bbk waste management report turkey
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OFFICIAL PROGRAM P
Market report
WASTE MANAGEMENT IN TURKEY
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
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in this report does not have a legal or judicial character, unless specified
noted.
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
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Contents
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
4.2. Regulatory framework and legislative requirements __ 49
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
4
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.
5
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-to-
energy 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 4.0-
8.9 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.
6
The SWOT analysis for Swiss firms shows that their high supply, innovation, R&D and technology transfer potential of High-
Cleantech 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 non-
EU 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.
7
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
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.
1 http://www.eu-africa-cc.org/index.php/en/component/k2/item/493-kpmg-has-ranked-nigeria-as-one-of-the-four-major-investment-
destinations-and-growth-areas-in-the-world
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
8
Figure 2.2: Development of GDP and GNI per capita (in $), 2001-2015
Source: Turkish Statistical Institute (2013)
Table 2.1: Turkey’s key economic indicators
2011 2012 *20132
GDP (Billion $, Current Prices) 774.2 799.3 858.0
GDP Per Capita ($) 10’466 10’504 11’318
Real GDP Growth 8.5 2.2 4.0
Unemployment Rate (%) 9.8 9.2 N/A
Tourism Income (Billion $) 23.0 23.4 25.3
Current Account Balance (Billion $) -77.1 -47.73 -60.7
Current Account Balance / GDP (%) -10.0 -5.9 -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 http://www.dpt.gov.tr/PortalDesign/PortalControls/WebIcerikGosterim.aspx?Enc=83D5A6FF03C7B4FC1685AB683C6AD4A6
3 Central Bank of Republic of Turkey-Balance of PaymentsStatistics (2013)
0
2'000
4'000
6'000
8'000
10'000
12'000
14'000
16'000
18'000
2001 2003 2005 2007 2009 2011 2013* 2015*
GDP per capita GNI per capita
9
Table 2.2: 2013 and 2014 Growth Forecasts for Selected Countries/ Country Groups (in %), 2013-2014
TURKEY EA US BRAZIL RUSSIA INDIA CHINA
IMF 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
OECD 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
WB 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
UN 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
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.
14.26
4.81
7.96
4.44
0.93 5.00
12.78 0.56
15.74
6.48
8.33
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
10
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
Figure 2.5: Regional Distribution of Imports, (1’000 $), 2002-2012
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).
0
10'000
20'000
30'000
40'000
50'000
60'000
70'000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
EU (28) Other European Countries Near and Middle East Rest of the World
0
10'000
20'000
30'000
40'000
50'000
60'000
70'000
80'000
90'000
100'000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
EU (28) Other European Countries Near and Middle East Rest of the World
11
Table 2.3: Turkey’s Banking Sector
2012 MAY 2013 MAY
Number of Banks 48 49
Number of DomesticBranches 10,597 11,267
Number of ForeignBranches 78 83
Total Assets (Million TL) 1’270’603 1’496’588
Total Equities (Million TL) 154’625 189’463
Net Profit orLoss (Million TL) 9’617 11’414
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
CapitalAdequacyRatio (%) 16.19 16.79
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
Source: Invest in Turkey, The Republic of Turkey Prime Ministry Investment Promotion and Support Agency
0% 20% 40% 60% 80% 100%
Turkey
China
France
S.Korea
Russia
Bulgaria
Spain
Italy
Hungary
Ireland
Ukraine
Portugal
12
Figure 2.6: Finance skills in Turkey (%)
Figure 2.7: Time Required toStart a Business in Turkey (days)
Sources: Invest in Turkey, The Republic of Turkey Prime Ministry Investment Promotion and Support Agency
0% 20% 40% 60% 80% 100%
Switzerland
United Kingdom
Russian Federation
Greece
Poland
Ukraine
Romania
0
5
10
15
20
25
30
35
13
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
14
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
Waste Management10
Regulation on Urban Waste Water
Treatment11
Regulation on Electricity Market
Licensing12
Regulation on Control of Solid Waste13
Regulation on Control of Water
Pollution14
Regulation on Unlicensed Electricity
Production in the Electricity Market15
(for renewable energy producing
power plants up to 1MW)
Regulation on Landfilling16
Regulation on Procedures and
Principles of Tariff Determination of
Waste water Infrastructure and
Municipal Solid Waste Disposal
Facilities17
Regulation on the Documentation
and Support of the Renewable
Energy Sources18
Regulation on Control of Hazardous
Waste19
Regulation on Procedures and
Principles of Taking Advantage of
Incentive Measures of Waste water
Treatment Plants according to Law on
Environment No. 2872, Article 2920
Regulation on Waste Incineration21
Regulation on the Use of Domestic
and Urban Sewage Sludge on Soil22
8 http://www.tbmm.gov.tr/kanunlar/k5216.html 9 http://www1.ihale.gov.tr/english/4734_English.pdf 10 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
15
Regulation on Control of Packaging
Waste23
Regulation on the Control of Pollution
Caused by Dangerous Substances in Water
and the Surrounding Area (76/464 / EC)24
Regulation on Control of Waste
Electrical and Electronic Components25
Regulation on Control of End of Life
Vehicles26
Regulation on Control of Waste Oils27
Regulation on Control of Expired Tires28
Regulation on Control of Medical
Waste29
Regulation on Control of Vegetable Oil
Waste30
Regulation on Control of Waste
Batteries and Accumulators31
Regulation on Control of PCBs and PCTs32
Regulation on Control of Excavation,
Construction and Demolition Waste33
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
Facilities34
Communiqué on Technical Methods of
Waste water Treatment Plants35
Communiqué on the Implementation
of the Regulation on Unlicensed
Electricity Production in the
Electricity Market36
Communiqué on Recycling of Non-
Hazardous and Inert Waste37
Communiqué on Urban Waste Water
Treatment for Sensitive and Less
23 http://www.resmigazete.gov.tr/eskiler/2011/08/20110824-6.htm 24 http://ec.europa.eu/environment/water/water-dangersub/76_464.htm 25 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
16
Sensitive Areas38
Communiqué on General Rules for the
Use of Waste as Additional Fuel39
Communiqué on Tank Cleaning
Facilities40
Communiqué on Transport of Waste by
Road41
Communiqué on End of Life Vehicles
Storage, Purification, Extraction and
Processing42
Communiqués on Import Control / Audit
of Controlled Metal Scraps to Protect
Environment43
Communiqués on Import Control / Audit
of Controlled Wastes to Protect
Environment44
Source: Ministry of Environment and Urbanization (MoEU)
Table 3.3: Circulars
CIRCULAR ON WASTE
MANAGEMENT
CIRCULAR ON WASTE WATER
TREATMENT
CIRCULAR ON RENEWABLE
ENERGY
Circular on Landfilling of Waste45
Circular on Approval for Waste water
Treatment / Deep Sea Discharge Plants46
Circular on Solid Waste47
Circular on Business Term Plan for
Waste water Treatment Plant48
Circular on Integrated Waste
Management Plan49
Circular on Permits for Solid Waste
Disposal and Landfill Facilities on
Forestry Areas50
Circular on Solid Waste Disposal and
38 http://www.resmigazete.gov.tr/eskiler/2009/06/20090627-18.htm 39 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
17
Pre-Treatment Plants Approval51
Circular on Preparation of Landfill
Projects52
Circular on Disposal of Medical Waste53
Circular on Audit Guidelines for Landfill
Facilities54
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
51 http://www.cygm.gov.tr/CYGM/Files/mevzuat/genelge/Genelge%202011-12.pdf 52 http://atikyonetimi.cevreorman.gov.tr/atikyonetimi/Files/Belgeler/Mevzuat/Genelge/DDTUGenelge.pdf 53 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
18
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
Figure 3.2: Rate of municipal population served by waste water treatment plants in total population (%), 1994-2010
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.
