FEASIBILITY OF RAIL SYSTEM INVESTMENTS IN LOCAL GOVERNMENTS: THE CASE OF ANKARA METROPOLITAN MUNICIPALITY, BATIKENT-SINCAN-TOREKENT SUBWAY LINE
YEREL YÖNETİMLERDE RAYLI SİSTEM YATIRIMLARININ YAPILABİLİRLİĞİ: ANKARA BÜYÜKŞEHİR BELEDİYESİ BATIKENT-SİNCAN-TÖREKENT METRO HATTI ÖRNEĞİ

Author : Yesim ALİEFENDİOĞLU -- Sevilay BOSTANCI
Number of pages : 117-142

Abstract

In this study, historical development of municipalities, municipal services, and the duties and problems of municipalities and metropolitan municipalities associated with municipal transportation were examined. Particularly, the development of transportation planning activities in the period after the 1950s, transport planning activities carried out for Ankara, and municipal transport issues in Ankara were evaluated. In the study, after the types and features of the rail systems constructed in Ankara were examined briefly, the feasibility of rail system projects was assessed from technical, economic, and financial aspects in the context of the Ankara Metropolitan Municipality (M3) Batıkent- Sincan-Törekent Rail Project that was selected as the example and suggestions for resolving transportation problems at local levels have been put forward based on the case study results. According to the research results, it has been demonstrated that the construction costs of the (M3) Subway Line are too high and due to the existence of public lands and individual private properties on the route where the subway line will pass through, problems were encountered at the establishment of easement rights phase. Due to such reasons as issues related to land acquisition and expropriation for subway projects, long duration of the filed expropriation lawsuits, and failure to obtain the required permissions from the Administration that is the owner of the Atatürk Forest Farm (AOÇ) land in a timely manner, it has not been possible to complete the subway construction and inaugurate service on the targeted date. According to the financial valuation results of the subway project selected as the sample case, it has been found that the return on investment was very long and that the internal rate of return remained below the average cost of capital. According to the financial valuation results, it emerges that realization of investment projects that require large-scale fixed capital investment, such as subway lines, through build-operate-transfer and other project financing models by the private sector, is not possible unless public guarantee is granted and that when the size of investments and demand for technology and financing are considered, the opportunities of municipalities to finance such projects through internal and external resources are quite weak. In consequence, it should be emphasized that local and central administrations are required to contribute to the solution of urban transportation problems through development of urban rail system investment projects establishment of operational models for such systems.

Keywords

Municipal Transportation Projects, Rail Systems, Development of Subway Projects andProject Valuation

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