste water from households, industries or commercial enterprises. However, the current implementation of waste management and waste water treatment services by municipalities and Metropolitan municipalities is far away from its optimal status. While collection and transportation of waste is done to a large extent, the great majority of solid waste in the country is still not being disposed in accordance with the laws and regulations. For that reason, municipalities and Metropolitan municipalities increasingly waive their responsibility for the entire process of municipal solid waste management (i.e., collection, transportation, separation, recycling, composting, disposal) and tend to reduce their waste management activities to only the collection and transportation of waste and transfer the responsibility for the other waste activities to the private sector by entering into PPPs in form of BOT contracts. Private companies increasingly see the lucrative business potential of integrating municipal solid waste management activities with the production of energy from waste.

Today, various investment and cooperation opportunities exist in Turkey’s waste management and waste water treatment sector. While, as in the case of integrated solid waste and waste-to-energy facilities, also for the establishment of waste water treatment facilities also BOT contracts are common, for their operation and their operation and maintenance, mainly outsourcing or PFI contracts are applied. Concession contracts between public institutions and private companies are primarily implemented through investments in waste-to-energy plants for the rental of land and receipt of electricity generation licenses from the Turkish Energy Market Regulatory Authority. In addition to project investments of relatively larger sizes, JV / partnerships, increasingly financed by a combination of the entrepreneurs’ own equity and cleantech focused international loans, such as TurSEFF, MidSEFF or CTF, are increasingly found in initiatives for investments in waste-to-energy facilities of relative smaller sizes, where new technologies such as gasification / pyrolysis technologies are targeted to be applied.

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Private investors of waste-to-energy facilities receive the return for their investment mainly through the    

sales of electricity at the guaranteed feed-in-tariff of 13.3 US$ct / kWh to the National Grid, sales of the resulting heat to neighbored shopping malls, schools, universities, governmental institutions, sites etc., sales of the recycled waste won back as raw material and non-recycled waste used as fuel by companies from the heavy industry and sales of the generated carbon credits in the global carbon market.

Dependent on the applied waste-to-energy technology, also other by-products such as pyrolytic oil, biochar etc. could be produced, which could be sold in their respective markets, as additional income streams.

The Turkish market can be fragmented into the main two sub markets integrated solid waste management (including waste-toenergy units) and waste water treatment, where the market share of companies strongly depends from the conducting business activities (i.e. won tenders) such as supply, service or construction contracts. Within the waste management industry, also other sub markets than integrated solid waste management are incorporating a promising business potential. Today, there exist only two incineration plants, five composting plants and only about 50% of the packaging waste recycled. However, although the modern waste hierarchy “1. Prevention, 2. Preparing for re-use, 3. Recycling, 4. Other recovery, 5. Disposal” is increasingly applied in EU, Turkey still quite away from its implementation, highlighting the business and innovation potential in the various parts of the supply chain. Within the waste water treatment industry, the application of advanced waste water treatment methods is facing an increase for municipal waste water, but today they are hardly ever applied for industrial waste water. Biofuel production from waste via gasification-Fischer Tropsch (second generation) is a virgin subject for Turkey and, based on the favourable EU laws and regulations, representing a lucrative market niche for future.

Hence, the future developments go clearly towards both an integrated waste management-waste-to-energy approach and an integrated waste water treatment-waste-to-energy approach, through the application of various waste-to-energy technologies depending on the waste type and components. The use of the waste-to-energy potential from agriculture residues, manure, poultry litter or wood waste is also emerging as a future trend.

In 2010, the expenditures for waste and waste water treatment services amounted to 4. 2 bn TL and 2.2 bn TL, respectively.

Based on the expected population growth scenarios and thus expected increase in both the future amount of municipal waste and municipal waste water, these expenditures are estimated to further increase to a yearly amount of 6.5-12.5 bn TL and 4.08.9 bn TL for the period 2013-2023.

Concerning the cost comparison o various waste-to-energy technologies in Turkey, CAPEX are the highest for incineration, and the lowest for landfill. Since the pyrolysis, gasification, pyrogasification and other thermo-chemical methods other than incineration are new technologies (i.e., not state-of-the art or proven technologies) and still in the development phase in Turkey and therefore are facing relative high technology and implementation risk, the variation in CAPEX is the highest among all technologies. In fact, there are only few initiatives, especially, in the agricultural waste-to-energy sector, where private investors are still looking for, testing and implementing several forms and combinations of pyrolysis / gasification methods. In contrast to the CAPEX figure, after landfill, which, as compared to other technologies, has a very low OPEX, the OPEX for incineration is lower than those for anaerobic digestion (AD) and pyrolysis / gasification. The OPEX for the latter two technologies are nearly in the same range. However, to make a more detailed study of the cost and supply structure of materials, machinery and equipment and other investment and O&M costs within the Turkish waste management and waste water treatment industry, each sub-market should be separately considered and analyzed by a more comprehensive due diligence report.

There are several financing sources available for investments in the Turkish waste management and waste water treatment industry such as General Budget of the Central Administration, Budget of Local Authorities, loans provided by international financial institutions and cleantech-oriented funds, grants provided by EU, international grant-type R&D funding programs such as Eureka, Eurostars or FP7, investments from PPPs or private investments such as equity funds.

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The SWOT analysis for Swiss firms shows that their high supply, innovation, R&D and technology transfer potential of HighCleantech products, their high quality standards and strong financial structure are considered as their main strengths, whereas their high production costs, difficulty in being able to response to technical issues in a short time interval as well as their nonEU status are regarded as their main weaknesses. Main opportunities are the favourable existing and future regulatory drivers / framework and market conditions, Turkey’s early ages in terms of waste management and waste water treatment investments and initiatives, the possibility of financial G2G agreements and Turkish companies’ positive attitude towards the collaboration with Swiss companies. Main threats involve the Turkish Public Procurement Law allowing the tendering authorities to restrict bidding of foreign companies or applying up to 15% of price advantage in the favour of domestic tenderers or products and potential G2G agreement proposals from other countries that may restrict bidding of Swiss companies.

If Swiss companies want to enter the Turkish waste management and waste water treatment market and make use of Turkey’s huge market potential and dynamics by establishing new partnerships, business networks, solutions and marketing and sales channels in Turkey, where “energy” and “environment” and their related sub-sectors and (sub-) technology areas will always be on policy’s main strategic agenda, the resulting benefits arising from any project type, business case and / or R&D initiative could highly exceed its occurring costs.

For that purpose, as a first important business step, Swiss companies can make use of event marketing opportunities by participation in forthcoming events in Turkey with regard to waste management and waste water treatment to show presence and establish business contacts, which could result in lucrative business cooperation and investment opportunities.

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2. Turkey and its Key Economic Indicators Growth within a decade Within the past ten years, Turkey has gained a well-deserved reputation as a major developing country; a potential candidate for the BRICS block, a member of the MINT1emerging economies group and an economically esteemed member of many regional and international organizations such as the Organization for Economic Co-Operation and Development (OECD), the World Trade Organization (WTO) and the Black Sea Economic Cooperation Business Council. This economic leap has been achieved partly through the structural reforms that have transformed the financial sector as a whole and Central Bank in particular, and partly due to the stable political environment and financial discipline maintained by the single party regime.

Throughout the transformation period following the financial crisis in 2001, Turkey has managed to attain an average annual growth pace of 5.2%, despite the ongoing financial crisis in its largest trade partner, the Euro Zone. The gradual decline in the growth rate in year 2009 was met with remarkable growth figures of 9.2% and 8.5% in years 2010 and 2011 respectively, making Turkey the 16th largest economy in the world (See Figure 2.1).

Figure 2.1: Historical GDP growth rates in Turkey (in %), 2002-2012

12.0 10.0 8.0 6.0 4.0 2.0 0.0 -2.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

-4.0 -6.0 Source: Turkish Statistical Institute (2013)

In line with the acceleration in economic growth, nominal GDP has increased more than threefold in the 2002-2012 period.

This was accompanied by an equivalent increase in the nominal GDP per capita and a 85.9% increase in the GDP per capita in US$ PPP terms. The Medium Term Plan, which represents the common prediction of the Central Bank of the Republic of Turkey, the Undersectretariat of Treasury, the Ministry of Economy and the Ministry of Development, anticipates a sustainable growth in these figures in the upcoming years (See Figure 2.2).

Within the period under consideration, the unemployment rate stagnated at around 9.5%, a rate which was considered to be high, but the figure remained far below the EU average (12.10% in June of 2013, Eurostat (2013)). Turkey has also maintained moderate EU-Defined Budget Deficit/GDP and EU-Defined Government Debt/GDP ratios, performing better than a number of developed and developing countries. The current account deficit, the major vulnerability of the Turkish economy, has remained rather high mainly due to the unprecedented increase in the oil price. However, this was successfully met by an increase in the scale and scope of exports and a rise in the capital inflow.

http://www.eu-africa-cc.org/index.php/en/component/k2/item/493-kpmg-has-ranked-nigeria-as-one-of-the-four-major-investmentdestinations-and-growth-areas-in-the-world 1

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Figure 2.2: Development of GDP and GNI per capita (in $), 2001-2015

18'000 16'000 14'000 12'000 10'000 8'000 6'000 4'000 2'000 0 2001

2003

2005

2007

GDP per capita

2009

2011

2013* 2015*

GNI per capita

Source: Turkish Statistical Institute (2013)

Table 2.1: Turkey’s key economic indicators 2

2011

2012

774.2

799.3

858.0

10’466

10’504

11’318

Real GDP Growth

8.5

2.2

4.0

Unemployment Rate (%)

9.8

9.2

N/A

23.0

23.4

25.3

Current Account Balance (Billion $)

-77.1

3

Current Account Balance / GDP (%)

-10.0

GDP (Billion $, Current Prices) GDP Per Capita ($)

Tourism Income (Billion $)

-47.7

-5.9

*2013

-60.7 -7.1

Source: Turkish Statistical Institute (2013) *2013 estimates of the Medium Term Plan (OVP)

Following the aggressive growth rates in 2010 and 2011, 2012 was a year of rebalancing for the Turkish economy. The drastic increase in the current account deficit was mitigated and the saving rates reached more sustainable levels. From the second half of the year 2013 onwards, speculations of a potential cut in Quantitative Easing (QE) has led to significant capital outflows from the emerging markets and overshadowed the global growth prospects. Even so, international organizations, namely OECD, IMF, World Bank and the United Nations, suggest optimistic growth figures for the Turkish economy (See Table 2.2).

2 3

http://www.dpt.gov.tr/PortalDesign/PortalControls/WebIcerikGosterim.aspx?Enc=83D5A6FF03C7B4FC1685AB683C6AD4A6 Central Bank of Republic of Turkey-Balance of PaymentsStatistics (2013)

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Table 2.2: 2013 and 2014 Growth Forecasts for Selected Countries/ Country Groups (in %), 2013-2014

IMF OECD WB UN

TURKEY

EA

US

BRAZIL

RUSSIA

INDIA

CHINA

2013

3.4

-0.6

1.7

2.5

2.5

5.6

7.8

2014

3.7

0.9

2.7

3.2

3.3

6.3

7.7

2013

3.1

-0.6

1.9

2.9

2.3

5.3

7.8

2014

4.6

1.1

2.8

3.5

3.6

6.4

8.4

2013

3.6

-0.6

2.0

2.9

2.3

5.7

7.7

2014

4.5

0.9

2.8

4.0

3.5

6.5

8.0

2013

3.2

-0.3

2.1

3.3

4.4

6.7

8.3

2014

5.4

0.9

2.3

4.5

4.4

7.2

8.5

Source: IMF, OECD, World Bank, United Nations Open Sources (2013)

Real sector Figure 2.3 displays the distribution of subsectors within the Turkish economy. Traditional sectors of food and textile comprise almost 20% of the real economy, followed by the minerals, metals and chemical industry. Vehicles constitute an important part of production as well as exports; “Article 87: Vehicle other than railway or tramway rolling, stock, parts thereof” alone amounting to 9.9% of the total exports.4 The ongoing effort towards increasing the value added in production, expanding R&D base and extending funding schemes to high-tech projects marks the desire of the government to cooperate with the private sector in a mutually beneficial way, and these policies have potential to transform the real economy in the medium run.

Figure 2.3: Distribution of Subsectors within the Turkey’s Real Sector (%), 2012

8.33

14.26

6.48 4.81 15.74

0.56

7.96

4.44

12.78 5.00

0.93

Food, Beverage, Tobacco Textile Refined Petroleum Chemicals and Man-made Fibers Plastics and Rubber Minerals other than Metallics Basic and Fabricated Metals Machinery and Equipment Electrical and Optical Equipment Vehicles Others

Source: Ministry of Economy, Economic Outlook (2013)

As for the region-specific distribution of exports, the EU stands as Turkey’s largest trading partner. Figure 2.4 and Figure 2.5 display that both exports to and imports from the EU have gradually increased over time. In 2009, there was a drastic decline in trade with the EU due to the recession that spread out the region through fiscal imbalances. Figures suggest that both 4Article

87 has beenthe largest exportitem since 2004. However, in 2012 it was superseded by Article 71: Gold and precious metals. The increase in this item had been rather unprecedented and unstable. Hence, Article 87 is considered as the major export article.

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exports and imports have moderately recovered to their pre-crisis levels by 2012. Near and Middle East countries are the second largest trading partner of Turkey.

Figure 2.4: Regional Distribution of Exports, (1’000 $), 2002-2012

70'000 60'000 50'000 40'000 30'000 20'000 10'000 0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 EU (28)

Other European Countries

Near and Middle East

Rest of the World

Figure 2.5: Regional Distribution of Imports, (1’000 $), 2002-2012

100'000 90'000 80'000 70'000 60'000 50'000 40'000 30'000 20'000 10'000 0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 EU (28)

Other European Countries

Near and Middle East

Rest of the World

Sources: Turkish Statistical Institute (2013)

Financial Sector The 2001 crisis shed light on the vulnerabilities of the Turkish financial system. After a series of IMF-led structural reforms, the capital adequacy ratio and the liquidity and reserve requirements of the commercial banks had been increased. The close inspection and regular monitoring provided by the CBRT, Capital Markets Board (SPK) and Banking Regulation and Supervision Agency (BDDK) has ensured a safer financial sector, exemplified by a number of indicators such as the assets to equities ratio, net profit/loss and the ratio of liquid assets (See Table 2.3).

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Table 2.3: Turkey’s Banking Sector

2012 MAY

2013 MAY

48

49

10,597

11,267

78

83

1’270’603

1’496’588

154’625

189’463

9’617

11’414

Number of Banks Number of DomesticBranches Number of ForeignBranches Total Assets (Million TL) Total Equities (Million TL) Net Profit orLoss (Million TL) NonperformingLoans (Gross) / Cash and Cash Equivalents (%)

2.7

2.9

Net Profit orLoss / AverageEquities (%)

6.55

6.3

Liquid Assetswith 12 Months of Maturity / Total Assets (%)

87.2

74.0

16.19

16.79

CapitalAdequacyRatio (%) Source: BDDK

Figure 2.5 displays another central indicator of a stable and safe financial environment, namely the Credit Default Swaps (CDS) premiums for a number of developed and developing countries. Figures suggest that Turkey performs better than the indebted EU countries and some of the major developing economies. The Financial Skills Index published by IMD World Competitiveness Yearbook executive survey indicates that Turkey encompasses higher financial expertise compared to major emerging economies, with an index remaining slightly below the United Kingdom (See Figure 2.6). As demonstrated by Figure 2.7, bureaucratic and financial environment is facilitative for start-ups, the average number of days to start a new business being as low as 6 days.

Figure 2.5: CDS Premiums for Major Developed and Developing Countries, 2012

Portugal Ukraine Ireland Hungary Italy Spain Bulgaria Russia S.Korea France China Turkey 0%

20%

40%

60%

80%

100%

Source: Invest in Turkey, The Republic of Turkey Prime Ministry Investment Promotion and Support Agency

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Figure 2.6: Finance skills in Turkey (%)

Romania Ukraine Poland Greece Russian Federation United Kingdom Switzerland 0%

20%

40%

60%

80%

100%

Figure 2.7: Time Required toStart a Business in Turkey (days)

35 30 25 20 15 10 5 0

Sources: Invest in Turkey, The Republic of Turkey Prime Ministry Investment Promotion and Support Agency

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3. Sector Analysis – Waste Management 3.1. KEY SECTORS The waste management sector in Turkey can be mainly divided into the key sectors Municipal Solid Waste and Industrial Solid Waste. The waste water treatment sector can be mainly divided into the key sectors Municipal Waste water and Industrial Waste water. The following sections contain analyses of these key sectors.

3.2. POLICY AND REGULATION WITHIN THE WASTE MANAGEMENT INDUSTRY In Turkey, Primary Legislation consisting of laws is constituted in the Turkish Parliament and executed by the Turkish Government, whereas the Secondary Legislation consisting of regulations, communiqués and circulars are constituted and executed by the corresponding Ministry in charge. The Secondary Legislation on waste management and waste water treatment is defined and executed by the Ministry of Environment and Urbanization (MoEU). It is important to emphasize that the Secondary Legislation is mainly adapted to corresponding EU Directives and is in line with the “EU Integrated Environmental Approximation Strategy for Turkey (2007-2023)” (see Section 4.2). The Secondary Legislation on renewable energy, which the waste-to-energy production is part of, is set by the Energy Market Regulatory Authority (EMRA) (see Section 4.1 and 4.2). The main laws, regulations, communiqués and circulars with regard to waste management, waste water treatment and renewable energy are listed below.

3.2.1. Legal Regulation Law on Environment No. 2872 The Law on Environment No. 2872 is the central existing law in Turkey where all activities, actions and services with regard to the environment are legally defined. In that sense, according to Article 8: “…It is forbidden to release all sorts of waste and residues directly or indirectly into receiving environment, storing them or being engaged in a similar activity…”5 Moreover, according to Article 29: “…Activities related with the prevention and elimination of environmental pollution will benefit from incentive measures. For that purpose, at the beginning of each year new principles could be set in addition to the existing incentive system by the Undersecretariat of Treasury, based on the opinion of the Ministry…”

Renewable Energy Law No. 5346 The Renewable Energy Law No. 5346 is the central law for the use of renewable energy sources for electricity generation, where all the legally binding clauses and guaranteed feed-in tariffs for each source of renewable energy are defined. With this regard, the generation of biogas from all sorts of waste, the production of energy and its sales to the National Grid is regulated in this law (see Section 4.2).6 Municipality Law No. 5393 Articles 14 and 15 of the Municipality Law No. 5393 state that “…municipalities are responsible for the provision of all services concerning the collection, transport, separation, recycling, disposal and storage of solid waste…as well as for the removal of waste water and rain water, establishment of necessary waste water treatment facilities or having them established, and for their operation or having them operated…”7 Metropolitan Municipality Law No. 5216 Article 7 of the Metropolitan Municipality Law No. 5216 states that “…Metropolitan municipalities are responsible for designing of the Metropolitan solid waste management plan, ensuring its design; except for the collection at source and the 5

http://www.csb.gov.tr/gm/cygm/index.php?Sayfa=sayfa&Tur=webmenu&Id=264

6http://www.enerji.gov.tr/mevzuat/5346/5346_Sayili_Yenilenebilir_Enerji_Kaynaklarinin_Elektrik_Enerjisi_Uretimi_Amacli_Kullanimina

_Iliskin_Kanun.pdf 7 http://www.tbmm.gov.tr/kanunlar/k5393.html

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transportation of solid waste to the transfer facility, providing services for the recycling, storage and disposal of solid waste and excavation residues, establishing or having established facilities for these purposes, operating or having them operated…” 8 Public Procurement Law No. 4734 The Public Procurement Law No. 4734 has the objective “…to set to establish the principles and procedures to be applied in any procurement held by public authorities and institutions governed by public law or under public control or using public funds…the provisions of this Law shall apply to procurement of goods, services or works the costs of which are paid from any resources at the disposal of the contracting authorities…”9 Therefore, all rules and requirements for public tenders and procurement for waste management and waste water treatment projects are constituted in this law.

Tables 3.1-3.3, contains a list of the main regulations, communiqués and circulars with regard to waste management, waste water treatment and renewable energy, which is also of relevance for biogas-producing and electricity generating waste management and waste water treatment facilities.

Table 3.1: Regulations

REGULATION ON WASTE MANAGEMENT

REGULATION ON WASTE WATER TREATMENT

REGULATION ON RENEWABLE ENERGY

Regulation on the General Principles of 10 Waste Management

Regulation on Urban Waste Water 11 Treatment

Regulation on Electricity Market 12 Licensing

Regulation on Control of Water 14 Pollution

Regulation on Unlicensed Electricity 15 Production in the Electricity Market (for renewable energy producing power plants up to 1MW)

Regulation on Procedures and Principles of Tariff Determination of Waste water Infrastructure and Municipal Solid Waste Disposal 17 Facilities

Regulation on the Documentation and Support of the Renewable 18 Energy Sources

Regulation on Control of Solid Waste

Regulation on Landfilling

16

Regulation on Control of Hazardous 19 Waste

Regulation on Waste Incineration

21

13

Regulation on Procedures and Principles of Taking Advantage of Incentive Measures of Waste water Treatment Plants according to Law on 20 Environment No. 2872, Article 29 Regulation on the Use of Domestic 22 and Urban Sewage Sludge on Soil

http://www.tbmm.gov.tr/kanunlar/k5216.html http://www1.ihale.gov.tr/english/4734_English.pdf http://mevzuat.basbakanlik.gov.tr/Metin.Aspx?MevzuatKod=7.5.12242&sourceXmlSearch=&MevzuatIliski=0 11 http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=7.5.9844&MevzuatIliski=0&sourceXmlSearch= 12 http://www.enerji.gov.tr/mevzuat/YEGM/Elektrik_Piyasasi_Lisans_Yonetmeligi.pdf 13 http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=7.5.8132&sourceXmlSearch=&MevzuatIliski=0 14 http://mevzuat.basbakanlik.gov.tr/Metin.Aspx?MevzuatKod=7.5.7221&sourceXmlSearch=&MevzuatIliski=0 15 http://www.epdk.gov.tr/index.php/elektrik-piyasasi/mevzuat?id=67 16 http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=7.5.13887&MevzuatIliski=0&sourceXmlSearch= 17 http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=7.5.14390&MevzuatIliski=0&sourceXmlSearch= 18 http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=7.5.15127&MevzuatIliski=0&sourceXmlSearch= 19 http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=7.5.7557&sourceXmlSearch=&MevzuatIliski=0 20 http://mevzuat.basbakanlik.gov.tr/Metin.Aspx?MevzuatKod=7.5.14329&MevzuatIliski=0&sourceXmlSearch=at%C4%B1k 21 http://www.resmigazete.gov.tr/eskiler/2010/10/20101006-21.htm 22 http://www.resmigazete.gov.tr/eskiler/2010/08/20100803-5.htm 8 9

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Regulation on Control of Packaging 23 Waste

Regulation on the Control of Pollution Caused by Dangerous Substances in Water 24 and the Surrounding Area (76/464 / EC)

Regulation on Control of Waste 25 Electrical and Electronic Components Regulation on Control of End of Life 26 Vehicles Regulation on Control of Waste Oils

27

Regulation on Control of Expired Tires

28

Regulation on Control of Medical 29 Waste Regulation on Control of Vegetable Oil 30 Waste Regulation on Control of Waste 31 Batteries and Accumulators Regulation on Control of PCBs and PCTs

32

Regulation on Control of Excavation, 33 Construction and Demolition Waste Source: Ministry of Environment and Urbanization (MoEU)

Table 3.2: Communiqués

COMMUNIQUÉ ON WASTE MANAGEMENT

COMMUNIQUÉ ON WASTE WATER TREATMENT

COMMUNIQUÉ ON RENEWABLE ENERGY

Communiqué on Waste Interim Storage 34 Facilities

Communiqué on Technical Methods of 35 Waste water Treatment Plants

Communiqué on the Implementation of the Regulation on Unlicensed Electricity Production in the 36 Electricity Market

Communiqué on Recycling of Non37 Hazardous and Inert Waste

Communiqué on Urban Waste Water Treatment for Sensitive and Less

http://www.resmigazete.gov.tr/eskiler/2011/08/20110824-6.htm http://ec.europa.eu/environment/water/water-dangersub/76_464.htm http://www.resmigazete.gov.tr/eskiler/2012/05/20120522-5.htm 26 http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=7.5.13659&MevzuatIliski=0&sourceXmlSearch= 27 http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=7.5.12290&MevzuatIliski=0&sourceXmlSearch= 28 http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=7.5.7557&sourceXmlSearch=&MevzuatIliski=0 29 http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=7.5.9145&MevzuatIliski=0&sourceXmlSearch= 30 http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=7.5.8061&MevzuatIliski=0&sourceXmlSearch= 31 http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=7.5.7118&MevzuatIliski=0&sourceXmlSearch= 32 http://www.resmigazete.gov.tr/eskiler/2007/12/20071227-3.htm 33 http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=7.5.5401&sourceXmlSearch=&MevzuatIliski=0 34 http://www.resmigazete.gov.tr/eskiler/2011/04/20110426-9.htm 35 http://mevzuat.basbakanlik.gov.tr/Metin.Aspx?MevzuatKod=9.5.13873&sourceXmlSearch=&MevzuatIliski=0 36 http://www.epdk.gov.tr/index.php/component/content/article?id=116 37 http://mevzuat.basbakanlik.gov.tr/Metin.Aspx?MevzuatKod=9.5.15051&MevzuatIliski=0&sourceXmlSearch=at%C4%B1k 23

24 25

15

38

Sensitive Areas Communiqué on General Rules for the 39 Use of Waste as Additional Fuel Communiqué on Tank Cleaning 40 Facilities Communiqué on Transport of Waste by 41 Road Communiqué on End of Life Vehicles Storage, Purification, Extraction and 42 Processing Communiqués on Import Control / Audit of Controlled Metal Scraps to Protect 43 Environment Communiqués on Import Control / Audit of Controlled Wastes to Protect 44 Environment Source: Ministry of Environment and Urbanization (MoEU)

Table 3.3: Circulars

CIRCULAR ON WASTE MANAGEMENT Circular on Landfilling of Waste

Circular on Solid Waste

CIRCULAR ON WASTE WATER TREATMENT 45

47

CIRCULAR ON RENEWABLE ENERGY

Circular on Approval for Waste water 46 Treatment / Deep Sea Discharge Plants Circular on Business Term Plan for 48 Waste water Treatment Plant

Circular on Integrated Waste 49 Management Plan Circular on Permits for Solid Waste Disposal and Landfill Facilities on 50 Forestry Areas Circular on Solid Waste Disposal and http://www.resmigazete.gov.tr/eskiler/2009/06/20090627-18.htm http://www.resmigazete.gov.tr/eskiler/2005/06/20050622-14.htm 40 http://mevzuat.basbakanlik.gov.tr/Metin.Aspx?MevzuatKod=9.5.12822&sourceXmlSearch=tanker&MevzuatIliski=0 41 http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=9.5.17033&MevzuatIliski=0&sourceXmlSearch=at%C4%B1klar%C4%B1n%20karayol 42 http://www.resmigazete.gov.tr/eskiler/2011/07/20110706-15.htm 43 http://www.csb.gov.tr/gm/cygm/index.php?Sayfa=sayfa&Tur=webmenu&Id=423 44 http://www.csb.gov.tr/gm/cygm/index.php?Sayfa=sayfa&Tur=webmenu&Id=423 45 http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=7.5.13887&MevzuatIliski=0&sourceXmlSearch= 46 http://www.csb.gov.tr/db/cygm/editordosya/2013-4AADDDProjeOnay.PDF 47 www.cygm.gov.tr/CYGM/Files/mevzuat/genelge/AYD7.doc 48 www.cygm.gov.tr/ M/Files/mevzuat/genelge/ST D1.doc 49 http://www.cygm.gov.tr/CYGM/Files/mevzuat/genelge/Genelge_2010_09_.pdf 50 http://atikyonetimi.cevreorman.gov.tr/atikyonetimi/Files/Belgeler/Mevzuat/Genelge/2011-10.pdf 38 39

16

Pre-Treatment Plants Approval

51

Circular on Preparation of Landfill 52 Projects Circular on Disposal of Medical Waste

53

Circular on Audit Guidelines for Landfill 54 Facilities Source: Ministry of Environment and Urbanization (MoEU)

3.3. CURRENT SITUATION AND FUTURE OUTLOOK FOR THE WASTE MANAGEMENT MARKET The current status of Turkey’s waste industry shows that Primary and Secondary Legislation with regard to waste management and waste water treatment has been clearly set and the underlying regulations have been mainly adopted from the existing EU environmental directives (see Section 3.2. and Section 4.2.). Based on them, a waste management and waste water treatment market with various regulatory stakeholders (see Section 4.1.) and key market players (see Section 5.2.) have been established, resulting in various conducted public tenders for supply, service and construction (see Section 5.2.), project structures (See Section 6.3.), public-public partnerships and investment and cooperation forms in the private sector (see Section 3.5.).

However, the current implementation of waste management and waste water treatment services by municipalities and Metropolitan municipalities has by far not reached its optimal status. While collection and transportation of waste is done at great extent, the great majority of solid waste in the country is still not being disposed in accordance with the laws and regulations.55 Also, the industrial pollution is still not satisfactorily well managed and in line with the regulatory requirements (see Section 4.2.).

While on the way, there are still some important governmental actions to do in order to guarantee the full adaption and implementation of the waste regulations to EU standards. That is, in order to ensure effective implementation, monitoring and auditing of the current legislation, there is a need for strengthening the institutional structure and capacity building.