0
10
20
30
40
50
60
70
80
90
100
1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010
Rate of municipal population served by municipal wasteservices in total population (%)Rate of municipal population served by waste disposaland recovery facilities in total population (%)
0
10
20
30
40
50
60
70
80
90
100
1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010
Rate of municipal population served by wastewater treatmentplants in total population (%)
19
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
Figure 3.4: Size of population of municipalities served by waste water treatment plants, 1994-2010
-
10'000'000
20'000'000
30'000'000
40'000'000
50'000'000
60'000'000
70'000'000
80'000'000
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
-
10'000'000
20'000'000
30'000'000
40'000'000
50'000'000
60'000'000
70'000'000
80'000'000
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
20
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
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.
0
500
1000
1500
2000
2500
3000
3500
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
21
Figure 3.6: Amount of municipal waste per capita (kg/capita-day), 1994-2010
Figure 3.7: Amount of waste water discharged per capita in municipalities (liters/capita-day), 1994-2010
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.
1.30
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010
Average
156
0
20
40
60
80
100
120
140
160
180
200
1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010
Average
22
Figure 3.8: Country comparisons for municipal waste generated (kg/capita-year), 2010
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.
0 100 200 300 400 500 600 700 800
Southern Cyprus
Switzerland
Luksembourg
Denmark
Ireland
Netherlands
Malta
Austria
Germany
Iceland
Spain
France
Italy
England
Portugal
European Union (27 countries)
Finland
Norway
Belgium
Sweeden
Greece
Slovenia
Hungary
Bulgaria
Turkey
Bosnia and Herzegovina
Lithuania
Croatia
Romania
Former Yugoslav Republic of Macedonia
Slovakia
Czech Republic
Poland
Estonia
Latvia
23
(iï) Micro analysis of the municipal waste management industry
Figure 3.9: Number of waste disposal and recovery facilities, 1994-2010
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
0
10
20
30
40
50
60
70
80
1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010
Number of incineration plantsNumber of composting plantsNumber of controlled landfills
-
5'000
10'000
15'000
20'000
25'000
30'000
1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010
Other BurialRiver and lake disposal Burning in an open areaWaste delivered to composting plant Waste delivered to controlled landfill site
Another municipality's dumping site Municipality's dumping siteMetropolitan municipality's dumping site
24
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
Municipalities 45 13'746'837 13'746'882
Health institutions 32'471 14'027 46'498
Industry 15'760 354'925 370'685
Service sector - 70'122 70'122
Other (1) 7'965 134'522 142'487
Total 56'241 14'320'433 14'376'674
Percentage (%) 0.4 99.6
Table 3.5: Amount of waste brought to incineration plants (tonnes / year), 2010
INCINERATION PLANTS HAZARDOUS NONHAZARDOUS TOTAL
Municipalities 3 - 3
Health institutions 17'330 - 17'330
Industry 22'306 - 22'306
Service sector 1 - 1
Other (1) - - -
Total 39'640 - 39'640
Percentage (%) 100 0
Table 3.6: Amount of waste brought to composting plants (tonnes / year), 2010
COMPOSTING PLANTS HAZARDOUS NONHAZARDOUS TOTAL
Municipalities - 194'455 194'455
Health institutions 13 - 13
Industry - - -
Service sector - 15'082 15'082
25
Other (1) - 6'921 6'921
Total 13 216'458 216'471
Percentage (%) 0.01 99.99
(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
58
http://www.csb.gov.tr/gm/cygm/index.php?Sayfa=haberdetay&Id=6252
-
500'000
1'000'000
1'500'000
2'000'000
2'500'000
3'000'000
3'500'000
4'000'000
1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010
Other Dam Land River Lake-artificial lake Sea
26
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
-
50
100
150
200
250
300
350
1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010
Natural Biological Physical Advanced
27
Figure 3.13: Amount of municipal waste water treated by waste water treatment method (thousand m3/year), 1994-2010
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 (**)
Organized industrial zones 255 34 313 (**)
Mining establishments(1)
... ... 729‘750 2‘314
Health institutions 50 50 60 60
(**) 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
-
500'000
1'000'000
1'500'000
2'000'000
2'500'000
3'000'000
3'500'000
4'000'000
1994 1995 1996 1997 1998 2001 2002 2003 2004 2006 2008 2010
Natural Biological PhysicalAdvanced Total wastewater
28
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
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
59 http://www.csb.gov.tr/gm/cygm/index.php?Sayfa=haberdetay&Id=6252
-
5'000
10'000
15'000
20'000
25'000
2000 2004 2008 2010
Ultimate disposal
Recovered or reused outside the facility
Recovered or reused within the facility
-
200
400
600
800
1'000
1'200
1'400
2000 2004 2008 2010
Ultimate disposalRecovered or reused outside the facilityRecovered or reused within the facility
29
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
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
38.5
2.1 11.4
45.8
1.8 0.5
Municipalities
Villages
Manufacturing industry establishments
Thermal power plants
Organized industrial zones
Mining establishments
-
200'000
400'000
600'000
800'000
1'000'000
1'200'000
1'400'000
2000 2004 2008 2010
Discharged without treatment (1000 m3/year)
Discharged after treatment (1000 m3/year)
30
Figure 3.18: Amount of industrial waste water discharged by receiving bodies (1000 m3/year), 2000-2010
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.
