The Southeastern Anatolia Project (GAP) is an integrated program covering the development and services of urban and rural infrastructure, transportation, industry, education, health, and other sectors, as well as dams, hydroelectric power plants, and irrigation facilities in the Euphrates- Tigris Basin and upper Mesopotamia plains. In this respect, the program is one of the biggest projects in the history of the Turkish Republic. The project area covers 9 cities which are Adiyaman, Batman, Diyarbakir, Gaziantep, Kilis, Mardin, Siirt, Sanliurfa, and Sirnak. These provinces make up approximately 11% of Turkey in both geographical and population terms. The project aims to increase the income level and strengthen the living standards of the local population by using the region's resources, increasing productivity, providing employment opportunities, and what is more, the project intends to decrease the economic disparities between the region and other parts of the country. Thus, it contributes to national economic development and social stability.
Published in Chapter:
Valuation of Logistics Hubs: A Case Study From Turkey
Musa Gün (Recep Tayyip Erdogan University, Turkey)
Copyright: © 2020
|Pages: 28
DOI: 10.4018/978-1-7998-1086-5.ch015
Abstract
Logistics structures playing significant roles in the economic development of countries are irreversible investments. The exact valuation of them could be difficult due to various uncertainties and problems. This chapter illustrates a methodological way to be able to make an investment decision about the creation of a logistics hub in Of-Iyidere region. Under given assumptions, the study findings indicate that (1) the investment has a positive net present value under three different cost of capital rates, which are 7.5%, 10%, and 15%; (2) the internal rate of return is 18.5%; (3) the payback period is 7 years 8 months; and (4) the discounted payback periods are calculated as 10 years 1 month, 11 years 3 months, and 14 years 11 months according to the aforementioned cost of capital rates. Moreover, the chapter discusses basic project valuation challenges and presents solutions to improve the practice of logistics hub appraisal. So, the paper exhibits an essential guidance and policy support tool to highlight the potential of logistics hub infrastructures in Turkey.