Especially, due to the repeated implementation of the audit, permission and sanction processes by different institutions in the country a healthy environment management plan cannot be applied to the environment. In Turkey, aspects such as permission, monitoring, auditing, sanctioning and reporting are still unsatisfactory and have a non-integrated structure.56 Optimizing the administrative process and adaption process of the existing regulations to EU directives in the near future, together with Turkey’s clearly defined strategies, targets and action plans with regard to waste management and waste water treatment, will further stimulate Turkey’s waste management industry in future (see Section 4.2.). Turkey’s municipal waste per capita is around 407 kg / per year and municipal waste water per capita 182 litres / day (see Subsection 3.3.1.), which have been more or less constant for the last few years (see Subsection 3.3.1.). Due to Turkey’s various population growth scenarios of (see Section 5.1.), both the amount of waste and waste water in total is expected to further increase, implying a future growth of the waste industry in Turkey.

3.3.1. Waste Management in Turkey To depict the current situation, development and trend in the waste management and waste water treatment industry, the following part contains analysis, graphs and tables, based on historical TUKRKSTAT57 (Turkish statistical institute) data for

http://www.cygm.gov.tr/CYGM/Files/mevzuat/genelge/Genelge%202011-12.pdf http://atikyonetimi.cevreorman.gov.tr/atikyonetimi/Files/Belgeler/Mevzuat/Genelge/DDTUGenelge.pdf http://www.cygm.gov.tr/CYGM/Files/mevzuat/genelge/Tibbigenelge.pdf 54 http://atikyonetimi.cevreorman.gov.tr/atikyonetimi/Files/Belgeler/Mevzuat/Genelge/2011-13%20(1).pdf 55 http://www.un.org/esa/dsd/dsd_aofw_ni/ni_pdfs/NationalReports/turkey/Full_text.pdf 56 http://www.ab.gov.tr/files/ardb/evt/2_turkiye_ab_iliskileri/2_2_adaylik_sureci/2_2_8_diger/ab_entegre_cevre_uyum_stratejisi.pdf 57 http://www.tuik.gov.tr/Start.do;jsessionid=x8vWSfTSThLVp1NCYnWbVh93hfZtgD1yZVzcB1YQwqvJBfXgq10q!879570786 51

52 53

17

the period 1994-2010 , which conducts periodic surveys (i.e., every two year) with market participants. These are by law obliged to take part in the surveys and deliver data with regard to their questionnaire.

Current Situation (i) Macro analysis: Population, municipal population, municipal waste and waste water per capita

Figure 3.1: Rate of municipal population served by municipal waste services in total population (%), 1994-2010

100 90 80 70 60 50 40 30 20 10 0 1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010 Rate of municipal population served by municipal waste services in total population (%) Rate of municipal population served by waste disposal and recovery facilities in total population (%) Figure 3.2: Rate of municipal population served by waste water treatment plants in total population (%), 1994-2010

100 90 80 70 60 50 40 30 20 10 0 1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010 Rate of municipal population served by wastewater treatment plants in total population (%) According to Figure 3.1, the rate of municipal population served by “standard� (i.e., collection, transportation and separation) municipal waste services in total population increased from 71% in 1994 to 83% in 2010. Although the population rate receiving waste disposal and recovery facilities in total population has increased from 4% in 1994 to 47% in 2010, the majority of the municipal population still does not receive municipal waste disposal and recovery services.

18

With regard to Figure 3.2, the rate of municipal population served by waste water treatment plants in total population increased from 10% in 1994 to 52% in 2010. That is, still a half of the municipal population does not obtain municipal waste water treatment services.

Figure 3.3: Size of population of municipalities served by municipal waste services, 1994-2010

80'000'000 70'000'000 60'000'000 50'000'000 40'000'000 30'000'000 20'000'000 10'000'000 1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010 Population of municipalities served by municipal waste services Turkey Population Total municipal population

Figure 3.4: Size of population of municipalities served by waste water treatment plants, 1994-2010

80'000'000 70'000'000 60'000'000 50'000'000 40'000'000 30'000'000 20'000'000 10'000'000 1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010

Population of municipalities served by wastewater treatment plants Turkey Population Total municipal population

19

As it can be seen in Figure 3.3, nearly the whole population of 61.6 Mio living in municipalities is covered by “standard” waste services. However, these only cover the collection, separation and transportation of municipal solid waste and do not include the waste disposal and recovery activities, which show a very different picture (see part (ii) below).

According to Figure 3.4, in 2010, about 62% of the municipal population was served with waste water treatment plants. This rate increased from 13% in 1994, thereby implying a substantial growth rate between the years 1994-2010. According to the “Strategic Plan 2013-2017” of MoEU, the actual rate of municipal population receiving waste water treatment services is 72%.

It should be noted that, between the years 1994 and 2010, Turkey’s total population size increased from 62.9 Mio to 73.7 Mio, implying an increase of 17%, whereas the size of municipal population increased from 47.6 Mio to 61.6 Mio, thereby incorporating a percentage growth of even 29%.

Figure 3.5: Number of municipalities served by waste and waste water treatment services, 1994-2010

3500 3000 2500 2000 1500 1000 500 0 1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010

Number of municipalities served by municipal waste services Number of municipalities served by wastewater treatment plants Total number of municipalities

According to Figure 3.5, in 1994, the number of municipalities receiving waste services was 1’985 (72.4%) out of 2’740, and the number of municipalities receiving waste water treatment services was only 71 (2.6%). Today, the corresponding numbers are 2’879 (97.6%) for waste services and still only 438 (14.8%) for waste water treatment services. In relative terms, since in 1994, there were very few waste water treatment plants existing at that time, they experienced a higher growth within the period 1994-2010. The trend is increasing.

Figures 3.6-3.7 illustrate the municipal waste per capita and municipal waste water discharged per capita, respectively.

20

Figure 3.6: Amount of municipal waste per capita (kg/capita-day), 1994-2010

1.60 1.40

Average

1.30

1.20 1.00 0.80 0.60 0.40 0.20 0.00 1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010

Figure 3.7: Amount of waste water discharged per capita in municipalities (liters/capita-day), 1994-2010

200 180 160

Average 156

140 120 100 80 60 40 20 0 1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010

Between the years 1994 and 2010, the average amount of waste per capita was 1.30 kg / day, deviating between 1.10-151 kg / day. In the last few years, municipal waste per capita has been slightly decreasing to 1.14 kg / day.

The average amount of municipal waste water discharged per capita was 156 litres / day, with an increasing trend. This amount rose from 126 kg / capita-day in 1994 to 182 kg / capita-day in 2010, implying a 44% growth between that period.

21

Figure 3.8: Country comparisons for municipal waste generated (kg/capita-year), 2010

Latvia Estonia Poland Czech Republic Slovakia Former Yugoslav Republic of Macedonia Romania Croatia Lithuania Bosnia and Herzegovina Turkey Bulgaria Hungary Slovenia Greece Sweeden Belgium Norway Finland European Union (27 countries) Portugal England Italy France Spain Iceland Germany Austria Malta Netherlands Ireland Denmark Luksembourg Switzerland Southern Cyprus 0

100

200

300

400

500

600

700

800

Source: EUROSTAT

According to Figure 3.8, Turkey with a per capita average of 407 kg / year of generated municipal waste, is in the lower half of the list of European countries and is below the EU 27 average of 502 kg / year. Switzerland, after Southern Cyprus, takes the second place with the highest per capita municipal waste of 707 kg / year in Europe. Therefore, it annually generates about 75% more municipal waste per capita than Turkey.

22

(iĂŻ) Micro analysis of the municipal waste management industry

Figure 3.9: Number of waste disposal and recovery facilities, 1994-2010

80 70 60 50 40 30 20 10 0 1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010 Number of incineration plants Number of composting plants Number of controlled landfills

As Figure 3.9 shows, in 1994, only 2 controlled landfills, 2 composting plants and 1 incineration plant were existent. In 2010, the number of controlled landfills increased to 52, whereas presently still only 5 composting and 2 incineration plants exist in Turkey. Hence, whereas the number of controlled landfill sites and, therefore their importance has increased, composting and incineration potential of municipal waste is still mainly unused. According to the “Strategic Plan 2013-2017� of MoEU, the actual number of controlled landfill sites is 69.

Figure 3.10 shows the waste disposal amounts by disposal methods.

Figure 3.10: Waste disposal amounts by disposal methods (thousand tonnes/year), 1994-2010

30'000 25'000 20'000 15'000 10'000 5'000 1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010 Other River and lake disposal Waste delivered to composting plant Another municipality's dumping site Metropolitan municipality's dumping site

23

Burial Burning in an open area Waste delivered to controlled landfill site Municipality's dumping site

In 1994, by far the main disposal method for municipal waste was open dumping of waste, nearly without the existence of any composting of waste or other waste recovery methods. Therefore, nearly the whole municipal waste resulted in conventional waste management methods such as “wild” storage and uncontrolled landfill in open dumping sites.

However, over time, especially, the Metropolitan dumping sites disappeared in favor of controlled landfill sites, which today make up 54% and, together with municipality’s dumping sites with a share of 35%, in total 89% of the waste disposal methods in Turkey. Therefore, open dumping of municipal waste at Metropolitan municipalities’ and municipalities’ dumping sites with a total share of 42% implies that nearly the half of the municipal waste is still disposed according unconventional methods.

Tables 3.4-3.6 contain the amount of waste brought to disposal and recovery facilities (i.e., controlled landfills, incineration plants and composting plants) by type and origin for the year 2010.

Table 3.4: Amount of waste brought to controlled landfills (tonnes / year), 2010

CONTROLLED LANDFILLS

HAZARDOUS

NONHAZARDOUS

TOTAL

45

13'746'837

13'746'882

Health institutions

32'471

14'027

46'498

Industry

15'760

354'925

370'685

-

70'122

70'122

7'965

134'522

142'487

56'241

14'320'433

14'376'674

0.4

99.6

Municipalities

Service sector Other (1) Total Percentage (%)

Table 3.5: Amount of waste brought to incineration plants (tonnes / year), 2010

INCINERATION PLANTS

HAZARDOUS

NONHAZARDOUS

TOTAL

3

-

3

Health institutions

17'330

-

17'330

Industry

22'306

-

22'306

Service sector

1

-

1

Other (1)

-

-

-

39'640

-

39'640

100

0

Municipalities

Total Percentage (%)

Table 3.6: Amount of waste brought to composting plants (tonnes / year), 2010

COMPOSTING PLANTS

HAZARDOUS

NONHAZARDOUS

TOTAL

-

194'455

194'455

13

-

13

Industry

-

-

-

Service sector

-

15'082

15'082

Municipalities Health institutions

24

Other (1)

-

6'921

6'921

13

216'458

216'471

0.01

99.99

Total Percentage (%)

(1) Covers ash and slag from incineration plants, wastes transferred from composting plants to controlled landfill sites and waste collected by residential sites and hotels by themselves.

In Turkey, with a total share of 99.3%, the amount of waste brought to all disposal and recovery facilities is nonhazardous waste. However, although only low in relative amounts as compared to total waste, still more than 50 million tons or the majority of hazardous waste from municipalities, mainly coming from health and other industries, are brought to controlled landfills and composting plants, instead of fully eliminating it by incineration, and thereby threatening public’s health and the environment.

Waste from municipalities considering all disposal and recovery methods makes in total 93.9%, with by far the major share in controlled landfills. Some municipal waste is also brought to composting plants.

Nonhazardous municipal waste brought to controlled landfills is mainly composed of household and similar wastes (96.6%), waste water treatment sludge (1.3%) and mixed and undifferentiated wastes (1.0%).

Nonhazardous municipal waste brought to incineration plants mainly consists of chemical wastes (41.9%), medical wastes (19.8%), mixed and undifferentiated wastes (16.9%) and waste oils (13.0%).

Nonhazardous municipal waste brought to composting plants is fully composed of household and similar wastes (93.3%), manure (3.5%) and vegetal wastes of food preparation and products and green wastes (3.2%).

Whereas the term “Composting” refers to the process of decomposing organic (i.e., bio-degradable) waste, such as food or garden waste, as fertilizer for soil amendment and contributing to organic farming practices, the term “Recycling” stands for a process of changing inorganic (i.e., non-biodegradable) waste, such as paper, metal, glass, plastic, textiles and electronics, into new products to prevent waste which may be used as (raw) materials. According to MoEU, the number of licensed collection, separation and recycling plants has increased from 28 in 1994 to 514 in 2010, such that 50% of packaging waste is recycled.58

(iii) Micro analysis of the municipal waste water treatment industry Figure 3.11: Amount of waste water discharged from municipal sewerage to receiving bodies (thousand m3/year), 1994-2010

4'000'000 3'500'000 3'000'000 2'500'000 2'000'000 1'500'000 1'000'000 500'000 1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010 Other 58

Dam

Land

River

http://www.csb.gov.tr/gm/cygm/index.php?Sayfa=haberdetay&Id=6252

25

Lake-artificial lake

Sea

According to Figure 3.11, in 2010, the total amount of waste water discharge d in Turkey was 3.6 bn. m3, having increased from 1.5 bn. bn. m3 in 1994. Hence, the total amount of waste water discharge d in Turkey more than doubled within that period, implying a clearly increasing trend. The municipal waste water is essentially discharged either to rivers or to the sea.

Today, the main types of waste water treatment applied in the waste industry, shortly described, are: 







Physical waste water treatment incorporates the removal of substances by the use of naturally occurring forces, such as gravity and electrical attraction are removed or their separation by the use of physical barriers. In general, the applied mechanisms in physical treatment do not result in changes in the chemical structure of the target substances.

In some cases, physical state is changed, as in vaporization, and often dispersed substances are caused to agglomerate, as happens during filtration.

Chemical waste water treatment refers to an intricate industrial process which is employed to remove harmful substances and bacteria from raw sewage and rainwater runoff. Thereby, used, dirty water is filtered so that it can be recycled back into natural and artificial water sources. Numerous chemicals are used in different phases of the filtration process to separate out solids, kill bacteria and parasites, and remove dangerous toxins. Chemical compounds of ferric chloride, alum, ozone, chlorine, and lime help to purify even the most polluted concentrations of sewage.

Biological waste water treatment is the use of microorganisms in the processing and cleansing of waste water. Many microorganisms are able to metabolize a variety of organic and inorganic substances that are present in waste water.

Biological waste water treatment takes advantage of this property and supports it with various nutrients and aerators.

The waste water can come from a variety of sources, including factories, cities, or even small residential areas and usually contains solid biomasses, various objects, microorganisms, and other contaminants. The waste water undergoes multiple treatments to remove these contaminants and neutralize any hazardous residuals.

Advanced waste water treatment refers to any treatment of sewage that goes beyond or biological water treatment stage and includes the removal of nutrients, such as phosphorus and nitrogen and a high percentage of suspended solids.

Figures 3.12-3.13 illustrate the development of the number of municipal waste water treatment plants and the corresponding amount of municipal waste water treated by waste water treatment method, respectively, for the years 1994-2010.

Figure 3.12: Number of municipal waste water treatment plants by waste water treatment method, 1994-2010

350 300 250 200 150 100 50 1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010 Natural

26

Biological

Physical

Advanced

Figure 3.13: Amount of municipal waste water treated by waste water treatment method (thousand m3/year), 1994-2010

4'000'000 3'500'000 3'000'000 2'500'000 2'000'000 1'500'000 1'000'000 500'000 1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010 Natural Advanced

Biological Total wastewater

Physical

As can be seen in Figure 3.12, the amount of waste water treatment plants in Turkey substantially increased from 41 in 1994 to 326 in 2010. Out of these 326 waste water treatment plants, today, 199 apply the biological treatment method (61%), 53 the advanced treatment method (16%), 39 the physical (12%) and 35 (11%) the natural treatment method.

With regard to Figure 3.13, the amount and rate of municipal waste water treated substantially increased between the years 1994-2010. Whereas in 1994, municipal waste water was thus just discharged without any treatment to receiving bodies, as illustrated in Figure 3.11, today about 76% of municipal waste water discharged is treated. Between the years 2001-2010, the application of the advanced waste water treatment method faced a significant absolute and relative growth. Today, with a share of 37.9%, it is the major treatment method applied for municipal waste water, followed by the biological treatment method with a share of 34.3%.

(iv) Micro analysis of the industrial waste management industry

Table 3.7: Waste generation by sectors, 2008-2010 (1000 tonnes / year), 2010

2008

2010

TOTAL

HAZARDOUS

TOTAL

HAZARDOUS

Manufacturing industry establishments

12‘482

1‘136

13‘366

964

Thermal power plants

25‘622

24

18‘748

(**)

255

34

313

(**)

...

...

729‘750

2‘314

50

50

60

60

Organized industrial zones Mining establishments

(1)

Health institutions

(**) According to Law No. 5429, data concerning to units which have three and more units are not given, because of the dominance of one or two units.

(1) Includes overburden and tailings wastes from mining activities. … No data available

27

According to Table 3.7, today, total and hazardous wastes from mining activities such as overburden and tailings wastes constitute by far the largest share of the total waste generation. Whereas the waste generated by thermal power plants, which was twice as much as the waste generated by manufacturing industry establishments in 2008, significantly decreased from 2008 to 2010, waste generated by the manufacturing industry establishments slightly increased within that period. However, the absolute and relative amount of their hazardous waste decreased. The number of recycling plants of hazardous waste has increased from 18 to 201.59

Figure 3.14: Amount of waste generated by the manufacturing industry (1000 tonnes/year), 2000-2010

25'000 20'000 15'000 10'000 5'000 2000

2004

2008

2010

Ultimate disposal Recovered or reused outside the facility Recovered or reused within the facility Figure 3.14 shows the amount of waste generated by the manufacturing industry for the years 1994-2010. The total industrial waste generated in 2010, amounting to 13.7 Mio tons was in average 22% less than for the period 200-2004. About 75% of the industrial waste is ultimately disposed with waste disposal methods such as using the industrial waste as filling material (44% of ultimately disposed waste), storing it within the establishment (25%), dumping it into a dumping site (15%), putting it into a controlled landfill site (13%) or co-incinerating / incinerating it (3%). Nearly no industrial waste is recovered or reused within the facility.

Figure 3.15: Amount of hazardous waste generated by the manufacturing industry (1000 tonnes/year), 2000-2010

1'400 1'200 1'000 800 600 400 200 2000

2004

2008

Ultimate disposal Recovered or reused outside the facility Recovered or reused within the facility 59

http://www.csb.gov.tr/gm/cygm/index.php?Sayfa=haberdetay&Id=6252

28

2010

In Figure 3.15, the decreasing trend of hazardous waste generated by manufacturing industrial companies can clearly be seen.

The major part of the hazardous waste is ultimately disposed. A little part is recovered or reused outside of the facility.

(v) Micro analysis of the industrial waste water treatment industry

Figure 3.16: Waste water discharge by sectors (1000 m3/year), 2010

1.8

0.5

38.5 45.8

11.4

Municipalities Villages Manufacturing industry establishments Thermal power plants Organized industrial zones Mining establishments

2.1

As can be seen from Figure 3.16, the thermal power plants with a share of 45.8% discharge the most waste water among all the sectors in Turkey, followed by municipalities with a share of 38.5%. Together, they make about 85% of Turkey’s total waste water discharge.

Figure 3.17: Amount of industrial waste water discharged without / after treatment, 2010 (1000 m3/year), 2000-2010

1'400'000 1'200'000 1'000'000 800'000 600'000 400'000 200'000 2000

2004

2008

Discharged without treatment (1000 m3/year) Discharged after treatment (1000 m3/year)

29

2010

Figure 3.18: Amount of industrial waste water discharged by receiving bodies (1000 m3/year), 2000-2010

1'400'000 1'200'000 1'000'000 800'000 600'000 400'000 200'000 2000

2004

Dam Organized industrial zone sewerage Land Lake-artificial lake City sewerage

2008

2010

Others Septic tank River Sea

Figures 3.17-3.18 illustrate the amount of industrial waste water discharged without and after treatment by receiving bodies, respectively, for the period 2000-2010.

The amount of industrial waste water shows an increasing trend. In 2010, it was 1.3 bn m3, nearly a doubling as compared to 2004. Whereas the absolute amount of waste water discharged after treatment has remained nearly the same, the relative amount has substantially decreased from 30% in 2000 to 19% in 2010. Or, in other words, still 80% of the industrial waste water in Turkey is still untreated. About 63% of the waste water discharged goes into the sea and 20% into rivers, making together the essentail receiving bodies of waste water discharged.

30

Figure 3.19: Number of industrial waste water treatment plants, 2000-2010

2000 1800 1600 1400 1200 1000 800 600 400 200 0 2000

2004

Advanced

Biological

2008

2010

Physical/Chemical

Figure 3.20: Amount of industrial waste water treated by waste water treatment method, 2000-2010

400'000 350'000 300'000 250'000 200'000 150'000 100'000 50'000 2000 Advanced

2004 Biological

2008

2010

Physical/Chemical

Figures 3.19-3.20 show the number of industrial waste water treatment plants and the amount of industrial waste water treated by waste water treatment method, respectively, for the years 2000-2010.

The number of industrial waste water treatment plants doubled within that period, increasing from 926 in 2000 to 1825 in 2010. About 60% of waste water treatment plants apply the biological treatment method, 35% the physical/chemical and 5% the advanced treatment method. Although the number of waste water treatment plants applying the advanced method with 22 was very low in 2000, despite its increased number to 80 in 2010 and incorporation of an increasing trend, this waste water treatment method is still mainly unused in Turkey. The absolute amount of waste water treated with the physical/chemical method is decreasing in favor of the advanced and biological method, which has a share of 70% on total industrial waste water treated.

31

(vi) Marine pollution According to MoEU, the number of marine pollution measurement stations has increased to 208.60 The number of Blue Flag beaches and marina has increased from 271 in 2003 to 374 in 2012.61 At ports, 221 facilities have started to provide waste reception services. In order to prevent sea pollution, today, waste is collected on the coasts with sea cleaners. Nevertheless, Turkey’s Mediterranean and Aegean coastline is still under severe pressure from extensive industrial and domestic waste water discharges and pollution from tanker traffic and refineries.

Future Outlook Based on the current situation, the following development and trends with regard to the waste management and waste water treatment industry in Turkey can be highlighted: 







     

    

Only about 50% of Turkey’s population receives waste recovery / disposal and waste management services. Whereas the rate for recovery / disposal services was nearly zero in 1994, it was about 10% for waste water treatment services.

This implies a further substantial increase in the rate of population receiving both service types in the next few years.

Turkey has a population size of 73.7 Mio and faced a population growth of 17% between 1998 and 2010. Due to the essential population growth scenarios of Turkey until 2023 (see Section 5.1.), the absolute amount of municipal waste and waste water is expected to substantially increase.

44% of the waste is still dumped into open dumping sites of Metropolitan municipalities and municipalities, therefore implying the release of the very potent greenhouse gas methane into the atmosphere and incorporating explosion risk of sites.

Out of 2’950 municipalities, 2’879 municipalities receive “standard” (i.e., collection, separation and transportation) waste services and only 438 municipalities receive waste water treatment services. As compared to EU countries, where integrated waste management approaches including waste disposal are implemented as well as more than the majority of municipalities are served with waste water treatment services, these numbers for Turkey are still too low.

There are only 69 controlled landfill sites.

There exist only 2 incineration plants. More than 50’000 tons of hazardous waste are still not eliminated by incineration.

There exist only 5 composting plants.

Only about 50% of the packaging waste is recycled, which was nearly zero in 1994, therefore implying an increasing trend.

The amount of waste water per capita is increasing.

Industrial waste is hardly ever used for co-incineration / incineration purposes. Nor it is recovered or reused within the facility. This implies a huge waste-to-energy as well as recycling or reuse potential of their waste for industrial companies.

The amount of industrial waste water has nearly doubled between 2004 and 2010. The trend is increasing.

Only in average 24% of the industrial waste water is discharged after treatment, implying a huge development and increase potential.

Whereas the advanced waste water treatment method in Turkey shows a substantial increasing trend, it is hardly ever applied for industrial waste water.

Thermal power plants are the largest discharger of waste water. Due to the expected substantial growth in the energy sector in the next few years, the amount of waste water from thermal power plants is expected to further increase.

Strong improvement and extension potential in marine control.

The current situation and trends, together with Turkey’s objective of an EU integration, the various strategic plans of ministries (see Section 4.2.), Turkey’s objective of the establishment of an integrated waste management approach for guaranteeing sustainable development and other regulatory drivers, clearly reveals that both the municipal and industrial waste management and waste water treatment industry will face substantial growth in future.

60 61

http://www.csb.gov.tr/gm/cygm/index.php?Sayfa=haberdetay&Id=6252 http://www.csb.gov.tr/gm/cygm/index.php?Sayfa=haberdetay&Id=6252

32

3.3.2. Outlook for potential changes within the waste management industry More and more companies use the energy potential from solid waste and sludge from waste water by applying several waste-toenergy technologies to generate additional revenues from the use of the produced heat and electricity for internal purposes, selling the produced electricity to the National Grid at a guaranteed feed-in tariff for renewable energy (see Section 4.2.) or selling the produced heat to third parties such as shopping malls, hotels, (governmental) buildings, schools etc.

This business motivation is very likely to further increase the awareness for market participants and regulatory stakeholders for an integrated waste management approach, by giving an increasing importance to waste disposal, recovery and recycling services. Or, in other words, due to the economic value of solid waste and sludge from waste water as a renewable energy source, on the one hand, open dumping of wastes by Metropolitan municipalities and municipalities tends to decrease, and on the other hand, the “standard� waste services including the collection, transportation and separation of waste will go towards an integration of them with disposal, recovery and recycling waste.

33

3.3.2.1. Waste as a means of extending the waste-to-energy chain Figure 3.21 contains a waste-to-energy map from the waste available in Turkey. The red boxes incorporate the waste types, technologies and methods with which heat and power production is possible.

Figure 3.21: Waste-to-energy map in Turkey

Hence, depending on the technology and method used, the energy production from municipal and industrial solid waste as well as from municipal and industrial waste water is possible. Thereby, it is relevant that, as a first step, recyclable material is removed, and that then energy is recovered from what remains, i.e., from the residual waste. The main waste-to-energy production technologies are:   

Incineration, Pyrolysis and gasification, Anaerobic digestion.

In the following subsections, the main waste-to-energy technologies will be shortly highlighted.

3.3.2.1.1. RDF production Through a mechanical/thermal treatment process, refuse-derived fuel (RDF) is produced by shredding and dehydrating municipal and industrial solid waste. Hereby, non-combustible materials such as metals and glass are sorted out such that mainly combustible materials such as bio-degradable waste and plastics, as energy-producing components, remain. RDF can either be burned in boilers or gasified.

34

3.3.2.1.2. Waste incineration Waste incineration refers to the process where the residual waste is burned at 850 °C and the energy is recovered as electricity or heat. Waste incineration plants incorporate a boiler to capture and convert the produced heat into electricity and steam.

These are equipped with extensive air pollution control systems which clean the combustion gases in order to comply with regulatory emission limits before they are emitted to atmosphere through a chimney. Typical fuel types are municipal solid waste, commercial and industrial waste as well as RDF (see subsection 3.3.2.1.1.). Outputs from incineration are heat and / or electricity, bottom ash and fly ash.

3.3.2.1.3. Other waste-to-energy concepts Pyrolysis and gasification Pyrolysis and gasification plants thermally treat (i.e., heat) fuels with little or no oxygen in order to produce “syngas” which can be used to generate energy through combustion. These are typically smaller and more flexible than incineration plants. Typical fuel types are municipal solid waste, commercial and industrial waste as well as RDF (see subsection 3.3.2.1.1.). Outputs from incineration are heat and / or electricity, produced “biomethane” from purified syngas, pyrolysis oils as potential fuel engines, feedstocks for the chemical industry, bottom ash, char or slag and, dependent on the plant, fly ash.

Anaerobic digestion Anaerobic digestion or biogas plants operate at low temperature, allowing microorganisms under oxygen-free conditions to convert organic (i.e., biodegradable) waste into biogas, which is mixture of carbon dioxide and methane which can be combusted to produce heat and electricity, converted to biomethane or digestate , a material which can be used as a useful fertiliser / soil conditioner on agricultural land instead of chemical fertilizers. Biogas plants are typically smaller than the incineration or pyrolysis / gasification plants. A biogas plant is most suitable for wet organic wastes, such as food waste, sewage sludge, some forms of industrial and commercial waste, e.g. abattoir waste, manure, agricultural residues or energy crops.

The composition of biogas varies depending on the origin of the anaerobic digestion process. Landfill gas (LFG) typically has methane concentrations around 50%, whereas typical composition of biogas contains 55-75% of methane.

LFG capture Whereas for both the degradation of solid waste by microorganisms by the existence of anaerobic conditions is and thus the production of biogas is true, the main difference between LFG capture systems and other forms of anaerobic digestion is that the landfill itself is effectively the digester, such that no tanks are separately constructed for this purpose. However, the generation plant used to extract the gas is broadly similar to that employed for other forms of anaerobic digestion. LFG is then burned to produce heat and / or electricity.

Generation of carbon credits from CO2 emission reduction in waste-to-energy projects If energy is produced from 100% organic waste (i.e., biogas / biomass), the potent greenhouse gas methane with a Global Warming Potential (GWP) of 21 is captured, used for energy production and thus eliminated. According to the Kyoto Protocol and its mechanisms (mandatory) and voluntary carbon market framework, for each reduced CO2 emission equivalent, the energy producer from organic waste can additionally generate carbon credits (i.e., emission certificates) and sell to the market which consists of buyers in compliance who have to offset their CO2 emissions by law or buyers who voluntarily offset their CO2 emissions for image / PR, social responsibility, competitive advantages or other purposes. The generation of carbon credits is considered as a sub-project within a waste-to-energy project, incorporating separate project cycle, management and regulatory approval issues.

As result, by additional generation of carbon credits, improves the business cases and increases the return on investments for waste management and waste water treatment projects in average by 2-4%.

35

3.3.2.1.4. Comparison and general attractiveness of waste-to-energy chain elements The various within waste-to-energy elements differ from each other in the sense that they use different technologies, based on the composition and nature of waste.

