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MILTON ZAHARIADIS
Endüstri Mühendisi ve Turistik ?irket Müdürü
Industrial Engineer and Manager of Touristic Company

Construction Opportunities For Co-operation


300 Greek and Turkish representatives of the business communities and economies of the respective countries, took part in a conference in Istanbul.

For the first time in decades, under the same roof and seating in the same tables, we started communicating with each other, expressing our business views, dreams, plans and interest to associate with the other side. And after overcoming the first hours of caution and reserve that characterizes people when first meet, within two conference days and in a very friendly and co-operative environment we signed agreements of co-operation in nine business and economic sectors. The representatives reached this action because we realized that there exist reasonable incentives that drive the two business communities together, and that there is willingness among us to overcome and deter the reasons that drive us apart. Of course we know that there are in both of our countries certain people that doubt our efforts for genuine co-operation, and that occasionally present us with various pessimistic and unrealistic scenaria.
We also have our sensitivities, and as businessmen we always take into consideration all the possible factors that may affect our company's participation in any professional association and endeavor, before we place our company's personnel, financial and technical resources, professional interest and participation on the negotiating table. This is exactly what we have done in the Istanbul Conference, and this exactly what we will be doing each time a specific opportunity is brought up for joint evaluation prior to pursuing it. We have found that we want to work together, and that project markets do exist to provide us with the opportunities to do so.
We are examining and building our professional and business relationships between the business communities, not only for the understandably good reasons that our efforts are going to be beneficial for Greece and Turkey, and not only because we should work together as neighbors and eventual EU partners. We are doing that also, and I hope you treat my bald comment with leniency, because we have to examine and evaluate our company's interest and eventual participation in this pool of potential business opportunities!
And now a few works about the Construction Sector, its Markets and the Financing Sources that add viability to the selected markets.

Construction Sector
The Construction Sector has a lot of particularities, just like any other major economic sector. But I only wish to refer to its special three-fold contribution to our prospective co-operation, and how it merits and contributes to all other business sectors that are represented here today.

1. The Construction Sector is the Steam Engine, the Locomotive that drives the train of the economy of countries such as Greece and Turkey, as it pulls and pushes along various parameters and economic sectors that are either directly or indirectly associated with it. For instance, in Greece there are 62 professions that are directly associated with the Construction Sector of the economy. To those, one must add others which are indirectly involved, such as transportation, banking, legal, logistics, accounting, to mention but a few. As one may gather, most of the directly and indirectly associated sectors are represented in our conferences

2. In our discussions between the Greek and Turkish construction representatives in trying to identify market opportunities, we concluded that the markets of our interest are supported by domestic or international financial programs and packages that are primarily directed towards the reconstruction of national infrastructure, i.e. construction projects. Therefore, the major expenditures of these programs would be directly associated with the construction sector and subsequently, to those other business sectors associated with it, directly or indirectly.

3. The economy of a country is measured and being evaluated on the basis of certain important parameters, one of which is its export capability, and the subsequent attraction of foreign exchange. It is fair to assume that the Construction Sector is contributing greatly to this parameter, in the exporting of materials, tools, equipment, various services, technology and know-how.
From the aforementioned three points, it is secure to assume that the Construction Sector is a major and vital factor for the economies of Greece and Turkey, and it is poised to contribute to the Greek economy during the European Monetary Union period, and to Turkey, and to its economic parameters that have to be filtered and evaluated on during the country's preparation to join the European Union.

Selected Markets
During our Construction Work Team' s discussion between the Greek and Turkish colleques, we realized that in addition to the markets that should be pursued within our own countries, we should orient our interest and resources towards our neighborhood markets. And by that we mean the Balkans, the Black Sea and the Caspian Sea Regions. We agreed to pursue these aforementioned markets, because we feel that we have some distinct advantages there, that result from our peoples previous or current presence there, our local working experience, our familiarity with the social and professional know-how, status quo and hierarchy, knowledge of the decision making process, and our ability to provide the technology that these markets need. Therefore, we jointly appear in a highly competitive posture. Our joint knowledge and effort in these markets surely should not be underestimated, particularly when compared to that of other international competitors.

Financing Sources
There are a number of international project financing sources that contribute to the viability of the aforementioned markets that we wish to jointly pursue. Some of these resources are:

The Stability Pact
After the termination of the war in Kosovo, the major political and economic powers decided to evaluate the infrastructure status of the Balkan countries, and discovered that at best, most of the infrastructure was non-functional, unreliable, old, decrepit, or destroyed. All this situation was evident that would be creating business opportunities, with the proviso that there are funds to be found for project implementation. Therefore, the need for infrastructure reconstruction in the Balkans, along with the tremendous needs for humanitarian assistance and democratization programs, culminated in the creation of the Stability Pact on June 1999. Through many conferences since, and in the last conference held in Brussels on March 29, 2000, the Donors decided to commit EURO 180 million during 2000 for Kosovo, and with a total contribution for this country of EURO 2 billion for the upcoming years. In addition, EURO 6 billion would be allocated for the needs of quick-start and medium projects for the other countries. The majority of the funds are for designated projects such as roads, railroads, ports and harbors, airports, telecommunications, water and wastewater, production and distribution of electric power, housing, institutional buildings, hospitals, educational facilities, and generally, construction of infrastructure projects.

