Joint Annual Conference: "Invest for Access" Thursday, April 8, 2004 : Joint Annual Conference: "Invest for Access" Thursday, April 8, 2004 Sponsor organizations:
TURKEY-EU RELATIONS : TURKEY-EU RELATIONS Davut Ökütçü
Chairman of the Board
Economic Development Foundation
8 April 2004, TORONTO IMPLICATIONS OF ACCESSION NEGOTIATIONS on the INVESTMENT ENVIRONMENT IN TURKEY
TURKEY-EU RELATIONS - MILESTONES : TURKEY-EU RELATIONS - MILESTONES
1963 Accession Partnership Agreement
Jan.1, 1996 Completion of Customs Union with EU
1997 Luxemburg Summit
1999 Helsinki Summit
2002 Copenhagen Summit
Copenhagen Criteria : Copenhagen Criteria Guaranteeing democracy,
The rule of Law,
Respect for human rights,
Protection of minorities
Existence of a functioning market economy
Capacity to cope with the competitive pressure from the EU
Full compliance with the European Union acquis Political Criteria
Compliance with the political criteria The precondition for the launching of the accession negotiations : Compliance with the political criteria The precondition for the launching of the accession negotiations Since 1999,
Turkey has undertaken various reforms in the political, economic and legislative spheres of the integration process.
1/3 of Constitution amended, 7 reform packages adopted
“Implementation” is now the key word.
Structural Reforms
Reform Monitoring Group
Human Rights Board
Extensive training of security and judiciary staff
Slide6 : Precondition of Accession Negotiations are the Copenhagen Political Criteria.
YET
Economic criteria and harmonization with the Acquis are the key to full integration with the EU.
Turkey has covered considerable ground in these areas to shorten the period of negotiations on the path to full membership
Ec. Growth & Inflation : Ec. Growth & Inflation
Golden Rules of Competition : Golden Rules of Competition Stable and predictable legislative environment
Flexible and resilient economic structure
Traditional and technological infrastructure
Private savings and domestic investment
Quality, speed and transparency in government
Productivity
Investment in education and life-long training
Preservation of the value systems of the citizens
Source: IMD
After Customs Union..... : After Customs Union..... Concepts like
Productivity
Total quality management,
Customer satisfaction,
Standardisation,
Continuous improvement,
Strategic thinking,
Institutionalisation,
Value-added,
Human resources management
Innovation
took their place on the agenda
Award Winning Turkish Companies : Award Winning Turkish Companies EFQM European Quality Awards
1996 BRISA (Award Winner), NETAS - Northern Electric Telekomunikasyon
1997 Beksa (Award Winner)
1998 NETAS - Northern Electric Telekomunikasyon
1998 Beko Ticaret (Award Winner)
2000 Arçelik, Eczacibasi Vitra
2002 Bosch Sanayi ve Ticaret (Bursa / Turkey )
2003 Kocaeli Chamber of Industry (Prize winner)
European Energy+ Award
2004 Arcelik
Turkish Foreign Trade : Turkish Foreign Trade Source: UFT, SIS
Slide12 : “The real difficulty lies not
in developing new ideas
but in escaping from the old ones”
J.M. Keynes
Turkey is now full of determination on a clear path to EU.
We invite you to share and benefit from our aspiration
THANK YOU ALL…
Share of EU in Turkish Foreign Trade : Share of EU in Turkish Foreign Trade Source: UFT, SIS
Slide14 : aggressiveness attractiveness assets processes risk
taking globality proximity SUSTAINABILITY VALUE ADDED CREATION COMPETITIVENESS OF
COMPANIES COMPETITIVENESS
OF NATIONS Social cohesiveness economic
performance infrastructure government
efficiency business
efficiency Source: IMD
The issue is... : The issue is... Organization of research and development
University research capacity
Utilization of information technology
Transformation of imported technology
Modern enterprise management
Identification and protection of intellectual property rights
Slide16 : April 8, 2004
Presented by: Brenda Hawryluk, Trade Specialist, Asia Pacific A UNIQUE PARTNERSHIP FOR TRADE AND BUSINESS DEVELOPMENT
Slide17 : OUR SERVICES:
Trade development
Market intelligence
Export financing advice and guidance
WHAT IS STEP?
A non-profit, membership-based organization designed to promote the growth of Saskatchewan’s export industry.
