The actual usage of the Ankara High-Speed Train Station was 64% lower than the guaranteed figures, placing a significant financial burden on the Treasury.
The shortfall will cost the government over 2.2 billion Turkish liras (approximately 67 million US dollars), highlighting an ongoing trend in Turkey's public-private partnership (PPP) projects where actual usage consistently fails to meet guaranteed levels.
The station, operated by ATG Gar İşletmesi A.Ş., a consortium of Kolin, Cengiz, and Limak holdings, was expected to see 38 million passengers between its opening in 2016 and 2023. These holdings are among the five companies awarded lucrative PPP contracts over the past decade, dubbed by the opposition as the "gang of five."
However, only 13.71 million passengers used the station during this period, leaving a substantial gap between the anticipated and actual numbers.
In the most recent period, from October 2022 to October 2023, 2.94 million passengers used the station, far below the 8 million passengers guaranteed by the government. As a result, the Treasury had to compensate the consortium for the 5.06 million passengers who did not use the station, paying out 409 million liras (~14.7 million dollars).
These figures were disclosed by MP Deniz Yavuzyılmaz of the main opposition Republican People’s Party (CHP), based on parliamentary records and responses to inquiries submitted to the Presidential Communications Center.
PPP projects in Turkey
This shortfall in Ankara is emblematic of a broader issue with Turkey's PPP projects, especially those undertaken over the past decade.
These projects, often awarded to a select group of companies dubbed as the "Gang of Five" by the opposition (Kolin, Cengiz, Limak, Kalyon, and MNG), have been marked by inflated costs, overly optimistic usage projections, and ultimately, large compensation payments from the Treasury when those projections aren't met.
According to World Bank figures from 2018, these companies ranked among the top 10 recipients of public contracts over the past decade.
Turkey is spending billions of dollars for guaranteed payments in PPP projects
Critics argue that these PPPs are designed to benefit the companies involved, with guaranteed revenues regardless of actual project performance. This has led to accusations of cronyism and waste, as the Turkish public ends up footing the bill for projects that don't deliver on their promises.
One striking example was the Zafer Airport, which was used by only 7,429 people in 2020 whereas the guaranteed number of passengers was 1,27 million. (VK)