Sadıkoğlu: "Payment issues have brought on-site transformation to a standstill"

Oğuzhan Ata Sadıkoğlu, President of the Malatya Chamber of Commerce and Industry (MTSO) Board of Directors, spoke about the delayed payments of grant credits to contractor firms in the Urban Transformation Projects, which have made significant contributions to the reconstruction process following the disaster of the century on February 6.

"POST-DISASTER RECONSTRUCTION TARGETS ARE BEING DISRUPTED"

President Sadıkoğlu stated that the grievances experienced are obstructing the city's commercial sustainability, saying, "During these days when we are struggling to recover after the earthquake, the problems reported by our chamber members are increasing. Although the progress payments for contractor firms working on urban transformation projects were supposed to be deposited within a week in the first two quarters of 2025 by the Ministry of Environment, Urbanization and Climate Change, no payments have been made since November, causing significant grievances. This situation has led to the actual halt of projects, delays in construction, and serious financial burdens for citizens. It is creating tension and distrust between contractors and beneficiaries, disrupting the post-disaster reconstruction targets of our government and city. As a result, many contracting firms have gone bankrupt. This issue in the construction sector, which supports 250 sub-sectors, is also blocking the city's commercial sustainability."

"CITIZENS SUFFER WHILE OUR MEMBERS' COMMERCIAL REPUTATION IS DAMAGED"

Emphasizing that the untimely payment of due support amounts is complicating the urban transformation process, President Sadıkoğlu said, "Urban transformation grant credit support has lost significant value due to high inflation since its announcement. It is a known fact that our contractor firms and beneficiaries are facing serious difficulties in financing these costs. Covering this gap with high-interest loans is also not feasible. Another long-standing inequality we have highlighted is the application of a 20% VAT in earthquake-affected provinces, compared to 1% in Istanbul for transformation projects. Along with all these, the delay in due support payments is further complicating the urban transformation process. While earthquake-affected citizens cannot complete their homes, our members' businesses and reputations are also suffering."

"THE PROCESS MUST BE MANAGED BASED ON ON-THE-GROUND REALITIES"

Listing solution proposals and demands to accelerate urban transformation projects, President Sadıkoğlu stated, "An urgent and transparent payment plan must be announced by the Ministry, and uncertainties in the payment processes must be resolved. To expedite urban transformation projects, a financial protection shield should be established for contractors in the earthquake zone, and bank guarantees, loans, and tax burdens should be deferred. Firms engaged in urban transformation should be granted appropriately conditioned loans in line with their contracts. A special commission or coordination group under the Ministry should be formed to ensure sector stakeholders' voices are directly reflected in decision-making processes. Urban transformation processes must be managed based on on-the-ground realities, not at desks."

President Sadıkoğlu added that they have officially conveyed the issues and demands of their members to the Presidency, the Ministry of Environment, Urbanization and Climate Change, and related institutions, and will continue to follow up for a resolution.