Slide18 : Saskatchewan Exports as % of GDP
Saskatchewan Bureau of Statistics (May 2003)
Millions of dollars 2001 2002
Export of goods & services 22,960 23,093
Exports to other countries 14,332 14,677
Exports to other provinces 8,628 8,416
Gross Domestic Product (GDP) 33,593 34,703
Total Exports as % of GDP 68.3% 66.5%
Exports to other countries 42.7% 42.3%
Exports to other provinces 25.7% 24.3%
Top 10 Saskatchewan Exports * : Top 10 Saskatchewan Exports * Crude Petroleum Oils 25.62%
Potassium Chloride 19.16%
Meslin and Wheat 7.44%
Durum Wheat 6.93%
Rape or Colza Seeds 3.26%
Natural Uranium 1.90%
Peas – Dried and Shelled 1.65%
Linseed 1.58%
Barley 0.92%
Particle Boards of Wood 0.68%
Other 30.86%
Source of data: Statistics Canada Report Date: 20-Jan-2004 * In the last 24 months
Slide20 : Saskcan Pulse Trading Inc. head office and processing facility is located in Regina, Saskatchewan
Through an extensive network of cleaning plants and producers and its state of the art lentil splitting factory, Saskcan will supply its global client base with premium quality Canadian pulses.
Saskcan Pulse Trading:
A Saskatchewan Success Story
Saskcan Pulse Trading : The company has constructed a lentil splitting plant with a 75,000 MT annual capacity
Products include a full line of:
Red Split Lentils
Futball Red Lentils
Whole Lentils
Chickpeas, and
Peas
Saskcan Pulse Trading
THE PARTNERS : THE PARTNERS Saskcan has strong financial partners. The total project, including operating financing, was about $12 million.
Lenders include Farm Credit Canada and the Business Development Bank of Canada, CIBC, Scotiabank, Crown Ventures Fund (a labour-sponsored venture capital corporation) and SGGF (the Saskachewan Government’s immigrant investment fund).
SGGF and Crown Ventures are minority equity partners.
CHALLENGES : CHALLENGES Processing of this type with commodities has never been done in this climate.
The furthest North this type of processing has been done is in Turkey.
Weather is a huge issue when you are splitting each individual kernel for an average of 300,000 kg per day in –40 degree Celsius.
The technical expertise and knowledge of the processing and systems was only resident in Turkey and they had difficulties with immigration which took years to resolve.
This company is in a landlocked jurisdiction and the world markets for these products are used to buying from a port-serviced source of supply.
Slide24 : FOR MORE INFORMATION ON TRADE AND INVESTMENT IN SASKATCHEWAN, PLEASE CONTACT:
Ms. Brenda Hawryluk, Trade Specialist, Asia Pacific
Saskatchewan Trade & Export Partnership
P.O. Box 1787
Regina, Saskatchewan
S4P 2C6 Canada
Phone: 306-787-9335; Fax: 306-787-6666
e-mail: bhawryluk@sasktrade.sk.ca
website: www.sasktrade.sk.ca
FOREIGN FINANCING OF PUBLIC SECTOR PROJECTS : FOREIGN FINANCING OF PUBLIC SECTOR PROJECTS by
Serdar Güzey
Undersecretariat of Treasury
Republic of Turkey
April 8, 2004
Declining inflation rate : Declining inflation rate
A powerful growth performance : A powerful growth performance
A strong fiscal balance : A strong fiscal balance Public Sector Primary Surplus (% of GNP)
New investment climate : New investment climate A Coordination Committe for the Improvement of the Investment Environment (CCIIE)
No Approval Requirement
No Minimum Capital Requirement
National Treatment
Guarantee to Transfer Proceeds
Key Expatriate Personnel
Protection Against Expropriation
Access to Real Estate
International Dispute Settlement After the new Foreign Direct Investment Law
Key players in foreign financing : Key players in foreign financing State Planning Organisation (SPO)
Five Year Development Plan
Annual Investment Program
prepared by SPO
covers all public sector institutions
In line with Five Year Development Plan
total project cost
duration of the project
Key players in foreign financing (continued) : Key players in foreign financing (continued)
appropriations for each project
foreign component
local component
sufficient appropriation to start a project
currently 10% of the total project cost
Implementing Agencies
Consolidated Budget Institutions
Ministries, KGM, DSI, Public Universities
Others
Municipalities
State Economic Enterprises (SEE)
Key players in foreign financing (continued) : Key players in foreign financing (continued) Treasury
General Directorate of Foreign Economic Relations
Foreign borrowing authorisation
for all public institutions
Treasury borrowing
for all consolidated budget institutions
Treasury guarantee
for non-consolidated budget institutions
Treasury on-lending
for non-consolidated budget institutions
Key players in foreign financing (continued) : Key players in foreign financing (continued)
Lenders
International Financial Institutions (World Bank, EIB etc.