-
200'000
400'000
600'000
800'000
1'000'000
1'200'000
1'400'000
2000 2004 2008 2010
Dam Others
Organized industrial zone sewerage Septic tank
Land River
Lake-artificial lake Sea
City sewerage
31
Figure 3.19: Number of industrial waste water treatment plants, 2000-2010
Figure 3.20: Amount of industrial waste water treated by waste water treatment method, 2000-2010
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.
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2000 2004 2008 2010
Advanced Biological Physical/Chemical
-
50'000
100'000
150'000
200'000
250'000
300'000
350'000
400'000
2000 2004 2008 2010
Advanced Biological Physical/Chemical
32
(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 http://www.csb.gov.tr/gm/cygm/index.php?Sayfa=haberdetay&Id=6252 61 http://www.csb.gov.tr/gm/cygm/index.php?Sayfa=haberdetay&Id=6252
33
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-to-
energy 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.
34
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.
35
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%.
36
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 sub-
from 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 non-
organic 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-to-
energy 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:
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.
37
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-to-
energy 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
http://www.teias.gov.tr/ 63
http://www.exergia.gr/admin/files/pdfs/Exploitation_of_Agricultural_Residues_in_Turkey_-_TR.pdf
38
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 LICENSED
CAPACITY
(MWe)
CAPACITY
INTO
OPERATION
(mwe)
In Force SAMSUN AVDAN ENERJİ VE ÜRETİM TİC. A.Ş. Samsun Avdan Biogas Facility 2,4 2,4
In Force ITC-KA ENERJİ ÜRETİM SAN. VE TİC. A.Ş. Aslım Energy production Facility 5,66 5,66
In Force PAMUKOVA YENİLENEBİLİR ENERJİ VE
ELEKTRİK ÜRETİM A.Ş.
Pamukova Integrated Waste
Management Facility 1,4 1,4
In Force KÖRFEZ ENERJİ SAN. VE TİC. A.Ş. Kocaeli Çöp Biogas Project 2,263 1,2
In Force İZAYDAŞ İZMİT ATIK VE ARTIKLARI ARITMA
YAKMA VE DEĞERLENDİRME A.Ş. İzaydaş Biogas Power Plant
0,75 0
In Force SİGMA ELEKTRİK ÜRETİM MÜHENDİSLİK VE
PAZARLAMA LİMİTED ŞİRKETİ Sigma Suluova Bogas Facility
2 0
In Force ORTADOĞU ENERJİ SANAYİ VE TİCARET A.Ş. Odayeri Landfill Gas Facility 28,147 21,225
In Force ORTADOĞU ENERJİ SANAYİ VE TİCARET A.Ş. Kömürcüoda Landfill Gas Facility 14,15 5,804
In Force 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
39
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 1,487 1,487
In Force
SENKRON GRUP İNŞAAT MAKİNA
MÜHENDİSLİK PROJE ELEKTRİK ÜRETİM
LİMİTED ŞİRKETİ.
Senkron Efeler Biogas Facility
2,4 0
In Force CEV ENERJİ ÜRETİM SAN. VE TİC. LTD. ŞTİ Gaziantep Büyükşehir Belediyesi
Landfill Area 5,655 5,555
In Force MENDERES GEOTHERMAL ELEKTRİK ÜRETİM
A.Ş. Karacaköy BES
5,652 0
In Force KARAMAN YENİLENEBİLİR ENERJİ ÜRETİM A.Ş. Karaman Biomass-to-Energy Facility 1,414 0
In Force ALBE DOĞALGAZ DAĞITIM VE ELEKTRİK
ENERJİSİ ÜRETİM LİMİTED ŞİRKETİ Albe- I Biogas Facility
1,794 0
In Force EKİM GRUP ELEKTRİK ÜRETİM LTD. ŞTİ. Ekim Grup Biogas 1,2 0
In Force SÜREKO ATIK YÖNETİMİ NAKLİYE LOJİSTİK
A.Ş.
Ege Bölgesi Energy Production Facility
via Industrial Waste Disposal and
Recycling 1,54 0
In Force KALEMİRLER ENERJİ ELEKTRİK ÜRETİM LTD.
ŞTİ. Sezer Bio Energy
0,5 0
In Force ITC BURSA ENERJİ ÜRETİM SAN. VE TİC. A.Ş. ITC Bursa Hamitler Facility 9,8 8,4
Under Evaluation ŞAHİN PAMUK ENERJİ SANAYİ VE TİCARET
LİMİTED ŞİRKETİ Şahin Renewable Facility
3,91 0
Under Evaluation KALAZAN ENERJİ ÜRETİM SANAYİ VE TİCARET
ANONİM ŞİRKETİ Kalazan-1 BES
0 0
Under Evaluation BIOENER GRUP MADENCİLİK ENERJİ ÜRETİM
SANAYİ VE TİCARET LİMİTED ŞİRKETİ Tarsus YBS Biomass Facility
0 0
In Force TELKO ENERJİ ÜRETİMİ TURİZM İNŞAAT
SANAYİ VE TİCARET A.Ş. EDİNCİK BES
3,12 0
In Force POLRES ELEKTRİK ÜRETİM A.Ş. Polatlı Biomass Facility 0,834 0
In Force AREL ÇEVRE YATIRIMLARI VE ENERJİ
ÜRETİM TİC. LTD. ŞTİ. Arel Enerji Manavgat Biomass Facility
2,4 2,4
In Force ZARİF ENERJİ VE ELEKTRİK ÜRETİM TEKSTİL
SAN. VE TİC. LTD ŞTİ. Kırıkkale LFG Facility
1,003 1,003
In Force ENFAŞ ENERJİ ELEKTRİK ÜRETİM A.Ş. Aksaray OSB Biogas Facility 2,134 0
In Force ZGC BES ENERJİ A.Ş. Zgc Bes Enerji Anonim Şirketi Bolu
Production Facility 7 0
In Force ITC-KA ENERJİ ÜRETİM SAN. VE TİC. A.Ş. ITC-KA Biomass Gasification Facility 5,425 0
In Force HAYAT ENERJİ ELEKTRİK ÜRETİM SAN. VE
TİC. A.Ş. Hayat Biomass-to Energy Facility
0,955 0
In Force BÜYÜK MENDERES ENERJİ BİYOKÜTLE
MADEN ELEKTRİKÜRETİM MÜH. VE İNŞAAT Karatay BES
8,478 0
40
A.Ş.