Main applicable technologies are bio-chemical treatment methods such as the anaerobic digestion and fermentation as a subfrom of anaerobic fermentation, and thermo-chemical treatment methods such as the incineration, gasification and pyrolysis.

Whereas the bio-chemical methods use wet organic (biodegradable) waste such as food waste, garden / green waste, sewerage sludge, manure etc., thermo-chemical methods use rather dry waste types. These could of only organic nature such as chicken manure, agricultural residues, or other organic municipal, commercial and industrial solid wastes, or both organic and nonorganic nature together in the form of RDF such as plastics, biodegradable waste or other combustible components.

Whereas the business motivation for their implementation strongly depends on the characteristics of waste and regional / geographic factors and weather / climate conditions additionally influencing them, the market attractiveness is generally the same positive for all technology types. Following essential factors illustrate this joint attractiveness: 

    

Excess demand for municipal / industrial waste management services and municipal / industrial waste water treatment services, results in a relatively low rivalry among suppliers and relatively low pressure for substitution products and services, Increasing future need for municipal / industrial waste management services and municipal / industrial waste water treatment services, Expected population and industry growth scenarios, Positive regulatory-legal framework, strategic orientation and actions in these industries such as the increasing number of tenders service, supply and construction (see Section 5.2.), Mainly all the technology components, machinery and equipment and project management services / advisory services within the supply chain comes (i.e., are imported) from abroad, If additionally energy from waste is produced and carbon credits from emission reduction achieved, the business cases and return on investments even improves, relatively taking the cost and pricing pressure from the waste-toenergy chain elements to be implemented (see Subsection 3.3.2.1.3.).

Both the capital expenditures (CAPEX) and Operational expenditures (OPEX) for the incineration technology are relatively highest among the technologies. However, incineration plants can take over and process much more waste than the other technologies. Therefore, the evaluation for suitability and application of one of the above technologies is strongly dependent on the type and composition of waste available and need a more detailed analysis regarding these.

Some CAPEX and OPEX numbers for various technologies are listed in Section 5.3.

3.3.3. Key issues within the waste management market Summarized, the key issues within the Turkish waste management and waste water treatment industry are:     

 

36

Despite of improvement and positive trends in the last few years, still inadequate municipal / industrial solid waste and municipal / industrial waste water treatment, which threatens public health, Millions of people are still not served with any waste disposal / recovery and waste water treatment services, More than 75% of the industrial waste water, often containing heavy metals such as mercury, lead, chromium and zinc, is discharged into rivers and coastal waters without any treatment, Hundreds of municipalities do not have proper waste disposal / recovery and waste water treatment facilities, Only about 50% of the packaging waste is recycled and there exists only 5 composting plants, such that Turkey is far away from the (optimal) implementation of modern waste hierarchy “1. Prevention, 2. Preparing for re-use, 3.

Recycling, 4. Other recovery, 5. Disposal”.

More than 50’000 tons of hazardous waste from municipalities are still not eliminated by incineration.

Turkey’s Mediterranean and Aegean coastline still faces not optimal marine pollution control.

3.4. COMPETITION ANALYSIS 3.4.1. Key drivers for competitive advantage in the Turkish market Key drivers for competitive advantage for Swiss companies on the Turkish waste management and waste water treatment market are:       

Existence, development and construction of High Cleantech products, services and processes, Relative high competition in the home market for High Cleantech products, services and processes, implies a continuous improvement, development and extension of them, maintaining their permanent high quality standards, High innovation, R&D and technology transfer potential, Existence of advanced and innovative waste management and waste water treatment methods, Relative strong project design and management skills, High quality label of Switzerland, Existence of dynamic product lines, rather than a single product,

A more detailed SWOT analysis including the strengths, weaknesses, opportunities and threats for Swiss companies in the Turkish waste management and waste water treatment industry is conducted in Section 6.5.

3.4.2. Market fragmentation and key players The Turkish market can be fragmented into the main two sub markets integrated solid waste management (including waste-toenergy units) and waste water treatment, where the market share of companies strongly depends from the conducting business activities (i.e. won tenders) such as supply, service or construction contracts.

They are other lucrative submarkets gaining increasing importance such as those for packaging waste collection, separation and recycling, medical and special waste, hazardous wastes, transportation of various waste types and their related sub markets. These and the key market players within each subsector are listed in detail in Section 5.2.

The waste-to-energy market, i.e., energy production from solid waste and waste water sludge, is an establishing business concept in Turkey, since through the production and sales of electricity to the National Grid at a guaranteed feed-in-tariff (see Section 4.2.) and receiving returns from other revenues items significantly (see Section 3.5.1.) improves the business cases of investors.

The actual total installed capacity of waste-to-energy facilities in Turkey is only 447 MW, of which 120 MW or about 25% are in operation. These include all the facilities applying the waste-to-energy technologies, mentioned in Subsection 3.3.2.1. The share of electricity production from waste on total Turkish electricity production, which is mainly fossil-fuel dominated, is actually only 0.2%.62 There are in total 63 waste-to-energy projects whose EMRA licenses are either in force, under evaluation or have reached a suitable status. The plant with largest installed capacity is 36 MW. In terms of installed capacity, ITC with 16% and Ortadogu Enerji with 10% have the highest market shares, followed by Kadirli BES and Büyük Menderes Enerji with a market share of 2.1% and 1.9%, respectively, both being biomass-to-energy facilities. Whereas, waste-to-energy plants from municipal waste and waste water sludge are in operation, no biomass-to-energy plant producing energy from agricultural waste is in operation yet.

The total estimated bio-energy potential from municipal solid waste, agricultural waste, manure and waste from forestry and wood processing industry together is yearly 16.92 Mtoe.63 Therefore, the energy production potential from waste in Turkey can be considered as still mainly unused yet.

62 63

http://www.teias.gov.tr/ http://www.exergia.gr/admin/files/pdfs/Exploitation_of_Agricultural_Residues_in_Turkey_-_TR.pdf

37

Table 3.8 contains detailed information with regard to license status, name of investor, facility names as well as licensed capacity by EMRA and capacity put into operation.

Table 3.8: Actual energy production license holders of waste-to-energy plants LICENSE STATUS

NAME OF INVESTOR

FACILITY NAME

In Force

SAMSUN AVDAN ENERJİ VE ÜRETİM TİC. A.Ş.

Samsun Avdan Biogas Facility

In Force

ITC-KA ENERJİ ÜRETİM SAN. VE TİC. A.Ş.

Aslım Energy production Facility

In Force

PAMUKOVA YENİLENEBİLİR ENERJİ VE ELEKTRİK ÜRETİM A.Ş.

Pamukova Integrated Waste Management Facility

In Force

KÖRFEZ ENERJİ SAN. VE TİC. A.Ş.

Kocaeli Çöp Biogas Project

In Force

İZAYDAŞ İZMİT ATIK VE ARTIKLARI ARITMA YAKMA VE DEĞERLENDİRME A.Ş.

İzaydaş Biogas Power Plant

In Force

SİGMA ELEKTRİK ÜRETİM MÜHENDİSLİK VE PAZARLAMA LİMİTED ŞİRKETİ

Sigma Suluova Bogas Facility

In Force

ORTADOĞU ENERJİ SANAYİ VE TİCARET A.Ş.

Odayeri Landfill Gas Facility

In Force

ORTADOĞU ENERJİ SANAYİ VE TİCARET A.Ş.

In Force

LICENSED CAPACITY (MWe)

CAPACITY INTO OPERATION (mwe)

2,4

2,4

5,66

5,66

1,4

1,4

2,263

1,2

0,75

0

2

0

28,147

21,225

Kömürcüoda Landfill Gas Facility

14,15

5,804

ITC-KA ENERJİ ÜRETİM SAN. VE TİC. A.Ş.

Mamak Solid Waste Area Energy Production Facility

36

25,43

In Force

EKOLOJİK ENERJİ LTD. ŞTİ.

Kemerburgaz Landfill

5,826

0,98

In Force

GASKİ ENERJİ YATIRIM HİZMETLERİ İNŞAAT SAN. VE TİC.A.Ş.

GASKİ Enerji Yatırım Hizmetleri İnşaat San. ve Tic.A.Ş.Production Facility

1,659

1,66

In Force

EKOLOJİK ENERJİ LTD. ŞTİ.

Solid Waste Disposal Facility

0,8

0

In Force

ITC-KA ENERJİ ÜRETİM SAN. VE TİC. A.Ş.

Sincan Çadırtepe Biomass-to- Energy Facility

14,16

14,16

In Force

DERİN ENERJİ ÜRETİM SANAYİ VE TİCARET LİMİTED ŞİRKETİ

Beypazarı Biomass-to-Energy Facility

0,576

0

In Force

HER ENERJİ VE ÇEVRE TEKNOLOJİLERİ ELEKTRİK ÜRETİM A.Ş.

Her Enerji Kayseri Landfill Area Biyogaz Autoproductor Facilityi

2,865

2,87

In Force

ITC ADANA ENERJİ ÜRETİM SAN. VE TİC. A.Ş.

ITC Adana Energy Production Facility

15,565

11,32

In Force

CEV MARMARA ENERJİ ÜRETİM SAN. VE TİC. LTD. ŞTİ.

Bolu Landfill Biogas Facility

1,131

1,131

In Force

SİMGE ENERJİ ELEKTRİK ÜRETİM VE GIDA İMALAT SAN. TİC. A.Ş.

İpsala 2 MW Biomass-to-Energy Facility

2

0

In Force

KONBELTAŞ KONYA İNŞAAT TAŞIMACILIK HİZMET DANIŞMANLIK VE PARK İŞLETMECİLİĞİ A.Ş.

Konya Waste Water Treatment Plant Electricity Production Facility

2,436

0

In Force

BEREKET ENERJİ ÜRETİM A.Ş.

Kumkısık LFG Facility

0,635

0,635

In Force

MERSİN BÜYÜKŞEHİR İMAR İNŞAAT TURİZM

Karaduvar Waste Water Treatment

1,9

0

38

OTOPARK ELEKTRİK ÜRETİM REKLAM VE ORGANİZASYON SANAYİ VE TİCARET ANONİM ŞİRKETİ

Plant Electricity Production Facility

In Force

KARMA GIDA YATIRIM SAN. VE TİC. A.Ş.

Karma 1 BES

In Force

SENKRON GRUP İNŞAAT MAKİNA MÜHENDİSLİK PROJE ELEKTRİK ÜRETİM LİMİTED ŞİRKETİ.

Senkron Efeler Biogas Facility

In Force

CEV ENERJİ ÜRETİM SAN. VE TİC. LTD. ŞTİ

Gaziantep Büyükşehir Belediyesi Landfill Area

In Force

MENDERES GEOTHERMAL ELEKTRİK ÜRETİM A.Ş.

Karacaköy BES

In Force

KARAMAN YENİLENEBİLİR ENERJİ ÜRETİM A.Ş.

Karaman Biomass-to-Energy Facility

In Force

ALBE DOĞALGAZ DAĞITIM VE ELEKTRİK ENERJİSİ ÜRETİM LİMİTED ŞİRKETİ

Albe- I Biogas Facility

In Force

EKİM GRUP ELEKTRİK ÜRETİM LTD. ŞTİ.

Ekim Grup Biogas

In Force

SÜREKO ATIK YÖNETİMİ NAKLİYE LOJİSTİK A.Ş.

Ege Bölgesi Energy Production Facility via Industrial Waste Disposal and Recycling

In Force

KALEMİRLER ENERJİ ELEKTRİK ÜRETİM LTD. ŞTİ.

Sezer Bio Energy

In Force

ITC BURSA ENERJİ ÜRETİM SAN. VE TİC. A.Ş.

ITC Bursa Hamitler Facility

Under Evaluation

ŞAHİN PAMUK ENERJİ SANAYİ VE TİCARET LİMİTED ŞİRKETİ

Şahin Renewable Facility

Under Evaluation

KALAZAN ENERJİ ÜRETİM SANAYİ VE TİCARET ANONİM ŞİRKETİ

Kalazan-1 BES

Under Evaluation

BIOENER GRUP MADENCİLİK ENERJİ ÜRETİM SANAYİ VE TİCARET LİMİTED ŞİRKETİ

Tarsus YBS Biomass Facility

In Force

TELKO ENERJİ ÜRETİMİ TURİZM İNŞAAT SANAYİ VE TİCARET A.Ş.

EDİNCİK BES

In Force

POLRES ELEKTRİK ÜRETİM A.Ş.

Polatlı Biomass Facility

In Force

AREL ÇEVRE YATIRIMLARI VE ENERJİ ÜRETİM TİC. LTD. ŞTİ.

Arel Enerji Manavgat Biomass Facility

In Force

ZARİF ENERJİ VE ELEKTRİK ÜRETİM TEKSTİL SAN. VE TİC. LTD ŞTİ.

Kırıkkale LFG Facility

In Force

ENFAŞ ENERJİ ELEKTRİK ÜRETİM A.Ş.

Aksaray OSB Biogas Facility

In Force

ZGC BES ENERJİ A.Ş.

Zgc Bes Enerji Anonim Şirketi Bolu Production Facility

In Force

ITC-KA ENERJİ ÜRETİM SAN. VE TİC. A.Ş.

ITC-KA Biomass Gasification Facility

In Force

HAYAT ENERJİ ELEKTRİK ÜRETİM SAN. VE TİC. A.Ş.

Hayat Biomass-to Energy Facility

In Force

BÜYÜK MENDERES ENERJİ BİYOKÜTLE MADEN ELEKTRİKÜRETİM MÜH. VE İNŞAAT

Karatay BES

39

1,487

1,487

2,4

0

5,655

5,555

5,652

0

1,414

0

1,794

0

1,2

0

1,54

0

0,5

0

9,8

8,4

3,91

0

0

0

0

0

3,12

0

0,834

0

2,4

2,4

1,003

1,003

2,134

0

7

0

5,425

0

0,955

0

8,478

0

A.Ş.

In Force

AFYON ENERJİ VE GÜBRE ÜRETİM TİC. VE SAN. A.Ş.

Afyon Biogas Facility

In Force

GÖNEN YENİLENEBİLİR ENERJİ ÜRETİM A.Ş.

Gönen Biogas Facility

In Force

KADİRLİ BES ELEKTRİK ÜRETİM İNŞAAT MAD. SAN. VE TİC. A.Ş.

Kadirli BES

Suitable

Sotek Elektrik Üretim ve İnş. Tic. Ltd. Şti.

Suitable

4,25

0

2,134

0

9.297

0

Elif Biomass-to Energy Facility

4

0

HATEKS HATAY TEKSTİL İŞLETMELERİ A.Ş.

Hateks Electric Power Plant

8

0

Suitable

ENFAŞ ENERJİ ELEKTRİK ÜRETİM A.Ş.

Karacabey 2 Biogas Facility

2,134

0

Suitable

MARMORE ENERJİ ÇEVRE VE TARIM ÜRÜNLERİ SAN. VE TİC. A.Ş.

Marmore Energey

3,09

0

Suitable

ALBE GRUPYATIRIM PROJE ENERJİ GIDA TUR. LTD. ŞTİ.

Albe I Biogas Facility

1,794

0

Suitable

AKAN GRUP ENERJİ ÜRETİM TİCARET LİMİTED ŞİRKETİ

1,009

0

Under Evaluation

ITC ANTALYA ENERJİ ÜRETİM SAN. VE TİC. A.Ş.

ITC Antalya Biomass Facility

5,6

0

Under Evaluation

GRC RÜZGAR ENERJİSİ ÜRETİMİ SANAYİ VE TİCARET LİMİTED ŞİRKETİ

Çavuşcugöl BES

3

0

Under Evaluation

HASAT ELEKTRİK ÜRETİM ANONİM ŞİRKETİ

Atak Hasat Biogas Facility

2,126

0

Under Evaluation

MYK ENERJİ ELEKTRİK İNŞAAT HAYVANCILIK TAAHHÜT VE TİCARET LİMİTED ŞİRKETİ

MYK Biogas

1,2

0

Under Evaluation

YENİ ADANA İMAR İNŞAAT TİCARET A.Ş.

ASKİ-Batı Waste Water Biogas Facility

2,003

0

Under Evaluation

İSTAÇ İSTANBUL ÇEVRE YÖNETİMİ SAN. VE TİC. A.Ş.

Hasdal

4,024

4,024

Under Evaluation

KAYEN DELTA ENERJİ ELEKTRİK ÜRETİM SANAYİ VE TİCARET A.Ş.

GAP Biomass-to-Energy Facility

4,85

0

Under Evaluation

BIOENER GRUP MADENCİLİK ENERJİ ÜRETİM SANAYİ VE TİCARET LİMİTED ŞİRKETİ

Tarsus YBS Biomass-to-Energy Facility

6,722

0

Under Evaluation

NAR BİYOENERJİ ÜRETİMİ VE YATIRIMLARI LTD. ŞTİ.

Nar Bioenergy Facility

1,5

0

Under Evaluation

ŞAHİN PAMUK ENERJİ SANAYİ VE TİCARET LİMİTED ŞİRKETİ

Şahin Renewable Energy Facility

4

0

Under Evaluation

MODERN BİYOKÜTLE ENERJİSİ ELEKTRİK ÜRETİM ANONİM ŞİRKETİ

Modern Biomass-to-Energy Facility (MOBES)

6

0

Source: EMRA (2013)

40

3.5. POTENTIAL INVESTMENT AND COOPERATION OPPORTUNITIES WITHIN THE INDUSTRY 3.5.1. In the Public Sector Today, in the Turkish waste management and waste water treatment industry, Public–Private Partnership (PPP) is the most common investment and cooperation structure with regard to the public sector. A PPP is a scheme where a government service or private business venture is funded and operated through a partnership of government and one or more private sector companies. That is, it refers to a contract between a public authority and a private company, in which the private company provides a public service or project and therefore faces substantial financial, technical and operational risk in the project and investment risk.

Today, the existing PPP schemes in Turkey’s waste management and waste water treatment industry can be mainly divided into four parts: Construction, Operation, Finance and Ownership.

Table 3.9 contains the elements of various existing PPP schemes in Turkey.

Table 3.9: Elements of various existing PPP schemes in Turkey

PPP SCHEME

OUTSOURCING

Construction

Construction of asset by private company

Operation

Operation of service

X

Capital investment financed by private operator Finance

Ownership

PFI X

X

X

X

X

X

Recouped by user charges

X

Recouped by contract from municipality

X

X

Public during and after contract

X

X

Private during contract, public after

CONCESSION

LEASE

BOT X

X

X

X

X

X

X

X

X

X

Private indefinitely

Outsourcing of services refers to a contract to operate a specific service without any construction or financing of a capital investment.

Private finance initiative (PFI) projects incorporate usually long-term contracts for services that include the finance and construction of associated facilities or properties. In a PFI agreement, the private company has responsibility for financing and constructing the building or facility and maintaining and servicing it throughout the lifetime of the contract, which are usually decades, while the asset itself remains owned by the public sector.

A public concession involves an exclusive right of a private company, granted by the government or local authority, to use a public utility such as land, property or water for a given number of years.

41

In a Leasing contract a private company does not make its own investments, but operates and maintains the system for the municipality, financed by the users, as for example, payment for waste water charges for each consumed m3 of water.

A Build-Operate-Transfer (BOT) refers to a scheme where the investment asset is built and owned by the company for the period of operation, and later transferred to the public sector.

Some typical investment and cooperation opportunities for PPP schemes between (Metropolitan) municipalities and private companies are: 









Outsourcing: , - Operation of composting plants, - Operation of recycling plants, - Operation of waste disposal plants, - Operation of waste incineration plants, - Operation of a waste water treatment plants.

PFI: - Operation and maintenance of composting plants, - Operation and maintenance of recycling plants, - Operation and maintenance of waste disposal plants, - Operation and maintenance of waste incineration plants, - Operation and maintenance of a waste water treatment plants.

Concession: - Right to use land of a local authority to build and operate a waste-to-energy plant for a lifetime of several decades, - License for energy production, - License for collection of waste oil, - License for recycling, - License for waste incineration, - etc.

Leasing: - Operating and maintaining of a municipality’s waste water treatment facility by collected waste water charges.

BOT: - Integrated solid waste management and waste-to-energy facility, - Industrial waste water treatment facility, - Municipal waste water treatment facility,

Below, some business cases for PPP’s in the Turkish waste management and waste water treatment industry will be highlighted.

Concession contracts between governmental authorities and private investors of waste-to-energy projects for the rental of public land and license for energy production with a capacity of more than 1MW Concession contracts for the rental of public land between local authorities and private investors for the establishment of waste-to-energy facilities and, in the case where the plant’s capacity exceeds 1MW, the holding of energy production licenses from EMRA to receive the guaranteed feed-in-tariff of 13.3 US$ct / kWh (see Section 4.2.) are a must for private investors.

Also in cases where waste-to-energy facilities will be established in originally private lands, these have first to be expropriated and handed over to the public sector where these are then rented from by the private investors for 49 years. The duration of energy production licenses from EMRA vary from 10-49 years, depending on the regulations in the Electricity Market Law No. 6446 (see Section 4.2.).

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Hence, in concession contracts, the payment of rental fees is the only contractual relationship between public authorities and private companies, such that at the end of the lifetime of the contracts, these can be extended, renewed or terminated. All the other issues with regard to costs, financing and revenues generation from the project are under full responsibility of the private investor.

The whole list of companies which have received their energy production licenses from EMRA can be found in Table 3.8 in Subsection 3.4.2..

BOT contracts between (Metropolitan) municipalities and private investors of integrated solid waste management and waste-to-energy facilities More and more (Metropolitan) municipalities are observed to waive their responsibility for the entire process of municipal solid waste management (i.e., collection, transportation, separation, recycling, composting, disposal) and tend to reduce their waste management activities only to the collection and transportation of waste and transfer the responsibility for the other waste activities to the private sector. Private companies increasingly see the lucrative business potential of integrating municipal solid waste management activities with the production of energy from waste.

Concretely, in this more and more establishing business model, (Metropolitan) municipalities and private investors enter into a BOT contract, where via public tenders (Metropolitan) municipalities rent their landfill land (i.e., area) for 30 years for free and pass on their waste management duties to the private investors, who construct, finance and operate on their own behalf an integrated waste management and waste-to-energy facility during the lifetime of the BOT contract. In some cases, a BOT contract can be designed or continued as a BOC (Build-Operate-Carry) contract to carry on the business operations.

An integrated solid waste management and waste-to-energy facility mainly includes the controlled landfill site, units for separation of the inorganic waste and organic waste, in some cases recycling units, aerobic digesters which biogas and highquality compost result (see Subsection 3.3.2.1.3.) and biogas engines which is then burned to produce electricity and heat. If units are available, the inorganic waste is recycled and won back as raw material for the industry again and the non-recyclable part are sold to the heavy (e.g., cement) industry as fuel.

Hence, the private investors take over the municipal solid waste brought by trucks of (Metropolitan) municipalities to the integrated waste management site, where they are responsible apart from for its separation, handling and disposal. In return to the renting of land for free to the private investors, (Metropolitan) municipalities require a certain percentage, which, actually, is about is 7-10%, of the total produced electricity given to them for free during the lifetime of the BOT contract.

Therefore, in addition to the electricity received for free, the main benefit for (Metropolitan) municipalities is the minimization of their waste activities to solely collection and transportation, whose costs are covered by the collected garbage tax of their residents, and thus passing on the responsibility for waste disposal, recycling and recovery activities to the private sector which continuously bring in know-how, technology innovation, expertise efficiency and cost optimization. The (Metropolitan) municipalities are no more involved with properly preparing the landfill area, embedding the objects coming there, covering them etc., which are all individual cost components. Or, in other words, for (Metropolitan) municipalities, the there are no other resulting costs (i.e., financing needs) than for waste collection and transportation.

The return for their investment in the integrated waste management and waste-to-energy facility for the private investors are received through the    

sales of electricity at the guaranteed feed-in-tariff of 13.3 US$ct / kWh to the National Grid (see Section 4.2.), sales of the resulting heat to neighbored shopping malls, schools, universities, governmental institutions, sites etc., sales of the recycled waste won back as raw material and non-recycled waste used as fuel by companies from the heavy industry and sales of the generated carbon credits in the global carbon market.

Some selected business examples for such PPP’s in the form of concession agreements are those between 

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Istanbul Metropolitan Municipality and Ortadogu Enerji,

    

Ankara Metropolitan Municipality and ITC64, Municipality of Bolu and CEV Marmara65, Municipality of Tekirdag and Ekolojik Enerji, Municipality Denizli of and Bereket Enerji, Municipality of Kirikkale and Zarif Enerji.

The private companies hereby mostly form JV / partnerships and finance the projects by their own equity and funds from national or international financial institutions (see Subsection 2.5.2.).

Hence, the main contractual terms and conditions to be discussed and agreed in business negotiations with regard to concession contracts is the percentage rate of free electricity in return for (Metropolitan) municipalities and in some cases, also the additional financial assistance of (Metropolitan) municipalities to private investors to realize, operate and maintain the project by the collected taxes from the residents for waste disposal and recovery services. By law, (Metropolitan) municipalities are allowed to collect a maximum of monthly 2 TL per subscriber for the investment in this kind of services (see Section 3.2. and Chapter 4).

The main reasons why these business examples are classified as BOT contracts and not as concession contracts, as in the previous business examples, are that the private companies are in continuous business relationships with (Metropolitan) municipalities by daily receiving their municipal solid waste, have to pay returns in form of electricity provided for free to (Metropolitan) municipalities, if applicable, receive some financial assistance from (Metropolitan) municipalities and have to pass on the whole facility to (Metropolitan) municipalities after the lifetime of the BOT contract.

BOT contracts between (Metropolitan) municipalities and private companies for municipal waste water treatment facilities Especially, in the Turkish waste water treatment industry, BOT agreements between (Metropolitan) municipalities and private companies are gaining increasing importance, where the built operated waste water treatment facility by the private company is reverted back to (Metropolitan) municipalities at the end of the lifetime of the BOT contract which is varies from some years to several decades, depending on the size of the project.

In the BOT business model, the private companies construct the waste water treatment facilities and bring in know-how, technology, material, machinery and equipment which are fully or partly financed by them. That is, in addition to the financing part from (Metropolitan) municipalities, which make use of their own equity and / or debt from international financial institutions (see Section 6.4.), private companies, mainly construction companies, finance the projects with their own equipment and know-how and in response, after the establishment of the waste water treatment facility, they are contractually allowed to operate it for some years to achieve return on their investments. The revenues from the collection of waste water payments from their residents by (Metropolitan) municipalities are given to the private company during the lifetime of the BOT contract.

Some selected business examples for such PPP’s in the form of BOT contracts are those between   

Adana Metropolitan Municipality and Va Tech Wabag66, Serco Group67, Yüksel Construction and Ener Construction (BOT contract with a three-year operational phase), Municipality of Dilovasi and TASK (BOT contract lifetime of 29 years), Isatnbul Metropolitan Municipality and WTE68.

Outsourcing and PFI contracts between (Metropolitan) municipalities and private companies for municipal waste water treatment facilities In particular, when a waste water treatment facility has been handed over to (Metropolitan) municipalities by private companies at the end of the lifetime of a BOT contract, (Metropolitan) municipalities enter into outsourcing agreements with Swiss / Turkish partnership Korean / Turkish partnership 66 Austrian company as consortium leader 67 UK company 68 German (RWE) / Turkish partnership 64 65

44

private companies, specialized in operation, or into PFT agreements with those, specialized in both operation and maintenance of waste water treatment facilities. Outsourcing or PFI contracts for the operation and / or operation and maintenance of waste water treatment facilities of (Metropolitan) municipalities usually last about 10-15 years.

A selected business example for such a PPP in the form of an outsourcing agreement for waste water operation is that one between 

Bursa Metropolitan Municipality and Remondis S-Y69.

3.5.2. In the Private Sector Joint Venture (JV) / partnership is the most common investment and cooperation structure and initiatives in Turkey’s private sector. Private finance (debt and equity) is increasingly being considered as the major financing instrument for waste management and waste water treatment projects in Turkey. Especially entrepreneurs, financiers providing equity, construction companies and supply companies make use of this cooperation form by mobilizing needed investment funds and by bringing in know-how, expertise, technology, machinery and equipment, skills, efficiency, financial and managerial autonomy, a hard budget constraint and many other positive effects of cooperation. In addition to the provision of equity, waste management and waste water treatment projects are mainly financed with loans both from domestic and international banks and other international financial institutions (see Section 6.4.).

Especially, there is an increasing trend between Turkish companies entering in PPP’s (see Subsection 3.5.2.) with municipalities or local authorities for waste management and waste water treatment projects, and establishment of JV / partnerships between the Turkish and foreign private companies. Besides the various positive synergy effects of a cooperation mentioned, this could be also due to the reasons that foreign companies are not always allowed to directly take part in public tenders.

Moreover, industrial companies establishing waste disposal and recovery units of their solid waste in their manufacturing facilities, increasingly form JV / partnerships with a private company bringing in expertise in integrated waste management technology, engineering and project management. The same is also true for industrial companies, discharging their waste water and establishing waste water treatment units at their manufacturing facilities.

In addition to JV / partnerships, of course, also full ownership of a local or foreign company is possible, being solely responsible for financing the waste management or waste water treatment projects. In case of foreign companies, this could be the expansion of their businesses to Turkey, by founding a local subsidiary, governed under Turkish business law and registration.

Joint R&D initiatives / cooperation between a local (Turkish) company and one or more foreign companies, where diverse grant-type and credit loan-type funding mechanisms are available in Turkey, gain more and more importance (see Subsection 6.4.).

Of course, besides JV / partnerships, another established business cooperation form in Turkey is subcontracting for the provision of project management, advisory, engineering or any other form of services, or supply of services, machinery and equipment with regard to waste management and waste water treatment.