Exceptionally their rules apply
Other Governments
Export Guarantee Agencies (ECA)
Commercial Banks
Cycle of a Typical Public Project : Cycle of a Typical Public Project Implementing Agency (IA)’s application to the Treasury
international competitive bidding (ICB) authorisation
Treasury is the borrower
IA is the borrower under Treasury’s guarantee
IA is the borrower but no Treasury guarantee
Treasury asks for the SPO’s opinion, whether
the project is in the Annual Investment Program
there is sufficient appropriation
Cycle of a Typical Public Project (continued) : Cycle of a Typical Public Project (continued)
Favourable opinion from SPO
Treasury makes its own decision
Treasury issues its ICB authorisation
Implementing Agency declares the bidding
Implementing Agency sends the Treasury commercial contract and the financial offer
Cycle of a Typical Public Project (continued) : Cycle of a Typical Public Project (continued) Treasury negotiates the terms and conditions of the offer and the loan agreement
Treasury signs the loan agreement
Council of Ministers ratifies the loan agreement
Loan agreement comes into force
Disbursement starts
Phases in the Foreign Financing of Public Projects : Phases in the Foreign Financing of Public Projects International
Competitive
Bidding Request Due Diligence Financial
Analysis Technical
Analysis
(SPO) International
Competitive
Bidding Authorisation Bidding Process
completed Financial Offers
Submitted to
Treasury Negotiation
Process Establishment
of Debt Service
Account Signing of
Agreements (for Muni’s and SEEs) (for Muni’s) Signing of
Guarantee Protocol/
Onlending Agreement (for Muni’s and SEEs) 1 2 3 4 5 6 6 7 8 9 10
Sources of Foreign Financing : Sources of Foreign Financing Types of Financing Financing
provided by the
International
Competitive
Bidding Multinational
Financial
Institutions Intergovernmental
Protocols EIB World
Bank Germany
KfW Japan
JBIC Commercial
Banks ECAs Treasury is either
guarantor or borrower Treasury is either
guarantor or borrower Treasury is the sole
borrower Others Others
Public Investments in 2004 : Public Investments in 2004
CIDA’s Private Sector Division INDUSTRIAL COOPERATION PROGRAM (“CIDA-INC”) : CIDA’s Private Sector Division INDUSTRIAL COOPERATION PROGRAM (“CIDA-INC”) Presentation to the Canadian-Turkish Business Council’s Annual Conference, Toronto
April 8, 2004
CHANGES in CIDA : CHANGES in CIDA April 2003 – New Private Sector Development Policy - New Private Sector Division (PSD)
Fall 2003 – Transfer of REE Program to PSD-New Eastern Europe and Central Asia (EECA) Bureau in the PSD
April 2004 – Turkey Program has a New Home with the EECA Bureau- Merged with the Asia Bureau
CHANGES in CIDA : CHANGES in CIDA March 2004 – Launch of the Report by the UN Commission on the Private Sector – co-lead by PM Martin
April 2004 – Announcement of new PSD Mechanism - The Local Enterprise Investment Centre Pilot in Bangladesh
CIDA-INC: MISSION : CIDA-INC: MISSION Supports the Canadian Private Sector in International Ventures
Promotes Economically sound Private Sector-led Projects
Ensures Developmental Benefits for the Host-Country
THE SUPPORT MECHANISMS : THE SUPPORT MECHANISMS Investment Professional Services Viability Study Start-up Support Feasibility Study Implementation
Support
CIDA-INC: THE INVESTMENT PROJECT Typical support : CIDA-INC: THE INVESTMENT PROJECT Typical support Study
$150,000
Support
$250,000 enables improves CIDA-INC Your project
$1M +
INC: Financial Contribution to lay the Groundwork : INC: Financial Contribution to lay the Groundwork
CIDA-INC: UNSUITABLE PROJETS No straight sales, and no… : CIDA-INC: UNSUITABLE PROJETS No straight sales, and no…
CIDA-INC: Eligible companies have… : CIDA-INC: Eligible companies have…
HOW TO REACH US : HOW TO REACH US DiAnne Masson-Yensen
Phone:
1-800-230-6349
1-819-994-0538
Email :dianne_massonyensen@acdi-cida.gc.ca
Web: www.acdi-cida.gc.ca/inc
FAX : 819-953-5024