Through privatizations carried out in many industries requiring robust infrastructures such as energy and port, competitive market economy continues to develop. Ahmet Aksu, Deputy President of Privatization Administration, shared his interpretations with Strategy Journal regarding privatization policies, goals and the contribution of privatization to the national economy. Privatization policies allow the state to focus on infrastructural investments, which cannot be undertaken by the private sector, and the economy to be governed by the market mechanism. Causing radical changes, not just in terms of economy, but also in various areas such as social, financial, administrative etc., privatization policies remain to be important both in Turkey and in the world and used as an effective instrument of restructuring. Expressing that a great success was achieved with privatizations performed in 2013, Ahmet Aksu, Deputy President of Privatization Administration, underlines that 2014, too, will be “a successful year” in terms of privatizations. Today, a competitive market economy is dominant. Can you explain the benefit of privatization under these conditions to the national economy? Before explaining the benefit of privatization to the national economy, let’s just talk about what privatization is. Privatization is the transfer of property, management and inspection of publicly owned commercial and industrial enterprises and assets to private persons and institutions either partially or completely. In addition to this concept, we also need to make a mention of transfer of operating rights where the property right remains at public, leasing, build-operate-transfer, Public Private Collaboözelration and similar practices. When we consider the concept of privatization from our country’s perspective, we can say that privatization is the transfer of property and management of State Economic Enterprises, from public to the private persons and institutions. When more than 50 percent of public shares transferred to private persons and organizations, both the ownership and the management of the enterprise become to be privatized. From this perspective, privatization is not a concept that has only economic effects. Privatization is a restructuring instrument that creates social, economic, legal, financial and administrative realizations and which can ensure substantial transformations in these areas. From this aspect, privatization is a reality that closely concerns, either directly or indirectly, all parts of the society. Focusing on expenses to maintain justice and security, which are the fundamental duties of the state, and infrastructural investments which cannot be undertaken by the private sector, is the essential philosophy of privatization. And the economy must be guided by market mechanisms. The aim of privatization is to minimize the commercial and industrial activity of the state in the economy, constituting a competitive market economy, easing the burden on the government budget of financing State Economic Enterprises, improving capital market, enabling void dispositions in the economy and channeling the resources acquired to the infrastructure investments, and thereby enhancing the well-being of the society. Until now, much privatization has taken place in Turkey. Considering this, how do you evaluate the year 2014? Since 1985, public shares in 270 institutions, 22 incomplete facility, 1602 real property, 8 highways, 2 bosphorus bridges, 123 facilities, 6 ports, license right of games of chance and Vehicle Inspection Stations were included in the scope of privatization. A program started to be carried out by including public shares in publicly-owned or affiliated institutions to the scope of privatizations which accelerated since 1986. Within the framework of this program, sale/transfer of shares or assets in 204 institutions was carried out by the Administration and no public shares were left in 194 of these institutions. Total value of the privatization practices carried out since 1986 reaches up to 60.2 billion dollars. With 842 privatizations carried out between that date and 2003, the total value of these privatizations was USD 8 billion. Between 2003 and July 2014, there were 1014 tenders and privatizations in various sectors such as telecom, banking, energy and ports. The total value of these privatizations reached to USD 52 billion. Whereas revenue of around USD 8 billion was generated in 2006, when the economy had a positive course, in 2013, in which there were global disturbances, the income hovered at USD 12.5 billion. When we consider the economic conjecture between the two periods, we can say that the objective of TRY 4 billion set for the year 2013 was six-folded. This result is a record in the history of privatization. The amount of privatization efforts in 2014 hovers at USD 1.7 billion. In the light of these data, I believe that 2014 will be a year of success as well. If we consider the specifics of energy industry, why is privatization so important for the industry? What kinds of incentives are provided around the world? We have begun the privatization of large production facilities just recently. I don’t think it would be appropriate to make a generalization based on the tenders we carried out for 3 thermal plants. Foreign investors had interest in these 3 tenders by means of obtaining specifications and making examinations. In addition, specifically in Europe, these investors, whose portfolios saturated with thermal plants, directed their attention in Turkey towards renewable energy plants. On the other hand in worldwide, it is a reality that foreign investors give weight to the investments in renewable energy plants due to the financial ease and incentives provided by governments and financial institutions for such investments. Our administration has primarily begun to the privatization of electricity generation with runof- the-river stations featuring small established power. I can say that the privatization process of electricity generation, as we got closer to the end in the privatization of electricity distribution, accelerated with thermal plant tenders. Among thermal plants; the privatization procedures of Seyitömer, Kangal and Hamitabat have been completed and they have been transferred to the private sector. Regarding Kemerköy, Yeniköy, Yatağan and Çatalağzı, their tenders have been completed and the approval process has started. It is planned henceforth to continue with haste and commitment to the electricity generation privatizations with thermal plant tenders. The tendering priority of plants to be privatized is determined together with the Ministry of Energy and Natural Resources. What can you say about port privatization? What are the advantages of ports operated by private companies in comparison with public managing? Both public and private organizations invest intensely on port sector. A great deal of success was achieved with the privatization realized in recent years. A significant level of efficiency has been achieved after the privatization in ports. And this considerably contributed to the national economy. Besides privatization, numerous major companies within the country built ports in various areas and regions and now a considerable amount of efficiency is obtained from these facilities. There had been an important investment thrust with the three important port projects such as Filyos, Mersin and Çandarlı, which are planned in a recent period. The purpose of all these investments is to constitute a port infrastructure and capacity that would fulfill the trade targets set by the country. What are your plans for Derince Port? What kind of project is planned for the privatization of Derince Port? A development plan has been prepared which allows a capacity increase in the port to utilize the strategic position and geographical advantages of TCDD Derince Port at an optimal level. According to the new development plan, the port area reaches to 787,861.15 m2 with the projected 391,478.44 m2 filling investment. TCDD Derince Port, which can handle all kinds of loads in its current state, was designed to service other loads, specifically containers. With the filling area and machinery equipment and infrastructure investments, it is planned that the container handling and annual storage capacity of the port to reach 1,250,000 TEU. Within the scope of this plan, it is aimed that TCDD Derince port to become one of the greatest ports of export in Turkey. A tender was issued on 5 June 2014 for the privatization and transfer of operating rights of Derince Port for 39 years and the highest bid was offered by Safi Katı Yakıt with USD 543 million. The approval process of the tender continues. Can you talk about your policies and goals in the following period, as Directorate of Privatization Administration? In privatization procedures, the transfer of public institutions to the private sector for the highest bid is carried out before the public in a competitive and transparent manner and in accordance with provisions of law within the legislative framework. The privatization practices, which considerably contribute to the increase of competition and efficiency, reducing employment and financing burden of the public, will continue with the same commitment.