Below, some successful business cases in the private sector regarding the Turkish waste management and waste water industry will be highlighted.

JV / Partnerships in other than municipal waste waste-to-energy business concepts Whereas JV / partnerships in waste-to-energy production from municipal solid waste is gaining increasing importance in Turkey (see Subsection 3.5.1.), in general, energy production from agricultural waste, manure and poultry litter is still in the beginning and development status, hence, representing a high market and business potential in Turkey.

69

German / Turkish partnership

45

Some initiatives have been launched to build an integrated facility including a breeding farm, units / systems for manure collection, anaerobic digesters (see Subsection 3.3.2.1.3.), due to wet content of manure, and biogas engines to produce heat and electricity for own use and / or selling to third parties.

Also, some JVs / partnerships and initiatives, based on the union of several entrepreneurs under a new founded company, have started to invest in the biomass-to-energy market, where, due to their rather dry content, poultry litter and agricultural waste are increasingly used to produce heat and electricity from thermo-chemical methods such as gasification or pyrolysis (see Subsection 3.3.2.1.3.). Today, poultry litter is in mainly dumped into open areas very near to villages, causing a bad odor for the region, releasing methane gas to the atmosphere and resulting in a high explosion risk. Additionally, the groundwater in the region is threatened. The JV / partnership companies finance the projects by their own equity and mostly combined with debt, received from local commercial banks, international financial institutes or programs such as TurSEFF or MidSEFF (see Section 6.4.). JV / partnership companies own and are fully responsible for the project design, management and its realization and are exposed to business risk. All the contracts are between them and the suppliers of machinery and equipment and, providers of advisory services.

The general agreements between chicken breeders and investors of biomass-to-energy plants is that the latter guarantee to clean the chicken coops for free and pick up the poultry litter by trucks directly from the chicken coops, thereby relieving the chicken breeders from their waste concerns. In contrast, the investors pay a certain amount of money, which is actually 5-15 US$ for each received ton of poultry litter. The lifetime of the supply contracts are mainly 10 years.

The return for their investment in the biomass-to-energy facility for the private investors are received through the    

sales of electricity at the guaranteed feed-in-tariff of 13.3 US$ct / kWh to the National Grid (see Section 4.2.), sales of the resulting bio-char for organic and sustainable farming practices, sales of the resulting pyrolytic oil in the biofuel refinery market, sales of the generated carbon credits in the global carbon market.

Some selected business examples for JV / partnerships are  

Derin Enerji (Beypazari Biomass-to-Energy Facility, Province of Ankara), Karaman Yenilenebilir Enerji (Karaman Biomass-to-Energy Facility, Province of Karaman).

Full ownership / expansion of the business activities to Turkey Especially large foreign multinational conglomerates, having a strong financial structure, increasingly invest in Turkey directly, without entering any JV / partnerships, to enlarge their business activities and use the Turkish market potential in their sectors. For that purpose, they found a local company, governed by Turkish business law, but fully own the shares of the company. Due to regulatory purposes, but also to establish their advanced business and regulatory standards as well as technologies existing in their countries, foreign companies with a local presence increasingly target to be pioneer companies.

A good business example is the yeast producer Mauri Maya, a local subsidiary of AB Mauri70, which fully treats its resulting waste water from the yeast manufacturing process with the advanced waste water treatment method, thereby fully fulfilling regulatory requirements and even applying EU standards.

70

AB Mauri is a daughter company of the Associated British Foods, a worldwide leading food company.

46

4. The Regulatory Drivers for Waste & Renewable Energy from Waste 4.1. MAIN REGULATORY STAKEHOLDERS Ministry of Environment and Urbanization (MoEU) The Ministry of Environment and Urbanization (MoEU) is the principal regulatory stakeholder in Turkey with the objective of defining and setting strategic plans, secondary legislation, nation-wide policies, operational plans and actions with regard to waste management and waste water treatment and is responsible for their real-world implementation. MoEU also specifies the technical standards, issue licenses for waste management and waste water treatment facilities, manages their licensing process, takes precautionary measures and is responsible for their assessing, auditing and monitoring. Moreover, MoEU sets and implements financial incentives for the stimulation of the waste management and waste water treatment sector and has also created the “EU Integrated Environmental Approximation Strategy for Turkey (2007-2023)” (see Section 4.2).

Ministry of Development (MoD) The Ministry of Development (MoD) is an important regulatory stakeholder with the objective of setting national consolidated development plans for Turkey from a macro perspective to further stimulate economic, social and cultural development in Turkey. MoD sets annual, medium- and long-term programmes, investment plans and overall targets in coordination and with the support of the corresponding ministry(ies) for the Turkey’s various sectors, including the waste water and waste water treatment sector. The “Development Plans” (see Section 4.2), periodically published by MoD, contains all infrastructure public investments. MoD is also responsible for the administration and appraisal of public investments in accordance with development plans, annual programs and strategy documents. In that sense, the projects of provincial and Metropolitan municipalities that need foreign loan are also assessed by MoD and the feasible one(s) are included into the public investment portfolio.

Municipalities Municipalities and Metropolitan municipalities are by law in public charge and have the sole responsibility for the implementation of waste management and waste water treatment services for domestic type of waste and waste water from households, industries or commercial enterprises.71,72,73,74,75 They can either provide these services themselves, or assign other companies or institutions to provide these services. During the disposal activities, damage on the environment has to be avoided, the maximal use of the landfills ensured as well as the classification and separation of recyclable solid waste done.

Energy Market Regulatory Authority (EMRA) The Energy Market Regulatory Authority (EMRA) is responsible for setting and implementing energy regulations and notifications, based on laws with regard to energy passed by the Turkish Parliament. EMRA is also responsible for auditing and monitoring as well as issuing energy generation licenses and managing the licensing process for energy projects above 1 MW. Thus, in that sense, EMRA is an important regulatory stakeholder for biogas-producing waste management and waste water treatment projects where electricity is generated from and then sold to the National Grid for a regulatory guaranteed feed-intariff, specified in detail for each type of renewable energy (see Section 4.2).

Ministry of Energy and Natural Resources (MoENR) The Ministry of Energy and Natural Resources (MoENR) is an important regulatory stakeholder with the objective of defining targets and policies with regard to guaranteeing security of energy supply, restructuring the energy market on a competitive transparent basis, identifying, utilizing and developing domestic and renewable resource potentials, making use of energy Law on Environment No. 2872: http://www.ttb.org.tr/mevzuat/?option=com_content&view=article&id=49:vre-ka..

Regulation on Solid Waste Control: http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=7.5.8132&sourceXmlSearch=&MevzuatIliski=0 Regulation on Water Pollution Control: http://mevzuat.basbakanlik.gov.tr/Metin.Aspx?MevzuatKod=7.5.7221&sourceXmlSearch=&MevzuatIliski=0 74 Municipality Law No. 5393: http://www.tbmm.gov.tr/kanunlar/k5393.html 75 Metropolitan Municipality Law No. 5216: http://www.tbmm.gov.tr/kanunlar/k5216.html 71

72

73

47

efficiency and new energy technologies as well as supplying its diverse available natural minerals to the domestic or global market. In that sense, MoENR is responsible for designing policies and operational and strategic plans with regard to the development of renewable energy market in Turkey which the production of electricity and heat from biogas, generated from waste, belongs to. By this means, MoENR periodically defines periodical strategic plans, of which the “Strategic Plan 20142014” is the actual valid one (see Section 4.2).

General Directorate of Renewable Energy (YEGM) The General Directorate of Renewable Energy (YEGM) of MoENR is the operational and central directorate with regard to each specific type renewable energy, energy efficiency, clean technologies and climate change issues, policies and actions.

Turkey Electricity Transmission Company (TEIAS) The Turkey Electricity Transmission Company (TEIAS) is a related institution of MoENR, which is has a crucial role for investments in power projects with regard to the connection of the produce electricity to the National Grid. In that sense, for biogas-producing waste management and waste water treatment projects where electricity is generated from and then sold to the National Grid, it is a must for each investor to receive a connection (i.e., capacity) approval letter from TEIAS for the corresponding electricity delivery point of the National Grid (transformator station).

Ministry of EU Affairs The Ministry of EU Affairs is assigned with the coordination role between the various governmental institutions and EU with regard to Turkey’s EU integration and harmonization activities. These are all based on the “Turkish National Program for the Adoption of the EU Acquis”. In line with this Program and objective of Turkey’s EU accession, amongst others, most of the national regulations with regard to waste management and waste treatment services have been adopted to the existing EU regulations (see Section 3.2.1).

Local Authorities The local authorities are in charge of ensuring the protection of environmental quality in provinces or districts. They are also assigned with the duty of waste management and waste water treatment within the framework of laws and regulations, are mandated to ensure the implementation of legal arrangements, issue the various permits and opinion letters, which are relevant for the implementation of waste- and waste water-related projects, and take suitable measures for ensuring a healthy environment for the population within their responsibility territories.

Ministry of Science, Industry and Technology (MoSIT) The Ministry of Science, Industry and Technology (MoSIT) is responsible for promotion and development of Basic and Applied Research, industrial activities, products and services and local technology with regard to waste management and waste water treatment. Moreover, MoSIT is in charge for supporting and controlling the of small- and large-scale industries, designs standards for industrial and technological products or publishes the designed standards, and is responsible for the controlling of quality of industrial and technological products and services. MoSIT also gives credit loans and grants for small and medium-sized enterprises for the development and market introduction of new products, services, processes and technologies.

MoIST in co-ordination of MoEU and MoD also defined the “National Strategy and Action Plan for Recycling 2013-2016” (see Section 4.2).

Turkish Standards Institution (TSE) The Turkish Standards Institution (TSE) of the Prime Ministry has the objective of preparing standards for each kind of product or service and is responsible for their certification. The TSE is an official trademark. That is, only the standards that have been accepted by TSE receive the name of Turkish Standards. TSE is a full member of International Organization for Standardization (ISO), International Electrotechnical Commission (IEC), and affiliate member of European Committee for Standardization (CEN) and European Committee for Electrotechnical Standardization (CENELEC). TSE is also a member of World Packaging Organization (WPO) and is a signatory to the Code of Good Practice contained in the World Trade Organization (WTO) Agreement on Technical Barriers to Trade and acts as the National Enquiry Point in connection with standards under the said Agreement. Moreover, TSE is in line with internationally accepted trademarks such as the CE Mark for health and safety, constituted in the EU. Thus, amongst others, the Turkish Standards Institution (TSE) is in charge of defining and setting standards for waste management and waste water treatment products and services.

48

Ministry of Interior (MoI) The Ministry of Interior (MoI) is responsible for the administrative process of developing, monitoring and controlling of policies, activities and structures concerning local authorities, and any regulations and policies with regard to (Metropolitan) municipalities.

Ministry of Health (MoH) The Ministry of Health (MoH) is in charge of monitoring, auditing and ensuring compliance with its mandate on public health and is formally approved to issue permits for waste disposal areas.

Bank of Provinces (Ilbank A.S.) The Bank of Provinces (Ilbank A.S.), as a governmental development and investment bank, provides technical and financial support for (Metropolitan) municipalities for waste management and waste water treatment projects and could act as credit guarantor.

Ministry of Transport, Maritime Affairs and Communication The Ministry of Transport, Maritime Affairs and Communication has the responsibility for establishing and developing of transport, maritime and communication systems and services according to Turkey’s needs. In that sense, Ministry of Transport, Maritime Affairs and Communication issues the authorization documents for waste transportation.

Undersecretariat of Treasury The Undersecretariat of Treasury (Treasury) of the Prime Ministry is responsible for the follow up and finalization of credit negotiations where external financing from other countries is provided for projects related with the waste management and waste water treatment services.

Ministry of Economy (MoE) The Ministry of Economy (MoF) is mainly in charge of analyzing and forecasting Turkey’s economic and foreign trade activity as well as designing and setting economic incentive mechanisms to promote the various economic sectors in Turkey such as tax reliefs or payment of social security and energy / fuel for people or organizations. In that sense, analysis and revision of legislation concerning waste trading (import-export) or the establishment of financing support mechanisms based on the investment cost of waste management and waste water treatment projects of are done by MoE. KOSGEB The Small and Medium-sized Enterprise Development and Support Organization (KOSGEB) of MoSIT has the responsibility for supporting projects and providing project finance to small- and medium-sized enterprises in order to facilitate the financing of projects, their market entry and launch of initiatives, which is also true for the waste management and waste water treatment sector.

KIK The Public Procurement Authority (KIK) of the Prime Ministry is responsible for any procurement held by public authorities and institutions. In that sense, KIK is responsible for the public procurement of all goods, services or works with regard to the waste management and waste water treatment sector.

Ministry of Finance (MoF) The Ministry of Finance (MoF) is in charge for agreements and collection of taxes, and their follow-up. In this regard, MoF is responsible for the preparation of the legal agreements for financing waste management and waste water treatment projects.

4.2. REGULATORY FRAMEWORK AND LEGISLATIVE REQUIREMENTS The access to waste management and waste water treatment services are viewed as the right of every person in Turkey and therefore indispensably for the sustainable development of Turkey. Moreover, Turkey’s objective of an EU accession has further increased the awareness and setting of policies, action plans and strategies with regard to environment.

49

Today, 80% of Turkey’s population is living in the cities, whereas for the rest of the world, this is 50%. 76 In the next 30 to 35 years, the world population is expected to rise to 9 billion, 75% of the world population is then expected to live in cities, whereas the percentage of urban population in Turkey is expected to rise to 90%.

“Strategic Plan 2013-2017” of MoEU The actual “Strategic Plan 2013-2017” of MoEU has four strategic objectives consisting of detailed targets for each of them77.

For waste management and waste water management issues, “Objective 2 - Preventing environmental pollution, raising environmental standards, combating climate change and improving its natural assets” with the following targets are of importance.  Target 2.1: Until the end of 2017, at least 85% of the municipal population will be provided with waste water treatment services.

Strategy: Waste water treatment plants will be design and their construction supported.

In 2002, 248 out of 3227 municipalities were served by 145 waste water treatment plants, whereas in 2012, 530 out of 2950 municipalities were served by 428 waste water treatment plants. In terms of population, in 2002, 35% of the municipal population was served by municipal waste water treatment services, whereas in 2012, this rate increased to 72%. Until the end of 2017, approval for 460 waste water treatment plant projects will be made. Furthermore, the number of waste water treatment facilities receiving energy incentives is targeted to increase to 500. For municipalities with a population size less than 10,000 waste water treatment plant (AAT) type projects, incorporating an appropriate treatment processes and technologies and working with extended aeration activated sludge systems (biological treatment).

Since 2007, many settlements under IPA for the waste water treatment plant projects are in progress. Some of them are in the construction, some in the project and some in the feasibility phase. Furthermore, there are also projects available, belonging to municipalities which get financial support from EU funds and are not covered by IPA. According to the Regulation on Procedures and Principles of Taking Advantage of Incentive Measures of Waste water Treatment Plants in Line with Law on Environment No. 2872, Article 29, in order to increase the water quality of the receiving environment, waste water treatment administrations, establishing, operating chemical, biological and advanced waste water treatment plants, and after fulfilling the obligations specified in the regulation, discharging to the receiving environment or re-using the treated waste water, will receive financial incentives such as mitigation of operating costs or encouraging the operation of treatment plants. Waste water treatment plants, operated in line with the regulation, get 50% of their energy costs back from MoEU. Table 4.1 and Figures 4.1-4.3 contain the strategic yearly performance indicators concerning municipal waste water treatment for the whole period 2013-2017.

Table 4,1: Performance indicators with regard to municipal waste water treatment

ACTUAL

2013

2014

2015

2016

2017

Ratio of municipal population receiving waste water treatment services (%)

72

75

77

80

82

85

Number of establishments benefiting from the payment of 50% of the energy bills

212

260

340

390

440

500

1’890

1’950

2’050

2’150

2’250

2’350

60

100

100

100

100

As the end of each year, number of waste water treatment plant projects to be approved Number of waste water treatment project approvals per year * indicates the cumulative increase at the end of each year Source: Strategic Plan 2013-2017 of MoEU

76 77

http://www.csb.gov.tr/gm/cygm/index.php?Sayfa=haberdetay&Id=6252

http://www.csb.gov.tr/db/turkce/editordosya/stratejikplan/stratejikplan.html

50

Figure 4.1: Ratio of municipal population served by waste water treatment services (%)

Figure 4.2: Number of project approvals (cumulative)

90

3000 85

2350

2500

85

1890

2000

80

1500 75

72

1000

70

500

65

0 Actual

Target

Actual

Target

Figure 4.3: Number of companies making use of the energy incentive

600 500 500

440 390

400

340 260

300 212 200 100 0 Actual

2013

2014

2015

2016

2017

 Target 2.2: Until the end of 2017, all of the existing waste infrastructure facilities will be improved and at least 85% of the population will be provided with waste disposal services, at least 50% of recoverable waste will be separated at its source and at least 75% of it will be recycled…”

-

Strategies:  The number of landfill facilities of solid waste will be increased.  Waste receiving centers will be established.  Dual-collection system will be introduced.

Until 2013, the number of controlled landfill facilities for solid waste was 15, increasing to 38 in 2008, and to 41 in 2009. In 2012, the number of controlled landfill facilities for solid waste reached 69, serving a total of 903 municipalities for 44.5 million people. In order to ensure an integrated waste management, the number of solid waste disposal facilities, which belong to the category of infrastructure facilities, is targeted to be increased to 130. Accordingly, until the end of 2013, the number of controlled landfill facilities is targeted to increase to 80, and at the end of 2017 to 130.

Regulations with regard to waste bringing centers will be completed. Primarily beginning with municipalities with population of 400,000 and more, waste collection centers will be established, waste which will be collected at the points and can be reused, will be offered / tendered for re-use, recycling possibilities increased as well as education and awareness-raising activities with regard to waste reduction at source and its separate collection. At the end of 2013, in 37 municipalities which have a

51

population of more than 400.000, and at the end of 2017, in 550 municipalities which have a population of more than 10.000 waste bringing centers will be established. Especially, in small municipalities, by applying of economies of scale, waste bringing centers regarding union model and bulk solution will be encouraged. In 2013, 6 Metropolitan municipalities will establish the dual collection system and at the end of 2017, 63 municipalities.

Table 4.2 and Figures 4.4-4.7 contain the strategic yearly performance indicators concerning municipal waste management sector for the whole period 2013-2017.

Table 4.2: Performance indicators with regard to municipal waste management

ACTUAL

2013

2014

2015

2016

2017

69

79

89

99

114

130

10

10

10

15

16

Number of solid waste landfills (cumulative) Number of solid waste landfills per year Ratio of population receiving landfill services (%)

60

65

70

75

80

85

Number of municipalities which will establish waste bringing centres (cumulative)

0

37

88

142

236

550

Number of municipalities which will establish waste bringing centres per year

0

37

51

54

94

314

Number of municipalities traversed to dualcollection system (cumulative)

0

6

16

37

50

63

Number of municipalities traversed to dualcollection system per year

0

6

10

21

13

13

Source: Strategic Plan 2013-2017 of MoEU

Figure 4.4: Ratio of population receiving controlled landfill services (%)

Figure 4.5: Number of solid waste controlled landfills

100

150

130

85 80 100

60 60

69

40

50

20 0

0 Actual

52

Target

Actual

Target

Figure 4.6: Number of waste bringing centres

600

550

Figure 4.7: Number of dual-collection systems 80 63

500 60

400 40

300 200

20

100 0

0

0

0

Actual

Target

Actual

Target

Turkey’s “2023 goals” To the 100th anniversary of the Turkish Republic in 2023, the Turkish Government has set the “2023 goals”, where for 2023, for various economic sectors and areas in Turkey strategic goals are propagated. According to these “2023 goals”, there will be no more any waste water which has been not treated, and all the citizens living in municipalities will be provided with waste management services. Moreover, it is aimed to go towards the use of more advanced technologies, such as the energy production from solid waste and recycling of solid waste.

Today, the rate of population served by municipal waste services in total population is 83% and 72% of total municipal population is receiving waste water treatment services. Thus, according to the “Strategic Plan 2013-2017”, but particularly, according to Turkey’s “2023 goals” policies, actions and incentives will be set by the Turkish Government in order to close the gaps and achieve these goals.

Figure 4.8 shows the combined target 2017 in the “Strategic Plan 2013-2017” with Turkey’s “2023 goals” regarding the ratio of population receiving waste water treatment services, and Figure 4.9 illustrates the actual situation and Turkey’s 2023 goal with regard to the rate of population receiving municipal waste services.

Figure 4.8: Rate of municipal population receiving waste water treatment services (%)

100 80

85

100

Figure 4.9: Rate of population served by municipal waste services in total population (%)

100

100

83

72

80

60

60

40

40

20

20

0

0 Actual

Target 2017

2023 goal

Actual

2023 goal

“EU Integrated Environmental Approximation Strategy for Turkey (2007-2023) (UCES)” Another important institutional framework is the “EU Integrated Environmental Approximation Strategy for Turkey (20072023) (U ES)”, prepared by MoEU, which is in line with the “National Program for the Adoption of the EU Acquis (NPAA)”

53

under the administration of the Ministry of EU Affairs. U ES is a strategic document, as a prerequisite for Turkey’s EU accession, which contains detailed information with regard to technical and institutional infrastructure gaps, mandatory environmental improvements, governmental actions, policies and investments needed to ensure full harmonization and compliance with EU environmental acquis. UCES addresses several environmental sectors.78 In the following, it will be focused on the waste management and waste water treatment sector.

According to UCES, regulations which require high levels of investments for their implementation are the Regulation on Landfilling, Regulation on Hazardous Waste, Regulation on Packaging Waste, Regulation on Waste Incineration and Regulation on Urban Waste Water Treatment (see Subsection 3.2.1). UCES contains costs, objectives, targets and strategies for these regulations, however, it does not include the implementation of regulations which need investments for the private sector such as the Regulation on Control of Waste Oils, Regulation on Control of Waste Batteries and Accumulators, Regulation on Control of End of Life Vehicles, Regulation on Control of Waste Electrical and Electronic Components and Regulation on Control of PCBs and PCTs. For the period 2007-2023, Turkey has total investment needs in the amount of 58.59 billion Euros in order to fully implement the environmental standards according to EU legislation. The investment needs for the period 2007-2023 with regard to municipal waste management and waste water treatment are illustrated in Table 4.3 and Table 4.4, respectively.

Table 4.3: Investment needs based on regulations with regard to the waste management sector (in Mio. EUR), 2007-2023

TOTAL 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Landfilling Packaging Incineration Hazardous Waste TOTAL

7‘582 200

245

345

345

345

400

425

475

500

500

500

500

550

550

550

550

602

40

41

40

41

41

41

41

41

41

41

41

41

41

41

41

41

1‘257

89

89

89

90

90

90

90

90

90

90

90

90

90

90

74

4

4

4

5

5

5

5

6

6

6

6

6

6

6

478

479

534

561

611

636

636

637

637

687

687

687

687

739

654

9‘567 200

286

386

Source: EU integrated environmental approximation strategy for Turkey (UCES) (2007 - 2023)

Table 4.4: Investment needs based on regulations with regard to the waste water treatment sector (in Mio. EUR), 2007-2023

TOTAL 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 WWT

4‘983 229

230

230

232

191

219

277

278

373

335

356

372

273

278

260

450

400

Network

3‘838 149

150

171

168

214

183

117

163

194

269

268

255

368

362

322

242

243

WWT Renewal

1‘539

50

56

61

66

71

76

81

86

91

96

100

105

110

115

120

125

130

Network Renewal

7‘723 259

281

308

332

357

381

405

430

454

479

503

528

552

577

601

626

650

18‘083 687

717

770

798

833

859

880

957 1‘112 1‘179 1‘227 1‘260 1‘303 1‘332 1‘303 1‘443 1‘423

TOTAL

Source: EU integrated environmental approximation strategy for Turkey (UCES) (2007 - 2023)

In detail, Table 4.3 lists the investment needs for the closure of old dumping sites, construction of new landfills (for the disposal of hazardous and domestic solid waste), establishment of separate collection systems for dual collection and recyclable 78

http://www.ab.gov.tr/files/ardb/evt/2_turkiye_ab_iliskileri/2_2_adaylik_sureci/2_2_8_diger/ab_entegre_cevre_uyum_stratejisi.pdf

54

wastes, construction of compost facilities, construction of incineration facilities (for hazardous waste and domestic solid waste in Metropolitan municipalities, when needed and where land area is limited).79 However, the costs in Table 4.4 do not incorporate technological adaption. These have to be revised according to technology preferences considering the requirements of the country.

The total investment needs for the period 2007-2023 with regard to landfilling are 7.58 billion Euros, packaging 665 million Euros, incineration 1.26 billion Euros and hazardous waste 74 million EUR, resulting in total investment needs for the municipal waste management sector of 9.57 billion Euros, which are 16.34% of Turkey’s total investment needs.

The total investment needs for the period 2007-2023 with regard to waste water treatment (WWT) are 4.98 billion Euros, establishment of network 3.84 billion Euros, WWT renewal 1.54 billion Euros and network renewal 7.72 billion Euros, resulting in total investment need for the municipal waste water treatment sector of 18.08 billion Euros, which are 30.86% of Turkey’s total investment needs.

Another important topic in the UCES is the industrial pollution control sector. Although the regulations have mainly been adapted to the EU legislation, their implementation shows another picture. In particular, to the Regulation on Control of Water Pollution, which defines the waste water standards for 16 sectors and prescribes the use of advanced waste water treatment technologies, the required level of activity and attention is not shown.

According to 2010 TURKSTAT data, about 75% of the industrial waste water is still discharged without any treatment, therefore clearly being in compliance with the Regulation on Control of Water Pollution.

In addition to that, in the industrial sector the disposal of industrial solid waste is still not accordance with the Regulation on the General Principles of Waste Management, Regulation on Control of Solid Waste, Regulation on Landfilling, Regulation on Control of Hazardous Waste and Regulation on Waste Incineration. According to 2010 TURKSTAT data, still 20% of the industrial waste is still disposed through unconventional methods such as dumping into open dumping sites or accumulating it in the factory in any way (see Subsection 3.3.1.).

As mentioned, the cost of compliance with EU acquis in the industrial sector has to be funded to a large extent by the private sector. However, UCES states that large incineration plants, in line with the EU Large Combustion Plants Directive80, will be mainly financed by the public sector. Accordingly, large incineration plants, regardless of the type of fuel (solid, liquid or gas), are defined as those whose rated thermal input is equal to or greater than 50 MW in order to introduce limit values for dust, sulfur dioxide and nitrogen oxide emissions. The investment needs for the period 2007-2023 with regard to large waste incineration plants are illustrated in Table 4.5.

Table 4.5: Investment needs for large waste incineration plants (in Mio. EUR), 2007-2023

TOTAL 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Large Incineration Plants

1‘257

89

89

89

90

90

90

90

90

90

90

90

90

90

90

TOTAL

1‘257

89

89

89

90

90

90

90

90

90

90

90

90

90

90

Source: EU integrated environmental approximation strategy for Turkey (UCES) (2007 - 2023)

The total investment needs for the period 2007-2023 with regard to large incineration plants are 1.19 billion Euros, which are 2.03% of Turkey’s total investment needs. It is noted in UCES that, after 2023 additional investment amount of 696.63 million Euros / year is required.

79 80

http://www.ab.gov.tr/files/ardb/evt/2_turkiye_ab_iliskileri/2_2_adaylik_sureci/2_2_8_diger/ab_entegre_cevre_uyum_stratejisi.pdf http://eur-lex.europa.eu/LexUriServ/site/en/consleg/2001/L/02001L0080-20011127-en.pdf

55

As a result, the municipal waste management sector, the municipal waste water treatment sector and the industrial sector (only including large incineration plants) all together need public finance in the amount of 28.84 billion Euros. Hence, they make up about half of the total investment needs for Turkey’s environmental sector to achieve full compliance with the EU environmental legislation. Section 6.4 lists and describes the various financing mechanisms for meeting these investment needs.

“National Recycling Strategy and Action Plan 2013-2016” One important goal of the “EU Sustainable Development Strategy” is “…to increase the efficient use of natural resources and avoid waste production by applying the life-cycle concept and encouraging the re-use and recycling of waste…”.81 Except for 3545% of the waste, many developed countries are completely recycling the remaining part of the waste and regain it for the economy.82 Regarding waste management, EU is planning to increase its recycling targets to 70-80% levels in many countries.

More than a half of the waste generated in Turkey has recoverable features. Hence, taking this market potential and simultaneously the EU targets and thus Turkey’s EU accession target into account, the MoSIT has prepared the “National Recycling Strategy and Action Plan 2013-2016”, which is also incorporated in the “Strategic Plan 2013-2017” of MoSIT and whose scope consists of municipal waste, waste batteries and accumulators, packaging waste, waste electrical and electronic components, end of life vehicles, waste oils, expired tires, metal scrap, animal waste, industrial waste and excavation, construction and demolition waste. There are 6 strategic objectives associated with this recycling strategy document: Objective 1: Establishing recycling / recovery and collection-separation awareness in all segments of society.

Objective 2: Making the relevant legislation compliant with the purpose of recycling / recovery and collectionseparation.

Objective 3: Storage, collection and transport of all the recyclable waste separately at source.

Objective 4: Preparing and implementing funding and support models with regard to recycling / recovery and collection-separation.

Objective 5: Establishing infrastructure that will allow public-private co-operation and co-ordination.

Objective 6: Establishing an effective control system by registering the production of waste.

Therefore, relevant governmental actions will be undertaken in order to achieve these targets until 2016. Objective 1 contains actions, during the whole period 2013-2016, such as education (lessons, courses, capacity building), contests, projects, public advertising in streets, shopping malls and public places in the form of posters, brochures and informative guides, symposium and workshops, establishment of education centers, vocational training in universities, vocational (high) schools and special courses, and much more. Beneficiaries are various institutions and organizations such as primary / junior high / high schools, local government, industrialists and management of organized industrial zones, suppliers, clients, and much more. Main institutions in charge are the Ministry of Education, MoEU and MoSIT. Main actions for the corresponding objectives 2-5 with the corresponding responsible governmental institutions are listed in detail in Table 4.6-4.9.