Greek Program for the
Reconstruction of the Balkans
Last year, the Greek government, in its policy to contribute to the stability in the Balkans, undertook by its own initiative the establishment of a program for the reconstruction of the Balkans, with an approximate contribution of $570 million from the national budget, to be spent the next 5 years on social and infrastructure projects. Of these funds, about $200 million are designated for Yugoslavia, and will be available upon removal of the embargo. The program is under the auspices of the Greek Ministry of National Economy, and it has started this year, and will be available for participation to join ventures of Greek with non-Greek firms, that apply their feasibility projects for financial assistance. This economic undertaking was recognized by the Greek Government as a necessary gesture and step to assist its neighbors to help themselves, and in turn to contribute to the economic and political stability in the region. This gesture was applauded by international economic and political circles and it is hoped to prompt others to do the same. In fact, ?ar›k TARA has said that, if the other countries interested in this region are to contribute proportionally what Greece is providing in financial assistance, then a fund of about $ 50 billion would be created to solve most of the infrastructure problems of the Balkans. In addition, this fund would be the nucleus that would attract about another $50 billion from other private and international financial sources, and in this way the whole problem of infrastructure in the Balkans would be totally remedied once and for all!

European Union Programs
The EU has a number of programs to assist the NIS and CIS countries. The most prominent programs associated with infrastructure projects are the TACIS and PHARE. One major effort is the TRACECA program (Transportation Corridor Europe Caucasus Asia) that enhances, modernizes and reconstructs the trasportation modes and means from Europe to Central Asia, along an axis parallel to the Old Silk Road. The program is for road, rail, port and airport networks upgrading and projects.

Our firm, Athena SA, had the honor as the leader of a Greek joint venture, to execute the first of the construction projects funded under TACIS funds for the region, by implementing the Rail Ferry Terminal in the Poti Port of the Republic of Georgia. The project atracted the meritorious comments of both EU officials and the presidents of the CIS republics, as the project services a vital transportation mode in the Rail Ferry connection between Poti, Georgia, with Illyichovsk, Ukraine, and Varna, Bulgaria.

European Bank for Reconstruction and Development (EBRD) and World Bank Programs EIB and World Bank have adopted programs for assisting economically Bulgaria and Rumania for about $6 billion the next few years, to be directed mainly for various infrastructure projects.

Black Sea Trade and
Development Bank
The Black Sea Trade and Development Bank was established last year and it is headquartered in Thessaloniki, and it is the newest financial institution created by 11 countries of the region, dedicated to contribute its valuable assistance and services to the member states and joint ventures originating from them and willing to invest in these member states, providing the funds the countries of the region need in various efforts for project and trade financing, for public and private projects.
The BSTDB in its short tenure, is emerging as one of the local financial forces, that businessmen and entrepreneurs badly need to pursue investments and project opportunities in the Balkans and Black Sea Region.

Private Funds
We as businessmen must realize that we must evaluate seriously the contribution of our own funds, in various forms, in order for a number of vital projects to get off the ground. Equity participation and private financing, along with borrowing and co-financing from local and international financial institutions, should be considered for BOT projects that that their feasibility studies and evaluation of local conditions have rendered as viable.
As businessmen and enterpreuners we must be optimists by nature, otherwise we would not be in the business of risking our personnel, professional, financial and technical resources, interest and benefit of our firms. But we are also hard realists in the developments, parameters and predicaments that always face our endeavors. In our case of co-operation for the Balkans, we should keep in mind the recent comments made by Mr. Bodo Hombach, Co-ordinator of the Stability Pact, after the March 29, 2000 Brussels Donor Conference. He drew attention to the fact that although funding for the area has been agreed by the donors, major delays in cash outlaying commitments and timely project initiation are causing substantial delays in the implementation of projects that are badly needed. It is feared that, the persisting poverty, unemployment, hunger and lack of hygienic care, the instability of social and political structures, are fomenting and cultivating the chaotic conditions that accelerate friction and discontent between various fractions, and that enlarges greatly and steadily the identical conditions that led to the belligerence and polemics of the recent past. This is something that we should try to avoid!!
We the Greek and Turkish businessmen, in an accentuated state and behavior of constructive impatience, must be instrumental in communicating to our international political and financial friends and contacts, that any further project initiation delays would definitely be detrimental to the stability in the Balkans, and the eventuality of the late implementation of these programs would be absolutely a mute point, futile and worthless. We should be pushing for the quickest initiation of project implementation, so that the people of the Balkans start to be relieved and breathing the air of humanity, and we, the Greek and Turkish businessmen to start working together!

