Jon Gorvett
Once a premium destination for overseas investors, Turkey’s power sector has recently been struggling with the impact of lower-than-expected growth rates, partial market liberalisation and fixed, long-term natural gas contracts. Power generation firms face further stress as the economic impact of the pandemic bites. Efforts to arrange a new debt restructuring deal have been delayed by the virus and wider economic woes, casting uncertainty over future demand. However, the sector retains some high-grade assets, however, which may attract future investor interest.
The INSTC, transregional connectivity and geopolitics
The multi-modal International North-South Transport Corridor (INSTC) has the potential to boost Eurasian trade connectivity by linking Russia to the warm waters of the Persian Gulf and Indian Ocean. Only 160 km of track remains to be laid in Iran’s northwest for Mumbai to be connected to the Baltic Sea. However, geopolitical barriers and the fragile political commitment of member states risk putting the network into a state of arrested development and have raised questions about the project’s economic viability. Meanwhile, Russia is strengthening its access to diversified regional transit corridors in West Asia.