Table 4.6: Objective 2 - Making the relevant legislation compliant with the purpose of recycling / recovery and collection-separation

DESCRIPTION OF ACTION

RESPONSIBLE PERIOD INSTIUTION

Determination of facility standards regarding recycling / recovery and collection-separation facilities

TSE

20132014

Determination of standards regarding recyclable secondary products

TSE

20132014

81 82

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2009:0400:FIN:EN:PDF https://anahtar.sanayi.gov.tr/tr/news/ulusal-geri-donusum-stratejisi-ve-eylem-plani-2013-2016/493

56

Analysis and revision of legislation concerning waste trading (import-export) considering country conditions

MoE

20132014

Changing legislation for adding supplementary budget to the waste management costs of public institutions and organizations

MoF

2013

Preparing a Prime Ministry Circular regarding the promotion of the use of products obtained by recycling / recovery and collection-separation

MoSIT

2013

Establishing restrictions on the use of materials that cannot be recycled / recovered, collected-separated

MoEU

20132016

Establishing waste management incentive legislation prioritizing recycling / recovery, collection-separation

MoE, MoF

20132016

Establishing regulation regarding the recyclable waste defined in the municipality and Metropolitan municipality law

MoI

2013

Establishing legislation such that municipalities are able to make long-term service purchasing contracts with regard to the collection, transfer and recovery of packaging waste

MoEU

20132016

Establishing regulations such that excavation, construction and demolition waste and the separated collection of packaging waste in the municipality and Metropolitan municipality law will be one of the core responsibilities of municipalities

MoEU

20132016

Source: National Recycling Strategy and Action Plan 2013-2016 (MoSIT)

Table 4.7: Objective 3 - Storage, collection and transport of all the recyclable waste separately at source

DESCRIPTION OF ACTION

RESPONSIBLE PERIOD INSTIUTION

Establishing systems allowing the at source collection and transportation of recyclable waste, being under the authority and responsibility of municipalities, done by licensed companies which will have agreements with municipalities

MoI

20132016

Making the collection of waste at source (dual system: recyclable + organic) mandatory

MoEU

2013

Developing existing laboratory infrastructure regarding the product quality obtained by recycling / recovery, collection-separation

MoEU

20132016

Determining strategic sectors with regard to recycling / recovery, collection-separation

MoEU

20132016

Source: National Recycling Strategy and Action Plan 2013-2016 (MoSIT)

Table 4.8: Objective 4 - Preparing and implementing funding and support models with regard to recycling / recovery and collectionseparation

DESCRIPTION OF ACTION

RESPONSIBLE PERIOD INSTIUTION

Supporting R&D activities, technology transfer and dissemination of applications with regard

MoSIT

57

2013-

to recycling strategies

2016

Supporting projects and providing project finance to small- and medium-sized enterprises in order to facilitate the financing of projects associated with recycling / recovery, collectionseparation

KOSGEB

20132016

Establishing a financing support mechanism based on the cost of the investment project with regard to recycling / recovery, collection-separation

MoE

20132016

Supporting recycling / recovery, collection-separation facilities with special incentives

Treasury

20132016

Promoting of products obtained by recycling

KIK

20132016

Providing encouraging support (social security and energy / fuel) for people and organizations performing recycling / recovery, collection-separation

MoE

20132016

Re-regulating the special consumption tax rate of recycling / recovery, collection-separation in order to support the return on investment

MoF

2014

Providing project-based grants or financing for entrepreneurs targeting to build recycling / recovery, collection-separation facilities

MoEU

20132016

Source: National Recycling Strategy and Action Plan 2013-2016 (MoSIT)

Table 4.9: Objective 5 - Establishing infrastructure that will allow public-private co-operation and co-ordination

DESCRIPTION OF ACTION

RESPONSIBLE PERIOD INSTIUTION

Establishing a reliable information infrastructure in the created public-private sector common database with regard to waste.

MoEU

20132016

Establishing a waste coordination board.

MoEU

20132014

Establishing waste coordination boards on province basis.

MoI

20132014

Establishing a waste market (waste exchange) coordination center.

TOBB*

2013

* The Union of Chambers and Commodity Exchanges of Turkey (TOBB) is the umbrella organization of the Chambers of Commerce, Chambers of Industry, Chambers of Commerce and Industry, Chambers of Maritime Trade and Commodity Exchanges.

Source: National Recycling Strategy and Action Plan 2013-2016 (MoSIT)

Objective 6 contains administrative-controlling actions, during the whole period 2013-2016, such as the increase of institutional / personnel capacity, establishment of environment and audit units in municipalities and provincial special administrations, internal control mechanisms and units, registry systems for waste producers and recycling waste and introduction of implementation and control mechanisms to eliminate the informality regarding recycling / recovery, collectionseparation. Main governmental institutions in charge are MoEU and MoI in cooperation with several other governmental institutions.

58

Renewable Energy Law No. 5346 Today, the share of renewable energy production in the country’s total electricity production, which is mainly based on fossilfuel, is 74.6%.83 The major source for electricity production is natural gas with a share of 45.4%, making Turkey a highly import dependent country of natural gas (Russia and Iran). In order to decrease the import dependency on energy and improve the country’s balance of payments, MoENR, associated with Turkey’s “2023 goals”, has set a specific renewable energy goal of 30% until 2023. This goal states that until 2023 at least 30% of the total Turkish electricity production should be met by renewable energy sources. In order to achieve this goal, the Renewable Energy Law No. 5346 (REL), put into force in 2005, has the objective to regulate electricity production from renewable energy sources in Turkey and defines the financial support mechanism. REL is the central regulatory document for waste-to-energy investments. With this regard, following renewable energy sources, defined in REL, are of relevance for waste management investments:  Biomass: Organic waste as well as waste vegetable oil, and sources derived from agricultural and forestry products (including agricultural crop residues) and by-products resulting from the processing of these products.  Gas derived from biomass (including landfill gas)84 After having received the energy production license from EMRA, lasting between 10-49 years, depending on the regulations in the Electricity Market Law No. 644685, the governmentally guaranteed feed-in-tariff, which has a duration of 10 years from the beginning of operation of the power plant, can be asserted by a private investor. The guaranteed-feed-in tariffs for the various renewable energy sources are listed in Table 4.10.

Table 4.10: Guaranteed feed-in-tariffs for 10 years

RENEWABLE ENERGY SOURCE

FEED-IN-TARIFF (US DOLLAR CENT / KWH)

Biomass (including landfill gas)

13.3

Solar

13.3

Geothermal

10.5

Wind

7.3

Hydro

7.3 Source: Renewable Energy Law No. 5346

The highest 10 year feed-in-tariffs are for biomass and solar which is 13.3 US$ct / kWh. However, the REL prescribes that in the case of the use of locally constructed mechanical and / or electro-mechanical equipment, depending on the produced equipment type, the feed-in-tariffs can be further increased. This support mechanism has duration of 5 years from the beginning of operation of the power plant. The several feed-in-tariffs for specific mechanical and / or electro-mechanical equipment for each type of renewable energy source are listed in Table 4.11.

Table 4.11: Guaranteed feed-in-tariffs for locally constructed mechanical and / or electro-mechanical equipment

POWER PLANT TYPE

DOMESTIC PRODUCTION

Biomass power based power plant

1-Fluid bed steam tank

http://www.teias.gov.tr/ Landfill gas: Gas produced in order to produce energy from other types of waste, including landfill 85 http://www.epdk.gov.tr/index.php/elektrik-piyasasi/mevzuat?id=143 83

84

59

DOMESTIC CONTRIBUTION (US DOLLAR CENT / KWH) 0.8

Photovoltaic solar power based power plant

Intensified solar power based power plant

Geothermal power based power plant

Wind power based power plant

60

2-Liquid or gas fuel steam tank

0.4

3-Gasification and gas cleaning group

0.6

4-Steam or gas turbine

2.0

5-Internal combustion engine or Stirling engine

0.9

6-Generator and power electronics

0.5

7-Cogeneration system

0.4

1-PV panel integration and solar structural mechanics production

0.8

2-PV modules

1.3

3-Cells forming the PV module

3.5

4-Invertor

0.6

5-Material focusing on the solar rays onto the PV module

0.5

1-Radiation collection tube

2.4

2-Reflective surface plate

0.6

3-Sun chasing system

0.6

4-Mechanical accessories of the heat energy storage system

1.3

5-Mechanical accessories of steam production system that collects the sun rays on the tower

2.4

6-Stirling engine

1.3

7-Panel integration and solar panel structural mechanics

0.6

1-Steam or gas turbine

1.3

2-Generator and power electronics

0.7

3-Steam injector or vacuum compressor

0.7

1-Wing

0.8

2-Generator and power electronics

1.0

3-Turbine tower

0.6

4- All of the mechanical equipment in rotor

1.3

and nacelle groups (excluding payments made for the wing group and the generator and power electronics.)

Hydroelectric power plant

1-Turbine

1.3

2-Generator and power electronics

1.0

Source: Renewable Energy Law No. 5346

For biomass power based power plants, by using 100% of locally constructed mechanical and / or electro-mechanical equipment, the additional total domestic contribution is 5.6 US$ct / kWh. Hence, the resulting guaranteed-feed-in tariff for the first five years would be 18.9 US$ct / kWh and for the remaining five years 13.3 US$ct / kWh. Therefore, the Renewable Energy Law No. 5346 which regulates the Turkish renewable energy market involves the business incentive for further investments in innovation and local technology development to increase the guaranteed feed-in-tariff to the maximum amount of 18.9 US$ct / kWh, and that the remaining part of the investments could be partly financed by collected taxes of (Metropolitan) municipalities (see Section 3.5.1.).

4.3. PRODUCT STANDARDS & END OF WASTE CRITERIA In Turkey, waste management and waste water management regulations are driven by the developments in the European Commission (EC) due to the harmonization target of Turkey to the EU directives. The issue “end-of –waste” (EoW) criteria was introduced by the European Commission with Article 6 of the Waste Framework Directive (2008/98/EC) of December 2008.

According to this article, “…certain specified waste shall cease to be waste when it has undergone a recovery (including recycling) operation and complies with specific criteria to be developed in line with certain legal conditions, in particular:



the substance or object is commonly used for specific purposes;



there is an existing market or demand for the substance or object;



the use is lawful (substance or object fulfills the technical requirements for the specific purposes and meets the existing legislation and standards applicable to products);



the use will not lead to overall adverse environmental or human health impacts.” 86

According to this directive, a methodology to develop the criteria has been elaborated by the Joint Research Centre and some technical proposals on End-of-waste Criteria for Iron and Steel Scrap, End-of-waste Criteria for Aluminum and Aluminum Alloy Scrap, End-of-waste Criteria for Waste Paper, End-of-waste Criteria for Copper and Copper Alloy Scrap and End-ofwaste Criteria for Glass Cullet have been concluded in the years 2010 and 201187. However, while these developments take place at the EC side, in the scope of the harmonization of Waste Framework Directive (2008/98/EC), the Ministry of Environment and Urbanization (MoEU) has just published a draft Regulation on Waste Management open for the comments of stakeholders, on 28.03.2013, and this regulation did not include the End of Waste criteria. Nevertheless, it is expected that the End of Waste criteria will be handled in the future regulations in line with Waste Framework Directive of European Commission.

On the other hand, the Turkish Standard Institute (TSE; see Section 4.1.) published standards which are directly or in directly related with the product standard and End of Waste criteria. Some of these standards are developed according to the waste directives of European Commission. These standards are rules, methods, terms and symbols on characterization & classification of waste, waste water, work place and safety. The most relevant standards for waste management and waste water 86 http://ec.europa.eu/environment/waste/framework/end_of_waste.htm 87 http://susproc.jrc.ec.europa.eu/activities/waste/index.html

61

treatment are listed in Tables 4.12-4.13 below. The standards of the equipment which are used for construction and operation of waste and waste water management facilities are not included into this list.

For the full list of standards and more, please visit http://www.tse.org.tr/.

Table 4.12: Standards published by TSE for waste management

TURKISH STANDARD NO.

TITLE OF STANDARD

SCOPE OF STANDARD

TS 13557

Work place - The rules for waste accumulators recycling plants

This standard covers structural characteristics, business administration, characteristics of employees and security rules of waste accumulators recycling facilities which have a continuous process and eliminating pollutant parameters in order to produce lead under suitable conditions This standard covers portable, automotive and industrial-type lead-acid battery.

This standard doesn’t cover nickel-cadmium, nickel metal hydride and lithium-ion accumulators.

TS EN 16173

Sludge, treated biowaste and soil - Digestion of nitric acid soluble fractions of elements

Scope of the standard is not explained.

TS EN 15347

Plastics - Recycled Plastics - Characterisation of plastics wastes

Scope of the standard is not explained.

TS CEN/TS 16010

Plastics - Recycled plastics - Sampling procedures for testing plastics waste and recyclers

Scope of the standard is not explained.

TS EN 12457-4

Characterisation of waste - Leaching Compliance test for leaching of granular waste materials and sludge - Part 4: One stage batch test at a liquid to solid ratio of 10 l/kg for materials with particle size below 10 mm (without or with size reduction)

Scope of the standard is not explained.

TS EN 16123

Characterization of waste - Guidance on selection and application of screening methods

Scope of the standard is not explained.

TS 13541

Work place - Rafination and Regeneration facilities for waste oil - General rules

This standard covers in the minimum characteristics, healthy, safety and environmental principles for waste oil regeneration facilities which is operated under continuous process, and produced qualified base oil.

TS EN 13965-2

Characterization of waste - Terminology - Part 2: Management related terms and definitions

This Standard, EN 13965-2, Characterization of waste Terminology Part 2: Management related terms and definitions, gives a compilation of selected and updated terms and definitions, for use by for example producers, waste industry and legislators in the waste management field. It is harmonized with the current language used in management as well as in regulation. It includes,

62

with references (see Annex C), national terms and definitions where such needs have been expressed. It does not include terms related to detailed activities.

TS EN 12920+A1

Characterization of waste - Methodology for the determination of the leaching behaviour of waste under specified conditions

Scope of the standard is not explained.

TS EN 15875/AC

Characterization of waste - Static test for determination of acid potential and neutralisation potential of sulfidic waste

Scope of the standard is not explained.

TS EN 16192

Characterization of waste - Analysis of eluates

Scope of the standard is not explained.

TS EN 15934

Sludge, treated biowaste, soil and waste Calculation of dry matter fraction after determination of dry residue or water content

Scope of the standard is not explained.

TS EN 15933

Sludge, treated biowaste and soil - Determination of pH

Scope of the standard is not explained.

TS 6941

Waste Papers

This standard specifies waste papers used in paper industry.

TS 9394

Wastes-Method for Shake Extraction of Solid Waste With Water

This standard is about the method for extrication of solid waste by obtaining a aqueous solution in order to define the extricable substances under the defined conditions.

TS 10459

Wastes- Determination of Moisture In Solid Wastes

This standard covers the determination of moisture in solid wastes originated from settlement areas

TS 11250

Wastes-Definition of Terms Relating To Characteristics of Refuse Derived Fuel

This standard is about the definition of terms and descriptions relating of physical and chemical characteristics of refuse derived fuel.

TS 11638

Wastes-Terms and Classification

Scope of the standard is not explained.

TS 11708

Wastes - Solid Wastes Term and Classification

Scope of the standard is not explained.

TS 11710

Waste- Liquid Wastes- Term and Classification

Scope of the standard is not explained.

TS 11715

Wastes-Gas Wastes: Terms and Classification

Scope of the standard is not explained.

TS 12071

Solid Wastes-Rules For Dissolution

This standard covers dissolution of covers dissolution of solid wastes with lithium metaborste method for determination of inorganic elements

TS 12072

Solid Waste-Determination of pH

This standard invoue to determine the pH of a sludge and solid wastes by using pH paper and pH electrode methods. This standard does not include radioactive wastes.

TS 12084

Solid Waste-Determination of The Bulk Density For Solid Waste

This standard covers determination of the bulk density for the solid waste.

TS 12085

Solid Waste-Determination of Cellulose

Determination of cellulose content of solid waste.

TS 12086

Solid Waste-Determination of Organic and Ammonia Nitrogen by Kjeldahl Method.

This standard covers the determination of organic and ammonia nitrogen by kjeldahl method in the solid waste which is produced from every kind

63

production and consumption actions. This standard does not include to the determination of nitrite and nitrate.

TS 12087

Solid Waste-Determination of PhosphateColorimetric Method

This standard includes the method of determination of phosphate.

TS 12088

Solid Waste-Determination of Heavy MetalAtomic Absorption Spectrochemical Analysis Method

This standard covers, the determination of heavy metal ions in solid wastes, by the atomic absorption spectro chemical analysis method.

TS 12089 EN 13137

Characterization of waste-Determination of total organic carbon (TOC) in waste, sludge and sediments

This standard specifies two for methods for the determination of total organic carbon (TOC)in undried waste samples containing more than 1 g carbon per kg of dry matter (%o.1)

TS 12090

Solid Wastes-Rules of Sampling

This standard includes the rules of taking samples from solid waste.

TS 12094

Waste-Determination of Waste Density For Liguid and Gase Wastes

The information related with the determination of density for liquid and gas wastes. This standard does not contain the ing-formations for the determination of density for the determination of density for radioactive wastes and solid wastes.

TS 12129

Wastes- Collection. transportation and intermediate storage of medical wastes

This standard covers collection, transportation and intermediate storage of medical wastes.

TS 12207

Wastes-Site selection reles for sanitary candfill

This standard contains sike selection of sanitary landfills without any contamination and inconvenience to the environment

TS EN 12457-1

Characterisation of waste - Leaching Compliance test for leaching of granular waste materials and sludges - Part 1: One stage batch test at a liquid to solid ratio of 2 l/kg for materials with high solid content and with particle size below 4 mm

Scope of the standard is not explained.

TS EN 12457-2

Characterisation of waste - Leaching Compliance test for leaching of granular waste materials and sludges - Part 2: One stage batch test at a liquid to solid ratio of 10 l/kg for materials with particle size below 4 mm (without or with size reduction)

Scope of the standard is not explained.

TS EN 12457-3

Characterisation of waste - Leaching Compliance test for leaching of granular waste materials and sludges - Part 3: Two stage batch test at a liquid to solid ratio of 2 l/kg and 8 l/kg for materials with high solid content and with particle size below 4

Scope of the standard is not explained.

TS 12800

Wastes- Calcilation of Meathane Emissions

This standard covers gas producing in solid waste landfill or waste water originated and effective parameters on methane generation and estimation of methane generated in waste landfill.

TS EN 12940

Footwear manufacturing wastes – Waste

This document specifies the process steps which

64

classification and management

are involved in the generation of the waste from footwear manufacture and the usual waste management practices.

TS EN 13257

Geotextiles and geotextile-related products Characteristics required for use in solid waste disposals

This standard specifies the relevant characteristics of geotextiles and geotextile-related products used in solid waste disposals and the appropriate test methods to determine these characteristics

TS EN 13265

Geotextiles and geotextile-related products Characteristics required for use in liquid waste containment projects

This standard specifies the relevant characteristics of geotextiles and geotextile-related products used in liquid waste containment projects, and the appropriate test methods to determine these characteristics

TS 13318

Authorized services for medical waste elimination devices - Rules

This standard includes rules for physical characteristics, technical equipment, personel and certification of authorized services for medical waste elimination devices.

TS 13350

Marine fuels – Products blended with fuelRecovered from petroleum based wastes

This standard covers the products recovered from petroleum based wastes and used by blending with marine Fuel specified in TS ISO 8217 at certain ratios.

TS 13354

Work places- Collection and transportation services of medical wastes- General rules

Scope of the standard is not explained.

TS EN 13492

Geosynthetic barriers - Characteristics required for use in the construction of liquid waste disposal sites, transfer stations or secondary containment

This document specifies the relevant characteristics of geosynthetic barriers, including polymeric geosynthetic barriers, clay geosynthetic barriers and bituminous geosynthetic barriers, when used as fluid barriers in the construction of waste disposal sites, transfer stations and secondary containment, and appropriate test methods to determine these characteristics

TS EN 13493

Geosynthetic barriers-Characteristics required for use in the construction of solid waste storage and disposal sites

This standard specifies the relevant characteristics of geosynthetic barriers, including polymeric geosynthetic barriers, clay geosynthetic barriers and bituminous geosynthetic barriers, when used as fluid barriers in the construction of solid waste storage and disposal sites, and the appropriate test methods to determine these characteristics.

TS EN ISO 13503-5 Geosynthetic barriers - Characteristics required for use in the construction of liquid waste disposal sites, transfer stations or secondary containment

Scope of the standard is not explained.

TS EN 13656

Characterization of waste - Microwave assisted digestion with hydrofluoric (HF), nitric (HNO3) and hydrochloric (HCl) acid mixture for subsequent determination of elements

Scope of the standard is not explained.

TS EN 13657

Characterization of waste - Digestion for subsequent determination of aqua regia soluble portion of elements

This standard specifies methods of digestion with aqua regia.

TSE CR 13686

Packaging – Optimization of energy recovery

This standard the criteria for a minimum content of

65

from packaging waste

recycled material in packaging for appropriate types of packaging, and deals with the criteria that will influence the acceptable level of recycled material and the methodology by which such content can be monitored.

TS EN 13920-10

Aluminium and aluminium alloys - Scrap - Part 10: Scrap consisting of use aluminium beverage cans

This Standard specifies characteristics, form, chemical composition and metal yield of scrap consisting of used aluminium beverage cans (UBC). Complete cans, after removal of the liquid content, even if not obtained from post-consumer collection schemes, are within the scope of this Standard and are also regarded as UBC

TS EN 13965-1

Characterization of waste - Terminology - Part 1: Material related terms and definitions

This standard concerns concepts which are related to different types of waste.

TS EN 14039

Characterization of waste - Determination of hydrocarbon content in the range of C10 to C40 by gas chromatography

Scope of the standard is not explained.

TS EN 14803

Identification and/or determination of the quantity of waste

Scope of the standard is not explained.

TS EN 14346

Characterization of waste - Calculation of dry matter by determination of dry residue or water content

Scope of the standard is not explained.

TS EN 14735

Characterization of waste - Preparation of waste samples for ecotoxicity tests

Scope of the standard is not explained.

TS EN 14899

Characterization of waste - Sampling of waste materials - Framework for the preparation and application of a Sampling Plan

Scope of the standard is not explained.

EN 15169

Characterization of waste - Determination of loss on ignition in waste, sludge and sediments

Scope of the standard is not explained.

TS EN 15192

Characterisation of waste and soil Determination of Chromium(VI) in solid material by alkaline digestion and ion chromatography with spectrophotometric detection

Scope of the standard is not explained.

TS EN 15216

Characterization of waste - Determination of total dissolved solids (TDS) in water and eluates

Scope of the standard is not explained.

TS EN 15308

Characterization of waste - Determination of selected polychlorinated biphenyls (PCB) in solid waste by using capillary gas chromatography with electron capture or mass spectrometric detection

Scope of the standard is not explained.

TS EN 15309

Characterization of waste and soil Determination of elemental composition by X-ray fluorescence

Scope of the standard is not explained.

TS EN 15527

Characterization of waste - Determination of polycyclic aromatic hydrocarbons (PAH) in waste using gas chromatography mass spectrometry (GC/MS)

Scope of the standard is not explained.

Source: TSE (2013)

66

Table 4.13: Standards published by TSE for waste water treatment

TURKISH STANDARD NO.

TITLE OF STANDARD

SCOPE OF STANDARD

TS EN 1085

Waste water treatment - Vocabulary

This Standard defines terms for waste water treatment.

TS EN ISO 28765:2011

"Vitreous and porcelain enamels - Design of bolted steel tanks for the storage or treatment of water or municipal or industrial effluents and sludge"

Scope of the standard is not explained.

TS ISO 5667-10

Water quality- Sampling- Part 10: Guidance on sampling of waste waters

This part of ISO 5667 contains details on the sampling of domestic and industrial waste water i.e. the design of sampling programmes and techniques for the collection of samples. It covers waste water in all its forms i.e. industrial waste water and crude and treated domestic waste water.

TS 8264

Industrial Effluents and Waste Waters-Acute Toxicity Tests-Bio-Assay Methods

This standard is about the determination of toxic effects of waste water and industrial waste fluides on water organisms. by using vitality test methods under laboratory conditions.

TS 9093

Water Quality- Methods for the Analysis of Water, Waste Water and Sludge Determination of Hydrocarbons

This standard is about determination of hydrocarbons, in water, waste water and sludge.

TS EN ISO 9308-3

Water quality- Detection and ensmeration of escherichia colrand coliform bakteria in surface waste water- Part 3: Miniaturized method (most probable number) by inoculation in liquid medrum

This part of ISO 9308 specifies a miniaturized method for the detection and Enumeration of Escherichia coli in surface and waste water by inoculation in a liquid metrum.

TS EN ISO 93083/AC

Water quality - Detection and enumeration of Escherichia coli and coliform bacteria in surface and waste water - Part 3: Miniaturized method (Most Probable Number) by inoculation in liquid medium

Scope of the standard is not explained.

TS 9397

Water Quality-Determination for Zeta Potential of Colloids in Water and Waste Water

This standard is about of determination and calculation of zeta potential of colloids and waste water by measuring electrophoretic mobility of colloids.

TS EN 12050-1

Waste water lifting plants for buildings and sites Principles of construction and testing - Part 1: Lifting plants for waste water containing faecal matter

Scope of the standard is not explained.

TS EN 12050-2

Waste water lifting plants for buildings and sitesPrinciples of construction and testing- Part 2: Lifting plants for faecal- free waste water

This standard applies to lifting plants for faecal-free waste water in buildings and sites. It specifies methods for drainage of locations below flood level to prevent any backflow of waste water into the building. This standard contains general requirements, basic construction and testing principles, together with information on materials and conformity evaluation

67

TS EN 12050-3

Waste water lifting plants for buildings and sitesPrinciples of construction and testing- Part 3: Lifting plants for waste water containing faeca matter for limited applications

Waste water lifting plants for buildings and sitesPrinciples of construction and testing- Part 3: Lifting plants for waste water containing faeca matter for limited applications

TS EN 12255-1

Waste water treatment plants - Part 1: General construction principles

This standard specifies general requirements for structures and equipment as they relate to waste water treatment plants for a total population of more than 50 PT.

TS EN 12255-3

Waste water treatment plants- Part 3: Preliminary treatment

This standard specifies, the requirements for preliminary treatment of waste water at waste water treatment plant for over 50 PT.

TS EN 12255-4

Waste water treatment plants - Part 4: Preliminary settlement

This standard specifies the performance requirements for the primary settlement of waste water treatment plants for over 50 PT.

TS EN 12255-5

Waste water treatment plants- Part 5: Lagooning processes

This standard specifies the performance requirements for the installation of lagoon processes.

TS EN 12255-6

Waste water treatment plants - Part 6: Activated sludge process

This standard specifies the performance requirements for treatment of waste water using the activated sludge process for plants over 50 PT.

TS EN 12255-7

Waste water treatment plants- Part 7: Biological fixed-film reactors

This standard specifies the design principles and performance requirements for secondary treatment by biological fixed-film reactors at waste water treatment plants for more than 50 PT.

TS EN 12255-8

Waste water treatment plants - Part 8: Sludge treatment and storage

This standard specifies design principles and specifies construction requirements for sludge treatment and storage facilities in waste water treatment plants. Sludge treatment and storage is an integral part of waste water treatment and utilisation. It may be subject to a variety of regulations dependent upon the site of the treatment plant and the proposed routes for use or disposal. For new works or major upgrading an environmental impact assessment should carried out.

TS EN 12255-9

Waste water treatment plants - Part 9: Odour control and ventilation

This part of this European Standard specifies design principles and performance requirements for odour control and associated ventilation for waste water treatment plants. The primary application is for waste water treatment plants designed for the treatment of domestic and municipal waste water for over 50 PT.

TS EN 12255-10

Waste water treatment plants – Part 10: Safety principles

This Standard is for the protection of the employees and defines safety requirements for waste water treatment plants to be constructed or reconstructed.

TS EN 12255-11

Waste water treatment plants – Part 11: General data required

This standard specifies data which is necessary for the planning, design, bidding, performance guarantees, construction, start-up and compliance

68

testing of a waste water treatment plant or parts of it.

TS EN 12255-12

Waste water treatment plants - Part 12: Control and automation

This standard specifies requirements for control and automation systems on waste water treatment plants for more than 50 PT. If necessary, the control system should also be designed to cover the control of sewer systems in the receiving area of the waste water treatment plant. It describes the necessary information and data which are needed for the design and implementation of such systems as well as the performance requirements with respect to the hard- and software.

TS EN 12255-13

Waste water treatment plants - Part 13: Chemical treatment - Treatment of waste water by precipitation/flocculation

This standard specifies general requirements for chemical treatment of waste water by precipitation/flocculation for removal of phosphorus and suspended solids.

TS EN 12255-14

Waste water treatment plants - Part 14: Disinfection

This standard specifies performance requirements for the disinfection of effluents from waste water treatment plants. The primary application is for waste water treatment plants designed for the treatment of domestic and municipal waste water for over 50 PT.

TS EN 12255-15

Waste water treatment plants - Part 15: Measurement of the oxygen transfer in clean water in aeration tanks of activated sludge plants

This standard specifies the non-steday state measurement of the oxygen transfer efficiency of aeration system in activated aeration tanks when filled with clean water.

TS EN 12255-16

Waste water treatment plants - Part 16: Physical (mechanical) filtration

Scope of the standard is not explained.