In Force AFYON ENERJİ VE GÜBRE ÜRETİM TİC. VE
SAN. A.Ş. Afyon Biogas Facility
4,25 0
In Force GÖNEN YENİLENEBİLİR ENERJİ ÜRETİM A.Ş. Gönen Biogas Facility 2,134 0
In Force KADİRLİ BES ELEKTRİK ÜRETİM İNŞAAT MAD.
SAN. VE TİC. A.Ş. Kadirli BES
9.297 0
Suitable Sotek Elektrik Üretim ve İnş. Tic. Ltd. Şti. Elif Biomass-to Energy Facility 4 0
Suitable 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)
41
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 PFI CONCESSION LEASE BOT
Construction Construction of asset
by private company X X X
Operation Operation of service X X X X X
Finance
Capital investment
financed by private
operator
X X X
Recouped by user
charges X X
Recouped by contract
from municipality X X X
Ownership
Public during and
after contract X X X X
Private during
contract, public after 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.
42
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.).
43
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 high-
quality 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
Istanbul Metropolitan Municipality and Ortadogu Enerji,
44
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
64 Swiss / Turkish partnership 65 Korean / Turkish partnership 66 Austrian company as consortium leader 67 UK company 68 German (RWE) / Turkish partnership
45
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
46
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.
47
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-in-
tariff, 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
71 Law on Environment No. 2872: http://www.ttb.org.tr/mevzuat/?option=com_content&view=article&id=49:vre-ka.. 72
Regulation on Solid Waste Control: http://www.mevzuat.gov.tr/Metin.Aspx?MevzuatKod=7.5.8132&sourceXmlSearch=&MevzuatIliski=0 73 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
48
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 2014-
2014” 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.
49
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.
50
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
As the end of each year, number of waste water
treatment plant projects to be approved
1’890 1’950 2’050 2’150 2’250 2’350
Number of waste water treatment project
approvals per year
60 100 100 100 100
* indicates the cumulative increase at the end of each year Source: Strategic Plan 2013-2017 of MoEU
76 http://www.csb.gov.tr/gm/cygm/index.php?Sayfa=haberdetay&Id=6252 77
http://www.csb.gov.tr/db/turkce/editordosya/stratejikplan/stratejikplan.html
51
Figure 4.1: Ratio of municipal population served by waste
water treatment services (%)
Figure 4.2: Number of project approvals (cumulative)
Figure 4.3: Number of companies making use of the energy incentive
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 re-
used, 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
72
85
65
70
75
80
85
90
Actual Target
1890
2350
0
500
1000
1500
2000
2500
3000
Actual Target
212 260
340
390
440
500
0
100
200
300
400
500
600
Actual 2013 2014 2015 2016 2017
52
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
Number of solid waste landfills (cumulative) 69 79 89 99 114 130
Number of solid waste landfills per year 10 10 10 15 16
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 dual-
collection system (cumulative)
0 6 16 37 50 63
Number of municipalities traversed to dual-
collection 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
60
85
0
20
40
60
80
100
Actual Target
69
130
0
50
100
150
Actual Target
53
Figure 4.6: Number of waste bringing centres Figure 4.7: Number of dual-collection systems
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 (%)
Figure 4.9: Rate of population served by municipal waste
services in total population (%)
“EU Integrated Environmental Approximation Strategy for Turkey (2007-2023) (UCES)”
Another important institutional framework is the “EU Integrated Environmental Approximation Strategy for Turkey (2007-
2023) (U ES)”, prepared by MoEU, which is in line with the “National Program for the Adoption of the EU Acquis (NPAA)”
0
550
0
100
200
300
400
500
600
Actual Target
0
63
0
20
40
60
80
Actual Target
72
85 100
0
20
40
60
80
100
Actual Target 2017 2023 goal
83 100
0
20
40
60
80
100
Actual 2023 goal
54
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 7‘582 200 245 345 345 345 400 425 475 500 500 500 500 550 550 550 550 602
Packaging 654 40 41 40 41 41 41 41 41 41 41 41 41 41 41 41 41
Incineration 1‘257 89 89 89 90 90 90 90 90 90 90 90 90 90 90
Hazardous
Waste
74 4 4 4 5 5 5 5 6 6 6 6 6 6 6
TOTAL 9‘567 200 286 386 478 479 534 561 611 636 636 637 637 687 687 687 687 739
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
TOTAL 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
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
55
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 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 80 http://eur-lex.europa.eu/LexUriServ/site/en/consleg/2001/L/02001L0080-20011127-en.pdf
56
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 35-
45% 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 collection-
separation.
