Turkish Motorways privatisation

This project included the privatisation of approximately 2,000km of motorway in Turkey. For any concession, buying such an extensive asset and having to evaluate the cost of its operation over the length of the concession (typically 30 years) requires expert strategic advice.

Fjori’s client AECOM led the overall strategic advisory aspect for this project. However, because of Fjori’s internationally recognised expertise in pavement engineering management and strategy, we were asked to join the AECOM team in order to provide guidance and advice on this aspect of the project.

Using robust and recognised techniques, Fjori helped AECOM develop a sophisticated capital investment model based on very limited asset data which permitted the consortium to make decisions on risk factors highlighted by the team. In essence, Fjori’s role allowed the risks to be recognized and properly considered.

The bidding consortium for whom our client AECOM was working was ultimately successful in winning the concession to operate these motorways. However, unfortunately the Turkish Government elected to cancel the process at the final hurdle, considering the whole privatisation to be poor value for the country.