Turkey’s privatization revenues near $10 billion after lottery sale

Turkey will make nearly $10 billion from privatization of state sales if all of the most recent privatizations, including the national lottery sale for an over the top price, were approved by the government Turkey’s income from privatizations since the beginning of the year has exceeded expectations, approaching $10 billion with the recent privatization of a 10-year national lottery license that dazzled market by bringing in $2.76 billion for the state.

The most recent Privatization Administration figures show that total amount of completed privatizations in the first half of 2014 exceeded $1.6 billion and the amount is expected to quadruple with the addition of money expected to be collected from the sale a number of approved power plants, as well as with the privatization of the national lottery on July 15. The gaming unit of Turkish tourism company Net Holding and experienced gaming company Hitay won the privatization tender with a joint bid to operate the country’s national lottery for 10 years, offering $2.76 billion for the rights.

Energy tenders worth $5.4 billion are currently awaiting approval, including the sale of the Kemerköy, Yeniköy and Tatğan thermal power plants.

Approval of the national lottery and power plants tenders will therefore raise Turkey’s privatization revenue for the year to $9.7 billion. The government’s privatization target for the whole of 2014 was 6.6 billion liras. When value-added tax (VAT) is included, the revenue from the national lottery privatization rises to $3.35 billion, or 6.89 billion lira at current foreign exchange rates. This means that the lottery sale alone meets the government’s 2014 target. The Turkish economy has raked in more...