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
INSTIUTION
PERIOD
Determination of facility standards regarding recycling / recovery and collection-separation
facilities
TSE 2013-
2014
Determination of standards regarding recyclable secondary products TSE 2013-
2014
81 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2009:0400:FIN:EN:PDF 82 https://anahtar.sanayi.gov.tr/tr/news/ulusal-geri-donusum-stratejisi-ve-eylem-plani-2013-2016/493
57
Analysis and revision of legislation concerning waste trading (import-export) considering
country conditions
MoE 2013-
2014
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 2013-
2016
Establishing waste management incentive legislation prioritizing recycling / recovery,
collection-separation
MoE, MoF 2013-
2016
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 2013-
2016
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 2013-
2016
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
INSTIUTION
PERIOD
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 2013-
2016
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 2013-
2016
Determining strategic sectors with regard to recycling / recovery, collection-separation MoEU 2013-
2016
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 collection-separation
DESCRIPTION OF ACTION RESPONSIBLE
INSTIUTION
PERIOD
Supporting R&D activities, technology transfer and dissemination of applications with regard MoSIT 2013-
58
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, collection-
separation
KOSGEB 2013-
2016
Establishing a financing support mechanism based on the cost of the investment project with
regard to recycling / recovery, collection-separation
MoE 2013-
2016
Supporting recycling / recovery, collection-separation facilities with special incentives Treasury 2013-
2016
Promoting of products obtained by recycling KIK 2013-
2016
Providing encouraging support (social security and energy / fuel) for people and
organizations performing recycling / recovery, collection-separation
MoE 2013-
2016
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 2013-
2016
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
INSTIUTION
PERIOD
Establishing a reliable information infrastructure in the created public-private sector common
database with regard to waste.
MoEU 2013-
2016
Establishing a waste coordination board. MoEU 2013-
2014
Establishing waste coordination boards on province basis. MoI 2013-
2014
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, collection-
separation. Main governmental institutions in charge are MoEU and MoI in cooperation with several other governmental
institutions.
59
Renewable Energy Law No. 5346
Today, the share of renewable energy production in the country’s total electricity production, which is mainly based on fossil-
fuel, 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 DOMESTIC CONTRIBUTION
(US DOLLAR CENT / KWH)
Biomass power based power plant 1-Fluid bed steam tank 0.8
83
http://www.teias.gov.tr/ 84 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
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
Photovoltaic solar power based power
plant
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
Intensified solar power based power plant 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
Geothermal power based power plant 1-Steam or gas turbine 1.3
2-Generator and power electronics 0.7
3-Steam injector or vacuum compressor 0.7
Wind power based power plant 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
61
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-of-
waste 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
62
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,
63
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
64
production and consumption actions. This standard
does not include to the determination of nitrite and
nitrate.
TS 12087 Solid Waste-Determination of Phosphate-
Colorimetric Method
This standard includes the method of determination
of phosphate.
TS 12088 Solid Waste-Determination of Heavy Metal-
Atomic 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
65
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 fuel-
Recovered 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
66
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)
67
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 9308-
3/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 sites-
Principles 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
68
TS EN 12050-3 Waste water lifting plants for buildings and sites-
Principles of construction and testing- Part 3:
Lifting plants for waste water containing faeca
matter for limited applications
Waste water lifting plants for buildings and sites-
Principles 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
69
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.
70
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)
71
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%
amount of waste (in 1000 tonnes) 25’280 24’361 25’277
TL-expenditure per tonne of waste (TL/t) 57.4 . 112.6 166.0
Waste water services 1‘485 2‘065 1‘626 2‘202 2‘240
in percentage 21% 19% 16% 19% 18%
amount of waste water (in Mio. m3) 3'367 3'261 3'582
TL-expenditure per m3 of waste (TL/m
3) 0.44 0.50 0.63
Water services 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
Energy 9 9 10 2 1
Other environmental expenditures (1)
1 852 2 088 1 902 2 031 2 172
TOTAL 7‘234 10‘613 10‘356 11‘804 12‘206
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 TL-
expenditure 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
72
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
SCENARIO 1 : 450 KG /
PER CAPITA-YEAR
SCENARIO 1 : 500 KG /
PER CAPITA-YEAR
Population growth scenario Base Scen 2 Scen 3 Base Scen 2 Scen 3 Base Scen 2 Scen 3
ACTUAL 25’477
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
73
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. m
3), 2013-2023
YEAR SCENARIO 1 : 180 LITRES /
PER CAPITA-DAY
SCENARIO 2 : 210 LITRES /
PER CAPITA-DAY
SCENARIO 3 : 240 LITRES /
PER CAPITA-DAY
Population growth scenario Base Scen 2 Scen 3 Base Scen 2 Scen 3 Base Scen 2 Scen 3
ACTUAL 25’477
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.
74
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
VALUE OR MAX.
BUDGET
AWARDED TO YEAR OF
THE
TENDER
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Technical Assistance And Supervision For Diyarbakır Solid Waste Management Project
2.976.470 EUR
Forecast ---
General Budget
of the EU and
National
Contribution
Central Finance and Contracts Unit
Technical Assistance For Better Air Quality By Transposing The Large Combustion Plant Directive
1.000.000 EUR. Not Awarded Yet 2013
General Budget
of the EU and
National
Contribution
Central Finance and Contracts Unit
Technical Assistance For Implementation Of The Persistent Organic Pollutants Regulation
925.000 EUR Leader: Niras Ic. Sp. Z o.o,;
Poland. 1. IP Consult (member of Niras Group); Germany. 2. AMEC Environment & Infrastructure UK Ltd.; United Kingdom. 3. Ricardo-Aea Ltd (formerly
2012
75
Aea); United Kingdom.
4. Finnish Environment
Institute (SYKE); Finland.
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Technical Assistance And Supervision For Çorum Solid Waste Management Project
1.814.000 EUR Leader: Enviroplan Consultants & Engineers SA., Greece. 1. CDM Smith Consult GmbH; Germany. 2. AHT Group AG; Germany.
2011
General Budget
of the EU and
National
Contribution
Ministry of Environment and Forestry
Technical Assistance And Supervision For Balıkesir Solid Waste Management Project
1.461.525 EUR Leader: EPEM SA — Environmental Planning, Engineering and Management.; Greece. 1. SLR Consulting Ltd; United Kingdom. 2. TÜMAŞ Turkish Engineering Consulting & Contracting Co.; Turkey
2011
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
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.
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
2011
General Budget
of the EU and
National
Contribution
Central Finance and Contracts Unit
Technical Assistance For Mining Waste Management
2.371.800 EUR Leader: İnfobiz İş Zekası Yönetim Mühendisliği Elektronik Bilgisayar İnşaat ve Ticaret Pazarlama Limited Şirketi: Turkey. 1. Geological Survey of Finland; Finland. 2. Geological Institute of Hungary; Hungary.
