FINANCING IN GAP

The financing needs of public investments that must be made for attaining the targets and magnitudes bet by the GAP Master Plan for the period 1990-2005 is 22 quadrillion, 505 trillion and 859 billion TL at 2002 fixed prices.

As of the end of 2001, 10 quadrillion, 831 trillion and 855 billion TL has been spent for GAP, pointing out to a cash realization ratio of 48.1%.

GAP PROJECT COST AND CASH REALIZATIONS BY SECTORS AS OF THE END OF THE YEAR 2001 (Billion TL at 2002 Prices)

ECONOMIC SECTORS	Total Cost (Required Funds)	Cumulative Investments by the end of 2001	Realization (%)
Agriculture	6 811 714	1 144 319	16.8
Mining	522 393	530 243	100.0
Manufacturing	1 005 673	408 021	40.6
Energy	7 236 872	5 696 882	78.7
Transportation-Communication	4 982 234	1 677 455	33.7
Tourism	37 823	9 495	25.1
TOTAL	20 596 708	9 446 416	46.0
SOCIAL SECTORS
Housing	217 702	76 730	35.2
Education+Health	597 004	507 231	85.0
Other Public Services	1 094 444	781 478	71.4
TOTAL	1 909 150	1 369 288	71.7
GRAND TOTAL	22 505 859	10 831 855	48.1

DISTRIBUTION OF GAP 2001 INVESTMENTS TO SECTORS BY INDIVIDUAL AND MISCELLANEOUS PROJECTS (Billion TL at 2002 Prices)

ECONOMIC SECTORS
Agriculture	99 589
Mining	28 915
Manufacturing	12 004
Energy	125 525
Transportation-Communication	131 819
Tourism	1 100
TOTAL	398 952
SOCIAL SECTORS
Housing	1 900
Education-Culture	34 582
Health	26 686
Other Public Services	184 801
TOTAL	247 969
GRAND TOTAL	646 921

GAP investments consist of the combination of various projects and activities conducted by different organizations and agencies in economic and social sectors. Allocations made for investments to be made by different organizations and agencies in various sectors are included in the investment budgets of these organizations and used by them.

The Table above shows total investment allocations in the Investment Program of 2002, reserved for various projects at provincial level. Included in this table are the GAP related allocations to the TPAO active in the mining sector, TEIAS and TEDAS from the energy sector, Turk Telekom from the communication sector and Cadastral Affairs from the services sector, whose investments are considered as programs. In line with information received from these agencies, total investment figure for the GAP region is reached by considering individual and miscellaneous projects.

All these give the figure 647 trillion TL as the total of GAP investments in 2002, corresponding to 6.5% as the share of GAP in total national investments.

COMPARATIVE TRENDS IN PUBLIC INVESTMENTS IN GAP (FOR THE PERIOD 1990 - 2002)

Looking at the trend of GAP investments in the period 1990-2001, it is observed that the region has an average annual share of 7% in total investment allocations. This is below 10%, which is the share of the region in both total geographical area and population of the country.

(Billion TL at 2002 Prices)

Years	TURKEY		GAP		Share of GAP in National Total (%)
Years	Investment Allocation	Increase (%)	Investment Allocation	Increase (%)	Share of GAP in National Total (%)
1990	8 096 812	-6.3	657 842	-1.5	8.1
1991	7 586 379	+3.5	647 700	-10.9	8.5
1992	7 854 199	-4.6	576 716	-1.5	7.3
1993	7 488 466	-21.6	567 911	-22.2	7.6
1994	5 870 933	-28.0	442 000	-30.8	7.5
1995	4 227 556	+27.1	305 862	+21.4	7.2
1996	5 375 971	+7.9	371 335	+20.2	6.9
1997	5 802 429	+45.2	446 283	+25.6	7.7
1998	8 427 492	-8.9	560 380	-19.6	6.6
1999	7 680 218	+16.4	450 654	+41.9	5.9
2000	8 939 816	-1.2	639 454	-32.0	7.1
2001	8 836 021	+11.5	434 792	+22.2	4.9
2002	9 855 000		531 658		5.4
2002	9 855 000		646 921 (*)

Note: Excluding investments by local governments (*) including investments by local governments.

In 2002, the share of GAP investments in total increased by 22% over the previous year and reached 5.4%.

However, considering the decision to complete the project fully by the year 2010, it becomes apparent that investment allocations to GAP need to be increased considerably in order to complete the project by the target year.

Last Update: August 5^th, 2002