D3.3 Case study I Paving over Procedure: Corrosive Capital in Transport Infrastructure

D3.3 Case study I Paving over Procedure: Corrosive Capital in Transport Infrastructure

The GEO-POWER-EU project has published a case study examining the March 2023 award of a €1.3 billion motorway contract to the American-Turkish Bechtel–Enka consortium, demonstrating that corrosive capital can emerge through formally legal, transparent, and Western-backed investments. Although the contract was negotiated openly, it concentrated decision-making authority in the executive while sidelining ordinary rule-making, procurement, and oversight processes.

The study shows how a 2021 lex specialis and a series of 2023 legislative amendments covering labour, expropriation, urban planning, and environmental protection were adopted through an expedited “European flag” procedure intended for EU harmonization legislation. The contract was awarded through direct negotiation rather than public tender, with disputes assigned to London-based arbitration under Anglo-Saxon law.

The case situates these developments within a broader regional pattern, drawing parallels with projects in Kosovo, Serbia, Montenegro, and Hungary. It argues that these governance mechanisms reflect structural features of infrastructure delivery rather than any single foreign investor.

📥 Download the full report (PDF).

*Featured Image: ENKA