Uzun yıllardan sonra ilk defa İstanbul'da, Yunan-Türk İşbirliği Konferansı'nda biraraya gelen Türk ve Yunan işadamları, iki gün süren konferans sonunda dokuz farklı iş kolunda anlaşmalar imzaladı.
Her iki ülke işadamlarının işbirliğine ve mevcut sorunların çözümüne ilişkin düşünceleri etrafında imzalanan bu anlaşmalara şüpheyle bakanlar da yok değildi. İşadamları olarak bizler de elbette belirli konuları, gereğince ölçüp biçtikten sonra ticari pazarlıklara giriştik. Bunun sonucunda da Türk meslekdaşlarımızla işbirliği yapabileceğimizi gördük.
Geniş iş imkanlarının bulunduğu bu bölgede, hem ülkemiz hem de şirketlerimizin menfaatleri adına birlikte çalışmamızın yararlı olacağını görüyoruz.

İnşaat Sektörü
İnşaat sektörüne gelecek olursak, bu sektörde işbirliğimize katkıda bulunacak üç önemli nokta var:
1- Bu sektör her iki ülke ekonomilerinin itici gücü konumundadır. Ulaşım, bankacılık, muhasebe vb, sektörler inşaatla dolaylı ilişkisi olan iş kolları arasındadır.
2- Burada yaptığımız görüşmeler, ulusal altyapı yatırımlarının her iki ülkede de öncelikli olduğunu göstermiştir.
3- Ükelerin ekonomik yeterlilikleri değerlendirilirken esas alınan ölçülerden biri de ihracat kapasitesi ve yabancı yatırımların ülkeye ne ölçüde çekilebildiğidir. İnşaat sektörünün bu anlamda ülkelerimize önemli katkılarının olduğu bir gerçektir.

Seçilen Pazarlar
İnşaat İş Grubumuzun Yunan ve Türk İşadamlarıyla yaptığı görüşmelerde, ulusal pazarlarımızla birlikte komşu ülke pazarlarının yani Balkanlar, Karadeniz ve Hazar Denizi bölgelerinin de ilgi alanımız dahilinde olması gerektiğine karar verdik.

Finansman Kaynakları
Girmeyi düşündüğümüz bu pazarlarda finansman yaratacak bazı imkanlar bulunmaktadır.

İstikrar Paktı
1999 yılının Haziran ayında imzalanan İstikrar Paktı'nın ardından, Balkanlarda altyapının yeniden inşa edilmesi çerçevesinde Kosova'ya 180 milyon Euro hibe edildi. Kosova'ya hibe edilen toplam miktar ise önümüzdeki yıllarda 2 milyar Euro'ya ulaşacaktır. Bir an önce başlatılacak ve orta vadeli projeler için bölge ülkelerine ayrılacak miktar ise 6 milyon Euro olacaktır. Bu para, yol, liman, hastane v.b. yapımında kullanılacaktır.

Balkanlar'ın Yeniden İnşasına İlişkin Yunan Programı
Yunanistan hükümeti, ulusal bütçesinden 200 milyon doları Yugoslavya için olmak üzere, toplam 570 milyon Amerikan dolarını, önümüzdeki 5 yıl içinde sosyal ve altyapıya ilişkin yatırımlarda kullanılması amacıyla Balkanlar'ın yeniden inşası için ayırmıştır.

Avrupa Birliği'nce Düzenlenen Programlar
Avrupa Birliğide Bağımsızlığını Yeni Kazanan Ülkeler ve Bağımsız Devletler Topluluğu Ülkeleri için destek programları hazırlamıştır. Bunların önemli olanları TACIS, PHARE ve TRACECA programlarıdır.

EBRD ve Dünya Bankası Programları
Bulgaristan ve Romanya için yaklaşık 6 milyar dolarlık destek temin edilecektir.

Karadeniz Ticaret ve Kalkınma Bankası
Bölgedeki 11 ülkenin kurduğu bu banka, bölgede yapılacak yatırımlara destek verecektir.

Özel Fonlar
Gerçekleştirilecek projeler için, biz işadamlarının sağlayacağı kaynakların önemi unutulmamalıdır. Hibede bulunan ülkelerden nakit akışlarda gecikmeler yaşanması, ihtiyaç duyulan projelerin gecikmesine sebep olmaktadır. Bizler Yunan ve Türk İşadamları olarak, yaşanabilecek başka gecikmelerin Balkanlar'ın istikrarını zedeleyebileceğini dünyaya duyurmak durumundayız. Projelerin bir an önce hayata geçirilmesi ve bölge insanının huzuru için birlikte çalışmaya başlıyoruz.


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