TS 12747

Wastes- Limit valves of pollutants for waste waters originated from ferroalloy manufacturing facilities.

This standard contains the waste water pollutants limit values of originated from ferroalloy production facilities and relatted terms

TS 12748

Wastes limit values of pollution for waste waters originated facilities from nonferrous metal manufacturing

This standard values of the pollutants for waste waters originated from nonferrous metal manufacturing facilities and related terms.

TS 12754

Wastes- Limit values hexachitarocyclahexane industry waste water

This standard covers the terms and definitions of limit values of hexachitarocyclahexane industry use.

TS 12789

Wastes- Limit values of pollutants for waste waters originated from inorganin chemical manufacturing industry

This standard covers limit values of pollutants in waste waters originated from inorganic chemicals manufacturing facilities.

TS 12801

Wastes - Limit values of mercury content for industrial waste waters

This standard covers waste water cadmium values of industrial plants which uses mercury element and or its components in their productions and other processes have been specified in this.

TS 12802

Wastes- Limit values of cadmium content for industrial waste water

This standard covers waste water values of industrial plants which uses cadmium element and or its components in their productions and other processes have been specified in this.

69

TS ISO 13829

Water quality – Determination of the genotoxicity of water and waste water using to Umu-test

This international standard specifies a procedure which can be used to determine the genotoxicity of water and waste water using the umu-test. This assay is based on the detection of genotoxicity of test sample which increases the expression of the SOS repair system associated with the umuC-gene

TS EN 14366

Laboratory measurement of noise from waste water installations

Scope of the standard is not explained.

TS EN ISO 14911

Water quality- Determination of dissolved Li+, Na+, NH4, Mn2+, Ca2+, Mg2+, Sr2+ and Ba2+ using ion chromatagraphy- Method for water and waste water

This International Standard specifies a method for the determination of the diosolved cations Li+, Na+, NH4, Mn2+, Ca2+, Mg2+, Sr2+ and Ba2+ in water.

TS EN 14987

Plastics - Evaluation of disposability in waste water treatment plants - Test scheme for final acceptance and specifications

Scope of the standard is not explained.

TS EN ISO 15088

Water quality - Determination of the acute toxicity of waste water to zebrafish eggs (Danio rerio)

Scope of the standard is not explained.

TS EN ISO 20079

Water quality - Determination of the toxic effect of water constituents and waste water on duckweed (Lemna minor) - Duckweed growth inhibition test

Scope of the standard is not explained.

Source: TSE (2013)

70

5. The Turkish Waste Management Industry 5.1. CURRENT SIZE AND FUTURE INVESTMENTS The current size of the waste management industry is much larger than the forecasted needs in the strategic regulatory document “EU Integrated Environmental Approximation Strategy for Turkey (UCES) 2007-2023” (see Tables 4.3-4.4 in Section 4.2.). Table 5.1 shows the environmental expenditure by environmental domains.

Table 5.1: Environmental expenditure by environmental domains (in Mio. TL), 2006-2010

2006

2007

2008

2009

2010

Waste services

1‘451

2‘404

2‘719

4‘125

4‘196

in percentage

20%

23%

26%

35%

34%

25’280

amount of waste (in 1000 tonnes) TL-expenditure per tonne of waste (TL/t) Waste water services in percentage amount of waste water (in Mio. m3) 3

3

TL-expenditure per m of waste (TL/m )

24’361

25’277 166.0

57.4

.

112.6

1‘485

2‘065

1‘626

2‘202

2‘240

21%

19%

16%

19%

18%

3'367

3'261

3'582

0.44

0.50

0.63

2‘402

3‘986

4‘050

3‘371

3‘507

Protection of soil and groundwater

6

27

24

28

36

Protection against radiation

...

...

1

7

6

Research and development

30

34

25

38

48

9

9

10

2

1

1 852

2 088

1 902

2 031

2 172

7‘234

10‘613

10‘356

11‘804

12‘206

Water services

Energy Other environmental expenditures TOTAL

(1)

Source: TURKSTAT (2013)

In 2010, the expenditures for waste services amounted to 4.2 bn TL and 2.2 bn TL for waste water treatment services, or 2.1 bn EUR and 1.1 bn EUR88, respectively, representing together more than a half of the total environmental expenditure. Their common share increased from 41% in 2006 to 52% in 2010, implying their increasing importance for Turkey’s environmental sector. Whereas, within that period, the expenditure for waste water treatment services increased by 50%, it nearly tripled for waste services, which represent the largest environmental expenditure item today.

The TL-expenditure per tonne of municipal waste nearly tripled from 57.4 TL/t in 2006 to 166.0 TL/t in 2010. The TLexpenditure per m3 of municipal waste water increased from 0.44 TL/t in 2006 to 0.63 TL/t in 2010, implying a nearly 50% increase.

88

Converted from TL into EUR at the yearly average 2010 nominal interest rate of 1.9943 EUR / TL

71

Table 5.2 contains the three official expected population growth scenarios (i.e., i.e. basic scenario, scenario 2 and scenario 3) for Turkey by TURKSTAT and authors’ estimations with regard to the market size in absolute amount and its TL-value of municipal waste for the period 2013-2023. The author refers to UCES where it is targeted that until 2023 the whole population will receive waste services. Thereby, three scenarios for the yearly average amount of municipal waste per capita are modeled by the author: Scenario 1 (i.e., base scenario): Municipal waste per capita remains at an average of 400 kg / year Scenario 2: Municipal waste per capita moderately increases to an average of 450 kg / year Scenario 3: Municipal waste per capita strongly increases to an average of 500 kg / year

Table 5.2: Expected population growth scenarios and estimated yearly amount of municipal waste (in Mio. tonnes), 2013-2023 YEAR

SCENARIO 1 : 400 KG / PER CAPITA-YEAR

Population growth scenario

Base

Scen 2

Scen 3

SCENARIO 1 : 450 KG / PER CAPITA-YEAR Base

Scen 2

Scen 3

SCENARIO 1 : 500 KG / PER CAPITA-YEAR Base

Scen 2

Scen 3

25’477

ACTUAL 2013

26'004

26'004

26'004

29'254

29'254

29'254

32'505

32'505

32'505

2014

26'909

26'914

26'917

30'272

30'279

30'282

33'636

33'643

33'646

2015

27'822

27'839

27'848

31'300

31'319

31'329

34'778

34'799

34'810

2016

28'743

28'779

28'797

32'336

32'376

32'396

35'929

35'974

35'996

2017

29'673

29'734

29'763

33'382

33'450

33'484

37'091

37'167

37'204

2018

30'609

30'703

30'748

34'436

34'540

34'592

38'262

38'378

38'435

2019

31'227

31'033

31'097

35'131

34'912

34'984

39'034

38'791

38'871

2020

31'846

31'364

31'449

35'827

35'284

35'380

39'807

39'205

39'312

2021

32'464

31'695

31'805

36'522

35'657

35'781

40'580

39'619

39'757

2022

33'082

32'027

32'165

37'217

36'030

36'185

41'352

40'033

40'206

2023

33'699

32'358

32'528

37'911

36'403

36'593

42'124

40'448

40'659

Source: TUBITAK (2023) for expected population growth scenarios and author’s own calculations based on authors’ modeled municipal waste per capita / year scenarios

Hence, according to TUBITAK’s population growth scenarios and authors’ scenarios for the future amounts of municipal waste in Table 5.1, by accounting for the decreasing growth in TL-expenditure per ton of waste (TL/t) in Table 5.2 and assuming future expenditures between 200-300 TL/t for municipal waste, the estimated yearly TL expenditures in the municipal waste industry ranges between 6.5-12.5 bn TL for the period 2013-2023. These are very likely to further increase if the expenditures in TL/t increase more than assumed here.

Table 5.3 incorporates the three official expected population growth scenarios (i.e., i.e. basic scenario, scenario 2 and scenario 3) for Turkey by TURKSTAT and authors’ estimations regarding the market size in absolute amount and its TL-value of

72

municipal waste water for the period 2013-2023. The author refers to UCES where it is targeted that until 2023 the whole population will receive waste services and according the “Strategic Plan 2013-2017” a target of 85% of the rate of population receiving waste water treatment services is defined. Thereby, three scenarios for the daily average amount of municipal waste water per capita are modeled by the author: Scenario 1 (i.e., base scenario): Municipal waste water per capita remains at an average of 180 liters / year Scenario 2: Municipal waste water per capita moderately increases to an average of 210 liters / year Scenario 3: Municipal waste water per capita strongly increases to an average of 240 liters / year Table 5.3: Expected population growth scenarios and estimated yearly amount of municipal waste water (in Mio. m3), 2013-2023 YEAR

SCENARIO 1 : 180 LITRES / PER CAPITA-DAY

SCENARIO 2 : 210 LITRES / PER CAPITA-DAY

Population growth scenario

Base

Base

Scen 2

Scen 3

Scen 2

Scen 3

SCENARIO 3 : 240 LITRES / PER CAPITA-DAY Base

Scen 2

Scen 3

25’477

ACTUAL 2013

3'643

3'643

3'643

4'397

4'397

4'397

5'025

5'025

5'025

2014

3'880

3'880

3'881

4'682

4'683

4'684

5'351

5'352

5'353

2015

4'020

4'023

4'024

4'852

4'855

4'857

5'545

5'549

5'551

2016

4'112

4'117

4'120

4'963

4'969

4'972

5'672

5'679

5'683

2017

4'306

4'315

4'319

5'197

5'208

5'213

5'939

5'952

5'957

2018

4'502

4'516

4'522

5'433

5'450

5'458

6'210

6'228

6'238

2019

4'700

4'720

4'730

5'672

5'696

5'708

6'483

6'510

6'523

2020

4'900

4'927

4'941

5'914

5'947

5'963

6'759

6'796

6'815

2021

5'049

5'085

5'103

6'094

6'137

6'159

6'965

7'014

7'039

2022

5'200

5'246

5'268

6'275

6'331

6'358

7'172

7'235

7'267

2023

5'351

5'408

5'436

6'458

6'527

6'561

7'380

7'459

7'498

Source: TUBITAK (2023) for expected population growth scenarios and author’s own calculations based on authors’ modeled municipal wastewtare per capita / year scenarios

As a result, according to TUBITAK’s population growth scenarios and authors’ scenarios for the future amounts of municipal waste water in Table 5.3, by assuming future TL-expenditures per m3 waste water between 0.80-1.20 TL/t for municipal waste water, the estimated yearly TL expenditures in the municipal waste water industry ranges between 4.0-8.9 bn TL for the period 2013-2023. These are very likely to increase if the expenditures in TL/t increase more than assumed here.

Unlike the TUBITAK data for expenditures for municipal waste management and municipal waste water services, there are no such publicly data available for industrial waste management and municipal waste water services. Moreover, with regard to the amount of industrial waste water, only 4 years of survey years are available. However, the amount of waste water discharged by industrial companies shows a clearly increasing trend.

73

From the awarded pubic tenders (see Section 5.2.), on the basis of contract value or max. budget, approximate statements can be made regarding the current and future size of the industrial waste management and waste water industry.

5.2. KEY PLAYERS AND MARKET STRUCTURE There are quite many companies and organisations active in the waste management and waste water treatment market in Turkey. However, in order to clarify the market structure and its key players, it is required to consider more than small sales records and sole claims of the entities. In this part, to elucidate all these issues market analyse will be carried out beginning from the reverse side. It will be firstly indicated “who buys, what buys and how much pays?” instead of having a direct close look at the companies in the market.

The main clients of waste management and waste water treatment industry are municipalities. Municipalities purchase technical assistance services, construction works and operation-maintenance services from private sector companies. For each of these procurements, municipalities conduct separate tenders. Municipalities mainly finance these tenders via grants of European Union, bank loans of Ilbank A.S. or their own equity capital.

Tables 5.4-5.7 indicate all the waste management and waste water treatment tenders financed by the EU. The tenders granted by the EU include 15 to 35% of National Contribution (see Section 6.4.). In scope of EU tenders, technical assistance for planning and construction works is financed. Total value of the waste management service tenders hitherto funded by the EU is 24’060’515 Euro and that for the waste management construction tenders is 37’914’659 Euro, for the waste water treatment service tenders it is 41’452’369 Euro and for the waste water treatment construction tenders it is 175’393’577 Euro. As it can be easily inferred from Table 5.4, waste management service tenders awards are almost evenly shared by the European companies so neither a dominance of a company nor a dominance of a country has appeared. By analyzing Table 5.5, where waste management Construction Tenders funded by EU are illustrated, a leadership of Turkish companies is observed and the second largest share belongs to the Austrian Company STRABAG AG. Danish Companies take the first place and German Companies follow them for the waste water treatment Service Tenders funded by EU. As it can be seen from Table EH, award notices are shared by two of three German language speaking countries, Germany and Austria, and Turkish companies follow them.

The case of Switzerland and Swiss companies for the EU funded tenders will be handled in the Section 6.3 and 7.

Table 5.4: Waste management Service Tenders funded by EU

FINANCING

CONTRACTING AUTHORITY

TITLE

CONTRACT AWARDED TO VALUE OR MAX. BUDGET

YEAR OF THE TENDER

General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

Technical Assistance 2.976.470 EUR And Supervision For Diyarbakır Solid Waste Management Project

Forecast

---

General Budget Central Finance and Contracts of the EU and Unit National Contribution

Technical Assistance For Better Air Quality

By Transposing The Large Combustion Plant Directive

Not Awarded Yet

2013

General Budget Central Finance and Contracts of the EU and Unit National Contribution

Technical Assistance 925.000 EUR For Implementation Of The Persistent Organic Pollutants Regulation

Leader: Niras Ic. Sp. Z o.o,; Poland.

2012

74

1.000.000 EUR.

1. IP Consult (member of Niras Group); Germany.

2. AMEC Environment & Infrastructure UK Ltd.; United Kingdom.

3. Ricardo-Aea Ltd (formerly

Aea); United Kingdom.

4. Finnish Environment Institute (SYKE); Finland.

General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

Technical Assistance And Supervision For Çorum Solid Waste Management Project

General Budget Ministry of Environment and of the EU and Forestry National Contribution

Technical Assistance And Supervision For Balıkesir Solid Waste Management Project

1.814.000 EUR

Leader: Enviroplan Consultants & Engineers SA., Greece.

2011

1. CDM Smith Consult GmbH; Germany.

2. AHT Group AG; Germany.

1.461.525 EUR

Leader: EPEM SA — Environmental Planning, Engineering and Management.; Greece.

2011

1. SLR Consulting Ltd; United Kingdom.

2. TÜMAŞ Turkish Engineering Consulting & Contracting Co.; Turkey General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

Technical Assistance To Prepare Integrated Solid Waste Management Projects

Lot1: 2.792.000 EUR Lot2: 2.510.000 EUR

Lot1: Leader: Project Management Ltd., Ireland.

2011

1. Parsons Brinckerhoff Ltd; United Kingdom.

Lot2: Leader: COWI A/S., Denmark.

1. Pöyry; Germany.

2. C & E; Germany.

3. COWI SNS; Turkey 4. MIMKO A.S.; Turkey General Budget Central Finance and Contracts of the EU and Unit National Contribution

Technical Assistance For Mining Waste Management

2.371.800 EUR

Leader: İnfobiz İş Zekası 2010 Yönetim Mühendisliği Elektronik Bilgisayar İnşaat ve Ticaret Pazarlama Limited Şirketi: Turkey.

1. Geological Survey of Finland; Finland.

2. Geological Institute of Hungary; Hungary.

General Budget Central Finance and Contracts of the EU and Unit National Contribution

75

Technical Assistance And Supervision For Konya Solid Waste Management Project

2.059.747 EUR

Leader: Fichtner Water & Transportation GmbH.; Germany.

1. Fichtner GmbH Co. KG; Germany.

2. FCG Finnish Consulting Group Ltd; Finland.

2010

3. TK Müşavir Mühendisler Ltd Şti.; Turkey.

General Budget Central Finance and Contracts of the EU and Unit National Contribution

Technical Assistance And Provision Of Supervision Services For The Implementation Of Three Solid Waste Management Projects In Amasya, Bitlis And Kütahya

4.755.500 EUR

General Budget Central Finance and Contracts of the EU and Unit National Contribution

Technical Assistance And Supervision Services For The Kuşadasi Regional Solid Waste Management Project

2.873.273 EUR

General Budget Central Finance and Contracts of the EU and Unit National Contribution

Technical Assistance And Supervision Services For The Çanakkale Regional Solid Waste Management Project

2.497.670 EUR

Leader: IDOM Ingenieria y Consultoria S.A; Spain

2008

1.Haskoning Nederleand B.V.Nederland 2.UBM A.Ş., Containtment Quality associates LTD; Turkey 4.Stoa Teknik Hizmetler Ltd. Leader.: AHT Group AG; Germany

2006

1.Yüksel Proje Uluslararası AŞ.; Turkey Leader: EPTISA International Group; SPAIN

2006

1.Parsons Brinckerhoff; United Kingdom 2.EKODENGE; Turkey

Source: EuropeAid (2013)

Table 5.5: Waste management Construction Tenders funded by EU

FINANCING

CONTRACTING AUTHORITY

TITLE

General Budget of the EU and National Contribution

Ministry of Environment and Urbanisation

Construction Of Forecast Diyarbakır Solid Waste Management Project

Forecast

---

General Budget Ministry of of the EU and Environment National and Forestry Contribution

Rehabilitation Of Existing Dumpsites In Van

Forecast

Forecast

---

General Budget Ministry of of the EU and Environment National and Forestry Contribution

Construction Of Sanitary Landfill In Van

Forecast

Forecast

---

General Budget Ministry of of the EU and Environment National and Forestry Contribution

Construction Of Batman Solid Waste Management Project

Forecast

Forecast

---

General Budget Ministry of Environment of the EU and and

Construction Of Çorum Not Awarded Yet Solid Waste Management Project

Not Awarded Yet

2013

76

CONTRACT AWARDED TO VALUE OR MAX. BUDGET

YEAR OF THE TENDER

National Contribution

Urbanisation

General Budget of the EU and National Contribution

Ministry of Environment and Urbanisation

Construction Of Balikesir Solid Waste Management Project

10.303.700 EUR

Leader: Gökşin İnşaat Gıda Elektrik Turizm Tekstil Bilişim ve Tüketim Malları PazarlamaSan. ve Tic. Ltd Şti.; Turkey.

2011

1. Helector Societe Anonyme of Energy and Environmental Applications; Greece General Budget Central Finance of the EU and and Contracts National Unit Contribution

Construction For The Rehabilitation Of Old Dumpsites In Amasya, Bitlis And Kütahya

Lot 1: 3.454.842,64 EUR Lot 2: 924.772,91 EUR Lot 3: 3.091.147,50 EUR

Lot 1: Leader: MAKSOMER Inş. ve Tic. A.Ş.; Turkey

2008

1.BİL-GÜL Inş. Madencilik Tur. En. Taş. San. Ve Tic. A.Ş.; Turkey Lot 2: Leader: MAKSOMER Inş. ve Tic. A.Ş.; Turkey 1.BİL-GÜL Inş. Madencilik Tur. En. Taş. San. Ve Tic. A.Ş.; Turkey Lot 3: GÖKŞİN Inşaat Ticaret ve Sanayi Ltd. Şti.; Turkey

General Budget Central Finance of the EU and and Contracts National Unit Contribution

Construction Of Çanakkale Regional Solid Waste Management Project

7.817.755,53 EUR

General Budget Central Finance of the EU and and Contracts National Unit Contribution

Construction Of Kusadası Solid Waste Management Project

8.172.764,00 EUR

General Budget Central Finance of the EU and and Contracts National Unit Contribution

Rehabilitation Of Old Landfills Within The Context Of Kuşadası Regional Solid Waste Management Project

2007

1.ACARLAR Insaat Madencilik Sanayi ve Ticaret Ltd. Sti.; Turkey Leader: STRABAG AG; Ausria

2007

1.ACARLAR Insaat Madencilik Sanayi ve Ticaret Ltd. Sti.; Turkey

Source: EuropeAid (2013)

Table 5.6: Waste water treatment Service Tenders funded by EU

77

Leader: STRABAG AG; Ausria

4.149.676,37 EUR

Leader: Ak-Eli Insaat Ticaret Ltd. Sirketi 1.Ruto Taahhut ve Insaat Ltd. Sirketi 2.NVS Insaat San. ve Tic. Ltd. Sti.

2007

FINANCING

TITLE

CONTRACT AWARDED TO VALUE OR MAX. BUDGET

General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

Technical Assistance And Supervision Services For Şanlıurfa Waste Water Treatment Project

2.651.791 EUR

Forecast

---

General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

Technical Assistance And Supervision For Bartın Water And Waste Water Project

1.400.000 EUR

Forecast

---

General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

Technical Assistance And Supervision For Sorgun Waste Water Treatment Plant Project

750.000 EUR

Forecast

---

General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

Technical Assistance And Supervision For Soma Waste Water Treatment Plant Project

1.143.762 EUR

Forecast

---

General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

Technical Assistance And Supervision For Seydişehir Waste Water Project

1.150.000 EUR

Forecast

---

General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

Technical Assistance And Supervision For Merzifon Water And Waste Water Project

1.150.000 EUR

Forecast

---

General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

Technical Assistance And Supervision For Amasya Water And Waste Water Project

1.850.000 EUR

Not Awarded Yet

2013

General Budget Ministry of of the EU and Environment and National Urbanisation Contribution

Technical Assistance And Supervision For Bulancak Water And Waste Water Project

2.454.000 EUR

Leader: WYG International Danışmanlık Limited Şti.; Turkey

2012

General Budget Ministry of of the EU and Environment and National Urbanisation Contribution

Technical Assistance And Supervision For Polatlı Water And Waste Water Project

2.775.000 EUR

Not Awarded Yet

2012

General Budget Ministry of Environment and of the EU and Urbanisation National

Technical Assistance And Supervision For Akçaabat Water And Waste Water Project

2.489.925 EUR

Leader: Ramboll Danmark A/S; Denmark

2012

78

CONTRACTING AUTHORITY

YEAR OF THE TENDER

1. WYG International Limited; United Kingdom.

2. Haskoning DHV Nederland B.V. ; Netherlands.

1. Alter International

Engineering and Consulting Services Ltd; Turkey.

Contribution

General Budget Ministry of of the EU and Environment and National Urbanisation Contribution

Technical Assistance And Supervision For Adıyaman Waste water Project

General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

Technical Assistance And Supervision For Nizip Water And Waste Water Project

General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

Technical Assistance And Supervision For Akşehir Water And Waste Water Project

2.640.000 EUR

Not Awarded Yet

2012

General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

Technical Assistance And Supervision For Ceyhan Waste Water And Storm Water Project

1.870.000 EUR

Leader: CES Consulting Engineers Salzgitter GmbH Ltd.; Germany.

Hamburger Str. 277, 38114 Brunswick, GERMANY.

2011

1.857.318 EUR

Leader: Fichtner Water and Transportation GmbH.; Germany

2012

1. Dorsch International Consultants GmbH; Germany.

2. Su Yapı Engineering and Consulting Inc.; Turkey.

2.943.448,5 EUR Leader: Fichtner Water and Transportation GmbH; Germany

2012

1. FCG Finnish Consulting Group Ltd; Finland.

2. Piramit Engineering and Consulting Co. Ltd; Turkey

1. Eptisa Mühendislik ve Müş.

Hiz. Bilg. İnş. Tic. Ltd. Şti.; Turkey.

2. Eptisa Servicios Ingeniería, S.L.; Spain.

General Budget Ministry of of the EU and Environment and National Forestry Contribution

Technical Assistance And Supervision For Siverek Waste Water Project

2.996.700 EUR

General Budget of the EU and National Contribution

Technical Assistance And Supervision For Manavgat Water And Waste Water Project

2.219. 500 EUR

79

IPA Coordination and Implementation Centre

Leader: WYG International Limited; United Kingdom.

2011

1. DHV BV; Netherlands.

2. WYG International Danışmanlık Limited Şirketi; Turkey.

3. ER-GE Design, Engineering and Consulting & Trade Ltd Co.; Turkey Leader: NIRAS A/S.;Denmark.

1. Jennings O'Donovan and Partners; Ireland.

2. J.B. Barry and Partners Limited; Ireland.

3. Koltek Müşavirlik A.Ş.; Turkey.

2011

General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

Technical Assistance For The Supervision Of Construction Of Ordu Waste water Treatment Plant (WWTP) And Retrofitting Of Kumbaşı WWTP

1.997.750 EUR

Leader: WYG International Limited; United Kingdom.

General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

Technical Assistance And Supervision For Lüleburgaz Waste Water Management Project

1.707.000 EUR

General Budget Central Finance and Contracts of the EU and Unit National Contribution

Technical Assistance And Supervision For Erzincan Water And Waste Water Project

3.021.250 EUR

General Budget Central Finance and Contracts of the EU and Unit National Contribution

Technical Assistance And Supervision For Erzurum Water And Waste Water Project

2.890.600 EUR

General Budget Central Finance and Contracts of the EU and Unit National Contribution

Technical Assistance And Supervision Of Diyarbakır Water And Waste Water Project

3312.400 EUR

General Budget Central Finance and Contracts of the EU and Unit National Contribution

Technical Assistance And Supervision Services For The Nevşehir Waste water Treatment Plant

1.233.656 EUR

General Budget Central Finance and Contracts of the EU and Unit National Contribution

Technical Assistance And Supervision Services For The Tokat Waste water Treatment Plant

1.244.421,48 EUR Leader: Dahlem Beratende Ingenieure GmbH&Co. Wasserwirtschaft KG; Germany

2010

1. Pöyry Environment GmbH; Germany.

2. WYG International Danışmanlık Limited Şirketi; Turkey.

Leader: NIRAS A/S.; Denmark.

2010

1. Jennings O'Donovan & Partners; Ireland.

2. J.B. Barry & Partners Ltd; Ireland.

3. ÜLKER Engineering Consulting, Construction and Trading Ltd; Turkey Leader: Grontmij A/S.; Denmark.

2010

1. Grontmij Mühendislik Müşavirlik ve Tasarım Ltd Şti.; Turkey.

Leader: MWH SA/NV.; Belgium.

2010

1. Yüksel Proje Uluslararası A.Ş.; Turkey.

Leader: Safege; France.

2010

1. FCG Finnish Consulting Group; Finland.

2. TÜMAŞ Turkish Engineering Consulting and Contracting Co.; Turkey Leader: SWECO International AB; Sweden

2007

1. TEMPO Altyapı Engineers&Consultants AB; Turkey 2007

1. ER-GE Design, Engineering, Consulting and Trade Ltd.Co.; General Budget Central Finance and Contracts of the EU and

80

Technical Assistance To Prepare Waste

3.799.400 EUR

Leader: COWI A/S; Denmark

2007

National Contribution

Unit

Water Treatment Plant Projects In TURKEY

1. SNS Müşavirlik ve Mühendislik Ltd. Şti.; Turkey 2.UBM Uluslararası Birleşmiş Müşavirler Müşavirlik Hizmetleri A.Ş.; Turkey 3.Encon Çevre Danışmanlık Ltd. Şti.; Turkey

Source: EuropeAid (2013)

Table 5.7: Waste water treatment Construction Tenders funded by EU

FINANCING

CONTRACTING AUTHORITY

General Budget Ministry of of the EU and Environment and National Urbanisation Contribution General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

General Budget Ministry of Environment and of the EU and Urbanisation National Contribution General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

TITLE

CONTRACT VALUE AWARDED TO

YEAR OF THE TENDER

Construction Of Kars Waste Water Treatment Plant

Forecast

Forecast

---

Forecast

Forecast

---

Forecast

Forecast

---

Forecast

Forecast

---

Forecast

Forecast

---

Construction Of Bartın WWTP And The Waste water Collection, Preliminary Treatment And Sea Outfall İn İnkumu

Rehabilitation And Extension Of Erzincan Waste Water Treatment Plant

Construction Of Soma Waste Water Treatment Plant

Construction Of Seydişehir Waste Water Treatment Plant

General Budget Ministry of Environment and of the EU and Urbanisation National Contribution

Construction Of Sorgun Waste water Treatment Plant

Forecast

Forecast

---

General Budget Ministry of Environment and of the EU and

Construction Of Merzifon Waste water

Forecast

Forecast

---

81

National Contribution

Urbanisation

Treatment Plant

General Budget Central Finance of the EU and and Contracts National Unit Contribution

Construction Of Akşehir Waste Water Collection Network

Forecast

Forecast

---

General Budget Central Finance of the EU and and Contracts National Unit Contribution

Construction Of Akşehir Waste Water Treatment Plant

Forecast

Forecast

---

General Budget Central Finance of the EU and and Contracts National Unit Contribution

Construction Of Waste water Treatment Plant In Siverek

Forecast

Forecast

---

General Budget Central Finance of the EU and and Contracts National Unit Contribution

Construction Of Waste water Collector Mains Of Adıyaman

Forecast

Forecast

---

General Budget Central Finance of the EU and and Contracts National Unit Contribution

Construction Of Polatlı Waste water Collection Network And Collectors

Forecast

Forecast

---

General Budget of the EU and National Contribution

Ministry of Environment and Urbanisation

Construction Of Polatlı WWTP And Waste water Collection Network And Collectors

Not Awarded Yet

Not Awarded Yet

2013

General Budget of the EU and National Contribution

Ministry of Environment and Urbanisation

Construction Of Waste water Network And Stormwater Collectors And Rehabilitation Of Esmerçayi Creek In Siverek

Not Awarded Yet

Not Awarded Yet

2013

General Budget of the EU and National Contribution

Ministry of Environment and Urbanisation

Construction Of Adıyaman Waste water Treatment Plant And Waste water Collector Mains

15.438.096,39 EUR Leader: Passavant2012 Roediger GmbH.; Germany.

