Speech by
Arch. Dr. Kadir Topbas, Mayor of Metropolitan Istanbul

At the session titled "Urban Financing: Problems and Opportunities" of the 38th Annual Meeting and Seminars organized by Asian Development Bank

3 May 2005
Istanbul, Turkey

Esteemed President,

Distinguished Participants, Ladies and Gentlemen,

On behalf of the citizens of Istanbul, I would like to extend my pleasure to see you in our city and welcome you with my cordial wishes.

First of all, I would like to state my happiness to address such a distinguished and respectable gathering. As the Mayor of Istanbul ,I would like to initiate my remarks by sharing my utmost excitement and happiness thanks to our city's hosting such a meaningful organization with such exclusive participants.

We are excited because as Istanbul Metropolitan Municipality we have always wanted to see Istanbul as a city where scientific activities like symposiums and congresses take place successively.

We have desired the scientific accumulation of our region and the world to be handled and discussed in the congresses to be held in Istanbul. Besides, we will commence studies to render Istanbul a significant centre hosting scientific congresses.

I hope that within this framework this organization will yield substantial contributions to us who are particularly in charge of the implementation process.

By this vein, I offer my gratitude to the authorities of Asian Development Bank for their having organized this remarkable meeting.

Distinguished Audience,

Financing of cities is a general issue entering into the scope of too many science branches and disciplines. For instance, the approaches of financiers and bankers differ from each other; whereas architects and urban planners have more different approaches. I believe that all of them have consistent and noteworthy points, and I would like to benefit from them. However as a local governor in this meeting, I would like to make an evaluation from my standpoint.

I will try to make this evaluation as an experience transfer based on my practices that I have gone through and observed rather than present it within a theoretical framework.

Dear guests,

As Istanbul Metropolitan Municipality, we are undertaking large investments. The Great Metro Project is the most known and most spoken among them… On the other hand, we have other big projects such as constructing dams, roads and bridges which require a great finance.

Because we would like to turn Istanbul into a history, culture, fair and finance center of which infrastructure and transport network have been completely finished.

However, it is not possible to provide this finance from ordinary income offices.

We need alternative finance resources.

At this point we earnestly continue to quest for obtaining foreign finance for the vital projects of Istanbul by going into the international markets.

On the other side, we, as Istanbul Metropolitan Municipality, consider "real estate investment partnership", which has emerged as a new instrument in capital market, alternative way for providing finance. We make serious efforts about it.

In line with this, we are bringing mortgage system into our country and city as an alternative finance method.

Within this framework, "Public-Private Sector Partnership Finance Model" is a very significant and striking issue for us. Because we think that the municipality and public sector absolutely need the technical and financial support of private sector.

Respected Participants,

Istanbul, as the most developed city of our country, is also serves as a financial centre.

We can cite that Istanbul uses one fourth of the general budget together with the budgets of Istanbul Metropolitan Municipality and other public institutions. At the same time, 40-45 % of taxes collected in Turkey is obtained from Istanbul.

As evidenced by the head offices of big firms, international companies with foreign partners, chambers of industry and commerce, centers of non-governmental organisations, areas of stock exchange and fair, the majority of land, sea and airports situated in Istanbul, the city is a center of finance and commerce worldwide.

Considering such qualities together with the historical and cultural identity of Istanbul, the Municipality of Istanbul Metropolitan conducts similar projects.

Within this framework, as the Municipality realizes universally available projects, it follows the financial relations in the international markets closely and pursues for its projects keeping in mind that taking place in this framework is not achievable without establishing close relations with these organisations.

In order that Istanbul Metropolitan Municipality, providing urbanism services to Istanbul, a world city, can benefit from international financing circles in a profitable way, has to improve its relations with these circles within an active, continuous and purposeful programme framework, which will also cater to certain needs.

Therefore, we are more than pleased to welcome this meeting organised by Asian Development Bank, hoping to implement our projects in this field more actively by getting benefit from ideas of the experts who are here today.

I would like to greet you all with love and respect and say welcome again to all of our distinguished guests.

Let me also present my heartfelt thanks to you for listening to me, showing your kindness and patience.