The role of PPP mechanisms in the development of infrastructure in the Turkish Republic

Abstract

The article examines how public–private partnership (PPP) mechanisms support the modernization of Turkey’s infrastructure across transport, energy, and healthcare. By comparing the models used in practice (BOT, BOO, BLT, ToR), it shows how contractual design aligns with the asset life cycle, cost-recovery structure, and risk allocation between public and private parties. Evidence from major completed and planned megaprojects illustrates PPP effects on delivery timelines, service quality, and the contours of fiscal support, including treasury and tax instruments. The analysis identifies functional specialization: BOT and BLT are primarily deployed for new assets with recovery through user charges and/or budgetary lease payments; ToR is used to improve the operational performance of existing facilities; BOO appears selectively in power generation. The Turkish approach is characterized by sector-specific regulation in the absence of a single framework law and by a coordinating role of fiscal authorities with respect to guarantees and contingent liabilities. The results are applicable to project preparation, comparison of alternative models, and incentive design at the pre-investment assessment stage.