General Budget of the EU and National Contribution

Ministry of Environment and Urbanisation

Construction For Completion And Rehabilitation Of Waste water Collector And Storm Water Drainage Systems Of Diyarbakır

23.077.211,06 EUR

Leader: Porr Bau GmbH., Austria.

2012

Construction Of Ceyhan Waste Water Treatment

7.898.144,02 EUR

Leader: Strabag AG., Austria

2011

General Budget Ministry of Environment of the EU and and

82

1.Seç Yapı İnş En. Turz. ve Tic. Ltd. Şti; Turkey.

National Contribution

Urbanisation

Plant

General Budget of the EU and National Contribution

Ministry of Environment and Urbanisation

Construction Of Erdemli Waste Water Collection And Storm Water Drainage Project

4.090.630,39 EUR

Leader: Asil İnşaat Sanayi ve Ticaret Limited Şirketi (Asil Construction Industry and TradingCo. Ltd).; Turkey. .

1. İnelsan İnşaat Elektrik Sanayi ve Ticaret Limited Şirketi (İnelsan Construction Electricity Industry and TradingCo. Ltd); Turkey

2011

General Budget of the EU and National Contribution

Ministry of Environment and Urbanisation

Construction Of Lüleburgaz Waste Water Project And Rehabilitation Of Kavak Creek

11.003.287,33 EUR

Leader: MASS Treatment Systems Construction Industry and Trade Incorporated Company; Turkey

2011

General Budget of the EU and National Contribution

IPA Coordination and Implementation Center

Construction Of Amasya Water And Waste Water İnvestment Project

12.975.132,59 EUR

Leader: Ecetaş İnşaat Sanayi ve Ticaret A.Ş.; Turkey.

2011

General Budget of the EU and National Contribution

Ministry of Environment and Urbanisation

Construction Of WWTP And Waste Water Collectorsincluding Creek Rehabilitation İn Erzurum Greater Municipality

General Budget of the EU and National Contribution

IPA Coordination and Implementation Center

General Budget of the EU and National Contribution

Ministry of Environment and Urbanisation

1. Çevtaş Çevre Teknolojisi Ticaret ve Sanayi A.Ş.; Turkey 25.068.428,75 EUR

Leader: Hochtief Solutions AG.; Germany.

1. HGG İnşaat Sanayi ve Ticaret Limited Şirketi; Turkey.

2. Sachsen Wasser GmbH Consortium; Germany.

2011

6.914.303 EUR

Leader: Asil İnşaat Sanayi ve Ticaret Limited Şirketi; Turkey.

2011

7.716.331,08 EUR

Leader: VA TECH WABAG GmbH.; Austria

2011

Construction For Water Supply İn Manavgat

Construction Of Siverek Waste Water Treatment Plant

General Budget Ministry of Environment of the EU and and Forestry National Contribution

Construction Of Diyarbakır Waste Water Treatment Plant

25.674.834,38 EUR

Leader: Strabag AG.; Austria.

2011

General Budget Central Finance and Contracts of the EU and Unit National

Construction Of Ordu Waste Water Treatment Plant

10.997.065,95 EUR

Leader: MASS Treatment Systems Construction Industry and Trade

2010

83

Contribution

(WWTP) And Retrofitting Of Kumbaşı WWTP

IncorporatedCompany; Turkey

General Budget Central Finance of the EU and and Contracts National Unit Contribution

Design And Build Lot 1: Construction Of 7.994.968,31 EUR Infrastructure (96 Hectares) And Waste Lot 2: Water Treatment Plant 3.496.944 EUR Of Sanliurfa Oiz 2 (Organized Industrial Zone)

Lot 1: Leader:Asil Construction Industry and Trade Limited Corporation; Turkey

2008

1.Çarıksız Construction Industry and Trade Incorporation; Turkey Lot 2: Leader: Saceccav Depurazioni SACEDE S.P.A.; Italy

General Budget Central Finance of the EU and and Contracts National Unit Contribution

Design, Construction, Operation And Maintenance Of Nevşehir Waste water Treatment Plant

5.419.700 EUR

HİDROTEK – OTV Joint Venture

2007

General Budget Central Finance of the EU and and Contracts National Unit Contribution

Design, Construction, Operation And Maintanence Of Tokat Waste water Treatment Plant

7.628.500 EUR

HİDROTEK – OTV France Joint Venture

2007

Source: EuropeAid (2013)

For public procurements, it has been mentioned that loans of Ilbank A.S. is another finance source for municipalities in addition to their own equity capital. The shareholders of the Ilbank A.S. are municipalities and special provincial administrations with a capital of 9 billion TL. Ilbank A.S. provides credit support to municipalities, dispensing not only the funds from shareholders’ equity, but also funds secured from international sources such as the World Bank, European Investment Bank (EIB) and Japan International Cooperation Agency (JICA) at an amount of 450 million Euros (see Section 6.4.). The tenders funded by Ilbank A.S. can be directly held by either Ilbank or by the municipality administration. Like the tenders funded by EU, the target of Ilbank A.S. funded tenders are planning and construction of waste management and waste water treatment facilities.

After the construction, also operation and maintenance of waste management and waste water treatment facilities is done by the private sector (see Subsection 3.5.1.). The budget of these service tenders is not less than the cost for planning and construction. For the operation and maintenance services, prominent companies from Turkey received contracts, such as Kuzu Toplu Konut, Çevkom Mühendislik, MPE Mühendislik, Çevkom Mühendislik. In addition to these companies, the Austrian company Va Tech Wabag Gmbh is quite active in Public Procurement Tenders in Turkey.

In order to give an idea to the readers, some selective tenders, held and granted by Public Procurement Authority (KIK) in 2012 and 2013, are shared in Table 5.8. Apart from planning, construction, operation and maintenance, municipalities also procure transportation services and supplies such as package waste water treatment facilities, pumps, odor control units, some consumables, etc. However, as compared to the main service and construction expenditures, budget of these procurements are quite low.

84

Table 5.8: Selected Tenders granted by Public Procurement Authority (KIK)

TYPE OF THE TENDER

CONTRACTING AUTHORITY

TITLE

Service

Directorate Of Water And Sewage Works Of Aydin Municipality

Service

AWARDED TO

YEAR OF THE TENDER

Operation And 958.005,00 Try Maintenance Of Waste water Treatment Plant

Çevkom Mühendislik Endüstriyel Tesisler İnşaat Sanayi Ve Ticaret Limited Şirketi

2013

Ankara Metropolitan Municipality, Department Of Health

Service Procurement Of Collection Of Medical Waste, Carriage And Disposal

4.482.000,00 Try

Tek Tibbi Atik Taşima Ve Temizlik Hizmetleri Anonim Şirketi

2013

Supply

Construction Department Of Erdemli Municipality

1 Piece Of Domestic Package Waste water Treatment Plant For 500 People

60.000,00 Try

Sts Aritma Sistemleri Çevre Teknolojileri Mühendislik Makine İmalat Ve İnşaat Sanayi Ticaret Limited Şirketi

2013

Supply

Directorate Of Water And Sewage Works Of Aydin Municipality

Odor Control Unit For 389.000,00 Try waste water Treatment Plant

Hak-Su Teknik Pompa Endüstriyel Otomasyon Sanayi Ve Ticaret Limited Şirketi

2013

Supply

Directorate Of Water And Sewage Works Of Eregli Municipality

Procurement Of RealTime Remote Monitoring Station For Waste Water

84.750,00 Try

Thermomed Medikal Ve Analitik Cihazla R Tic Ltd Şti

2013

Service

Ankara Sewer Project Administration Department

AOÇ Advanced Waste water Treatment Plant Project

315.000,00 Try

3 B-Plan Mühendislik Müş.Ve Danş.Hizm Ltd.Şti.

2013

Service

Adana Water And Sewerage Administration General Directorate Of ASKI

Service Procurement Of Seyhan Karaisali And Yuregir Waste water Treatment Plant Maintenance, Repair And Operation

15.378.399,00 Try

Va Tech Wabag Gmbh

2013

Construction

Directorate Of Water And Sewage Works Of Aydin Municipality

Construction Of Waste 380.800,00 Try water Treatment Plant With A Capacity Of 300m3/Day

Çevkom Mühendislik Endüstriyel Tesisler İnşaat Sanayi Ve Ticaret Limited Şirketi

2013

Construction

Turkey Ministry Of Health, Authority Public Hospitals (Okmeydani, Training And Research Hospital)

Construction Of Radioactive Waste Repository

Not Awarded Yet

Not Awarded Yet

2013

Service

Kocaeli

Operation Of Gebze

16.481.867,70

Kuzu Toplu Konut İnş Ltd

2012

85

CONTRACT VALUE

Şti

Metropolitan Municipality , General Directorate Of ISU

Waste water Treatment Plant

Construction

Antalya Regional Directorate Of Iller Bank

Elmalı (Antalya)Waste 4.333.300,00 Try Water Treatment Plant

Mintaş-Mühendislik İ Nşaat Taahhüt Ve Ticaret A.Ş.

2012

Service

General Directorate Of Istanbul Water Channel Administration (ISKI)

Operation Of Waste water Treatment Plants

118.643.148,00

Jv Of Oman National Engineering & Investment Company - Mpe Mühendislik İnş. Taah. Ve Dış Tic A.Ş.

2012

Construction

Canik Çevresi Turizm Geliştirme, Çev.

Kor. Ve Temizliği,Yatirim Hiz., Altyapi Tes. Yapma Ve Işl.Bir.

Canik Environment Union Solid Waste Disposal Plant Construction

3.939.000,00 Try

Egepark Yapi İnş.Tek St.Tur.İth.İhr.S An.Ve Tic.Ltd.Şt

2012

Service

General Directorate Of Istanbul Water Channel Administration (ISKI)

Operation Of Waste water Treatment Plants

8.946.578,50 Try

Kuzu Toplu Konut İnşaat Anonim Şirketi

2012

Service

Application And Research Hospital Of Adnan Menderes University, Higher Education Institutions

Year 2013 Hazardous Waste Disposal

73.920,00 Try

Ya-Se Özel Sağlik Pe Hizm Nak Tur End Atik San Tic Ltd

2012

Try

Source: Electronic Public Procurement Platform

While the public sector is increasingly dealing only with planning, activities such as construction, operation and maintenance of transportation, storage, disposal and treatment of waste and waste water as well as recycling and waste-to-energy issues are entirely conducted by the private sector. However, a private company starting its activities in both recycling and the waste-toenergy area is subject to get a license from public authorities.

Like all energy generation licenses, waste-to-energy licenses are also issued by the Energy Market Regulatory Board (EMRA).

The full list of the companies which hold waste-to-energy license is indicated in the Table 3.8 in Subsection 3.4.2.Ortadoğu Enerji Sanayi Ve Ticaret A.Ş. and IT -KA Enerji Üretim San. Ve Tic. A.Ş. are the featured companies of this list. ITC-KA is a Swiss originated company, but today just 22% of the company belong to the Swiss partner.89 License of waste collection for recycling is granted by the Ministry of Environment and Urbanization (MoEU). The licenses are granted according to the waste activity areas below:

89

http://www.ebelediye.info/?pid=25174

86

 



 

Safe Waste Collection And Separation Hazardous Wastes o Cement plants uses waste as additional fuel o Hazardous waste recycling / disposal facilities Medical And Special Waste o Waste lube oil recycling facilities o Waste vegetable oil collection facilities o Used battery recycling facilities o Medical waste sterilization facilities o Recycling facilities for end of life tires o End of life tire temporary storage areas o Electrical and electronic waste processing companies accordance with the opinion Packaging Waste Collection / Separation And Recycling Facilities Transportation Companies and Vehicles o Medical waste transportation companies and vehicles o Hazardous waste transportation companies and vehicles o Waste vegetable oil transportation companies and vehicles o Used battery transportation companies and vehicles

Since the lists of licensed companies are quite long, they are not all placed in this report. The readers can access the full list of companies by visiting the website of the Department of Waste Management of MoEU.90

5.3. MARKET PRICING AND FUTURE TRENDS The CAPEX and OPEX involved with various technologies for energy production from waste are illustrated in Table 5.9.

Table 5.9: CAPEX and OPEX for various waste-to-energy technologies (in EUR/t)

CAPEX OPEX

LANDFILL

INCINERATION

ANAEROBIC DIGESTION

PYROLSYSIS / GASIFICATION

119–154

645–792

372–510

130–333

5–10

21–28

30–40

30–36

CAPEX are the highest for incineration, and the lowest for landfill. Since the pyrolysis, gasification, pyrogasification and other thermo-chemical methods other than incineration are new technologies (i.e., not state-of-the art or proven technologies) and still in the development phase in Turkey and therefore are facing relative high technology and implementation risk, the variation in CAPEX is the highest among all technologies. In fact, there are only few initiatives, especially, in the agricultural waste-to-energy sector, where private investors are still looking for, testing and implementing several forms and combinations of pyrolysis / gasification methods.

In contrast to the CAPEX figure, after landfill, which, as compared to other technologies, has a very low OPEX, the OPEX for incineration is lower than those for anaerobic digestion (AD) and pyrolysis / gasification. The OPEX for the latter two technologies are nearly in the same range.

Since landfill and incineration technologies are rather state-of-the art and proven technologies in Turkey, the cost structure is not expected to change much in the future. In contrast, AD and in particular, pyrolysis / gasification technologies are rather non-state-of-the art and non-proven technologies, being exposed to a permanent innovation, technology improvement / development process and R&D. In addition to those factors, since the waste composition and characteristics in Turkey differ from other countries, AD and pyrolysis / gasification technologies have to be adjusted according to them. That’s’ why, especially, CAPEX of both AD and the pyrolysis / gasification is not expected to decrease in near future. However, since, as 90

http://atikyonetimi.cevreorman.gov.tr/atikyonetimi/AnaSayfa.aspx?sflang=tr .

87

compared to AD, pyrolysis / gasification technologies is its very beginning status in Turkey, and no number of significant project references are available, OPEX is expected to show such a relatively large range (i.e., deviation) also in the near future.

Table 5.10 illustrates actual waste water charges for the two main customer types “residential and industrial / commercial” for selected Metropolitan Municipalities, which are primarily used to finance the waste water treatment facilities under BOT, PFI or outsourcing contracts (see Subsection 3.5.1.).

Table 5.10: Actual waste water charges for selected Metropolitan Municipalities (in TL/m3), September 2013 91

IZMIR

92

93

ANKARA KOCAELI

94

BURSA

GAZIANTEP

95

Residential

1.23

1.04

1.25

0.63

0.37

Industrial / Commercial

3.66

2.91

2.33

2.55

1.60

Source: IZSU, ASKI, ISU, BUSKI, GASKI (2013)

Metropolitan Municipalities’ waste water charges strongly differ among each other, being the lowest for Gaziantep and highest for Kocaeli. Except for Kocaeli, the difference between industrial / commercial and residential is up to three- or fourfold.96 Those increase their waste water charges in average 1-4 TL/m3 per month.

The (Municipalities) municipalities actually charge between 0.5-10.0 TL/per subscriber monthly for waste collection and transportation services, and about 0.3-6.2 TL/per subscriber for waste disposal services. Dependent on new investments in innovation and technology development of solid waste management and waste-to-energy facilities, which are mostly under BOT contracts with private companies (see Subsection 3.5.1.), (Municipalities) municipalities are allowed to require up to a maximum amount of 2 TL/per subscriber more per month.

In addition to charges for waste services and waste water treatment services, according to Municipality Law No. 5393 and Metropolitan Municipality Law No. 5216 (see Subsection 3.2.1.), (Municipalities) municipalities can additionally require an “Environmental Cleaning Tax” ( TV) which in absolute amount is mostly 10-50% of the waste water charges and could be used by (Municipalities) municipalities for financing their environmental services. As compared to a few years ago, CTV charges have increased. Therefore, they are very likely to increase in the future.

http://www.izsu.gov.tr/ http://www.aski.gov.tr/tr/anasayfa http://www.isu.gov.tr/ 94 http://www.buski.gov.tr/ 95 http://www.gaski.gov.tr/ 96 Some Metropolitan Municipalities such as Istanbul, Diyarbakir or Kayseri do not explicitly declare the waste water charges part in their water bill, thereby summing water use and waste water charges up to one single cost component “water charges”.

91

92 93

88

6. Turkish Market Opportunities 6.1. TRENDS AND FUTURE DEVELOPMENTS As analyzed and illustrated in previous Chapters and Sections, the main business trends within the waste management and waste water treatment industry are:    

  

 

Expected population growth and the need for more municipal waste disposal and recovery as well as municipal waste water treatment facilities, Concrete targets of MoEU to establish more controlled landfills, modern waste bringing centers and dual-collection systems, Increased use of the waste-to-energy potential from municipal waste / waste water and industrial waste / waste water by application of various waste-to-energy technologies depending on the waste type and components, Increased use of the waste-to-energy potential from agriculture residues (straw waste, corn stalk, sunflower stalk, cotton stalk etc.) and manure (chicken and cow): o Purchase of the agricultural waste and operated by other companies (investors) than the farmers or o Farmers or farmer cooperatives utilize their own agricultural waste for an integrated waste management and biogas plant in within or near to their facility to use the produced heat and / or energy for internal purposes Going towards an integrated waste management approach, Increased use of advanced waste water treatment methods, Increasing awareness and business focus and of municipalities and the industries towards the implementation of the modern waste hierarchy…

1. Prevention, 2. Preparing for re-use, 3. Recycling, 4. Other recovery, 5. Disposal, Increasing recycling business, Additionally generating carbon credits from biogas producing waste management and waste water treatment projects, by reducing CO2 emissions and replacing fossil fuel by biogas as a renewable energy source, and thereby additionally improving the IRRS of the existing business cases by 2-4% (see Subsection 3.3.2.1.3.).

These trends will very likely hold in future, since there is an urgent need for improvement and extension of the waste management and waste water treatment services, methods and processes, significant population growth scenarios are expected and new upcoming attractive business concepts arising within the waste management and waste water treatment industry. For that purpose, companies could make use of the following actions in order to realize these business potentials:    

Taking part in public tenders of municipal and Metropolitan waste management facilities, Taking part in public tenders of municipal and Metropolitan waste water treatment facilities, Cooperation with private companies for establishment industrial waste management facilities, Cooperation with private companies for establishment industrial waste water treatment facilities.

6.2. MARKET DEVELOPMENTS AND MARKET NICHES Although the electricity production from waste has become a quite popular and profitable business area, the same cannot be said about biofuels yet, representing a lucrative market niche. Turkish entrepreneurs mainly invested in biodiesel production from home-used waste oil and oil crops, but this business area has not been as profitable as expected yet, due to the high rate of special consumption tax; 98%97. Therefore, the special consumption tax rate of regular diesel and biodiesel are the same.

97

http://www.albiyobir.org.tr/trde_b2.htm

89

Furthermore, the law which obligates the usage of biodiesel originated from domestic sources was abolished in 25.06.2013.

According to the law, biodiesel mixture rate would be 1% in 2014, 2% in 2105 and 3% by 2016. EMRA states that the reason behind this decision is the shortage of vegetable oil supply. 98 On the other hand, biofuel production from waste via gasification-Fischer Tropsch (second generation) is a virgin subject for Turkey and even though TUBITAK carries some researches for biofuel production from solid fossil fuels, there is no other activity carried out by private sector public authorities. However, according to EU regulations “The Renewable Energy Directive (RED) that followed set a target that 10% of all energy in the transport sector must come from renewable energy sources and the European Union also adopted sustainability criteria for biofuels to be counted towards that target.”99. As a result, since Turkey follows the environment directives of EU, it can be easily stated that the biofuel production will be a promising part of the market in the near future.

6.3. PROJECT STRUCTURES & KEY ISSUES In Section 5.2., procurement structures have been detailed according to the public and private investments related with finance resources. For public procurements, finance resource is a determinant on project structures and key issues, as well.

Project structure and key issues of EU funded tenders In scope of EU tenders, technical assistance for planning and construction works is financed. Europe or Turkey originated companies are eligible for the EU tenders. This issue is placed in the contract notice of service and construction projects of EU tenders with the passage below: “...Participation is open to all legal persons participating either individually or in a grouping (consortium) of tenderers which are established in a Member State of the European Union or in a country or territory of the regions covered and/or authorised by the specific instruments applicable to the programme under which the contract is financed. All works, supplies and services under this contract must originate in one or more of these countries. Participation is also open to international organisations. The participation of natural persons is directly governed by the specific instruments applicable to the programme under which the contract is financed...”100 Even though, eligibility rule is common for service and construction tenders, the rest of the tendering, contracting and implementation structure differs and will be analysed separately.

Selection criteria for the EU funded construction tenders include the subtitles below: 1.

2.

3.

4.

General Economic and financial capacity of the tenderer a. Annual Turnover b. Financial Resources c. Financial Position Technical and professional capacity a. Work Experience Criteria for a Joint Venture/Consortium

These subtitles are separately designed according to the structure of each tender. The award criterion is the lowest comparable price. Pre-financing varies per individual contract but shall not exceed 20%. Interim and balance payment vary, per individual contract, as well. The works are implemented under FIDIC Conditions of Contract for Plant and Design-Build (Yellow book).

http://www.dunya.com/motorine-yerli-tarim-urunu-sarti-kalkti-35-milyar-dolar-zora-girdi-196834h.htm http://ec.europa.eu/energy/renewables/biofuels/doc/20110622_biofuels_flight_path_technical_paper.pdf 100 http://ec.europa.eu/europeaid/work/procedures/implementation/eligibility/documents/a2_eligibilityprogrammes2007-2013_en.doc 98 99

90

Coming to the service tenders of EU funded projects, the selection criteria contain the subtitles below: 1.

2.

3.

Economic and financial capacity of candidate Professional capacity of candidate Technical capacity of candidate

As for construction projects, these subtitles are separately designed according to the structure of each tender. After first evaluation of the candidates, the tendering authority publishes a shortlist and only the companies listed in the shortlist receives the tender documents (Terms of Reference -ToR). The award criterion is the “best value for money�. Pre-financing is maximum 60% of the contract value and balance payment is maximum 40% of the contract value if pre-financing payment has been made. Additionally, up to 30% of subcontracting is allowed for the EU service tenders.

The language of all EU tenders is English.

Project structure and key issues of Public Procurement Authority (KIK) tenders In scope of the tenders, announced by the Public Procurement Authority, planning, construction, operation, maintenance, transportation and supplies are procured. Most of the tenders are only open to the domestic tenderers or up to 15% of price advantage is applied in the favour of domestic tenderers or products. However, especially operation and maintenance of waste water treatment facilities of metropolitan municipalities and featured procurements related with radioactive waste management and medical waste management are open to foreign tenderers as well as local ones. In general, for such procurements, no price advantage is applied in favor of domestic tenderers.

Selection criteria of public procurement tenders are: 1.

2.

Economic and financial capacity of the tenderer a. Annual Turnover b. Financial Resources c. Financial Position Technical and professional capacity a. Organizational structure and staff availability(construction tenders)

Each criterion is separately designed according to the structure of each tender. The award criterion is the lowest comparable price. Application of pre-financing is very seldom. For the service and construction tenders, progress payments are made monthly according to the progress report. For supply tenders, 100%of the payment is made after provisional acceptance.

The language of all Public Procurement Authority tenders is Turkish.

Project structure and key issues of Private Sector Procurements Private sector mainly deals with waste-to-energy and recycling issues of waste management subjects and small waste water treatment facilities due to the legal obligations. Even though the first entrants to waste-to-energy and recycling sector use their own technology or collaborate with the foreign technology suppliers, the companies which recently planned to invest in these areas looking for solutions with best return for their money. That is, they are ready to pay for technologies which are most suitable for their financial capacity. In the same way, since the investment is due to the legal obligations, companies are looking for the cheapest solutions which meet the minimum requirements.

AS compared to the ones in the public sector, private sector procurements do not require complicated procedures. Related with the size of the company, partners or purchase department of the company collect the quotations from technology suppliers and evaluate according to their needs and budget. However, especially for the product supply, required documentation related with the TSE standards and rules of Ministry of Economy (MoE) should be clarified according to the custom tariff number of the product before the export operation get started.

91

6.4. AVAILABLE GRANTS AND INVESTMENT OPPORTUNITIES Figure 6.1 depicts the existing finance sources for investments in the waste management and waste water treatment industry in Turkey.

Figure 6.1: Existing finance sources

General Budget of the Central Administration General Budget of the Central Administration incorporates the equity financing source directly provided by governmental institutions or Ministries such as the State Water Authority (DSI), the Ministry of Environment and Urbanization etc. Waste management and waste water treatment projects to be financed by the General Budget and mandated / granted to the private sector are tendered by public tender processes.

Budget of Local Authorities Budget of Local Authorities refers to the financing source directly provided by local governmental-administrative institutions such as equity financing by municipalities or bank loans provided by Ilbank A.S and governmental development agencies with more favorable terms and conditions, as compared to commercial banks. Waste management and waste water treatment projects to be financed by the budget of municipalities and mandated / granted to the private sector are tendered by tender processes of municipalities. Equity returns of municipalities are guaranteed by Law No. 2464 “Municipal Revenues” (see Section 5.4.).

Loans provided by international financial institutions External loans to Local Authorities are provided by international financial sources such as World Bank, the European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), or within the framework of inter-governmental agreements such as the German Investment and Development Bank (KfW) or Japan Bank for International Cooperation (JBIC). International financial institutions are very excited to provide loans for investment in Turkey in order to fulfill its targeted EU environmental acquis. Some important loans actually provided by international financial institutions are: 

TurSEFF101 TurSEFF is a credit line developed by the European Bank for Reconstruction and Development (EBRD) providing loans of a total of USD 265 million through seven Turkish banks (Akbank, Denizbank, Isbank, Vakifbank, Yapi Kredi)

101 http://www.turseff.org/en

92

for SME sized industrial companies and commercial enterprises that wish to invest in renewable energy, waste-toenergy or energy efficiency projects 

MidSEFF102 MidSEFF is a credit line developed by EBRD with support from the European Investment Bank (EIB) and European Commission (EU), providing loans of a total of EUR 975 million through seven Turkish banks (Akbank, Denizbank, Finansbank, Garanti, Isbank, Vakifbank, Yapi Kredi) for on-lending to private sector borrowers, for financing midsize investments in renewable energy, waste-to-energy and industrial energy efficiency



Clean Technology Fund (CTF)103 The Clean Technology Fund (CTF), which is one of the Climate Investment Funds (CIF), having a size of USD 5.2 billion provides middle income countries with resources to explore options to scale up the demonstration, deployment, and transfer of low-carbon, clean technologies.

Grants provided by the EU Turkey benefits from financial assistance (i.e., “General Budget of the EU”) provided by the EU during its EU accession process. EU funds support investment projects by meeting the project costs no more than 75%, while the remaining portion is provided from national sources (i.e., “National ontribution”). Both General Budget of the EU and National Contribution are collected in the National Fund Center of the Undersecretariat of Treasury. EU funded projects with regard to construction and supervision is performed by the Central Finance and Contracts Unit (CFCU) of the Prime Ministry (see Section 5.2.). It is possible for Ilbank A.S. to provide the National Contribution for municipalities and act as a guarantor. In order to make use of the financial assistance during Turkey’s pre-accession process, the IPA (Instrument for Pre-Accession) program as a new mechanism has been established. Within the IPA framework, CFCU has been provided with transferred personnel from MoEU, in the short-run in order to execute the tendering, contracting and payments processes of environmental projects provided with financial assistance. However, MoEU is in the development process to establish a structure these works in the mediumand long-run.

International grant-type R&D funding programs Since national grant-type and credit loan-type funding programs provided by existing national funding providers such as TTGV, KOSGEB, development agencies etc. are designed and applied only for the financial support of Turkish companies’ R&D and/or business activities and initiatives, they are rather out of scope for Swiss companies, unless the latter establish a local subsidiary in Turkey under Turkish business law.

In contrast, international grant-type funding programs are only valid for Turkish companies if they form an international R&D cooperation with at least one foreign partner. That is, a Turkish company is only allowed to apply for grants from an international funding program together with at least one designated foreign partner. Hence, international grant-type funding programs in Turkey are appropriate for Swiss-Turkish cooperation in the waste management and waste treatment industry.

The international grant-type R&D funding programs are coordinated by The Scientific and Technological Research Council of Turkey (TÜBITAK)104 as a central point of contact to universities, research centers and institutes, MoSIT and technoparks.

Actually, there are three international grant-type R&D funding programs which could be used for Swiss-Turkish cooperation and initiatives in the Turkey’s waste management and waste treatment sector: The various EUREKA, Eurostars or EU FP7 programs. In all these programs, a bilateral or multilateral R&D cooperation between institutions from two or more different countries and the creation of only market-oriented and in the short-term marketable products, processes and services are a prerequisite.

Whereas compared to EUREKA programs and Eurostars, EU FP7 shows a higher intensity of research, EUREKA programs contain the relatively highest proximity-to-market among the three program types. EUREKA programs are assessed by national authorities and contain national funding, Eurostars is assessed by international authorities and contains national funding and, EU FP7 is assessed by international authorities and contains international funding.

102

http://www.midseff.com/ https://www.climateinvestmentfunds.org/cif/node/2 104 http://www.tubitak.gov.tr/ 103

93

For EUREKA, there exists a specific funding instrument at TÜBITAK where the project funding amount is unlimited. OPET does not have a specific funding instrument for EUREKA. Therefore, funding for a EUREKA project from Swiss side is always provided in combination with the national funding instrument of the corresponding governmental institution.

For Eurostars, TÜBITAK as well as OPET has specific funding instruments. Whereas the project financing for the Turkish part is unlimited, the Swiss part sets a cap at EUR 600’000 per project.

For EU FP7, where funding comes directly from EU, there is no upper limit in project financing.

In Turkey, the funding rates and amounts for EUREKA or Eurostars, compared to other countries, are quite high, resulting in a further mobilization potential of Turkish institutions for Swiss-Turkish cooperation.

