06 January 2017•Update: 06 January 2017
ANKARA
Turkish contractors have been unable to collect full allowance payments from Iraqi institutions because of the country’s volatile political environment and the limited availability of the budget facilities with falling oil prices, the president of the Turkish Contractors’ Association (TMB) said.
Mithat Yenigun told Anadolu Agency that Turkish contractors were hopeful about Prime Minister Binali Yildirim’s Iraq visit on Saturday to hold bilateral discussions on political relations and regional developments.
“Iraq has always been an important market for the Turkish construction sector and Turkey’s foreign trade, considering their geographical proximity and ongoing neighborhood relations,” Yenigun said.
He added: “In Iraq, 943 projects worth over $24 billion have been undertaken by Turkish contractors since 1970s.”
Yenigun said Iraq’s central administration could only make partial payments for social projects in sectors such as health and energy.
“The construction companies have faced very serious problems, and shut down their worksites because of security problems in Iraq and the inability to get allowance payments.”
Commenting on possible solutions for the construction sector’s problems, Yenigun said: “Providing a conditional loan package to the Iraqi side through various channels by Turkey has an essential meaning for Turkish companies.
“In this way, we believe our contractors will get substantial support for their projects to continue.”
Emin Taha, head of Turkey-Iraq Business Council of the Turkish Foreign Economic Relations Board (DEIK), said there had been serious delays in crossing the border and delivering to Iraq since 2011.
“A truck out from Istanbul to Iraq used to pass easily through the Habur border gate,” he said. “But today our trucks have been held for 45 days at the entrance to Baghdad.”
Taha said there was high demand for Turkish products but the Iraqi government would not grant free access to the markets. “In this sense, Prime Minister Yildirim’s Iraq visit will contribute to bilateral economic relations,” he added.
Trade between Turkey and Iraq rose to around $8.85 billion in 2015, according to the Turkish Statistical Institute, up from $8.4 billion in 2011.
The institute said Turkish exports to Iraq rose 2.8 percent to $8.55 billion while Iraqi imports climbed from $87 million in 2011 to nearly $297 million four years later.
Reporting by Erdal Celikel; Writing by Muhammed Ali Gurtas