2010
General Budget
of the EU and
National
Contribution
Central Finance and Contracts Unit
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
76
3. TK Müşavir Mühendisler Ltd Şti.; Turkey.
General Budget
of the EU and
National
Contribution
Central Finance and Contracts Unit
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 Leader: IDOM Ingenieria y
Consultoria S.A; Spain
1.Haskoning Nederleand
B.V.Nederland
2.UBM A.Ş., Containtment
Quality associates LTD;
Turkey
4.Stoa Teknik Hizmetler Ltd.
2008
General Budget
of the EU and
National
Contribution
Central Finance and Contracts Unit
Technical Assistance And Supervision Services For The Kuşadasi Regional Solid Waste Management Project
2.873.273 EUR Leader.: AHT Group AG;
Germany
1.Yüksel Proje Uluslararası
AŞ.; Turkey
2006
General Budget
of the EU and
National
Contribution
Central Finance and Contracts Unit
Technical Assistance And Supervision Services For The Çanakkale Regional Solid Waste Management Project
2.497.670 EUR Leader: EPTISA International Group; SPAIN
1.Parsons Brinckerhoff; United Kingdom 2.EKODENGE; Turkey
2006
Source: EuropeAid (2013)
Table 5.5: Waste management Construction Tenders funded by EU
FINANCING CONTRACTING
AUTHORITY
TITLE CONTRACT
VALUE OR MAX.
BUDGET
AWARDED TO YEAR OF
THE
TENDER
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Construction Of Diyarbakır Solid Waste Management Project
Forecast Forecast ---
General Budget
of the EU and
National
Contribution
Ministry of
Environment
and Forestry
Rehabilitation Of Existing Dumpsites In Van
Forecast Forecast ---
General Budget
of the EU and
National
Contribution
Ministry of
Environment
and Forestry
Construction Of Sanitary Landfill In Van
Forecast Forecast ---
General Budget
of the EU and
National
Contribution
Ministry of
Environment
and Forestry
Construction Of Batman Solid Waste Management Project
Forecast Forecast ---
General Budget
of the EU and
Ministry of Environment and
Construction Of Çorum Solid Waste Management Project
Not Awarded Yet Not Awarded Yet 2013
77
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. 1. Helector Societe Anonyme of Energy and Environmental Applications; Greece
2011
General Budget
of the EU and
National
Contribution
Central Finance
and Contracts
Unit
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
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
2008
General Budget
of the EU and
National
Contribution
Central Finance
and Contracts
Unit
Construction Of Çanakkale Regional Solid Waste Management Project
7.817.755,53
EUR
Leader: STRABAG AG;
Ausria
1.ACARLAR Insaat
Madencilik Sanayi ve Ticaret
Ltd. Sti.; Turkey
2007
General Budget
of the EU and
National
Contribution
Central Finance
and Contracts
Unit
Construction Of Kusadası Solid Waste Management Project
8.172.764,00
EUR
Leader: STRABAG AG;
Ausria
1.ACARLAR Insaat
Madencilik Sanayi ve Ticaret
Ltd. Sti.; Turkey
2007
General Budget
of the EU and
National
Contribution
Central Finance
and Contracts
Unit
Rehabilitation Of Old Landfills Within The Context Of Kuşadası Regional Solid Waste Management Project
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
Source: EuropeAid (2013)
Table 5.6: Waste water treatment Service Tenders funded by EU
78
FINANCING CONTRACTING
AUTHORITY
TITLE CONTRACT
VALUE OR MAX.
BUDGET
AWARDED TO YEAR OF
THE
TENDER
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Technical Assistance And Supervision Services For Şanlıurfa Waste Water Treatment Project
2.651.791 EUR
Forecast ---
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Technical Assistance And Supervision For Bartın Water And Waste Water Project
1.400.000 EUR Forecast ---
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Technical Assistance And Supervision For Sorgun Waste Water Treatment Plant Project
750.000 EUR Forecast ---
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Technical Assistance And Supervision For Soma Waste Water Treatment Plant Project
1.143.762 EUR Forecast ---
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Technical Assistance And Supervision For Seydişehir Waste Water Project
1.150.000 EUR
Forecast ---
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Technical Assistance And Supervision For Merzifon Water And Waste Water Project
1.150.000 EUR Forecast ---
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Technical Assistance And Supervision For Amasya Water And Waste Water Project
1.850.000 EUR Not Awarded Yet 2013
General Budget
of the EU and
National
Contribution
Ministry of
Environment and
Urbanisation
Technical Assistance
And Supervision For
Bulancak Water And
Waste Water Project
2.454.000 EUR Leader: WYG International Danışmanlık Limited Şti.; Turkey 1. WYG International Limited; United Kingdom. 2. Haskoning DHV Nederland B.V. ; Netherlands.
2012
General Budget
of the EU and
National
Contribution
Ministry of
Environment and
Urbanisation
Technical Assistance And Supervision For Polatlı Water And Waste Water Project
2.775.000 EUR Not Awarded Yet 2012
General Budget
of the EU and
National
Ministry of Environment and Urbanisation
Technical Assistance And Supervision For Akçaabat Water And Waste Water Project
2.489.925 EUR Leader: Ramboll Danmark A/S; Denmark 1. Alter International
2012
79
Contribution Engineering and Consulting Services Ltd; Turkey.
General Budget
of the EU and
National
Contribution
Ministry of
Environment and
Urbanisation
Technical Assistance And Supervision For Adıyaman Waste water Project
1.857.318 EUR Leader: Fichtner Water and Transportation GmbH.; Germany 1. Dorsch International Consultants GmbH; Germany. 2. Su Yapı Engineering and Consulting Inc.; Turkey.
2012
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Technical Assistance And Supervision For Nizip Water And Waste Water Project
2.943.448,5 EUR Leader: Fichtner Water and Transportation GmbH; Germany 1. FCG Finnish Consulting Group Ltd; Finland. 2. Piramit Engineering and Consulting Co. Ltd; Turkey
2012
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Technical Assistance And Supervision For Akşehir Water And Waste Water Project
2.640.000 EUR Not Awarded Yet 2012
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
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. 1. Eptisa Mühendislik ve Müş. Hiz. Bilg. İnş. Tic. Ltd. Şti.; Turkey. 2. Eptisa Servicios Ingeniería, S.L.; Spain.