Investments from Public-Private Sector Cooperation Funds are provided by a joint venture structure between (a) public institution(s) and (a) private company(ies) where mainly build-operate-trade (BOT) agreements are set up, where the private company(ies) after the establishment of the facility is (are) contractually guaranteed to operate the facility on its (their) behalf for fixed determined years, in order to generate return for their investments (see Subsection 3.5.1.).

Investments from the Private Sector Funds are provided by traditional equity, debt or mezzanine financing of private companies such as (large) direct investors, institutional investors or funds (see Subsection 3.5.2).

Tables 6.1-6.2 contain the investment needs for the waste management and waste water treatment sector, broken down to financial resources, according to UCES 2007-2023.

Table 6.1: Investment needs for the waste management sector, breakdown of financial resources (in Mio. EUR), 2007-2023

TOTAL 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1'155 45 Central administration (government) Local authorities

45

46

52

55

57

60

63

66

70

73

77

81

85

89

93

98

4'667 134 218

318

399

276

311

325

351

351

328

298

268

292

251

213

169

167

Municipals’ 2'873 19 equity

110

210

302

178

216

230

256

255

230

197

164

184

139

96

47

40

Ilbank A.S. 1'396 59

62

62

65

69

70

73

75

79

83

87

91

95

99

104

109

114

56

46

46

33

29

24

21

19

17

15

14

14

13

13

13

13

13

Funds (EU+ 3'745 21 other grants)

22

22

27

149

166

176

197

218

238

266

292

315

352

385

425

474

9'567 200 285

386

478

479

534

561

611

636

636

637

637

687

687

687

687

739

External credit loan PPP Private sector

TOTAL

398 N.A. N.A.

Source: Author’s own calculations based on EU integrated environmental approximation strategy for Turkey (UCES) (2007 - 2023)

94

Table 6.2: Investment needs for the waste water treatment sector, breakdown of financial resources (in Mio. EUR), 2007-2023

TOTAL 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2'241 87 Central administration (government)

91

93

101

106

111

116

122

128

135

142

148

156

164

172

181

190

9'601 574 597

648

661

480

476

463

502

618

642

643

626

610

578

484

552

450

Municipals’ 5'222 355 383 equity

435

458

272

270

253

290

399

375

366

337

309

263

156

209

92

Ilbank A.S. 3'882 149 156

156

162

172

175

183

189

198

248

260

272

284

299

312

327

342

Local authorities

External credit loan

498

70

58

58

42

36

31

27

24

21

19

18

17

16

16

16

16

17

Funds (EU+ 6'241 27 other grants)

29

29

37

248

273

301

333

366

402

442

486

537

590

647

711

783

18'083 687 717

770

798

833

859

880

957 1'112 1'179 1'227 1'260 1'303 1'332 1'303 1'443 1'423

PPP Private sector

TOTAL

N.A. N.A.

Source: Author’s own calculations based on EU integrated environmental approximation strategy for Turkey (UCES) (2007 - 2023)

For the period 2007-2023, the total investment needs for the waste management sector amounts to 9.6 bn EUR, those for the waste water treatment industry 18.1 bn EUR, while both sectors face a steady increase.

Since for both waste management and waste water treatment services, municipalities and Metropolitan municipalities are solely responsible for their conduction or subcontracting to third parties, the majority of financing will be through their own resources (equity), whereas the rest will be, by a large extent through the governmental development and investment bank Ilbank A.S., or external credit loans.

The central administration (i.e., government) supports projects which have high external benefits and are applied at governmentally special environmental protection areas (SEPA). Funds from EU or other grant-type mechanisms cover about 35% and 40% of the total investments needed for the waste water treatment sector and waste management, respectively. These have significantly increased between 2010 and 2011, and are expected to be the major financing source for the waste management sector from 2018, and for the waste water treatment sector from 2020.

6.5. SWOT ANALYSIS FOR SWISS FIRMS IN TURKEY Table 6.3 contains a SWOT analysis for Swiss firms targeting the Turkish waste management and waste water treatment market.

95

Table 6.3: SWOT analysis for Swiss firms

STRENGTHS  Swiss companies are able to supply High-Cleantech products, services and processes.  High innovation, R&D and technology transfer potential.  Swiss companies have a strong financial capacity and higher access to financiers, private equity funds and other financial institutes due to their relative high concentration in Switzerland.  Strong entrepreneurship.  Switzerland has a high quality label.  Strong project design and management skills.  Existence of advanced and innovative waste management and waste water treatment methods  Existence of dynamic product lines, rather than a single product OPPORTUNITIES  Favourable existing and future regulatory drivers and framework.  Favourable existing and future market conditions.  Turkey is in its early ages in terms of waste management and waste water treatment investments.  Financial G2G agreements are possible.  Turkish companies’ attitude is quite positive towards collaboration with Swiss companies.  The Turkish market has high Swiss quality awareness.  The educational level and number of qualified local people is increasing, therefore implying the raising existence of locally available qualified engineers, advisors and project managers as well as construction and manufacturing companies.  High competition in the home market for HighCleantech products implies for Swiss companies a continuous holding of the high quality standards and comparative advantage against other countries.

96

WEAKNESSES  Swiss companies have high production costs due to: - Expensive labour costs in Switzerland, - Expensive building and construction costs in Switzerland, - High costs for machinery and equipment in Switzerland, due to their mainly production in Switzerland, - High rentals in Switzerland, - Additional transportation costs from Switzerland to Turkey.  Swiss companies have high production O&M costs.  Swiss companies are not able to response to technical issues in a short time interval.  Switzerland is not a member of the EU. THREATS  Turkish Public Procurement Law allows the tendering authorities to restrict bidding of foreign companies or to apply up to 15% of price advantage in the favour of domestic tenderers or products.  Turkish companies would like to know estimated total cost even before the feasibility studies.  Potential G2G agreement proposals from other countries that may restrict bidding of Swiss companies.  As compared to other countries, such as Germany, still reluctant and hesitating attitude towards the Turkish business environment.  Foreign companies increasingly see the business potential in the production of machinery and equipment with regard waste management and waste water treatment and thus are entering into JVs / partnerships with manufacturing companies or establish their own subsidiaries and manufacturing plants in Turkey.

6.6. EVENT MARKETING OPPORTUNITIES If Swiss companies want to enter the Turkish waste management and waste water treatment market and make use of Turkey’s huge market potential and dynamics by establishing new partnerships, business networks, solutions and marketing and sales channels in Turkey, where “energy” and “environment” and their related sub-sectors and (sub-) technology areas will always be on policy’s main strategic agenda, the resulting benefits arising from any project type, business case and / or R&D initiative could highly exceed its occurring costs.

Therefore, as a first important business step, Swiss companies can make use of event marketing opportunities by participating in upcoming events in Turkey with regard to waste management and waste water treatment to show presence and establish business contacts, which could result in lucrative business cooperation and investment opportunities. All the events in 2013 related with waste management and waste water treatment are listed in the tables below.

TRADE FAIR 4TH NATIONAL ENERGY EFFICIENCY FORUM AND FAIR SUBJECT

ENVIRONMENT, RECYCLING, WASTE MANAGEMENT, WATER TECHNOLOGIES, MUNICIPALITY, URBAN FURNISHINGS – ENERGY

PRODUCTS

Efficient Energy Generation And Environment Technologies, Efficient Isolation, Motor Systems, Transportation, Lighting, Heating-Cooling Technologies, Waste And Renewable

PLACE

WOW Kongre Merkezi Yeşilköy – İstanbul

ORGANISER

Sektörel Fuarcılık Ltd. Şti

DATE

10.01.2013 - 11.01.2013

TRADE FAIR ADANA URBAN 2013 ADANA 5. MUNICIPALITY NECESSETIES, URBAN FURNISHINGS, LANDSACAPING AND SPORT FACILITIES FAIR SUBJECT

ENVIRONMENT, RECYCLING, WASTE MANAGEMENT, WATER TECHNOLOGIES, MUNICIPALITY, URBAN FURNISHINGS

PRODUCTS

Municipality Necessities, Urban Furnishings, Landscaping, Environmental Technologies

PLACE

Tüyap Adana Uluslararası Fuar ve Kongre Merkezi - Adana

ORGANISER

Tüyap Adana Fuarcılık A.Ş.

DATE

14.02.2013 - 17.02.2013

INTERNATIONAL TRADE FAIR ENVIRONMENT, RECYCLING, WASTE MANAGEMENT, WATER TECHNOLOGIES, MUNICIPALITY, URBAN FURNISHINGS SUBJECT

ENVIRONMENT, RECYCLING, WASTE MANAGEMENT, WATER TECHNOLOGIES, MUNICIPALITY, URBAN FURNISHINGS

PRODUCTS

Environment, Recycling, Waste Management, Water Technologies, Municipality Equipment, City Furniture

97

PLACE

Atatürk Kültür Merkezi - Ankara

ORGANISER

İnfo Uluslararası Fuar Tan. Org. A.Ş.

DATE

27.03.2013 - 30.03.2013

TRADE FAIR MIDDLE EAST 4. MUNICIPALITY NECESSITIES FAIR 2013 SUBJECT

ENVIRONMENT, RECYCLING, WASTE MANAGEMENT, WATER TECHNOLOGIES, MUNICIPALITY, URBAN FURNISHINGS

PRODUCTS

Cleaning And Other Construction Works Machinery, Solid Waste And Waste Treatment Systems, Fire Brigade Facilities, Transportation, Illumination, Landscaping, Urban Furnishings, Sport Facilities And Supplies

PLACE

Tüyap Diyarbakır Fuar ve Kongre Merkezi - Diyarbakır

ORGANISER

Tüyap Tüm Fuarcılık Yapım A.Ş.

DATE

11.04.2013 - 14.04.2013

TRADE FAIR ANFAŞ CITYEXPO 2013 4. CITY PLANNING AND TECHNOLOGIES EXHIBITION SUBJECT

ENVIRONMENT, RECYCLING, WASTE MANAGEMENT, WATER TECHNOLOGIES, MUNICIPALITY, URBAN FURNISHINGS - CONSTRUCTION WORKS MACHINERY

PRODUCTS

Environment, Recycling, Waste Management, Water Technologies, Municipality, City Furniture, Heavy Construction Machineries

PLACE

Antalya Fuar Merkezi - Antalya

ORGANISER

Anfaş Antalya Fuarcılık İşletme ve Yatırım A.Ş.

DATE

17.04.2013 - 19.04.2013

INTERNATIONAL TRADE FAIR ICCI - 19. INTERNATIONAL ENERGY AND ENVIRONMENT FAIR AND CONFERENCE SUBJECT

ENVIRONMENT, RECYCLING, WASTE MANAGEMENT, WATER TECHNOLOGIES, MUNICIPALITY, URBAN FURNISHINGS - ENERGY

PRODUCTS

Renewable Energy Technologies And Fossil Fuel Energy Generation, Environmental Technologies, Energy Transmission, Distribution, Automation Systems

PLACE

İstanbul Fuar Merkezi Yeşilköy - İstanbul

ORGANISER

Sektörel Fuarcılık Ltd. Şti.

DATE

24.04.2013 - 26.04.2013

TRADE FAIR

98

PAWEX SUBJECT

ENVIRONMENT, RECYCLING, WASTE MANAGEMENT, WATER TECHNOLOGIES, MUNICIPALITY, URBAN FURNISHINGS - HEATING, COOLING, VENTILATION, NATURAL GAS AND SYSTEMS,BUILDING AND BUILDING MATERIALS, BATHROOM, KITCHEN, CERAMICS, IRONMONGERY, HARDWARE, INSTALLATION

PRODUCTS

Pumps, Valves, Water Treatment, Pipes, Fittings, Energy Efficiency, Water, Environment And Fluid Control Technologies, Products

PLACE

İstanbul Fuar Merkezi Yeşilköy - İstanbul

ORGANISER

Hannover Messe Sodeks Fuarcılık A.Ş.

DATE

02.05.2013 - 05.05.2013

TRADE FAIR KONYA URBAN 2013 - KONYA 9. MUNICIPAL NECESSITIES, URBAN FURNISHING, LANDSCAPING AND SPORT FACILITIES FAIR SUBJECT

ENVIRONMENT, RECYCLING, WASTE MANAGEMENT, WATER TECHNOLOGIES, MUNICIPALITY, URBAN FURNISHINGS

PRODUCTS

Municipal Necessities, Urban Furnishing, Landscaping, Fire Engines And Safety

PLACE

KTO Tüyap Konya Uluslararası Fuar Merkezi - Konya

ORGANISER

Tüyap Konya Fuarcılık A.Ş.

DATE

16.05.2013 - 19.05.2013

TRADE FAIR URBANISM, URBAN TRANSFORMATION AND ENVIRONMENTAL TECHNOLOGIES FAIR SUBJECT

ENVIRONMENT, RECYCLING, WASTE MANAGEMENT, WATER TECHNOLOGIES, MUNICIPALITY, URBAN FURNISHINGS - ELECTRICAL INDUSTRY, ELECTRONICS, LIGHTING & AUTOMATION TECHNOLOGIES

PRODUCTS

Furniture For Public Use, Lightening Units, Traffic Signs and Routing Equipment, Transportation Systems and Units, Infrastructural Materials Automation Systems, Software and Security Equipment

PLACE

İstanbul Fuar Merkezi Yeşilköy - İstanbul

ORGANISER

Sine Fuarcılık A.Ş.

DATE

29.05.2013 - 01.06.2013

INTERNATIONAL TRADE FAIR REW ISTANBUL 2013 9TH INTERNATIONAL RECYCLING, ENVIRONMENTAL TECHNOLOGIES AND WASTE MANAGEMENT TARDE FAIR SUBJECT

99

ENVIRONMENT, RECYCLING, WASTE MANAGEMENT, WATER TECHNOLOGIES, MUNICIPALITY, URBAN FURNISHINGS

PRODUCTS

Solid Waste, Water And Waste Water, Sludge, Waste Gas, Energy, General Equipment, Urban Environmental Cleaning Vehicles And Equipment, Measurement And Control Technologies

PLACE

Tüyap Fuar ve Kongre Merkezi - İstanbul

ORGANISER

İFO İstanbul Fuar Hizmetleri A.Ş.

DATE

13.06.2013 - 16.06.2013

TRADE FAIR MERSIN 3RD MUNICIPALITY NEEDS EQUIPMENT, TRAFFIC EQUIPMENT FAIR SUBJECT

ENVIRONMENT, RECYCLING, WASTE MANAGEMENT, WATER TECHNOLOGIES, MUNICIPALITY, URBAN FURNISHINGS - GARDENING, GARDEN FURNISHINGS, LANDSCAPING, HORTICULTURE, PETS

PRODUCTS

Environment, recycling, waste management, water technologies

PLACE

Yenişehir Fuar Merkezi - Mersin

ORGANISER

Forza Fuarcılık ve Organizasyon Hizmetleri A.Ş.

DATE

12.09.2013 - 15.09.2013

TRADE FAIR ALLGREEN RENEWABLE ENERGY FAIR SUBJECT

ENVIRONMENT, RECYCLING, WASTE MANAGEMENT, WATER TECHNOLOGIES, MUNICIPALITY, URBAN FURNISHINGS - ENERGY

PRODUCTS

All Kinds Of Energy Efficiency, Alternative Energy Solutions, Renewable Energy Technologies, Environmentally Friendly Products

PLACE

İstanbul Fuar Merkezi Yeşilköy - İstanbul

ORGANISER

İstanbul Fuarcılık A.Ş.

DATE

26.09.2013 - 29.09.2013

TRADE FAIR KENT EXPO "URBANISM AND CITY DEMANDS FAIR" SUBJECT

ENVIRONMENT, RECYCLING, WASTE MANAGEMENT, WATER TECHNOLOGIES, MUNICIPALITY, URBAN FURNISHINGS

PRODUCTS

Municipality Vehicles, Urban Furniture, Perk-Garden Equipments, Treatment Equipment, Transport Systems, Sport Facility Equipment And Hardware

PLACE

Uluslararası İzmir Fuar Alanı - İzmir

ORGANISER

İZFAŞ İzmir Fuarcılık Hizmet. Kültür ve Sanat İşleri. Tic. A.Ş.

DATE

07.11.2013 - 10.11.2013

100

TRADE FAIR EURASIA STOCK BREEDING 2013 3RD STOCK BREEDING, EQUIPMENT, POULTRY AND DAIRY INDUSTRY FAIR SUBJECT

AGRICULTURE, GREENHOUSE, LIVESTOCK BREEDING AND TECHNOLOGIES

PRODUCTS

Stock Breeding, Poultry And Dairy Industry

PLACE

Tüyap Fuar ve Kongre Merkezi

ORGANISER

Tüyap Tüm Fuarcılık Yapım A.Ş.- İstanbul

DATE

09.01.2013 - 12.01.2013

LEGENDE: TRADE FAIR AEGEANAGRI 9TH AEGEAN AGRICULTURAL GREENHOUSE & LIVESTOCK EXHIBITION SUBJECT

AGRICULTURE, GREENHOUSE, LIVESTOCK BREEDING AND TECHNOLOGIES

PRODUCTS

Agriculture, Agricultural Technologies, Greenhouse, Livestock Breeding, Seed And Seedling Production, Agricultural Irrigation, Dairy Industry

PLACE

EGS Fuar ve Kongre Merkezi

ORGANISER

Orion Fuarcılık ve Tanıtım Hizmetleri Ltd. Şti.- Denizli

DATE

20.02.2013 - 24.02.2013

LEGENDE: TRADE FAIR 3RD GÖNEN AGRICULTURAL & LIVESTOCK EXHIBITION SUBJECT

AGRICULTURE, GREENHOUSE, LIVESTOCK BREEDING AND TECHNOLOGIES

PRODUCTS

Agriculture, Agricultural Technologies, Greenhouse, Livestock Breeding, Seed And Seedling Production, Agricultural Irrigation Technologies, Dairy Industry

PLACE

Gönen Belediyesi Semt ve Fuar Alanı- Balıkesir

ORGANISER

Orion Fuarcılık ve Tanıtım Hizmetleri Ltd. Şti.

DATE

04.04.2013 - 07.04.2013

LEGENDE: TRADE FAIR AGRITECH 2013 3. FETHİYE AGRICULTURE, GREENHOUSE, LIVE STOCKBREEDING, NOURISHMENT AND AGRICULTURAL MACHINERY FAIR SUBJECT

AGRICULTURE, GREENHOUSE, LIVESTOCK BREEDING AND TECHNOLOGIES

PRODUCTS

Agriculture, Machinery And Technology, Greenhouse, Seed, Sapling, Irrigation, Fertilizer, Organic Agriculture, Dairy Industry

PLACE

Fethiye Fuar ve Sergi Alanı- Muğla

ORGANISER

Marmaris Fuarcılık Org. Halkla İlişkiler Ltd. Şti.

DATE

04.04.2013 - 07.04.2013

101

LEGENDE: TRADE FAIR DLG-ÖÇP FIELD DAYS 2013 SUBJECT

AGRICULTURE, GREENHOUSE, LIVESTOCK BREEDING AND TECHNOLOGIES

PRODUCTS

Seeds, Fertilizers, Pesticides, Agricultural Machinery, Sapling, Irrigation Equipment, Greenhouse Technologies,S eedlings, Animal Breeding, Food Stupps

PLACE

Bahri Dağdaş Tarımsal Araştırma Enstitüsü Alanı

ORGANISER

DLG Fuarcılık Ltd.Şti.

DATE

Konya

LEGENDE: INTERNATIONAL TRADE FAIR AGROTEC 2013 17TH INTERNATIONAL AGRICULTURE FAIR SUBJECT

AGRICULTURE, GREENHOUSE, LIVESTOCK BREEDING AND TECHNOLOGIES

PRODUCTS

Agricultural machines, pesticides, animal husbandry, greenhouse

PLACE

Atatürk Kültür Merkezi- Ankara

ORGANISER

İnfo Uluslararası Fuar Tan. Org. A.Ş.

DATE

12.09.2013 - 15.09.2013

LEGENDE: INTERNATIONAL TRADE FAIR 9. AGROEXPO EURASIA INTERNATIONAL AGRICULTURAL GREENHOUSE & LIVESTOCK EXHIBITION SUBJECT

AGRICULTURE, GREENHOUSE, LIVESTOCK BREEDING AND TECHNOLOGIES

PRODUCTS

Agriculture, Agricultural Technologies, Greenhouse, Seed And Seedling Production, Feed Sector, Agricultural Irrigation, Livestock Breeding, Livestock Health Technologies

PLACE

Uluslararası İzmir Fuar Alanı- İzmir

ORGANISER

Orion Fuarcılık ve Tanıtım Hizmetleri Ltd. Şti.

DATE

19.09.2013 - 22.09.2013

LEGENDE: INTERNATIONAL TRADE FAIR GROWTECH EURASIA 2013 13TH INTERNATIONAL GREENHOUSE AGRICULTURE, FLORİCULTURAL EQUIPMENT AND TECHNOLOGIES FAIR SUBJECT

AGRICULTURE, GREENHOUSE, LIVESTOCK BREEDING AND TECHNOLOGIES

PRODUCTS

Greenhouse And Greenhouse Technologies, Agricultural Mechanization Seed Nursery Young, Plant Nutrition And Protection, Organic Agriculuture, Irrigation System And Equipments, Sevice And Logistics

PLACE

Antalya Fuar Merkezi- Antalya

ORGANISER

NTSR Fuar ve Gösteri Hizmetleri A.Ş.

102

DATE

04.12.2013 - 07.12.2013

LEGENDE: TRADE FAIR ALL ENERGY TURKEY 13 SUBJECT

ENERGY

PRODUCTS

Energy, Energy Efficiency, Finance, Consultancy, Management Services, Local Authorities

PLACE

Lütfi Kırdar Uluslararası Kongre ve Sergi Sarayı- İstanbul

ORGANISER

İstanbul Restate Fuar Org. A.Ş.

DATE

11.09.2013 - 12.09.2013

LEGENDE: TRADE FAIR 2ND ELEX FAIR SUBJECT

ENERGY - ELECTRICAL INDUSTRY, ELECTRONICS, LIGHTING & AUTOMATION TECHNOLOGIES

PRODUCTS

Electicity Cycle, Transmission, Power Distribution, Control And Protection, Test, Measurement And Maintenance

PLACE

İstanbul Fuar Merkezi Yeşilköy- İstanbul

ORGANISER

Marmara Tanıtım Fuarcılık Org. Rek. ve Tic. Ltd. Şti.

DATE

26.09.2013 - 29.09.2013

LEGENDE: TRADE FAIR TIREC 5. TURISH RENEWABLE ENERGY FAIR SUBJECT

ENERGY

PRODUCTS

Renewable Energy Technologies

PLACE

Wyndham İstanbul Kalamış Marina Otel- İstanbul

ORGANISER

Sedef Fuar ve Kongre Hizmetleri San. ve Tic. A.Ş.

DATE

22.10.2013 - 23.10.2013

LEGENDE: TRADE FAIR EIF ENERGY FAIR SUBJECT

ENERGY

PRODUCTS

Manufacturers of electric distributors, companies of energy sector

PLACE

ATO Kongre ve Sergi Sarayı- Ankara

ORGANISER

Domino Fuarcılık Ltd. Şti.

DATE

24.10.2013 - 25.10.2013

103

LEGENDE: TRADE FAIR RENSEF RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY EXHIBITION SUBJECT

ENERGY

PRODUCTS

Solar, wind, biomass, biogas, geothermal, natural gas and energy efficiency technologies

PLACE

Cam Piramit Sabancı Kongre ve Fuar Merkezi- Antalya

ORGANISER

Agoras Fuarcılık Hizmetleri Ltd. Şti.

DATE

31.10.2013 - 03.11.2013

104

7. Market Entry Strategies In previous sections, it has been mentioned that the waste management and waste water treatment industry is still in its early ages and requires more expenditure and investments. That is, this development phase contains remarkable opportunities for the firms which are active in these sectors. However, from Swiss companies’ point of view, not being member of the EU, some obstacles in the Turkish Public Procurement Law to the disadvantage of foreign tenderers, comparatively high production costs due to the socioeconomic difference between Turkey and Switzerland are the main issues with regard to the entrance in the Turkish market.

In the following, some relevant market entry strategies according to the investment and finance resources will be highlighted.

Firstly, public procurements will be handled according to the finance resources. Except for government expenditures, the EU is the main fund supplier of waste management and waste water treatment investments. However, in Section 6.3., it has been mentioned that Swiss companies are not eligible to bid for the tenders funded by the EU. In order to overcome this obstacle, Swiss companies have to found a daughter company in an EU member country or in Turkey. This is the way some US companies have followed for years. Moreover, instead of an EU member country, founding a daughter company in Turkey could be more advantageous once Turkish Public Procurement Law is considered. It should be noted that Turkish companies are allowed to bid for the EU tenders held in other countries. Turkish Public Procurement Law allows the tendering authorities to restrict bidding of foreign companies or up to 15% of price advantage is applied in the favour of domestic tenderers or products. Additionally, some TSE quality standards for management and products and technical service presence are required to be able to bid for some public tenders.

For private investments, especially the recycling, waste-to-energy and waste water treatment facilities, regulated by the Turkish laws, represent the main business opportunities for Swiss companies. The crucial points to seize these opportunities are brand awareness, optimum price/quality ratio and short response time of technical service.

For starters, brand awareness can be created via sending online or hard copy brochures/fliers, phone calling and direct emailing to the potential investors. In order to find potential investors, a Swiss Company should follow up the list of the granted electricity production licenses published by EMRA for waste-to-energy projects, waste handling licences published by the Ministry of Environment and Urbanization for recycling projects and investment incentive certificates announced via Official Gazette for the waste water treatment projects.

Unfortunately, the expensive labour force and rental cost in Switzerland, as compared to the Turkish market, heavily affects the saleability of Swiss solutions and products in the Turkish market, although they are of much better quality than those of its competitors. Partial production of some equipment in Turkey could be of help for Swiss companies to decrease costs, while keeping the quality level high. Shifting some production line to Turkey provides a price advantage for the marketing activities and sales of Swiss companies in other countries. Although the labour costs in Turkey are higher than in Asian Countries, its close location to Europe, Africa and rich Arab countries make its location advantageous in terms of low transportation costs and short delivery time.

No investor would like to stop his business activities for a long times due to breakdowns. However, this is an inevitable result if a technical service location is too far from the investment location. Therefore, short response time of technical service will place the solution/product provider a few steps ahead of his competitors. This requires localized technical service infrastructure or local partnership.

All the entry strategies in the Turkish market explained above, could be onerous for some suppliers and solution providers.

However, it should be noted that the investments to be realized are much more than the investments which are hitherto realized in Turkey until now.

105

8. Conclusion The goal of this study was to analyze and assess the current situation in the waste management and waste water treatment market in Turkey and make an outlook with regard to future developments in these markets.

Today, in Turkey, about the half of the population of 73.7 Mio is still not served with waste disposal / recovery and waste water treatment services. Moreover, 44% of the municipal solid waste is still dumped into open dumping sites of municipalities, therefore implying the release of the very potent greenhouse gas methane into the atmosphere and incorporating explosion risk of sites. On average, only about 24% of the industrial waste water discharged is treated. Turkey’s objective of the EU accession and thus shaping all of its waste management and waste water treatment regulations and policies towards a harmonization with EU’s standards, the various strategic plans of ministries, Turkey’s economic growth forecasts, the raising awareness in the industry for an integrated waste management approach, the waste-to-energy concept, various expected population growth scenarios and many other lucrative factors will lead to a substantial growth of both the municipal and industrial waste management and waste water treatment industry in the future.

Hence, based on these analyses and positive market trends, potential investment and cooperation opportunities for Swiss companies within these industries have been highlighted. Moreover, a comprehensive SWOT analysis and concrete recommendations for business and marketing strategies have been provided, showing how Swiss companies could enter into these lucrative industries.

Thereby, the main business potentials, which, at the same time incorporate the comparative business advantages of Swiss companies in the increasing Turkish waste management and waste water treatment industry are their project management competence as well as the supply and technology transfer of their High-Cleantech products, processes and services.

Consequently, in order to optimally make use of these lucrative Swiss-Turkish business and cooperation potentials in the waste management and waste water treatment industry, the participation in events as well as the launch of joint initiatives are essential.

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9. Summary and Key Takeaways Summarized, there are several positive and pushing factors for the continuous development and growth of the Turkish waste management and waste water treatment industry, such as         

Turkey’s forecasted economic growth, Various population growth scenarios, Unsatisfactory status of waste management and waste water treatment industry, Increasing need for municipal / industrial waste recovery / disposal and waste water treatment services, Favorable regulatory environment and drivers, Raising environmental awareness within the society and public sector, Increasing lucrative PPP and private business investment and cooperation structure, Existence of equity funding from local authorities and various other national and international funding mechanisms, Establishment of the waste-to-energy concept for improving the underlying business cases.

Swiss companies could strongly benefit from and take part in the growth of the Turkish waste management and waste water treatment industry. Hence, the key takeaways for doing business in these lucrative industries and their related sub-sectors are:        



107

Being less reluctant and hesitant towards the Turkish business environment.

Making use of event marketing opportunities through the participation in forthcoming events in Turkey with regard to waste management and waste water treatment to show presence and establish business contacts.

Increasing brand awareness through sending online or hard copy brochures/fliers, phone calling and direct e-mailing to potential investors.

Establishing new partnerships, business solutions and marketing and sales channels in Turkey, Relying on their high innovation, R&D and technology transfer potential, Optimizing their price/quality ratios and shortening their response time of technical service, Relying and holding of their high quality label, Lowering their production costs through entering into JVs / partnerships with local manufacturing companies or establishing their own subsidiaries and manufacturing plants in Turkey for the production of materials, machinery and equipment with regard to waste management and waste water treatment, Launching joint R&D initiatives with Turkish companies, whose attitude and willingness for cooperation with Swiss companies is quite positive.

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