- Oct 3, 2018
- 3,601
| TYPE | Infrastructure |
| BUILDER | Turkiye |
| CLIENT | Turkiye |
| SITE LOCATION | Turkiye |
| SECTOR | Business |
| PROJECT NAME | Economy, Agriculture, and Trade Competitiveness Program |
| PROJECT COST | 5,800,000,000.00 |
| COMPLETION DATE | 31/03/2026 |
| PROJECT INFORMATION | This program is designed to reinforce Türkiye’s productive base by stabilizing agricultural output, securing water resources, strengthening domestic manufacturing, and improving the efficiency of trade and logistics. It reflects a deliberate shift from consumption-driven growth toward production-centered economic resilience, with particular attention to food security, export capacity, and small and medium enterprise dynamism. The allocation integrates short-term stabilization measures with long-term structural investments. Agricultural support addresses immediate cost pressures and supply volatility, while industrial and trade initiatives aim to raise productivity, value-added output, and global competitiveness. Together, these measures are intended to reduce inflationary pressures, narrow external imbalances, and sustain employment across regions. Agricultural Support and Modernization — ₺2.2 Billion Farmer Subsidies and Fertilizer Assistance Direct subsidies will be provided to farmers to offset rising input costs, with particular focus on fertilizer, seeds, and energy. Assistance will be targeted toward small and medium-scale producers to preserve rural livelihoods and prevent consolidation pressures that undermine food security. Fertilizer aid will be distributed through a transparent, digitalized voucher system linked to land registry and production data, ensuring efficient allocation while reducing leakage and misuse. This approach stabilizes production costs while incentivizing continued cultivation in strategic crops. Equipment Modernization and Mechanization Funding will support the modernization of agricultural equipment through low-interest financing and partial grants for machinery upgrades. Priority will be given to equipment that improves efficiency, reduces water usage, and lowers post-harvest losses. Domestic manufacturers of agricultural machinery will be favored where feasible, linking farm productivity gains with industrial development objectives and regional employment. National Irrigation and Water Security Projects — ₺1.0 Billion This allocation will finance the expansion and rehabilitation of irrigation infrastructure, particularly in water-stressed and agriculturally strategic regions. Projects will include the modernization of canals, the introduction of pressurized irrigation systems, and the construction of small-scale water retention and recharge facilities. Water security investments will emphasize efficiency and sustainability, integrating digital monitoring and leak reduction technologies. Farmer training programs will accompany infrastructure upgrades, ensuring effective use and long-term maintenance. Food Price Stabilization and Agricultural Export Financing — ₺0.7 Billion Food Price Stabilization Credit A dedicated credit facility will be established to stabilize food prices during periods of volatility. This mechanism will provide short-term financing to producers, cooperatives, and distributors, enabling stock management without distorting market incentives. The facility will operate counter-cyclically, expanding during supply shocks and contracting during periods of stability, thereby smoothing price fluctuations and protecting household purchasing power. Agricultural Export Financing Export-oriented producers and cooperatives will receive targeted financing to improve access to foreign markets. Support will include credit guarantees, logistics assistance, and compliance with international quality and certification standards. These measures aim to increase agricultural export revenues while reducing vulnerability to domestic market saturation. Domestic Manufacturing Incentive Scheme — ₺0.9 Billion This component will support domestic manufacturing in strategic sectors including textiles, steel, and automotive production. Incentives will be structured around productivity improvements, technological upgrading, and supply chain localization rather than simple capacity expansion. Eligible firms will receive a combination of tax credits, investment grants, and workforce training support, conditional on measurable performance benchmarks such as export growth, energy efficiency, and employment creation. The program seeks to strengthen industrial depth, reduce import dependency, and position Turkish manufacturers more competitively in regional and global markets. Port and Customs Efficiency Initiatives — ₺0.4 Billion Funding will be allocated to modernize port infrastructure and streamline customs procedures, addressing critical bottlenecks in trade logistics. Investments will include digital customs clearance systems, upgraded inspection facilities, and improved intermodal connections. By reducing dwell times and administrative costs, these initiatives will enhance export competitiveness and attract greater transit trade, reinforcing Türkiye’s role as a regional logistics hub. Small and Medium Enterprise Support and Innovation Grants — ₺0.6 Billion SMEs will receive targeted support through innovation grants, access to credit, and technical assistance programs. Emphasis will be placed on firms engaged in value-added production, export activities, and technological adaptation. Innovation grants will support research, product development, and process improvements, particularly in collaboration with universities and research institutions. Business development services will assist SMEs in scaling operations and integrating into domestic and global supply chains. By the end of the program period, Türkiye is expected to achieve: * Stabilized agricultural production and reduced food price volatility * Improved water efficiency and long-term irrigation resilience * Stronger domestic manufacturing capacity and export performance * Faster, more efficient trade logistics and customs operations * A more innovative and competitive SME sector This program anchors economic growth in production, efficiency, and resilience, reinforcing Türkiye’s capacity to sustain development in an increasingly volatile global environment. |