2011
General Budget
of the EU and
National
Contribution
Ministry of
Environment and
Forestry
Technical Assistance And Supervision For Siverek Waste Water Project
2.996.700 EUR Leader: WYG International Limited; United Kingdom. 1. DHV BV; Netherlands. 2. WYG International Danışmanlık Limited Şirketi; Turkey. 3. ER-GE Design, Engineering and Consulting & Trade Ltd Co.; Turkey
2011
General Budget
of the EU and
National
Contribution
IPA Coordination
and
Implementation
Centre
Technical Assistance And Supervision For Manavgat Water And Waste Water Project
2.219. 500 EUR 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
80
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
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. 1. Pöyry Environment GmbH; Germany. 2. WYG International Danışmanlık Limited Şirketi; Turkey.
2010
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Technical Assistance And Supervision For Lüleburgaz Waste Water Management Project
1.707.000 EUR Leader: NIRAS A/S.; Denmark. 1. Jennings O'Donovan & Partners; Ireland. 2. J.B. Barry & Partners Ltd; Ireland. 3. ÜLKER Engineering Consulting, Construction and Trading Ltd; Turkey
2010
General Budget
of the EU and
National
Contribution
Central Finance and Contracts Unit
Technical Assistance And Supervision For Erzincan Water And Waste Water Project
3.021.250 EUR Leader: Grontmij A/S.;
Denmark.
1. Grontmij Mühendislik
Müşavirlik ve Tasarım Ltd
Şti.; Turkey.
2010
General Budget
of the EU and
National
Contribution
Central Finance and Contracts Unit
Technical Assistance And Supervision For Erzurum Water And Waste Water Project
2.890.600 EUR Leader: MWH SA/NV.; Belgium. 1. Yüksel Proje Uluslararası A.Ş.; Turkey.
2010
General Budget
of the EU and
National
Contribution
Central Finance and Contracts Unit
Technical Assistance And Supervision Of Diyarbakır Water And Waste Water Project
3312.400 EUR Leader: Safege; France. 1. FCG Finnish Consulting Group; Finland. 2. TÜMAŞ Turkish Engineering Consulting and Contracting Co.; Turkey
2010
General Budget
of the EU and
National
Contribution
Central Finance and Contracts Unit
Technical Assistance And Supervision Services For The Nevşehir Waste water Treatment Plant
1.233.656 EUR Leader: SWECO International AB; Sweden 1. TEMPO Altyapı Engineers&Consultants AB; Turkey
2007
General Budget
of the EU and
National
Contribution
Central Finance and Contracts Unit
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 1. ER-GE Design, Engineering, Consulting and Trade Ltd.Co.;
2007
General Budget
of the EU and
Central Finance and Contracts
Technical Assistance To Prepare Waste
3.799.400 EUR Leader: COWI A/S; Denmark
2007
81
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
TITLE CONTRACT VALUE AWARDED TO YEAR OF
THE
TENDER
General Budget
of the EU and
National
Contribution
Ministry of
Environment and
Urbanisation
Construction Of Kars Waste Water Treatment Plant
Forecast Forecast ---
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Construction Of Bartın WWTP And The Waste water Collection, Preliminary Treatment And Sea Outfall İn İnkumu
Forecast Forecast ---
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Rehabilitation And Extension Of Erzincan Waste Water Treatment Plant
Forecast Forecast ---
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Construction Of Soma Waste Water Treatment Plant
Forecast Forecast ---
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Construction Of Seydişehir Waste Water Treatment Plant
Forecast Forecast ---
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Construction Of Sorgun Waste water Treatment Plant
Forecast Forecast ---
General Budget
of the EU and
Ministry of Environment and
Construction Of Merzifon Waste water
Forecast Forecast ---
82
National
Contribution
Urbanisation Treatment Plant
General Budget
of the EU and
National
Contribution
Central Finance
and Contracts
Unit
Construction Of Akşehir Waste Water Collection Network
Forecast Forecast ---
General Budget
of the EU and
National
Contribution
Central Finance
and Contracts
Unit
Construction Of Akşehir Waste Water Treatment Plant
Forecast Forecast ---
General Budget
of the EU and
National
Contribution
Central Finance
and Contracts
Unit
Construction Of Waste water Treatment Plant In Siverek
Forecast Forecast ---
General Budget
of the EU and
National
Contribution
Central Finance
and Contracts
Unit
Construction Of Waste water Collector Mains Of Adıyaman
Forecast Forecast ---
General Budget
of the EU and
National
Contribution
Central Finance
and Contracts
Unit
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: Passavant-
Roediger GmbH.; Germany.
1.Seç Yapı İnş En. Turz. ve
Tic. Ltd. Şti; Turkey.
2012
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
General Budget
of the EU and
Ministry of Environment and
Construction Of Ceyhan Waste Water Treatment
7.898.144,02 EUR
Leader: Strabag AG.,
Austria
2011
83
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.
1. Çevtaş Çevre
Teknolojisi Ticaret ve
Sanayi 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
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
General Budget
of the EU and
National
Contribution
IPA Coordination and Implementation Center
Construction For Water Supply İn Manavgat
6.914.303 EUR Leader: Asil İnşaat Sanayi
ve Ticaret Limited Şirketi;
Turkey.
2011
General Budget
of the EU and
National
Contribution
Ministry of Environment and Urbanisation
Construction Of Siverek Waste Water Treatment Plant
7.716.331,08 EUR
Leader: VA TECH WABAG GmbH.; Austria
2011
General Budget
of the EU and
National
Contribution
Ministry of Environment and Forestry
Construction Of Diyarbakır Waste Water Treatment Plant
25.674.834,38
EUR
Leader: Strabag AG.;
Austria.
