Union of Chambers and Commodity Exchanges of Turkey

The 5th OIZ Energy Summit organized by the Organized Industry Zones High Supreme Institution (OIZÜK) was attended by Prime Minister Deputy Beşir Atalay, Energy and Natural Resources Minister Taner Yıldız, TRNC President Derviş Eroğlu, TRNC Prime Minister İrsen Küçük, the Union of Chambers and Commodity Exchanges of Turkey (TOBB) President M. Rifat Hisarcıklıoğlu and OIZÜK President and TOBB Industry Cahmbers Council President Nurettin Özdebir in TRNC.

Speaking at the opening of the summit, TOBB President M. Rifat Hisarcıklıoğlu stated that the Organized Industry Zones model has been a system of great contribution to the industrialization of Turkey and the spread of industry to Anatolia.

Stating that OIZ are one of the successful examples of public-private sector partnership, Hisarcıklıoğlu said, “Our OIZ experience, which started off with World Bank Credit 50 years ago, has contributed greatly to the development of our industry to where it is today. Our first OIZ were established in Bursa, Manisa and Eskişehir. Today, these three provinces have made significant progress with serious contribution from the OIZ.

Today, almost every province has an OIZ and everyone who lives in that province knows where that OIZ is. There were only 12 OIZ in Turkey in 1980. Today that number is close to 200.”

- Contribution to employment and vocational training

Stating that OIZ have spread all over Anatolia, TOBB President Hisarcıklıoğlu expressed that they have contributed greatly to employment and vocational training.

Stating that service with one-stop-shop mentality is provided, Hisarcıklıoğlu said, “Thanks to this our industry has come to a point of striking success. The greatest industrial production capacity between Italy and China is in these lands.”

TOBB President Hisarcıklıoğlu stated that Turkey’s economy was smaller than Saudi Arabia’s and equal to Greece’s in 1980’s, today, Turkey is the region’s largest economy and industry, thanks solely to its entrepreneurs, not oil or natural gas.

- “OIZ are a model benefiting the removal of obstruction in entering a sector”

Emphasizing that the Foreign Direct Investment magazine published by the Financial Times has picked Manisa OIZ as “the city most suitable for direct foreign investment” among 200 European cities, Hisarcıklıoğlu said, “OIZ are a model benefiting the removal of obstruction in entering a sector. Thanks to the permit and permissions given to the managements of OIZ various infrastructure services are provided to companies in the OIZ.

Electricity, water, phone lines and similar infrastructure amenities are provided to companies which are part of the OIZ much faster.”

Stating that they put great importance on this meeting, TOBB President Hisarcıklıoğlu congratulated the minds behind this organization and everyone who has put effort into it. Stating that the value of OIZ will continue to increase especially in the field of energy, Hisarcıklıoğlu said that according to the World Bank data, Turkey’s yearly electric consumption per person is 2400kilowatt/hrs and that this value changes between 6 and 8 thousand in the 10 largest economies of the world.

“If we are to be among the top 10 economies of the world on the centennial of our Republic, if we are to export 500 billion dollars, we need to enlarge our energy infrastructure to 2-3 times its present size.” TOBB President Hisarcıklıoğlu said, “I believe that OIZ will play an important role in ensuring these investments and the providing cheaper electricity. OIZ are very important customers in terms of electricity and natural gas consumption. We hope that our Minister, as part of an investor-friendly vision, will take measures to lower energy costs for OIZ industrialists.

It will be of the utmost contribution if the authorization to produce, procure and distribute natural gas is granted to OIZ like electricity.

The same goes for water consumption, environmental services, and R&D activities. At this point the activity of providing these services in terms of the infrastructure of OIZ will become even more important. We must all be aware of this.

In addition, in order to prevent non-planned industrialization and protect arable land, the moving of factories to OIZ should be encouraged and the construction of new factories within OIZ be promoted to industrialists.

As OIZ are the most appropriate method of preventing off-the-record economy and employment OIZ should be at the center of the new encouragement model.”

- “We, TOBB, are working to spread the OIZ model to the countries of the region”

Stating that they can relay their experiences of half a century regarding OIZ in a more organized manner, Hisarcıklıoğlu went on, “There is much that the countries around us and even a lot larger geography can learn from the industrial production structure and OIZ experience of Turkey.

We, TOBB, are working to spread the OIZ model to the countries of the region. Our work to establish an OIZ in Palestine is at the stage of investment. In cooperation with the Islamic Development Bank, we have started work to establish organized industry zone in Yemen, Mauritania and Benin.