2011
General Budget
of the EU and
National
Central Finance and Contracts Unit
Construction Of Ordu Waste Water Treatment Plant
10.997.065,95
EUR
Leader: MASS Treatment Systems Construction Industry and Trade
2010
84
Contribution (WWTP) And Retrofitting Of Kumbaşı WWTP
IncorporatedCompany; Turkey
General Budget
of the EU and
National
Contribution
Central Finance
and Contracts
Unit
Design And Build Construction Of Infrastructure (96 Hectares) And Waste Water Treatment Plant Of Sanliurfa Oiz 2 (Organized Industrial Zone)
Lot 1:
7.994.968,31 EUR
Lot 2:
3.496.944 EUR
Lot 1: Leader:Asil
Construction Industry and
Trade Limited Corporation;
Turkey
1.Çarıksız Construction
Industry and Trade
Incorporation; Turkey
Lot 2: Leader: Saceccav
Depurazioni SACEDE
S.P.A.; Italy
2008
General Budget
of the EU and
National
Contribution
Central Finance
and Contracts
Unit
Design, Construction, Operation And Maintenance Of Nevşehir Waste water Treatment Plant
5.419.700 EUR HİDROTEK – OTV Joint
Venture
2007
General Budget
of the EU and
National
Contribution
Central Finance
and Contracts
Unit
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.
85
Table 5.8: Selected Tenders granted by Public Procurement Authority (KIK)
TYPE OF THE
TENDER
CONTRACTING
AUTHORITY
TITLE CONTRACT
VALUE
AWARDED TO YEAR OF
THE
TENDER
Service Directorate Of Water And Sewage Works Of Aydin Municipality
Operation And Maintenance Of Waste water Treatment Plant
958.005,00 Try Çevkom Mühendislik
Endüstriyel Tesisler İnşaat
Sanayi Ve Ticaret Limited
Şirketi
2013
Service 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 waste water Treatment Plant
389.000,00 Try Hak-Su Teknik Pompa
Endüstriyel Otomasyon
Sanayi Ve Ticaret Limited
Şirketi
2013
Supply Directorate Of Water And Sewage Works Of Eregli Municipality
Procurement Of Real-Time 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 water Treatment Plant With A Capacity Of 300m3/Day
380.800,00 Try 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
86
Metropolitan Municipality , General Directorate Of ISU
Waste water Treatment Plant
Try Şti
Construction Antalya Regional Directorate Of Iller Bank
Elmalı (Antalya)Waste Water Treatment Plant
4.333.300,00 Try 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
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-to-
energy 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
87
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)
LANDFILL INCINERATION ANAEROBIC
DIGESTION
PYROLSYSIS /
GASIFICATION
CAPEX 119–154 645–792 372–510 130–333
OPEX 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 .
88
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
IZMIR91
ANKARA92
KOCAELI93
BURSA94
GAZIANTEP95
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.
91 http://www.izsu.gov.tr/ 92 http://www.aski.gov.tr/tr/anasayfa 93 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”.
89
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
90
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. General
2. Economic and financial capacity of the tenderer
a. Annual Turnover
b. Financial Resources
c. Financial Position
3. Technical and professional capacity
a. Work Experience
4. 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).
98
http://www.dunya.com/motorine-yerli-tarim-urunu-sarti-kalkti-35-milyar-dolar-zora-girdi-196834h.htm 99
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
91
Coming to the service tenders of EU funded projects, the selection criteria contain the subtitles below:
1. Economic and financial capacity of candidate
2. Professional capacity of candidate
3. 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. Economic and financial capacity of the tenderer
a. Annual Turnover
b. Financial Resources
c. Financial Position
2. 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.
92
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
93
for SME sized industrial companies and commercial enterprises that wish to invest in renewable energy, waste-to-
energy 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 mid-
size 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 medium-
and 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/ 103
https://www.climateinvestmentfunds.org/cif/node/2 104 http://www.tubitak.gov.tr/
94
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
Central
administration
(government)
1'155 45 45 46 52 55 57 60 63 66 70 73 77 81 85 89 93 98
Local
authorities
4'667 134 218 318 399 276 311 325 351 351 328 298 268 292 251 213 169 167
Municipals’
equity
2'873 19 110 210 302 178 216 230 256 255 230 197 164 184 139 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
External
credit loan
398 56 46 46 33 29 24 21 19 17 15 14 14 13 13 13 13 13
PPP N.A.
Private sector N.A.
Funds (EU+
other grants)
3'745 21 22 22 27 149 166 176 197 218 238 266 292 315 352 385 425 474
TOTAL 9'567 200 285 386 478 479 534 561 611 636 636 637 637 687 687 687 687 739
Source: Author’s own calculations based on EU integrated environmental approximation strategy for Turkey (UCES) (2007 - 2023)
95
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
Central
administration
(government)
2'241 87 91 93 101 106 111 116 122 128 135 142 148 156 164 172 181 190
Local
authorities
9'601 574 597 648 661 480 476 463 502 618 642 643 626 610 578 484 552 450
Municipals’
equity
5'222 355 383 435 458 272 270 253 290 399 375 366 337 309 263 156 209 92
Ilbank A.S. 3'882 149 156 156 162 172 175 183 189 198 248 260 272 284 299 312 327 342
External
credit loan
498 70 58 58 42 36 31 27 24 21 19 18 17 16 16 16 16 17
PPP N.A.
Private sector N.A.
Funds (EU+
other grants)
6'241 27 29 29 37 248 273 301 333 366 402 442 486 537 590 647 711 783
TOTAL 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
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.
96
Table 6.3: SWOT analysis for Swiss firms
STRENGTHS WEAKNESSES
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
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.
OPPORTUNITIES THREATS
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 High-
Cleantech products implies for Swiss companies a
continuous holding of the high quality standards and
comparative advantage against other countries.
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.
97
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
98
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
99
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 ENVIRONMENT, RECYCLING, WASTE MANAGEMENT, WATER TECHNOLOGIES, MUNICIPALITY,
URBAN FURNISHINGS
100
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
101
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
102
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.
103
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
104
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
105
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 e-
mailing 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.
106
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.
107
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:
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.
Switzerland Global Enterprise
Stampfenbachstrasse 85
CH-8006 Zürich
T +41 44 365 51 51
Switzerland Global Enterprise
Corso Elvezia 16 – CP 5399
CH-6901 Lugano
T +41 91 911 51 35
Switzerland Global Enterprise
Avenue d’Ouchy 47 – CP 315
CH-1001 Lausanne
T +41 21 613 35 70
www.s-ge.com
ExportHelp www.s-ge.com/exporthelp
T 0844 811 812