OIZ established in other countries, in addition to their contributions to local economy will help in the spread of Turkish value chains to these countries. This way the business environment in these countries will become friendlier to Turkish investors. Encouragement for projects that fulfill these criteria may be thought of as a part of the OIZ policy.

China, for example, has decided to provide 30% of the costs of 50 OIZ projects to be established in Africa, Middle East and Asia in order to support the globalization of Chinese industry companies. We must not act too late, at least in our natural hinterlands.”

- Energy Minister Yıldız, “With the agreement of the TPAO we will hopefully start land drilling in TRNC within 3 months”

The Energy and Natural Resources Minister Taner Yıldız stated that the first land drilling in TRNC will be performed in Gazimağosa. Yıldız said, “I estimate that work should be done in two months and we will have started drilling.”

Stating that the energy sector’s burden on politics should be removed, Yıldız said that this would be possible with liberalization.

- Importing natural gas from the Western Line

Stating that there is also demand for natural gas from the Western Line by the OIZ and that they can easily apply for, Taner Yıldız said, “The OIZ, as you know, own the rights to natural gas distribution. I could say that this door was open.”

Stating that there are very many successful OIZ distributing natural gas, there are also those which are not so successful, Yıldız said that he believed that these would reach the same levels in time.

- Energy efficiency

Stating that one of the important issues in Turkey and TRNC is the matter of energy efficiency, Yıldız said that in order to attain a gross national product of 1000$ Turkey is spending the equivalent of 290 liters of petroleum while this number is around 200 liters in OECD countries, around 100 liters in countries like Japan and Denmark.

Yıldız stated that both countries have a long way to go in terms of energy efficiency, saying that efficiency is perhaps even more important than energy production and that urged everyone to use energy more efficiently.

- Prime Minister Deputy Atalay: The Republic of Turkey will always be with North Cyprus

Prime Minister Deputy Beşir Atalay stated that OIZ are important industry bases in Turkey in regards to the development of industry, reduction of environmental problems, urbanization and more economical production through shared infrastructure. All branches of the government stand with the OIZ stated Atalay, and said that they would continue to do so.

Turkey and Northern Cyprus are like unto an island of stability in all the tumultuous economic crises of the region said Atalay and went on, “This isn’t easy. Both Turkey and the TRNC are still growing. They are both still developing their economies in close cooperation with each other. KKTC will never be alone and we will always be with Northern Cyprus in both their economic development and moving forward in the political sense.”

- TRNC President Eroğlu

TRNC President Derviş Eroğlu, stating that the Greek Cypriot government leader Dimitris Christofias has lost prestige after the explosions in the naval base on July 11th, “The Greek leader has, just as negotiations were picking up, against all warnings relayed to him has started underwater drilling for petroleum and natural gas in a bid to save face in inner politics.”

President Eroğlu stated that the Greek Cypriot side’s Eastern Mediterranean natural gas drilling policy has the potential of pulling certain Middle East countries including Cyprus into a complicated, troublesome situation.

- TRNC Prime Minister Küçük

Speaking at the summit TRNC Prime Minister İrsen Küçük stated having the energy summit in TRNC soon after the South Cyprus sea drilling project and the privatization of the Northern Cyprus Petroleum is very meaning ful.

In order to speak about development in a country, energy and water criteria cannot be ignored stated the Prime Minister Küçük, saying that when both are readily available in a country, costs are reduced and development gains speed.

- TGNA Energy Commission President Fındıklı

Turkish Grand National Assembly’s (TGNA) Industry, Commerce, Energy, Natural Resources, Information and Technology Commission President Mahmut Mücahit Fındıklı stated that when observed closely, the political movements in the world are directly influenced by energy.

Stating that with a yearly electricity consumption of 80,000 gigawatt/hrs, OIZ are the biggest consumer in the electricity market and that they are using this advantage to the fullest to buy energy cheaply.

- OSBÜK Board President Özdebir

OSBÜK President and TOBB Industry Chambers Council President Nurettin Özdebir stated that the developments in the Middle East and Africa have upset old balances and caused the cards in the region to be dealt again and that other developments which have escaped notice but which directly impact the geopolitical importance of the Middle East have also transpired.

- EPDK President Köktaş

The Energy Market Regulation Council (EPDK) President Hasan Köktaş stated that even though OIZ are the most closely involved areas with the energy sector, a new period is beginning with the understanding of energy as a market activity and its application.

- TPAO Director General Uysal

Turkey Petroleum Anonymous Partnership (TPAO) Director General Mehmet Uysal stated that when primary global energy consumption is observed petroleum and natural gas make up 58% and that Turkey’s ratio’s mirror this.
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