İpek Ilıcak Kayaalp: "We invest what we earn globally back into our country. To date, we have invested a total of 10 billion dollars in Türkiye, and we will increase this figure to 14 billion dollars.”
İpek Ilıcak Kayaalp, discusses Rönesans’ presence across 30 countries, its low-carbon projects in Europe, the strategic impact of the Ceyhan Project, and its approach to green financing:Founded by Erman Ilıcak, Rönesans Holding has been involved in many international projects, including Europe’s tallest building and the world’s longest and deepest railway tunnel beneath the Swiss Alps. The company’s portfolio also includes the Netherlands’ longest land tunnel, the world’s largest gas-to-gasoline production facility, and the world’s largest reinforced concrete floating gas platform. Last year, I traveled to the earthquake zone with İpek Ilıcak Kayaalp, Chair of the Board of Directors of Rönesans Holding. During our conversation, she told me: “We aren't a traditional contracting company; we are a high-technology and engineering company.” We agreed to meet again when new projects were launched. We recently met to discuss Rönesans’ journey, both abroad and in Türkiye, since its founding in 1993.
First of all, tell us about yourself. Where and what did you study, and how did you begin your career?
I graduated with a degree in Economics from METU and later specialised in finance in the United States. After an internship in San Francisco, I returned to Türkiye and started working in Ankara in a finance and budgeting role, reporting directly to the CFO. Four years later, I joined the family company. As you know, Rönesans was founded in St Petersburg, Russia. I held various positions in both St Petersburg and Ankara, and I have been based in İstanbul since 2009.“We've achieved growth by generating revenue abroad.”
What were your first responsibilities within the company?
My initial responsibilities, aligned with my educational background, involved cost and bid analysis and budgeting. During that time, we successfully transitioned to a consolidated balance sheet structure. Later, my duties expanded to include finance and treasury, followed by human resources processes. I have served as Chair of the Board of Directors since 2014. I currently sit on the boards of six companies within the holding and its subsidiaries, and I also chair the Finance and Sustainability Committee.
International Growth and Financing
Growth abroad is part of Rönesans’ DNA. What benefits has this strategy brought?
We were founded in Russia in 1993 and have experienced steady growth ever since. We took our first step into Europe in 2009 by acquiring a 10% stake in the Austrian construction company PORR. In 2013, we acquired a subsidiary of the Swiss company Alpine Bau, the contractor for Europe’s longest railway tunnel, the Gotthard Base Tunnel. This was followed by the acquisition of Heitkamp in 2014, one of Germany’s long-established construction firms, and Ballast Nedam in 2015, a Dutch company with over a century of experience in infrastructure, superstructure, and industrial projects, which you have also visited.When we acquired Ballast Nedam, it was a publicly listed company facing significant financial difficulty and project losses. After the acquisition, we delisted the company, brought in Rönesans-trained management teams from other countries and subsidiaries, and restructured the business while retaining its strong local talent. Ballast Nedam became profitable within three years.
At least 50% of our revenues have consistently come from international markets, sometimes reaching up to 75%. This global exposure has forced us to internalise diverse regulations, credit standards, and customer expectations. My increased responsibilities coincided with our major push for digitalisation and sustainability transformation. The stringent standards set by international clients, creditors, and financiers have always been a powerful driver for continuous improvement.
$50 billion in revenue over 32 years
Such growth naturally comes with major partnerships and strong financing capabilities…
To date, we have generated $50 billion in revenue abroad and invested $10 billion in Türkiye. This investment figure is projected to rise to $14 billion within the next four years. We reinvest the profits we earn globally back into our country, while also attracting foreign investment and financing. We function both as an investor and a contractor. As new investments are finalised and commissioned, the current balance between investment and construction, which is roughly equal today, will shift. In the long term, the investment share is expected to rise to 65%, with construction accounting for 35%.The largest investment after Petkim
What is the total scale of the projects you have undertaken to date?
Bugüne kadar yurt dışında 50 milyar dolar ciro elde ettik, Türkiye’de 10 milyar dolar yatırım yaptık. 4 yıl içinde 14 milyar dolara çıkacak bu rakam. Dünyadan kazandığımızı ülkemize yatırıyoruz. Bunu yaparken ülkeye yabancı yatırımcı ve yabancı finansman getiriyoruz. Yatırımcı ve müteahhit kimliğimizle faaliyetlerimizi sürdürüyoruz. Yeni yatırımların tamamlanması ve devreye girmesiyle şu an yarı yarıya olan yatırım ile inşaat payı değişecek, yatırımın payı artacak. Uzun vadede yatırımın payı yüzde 65, inşaatın payı yüzde 35 olacak.How did you finance your recent projects? For example, the Ceyhan Project is quite comprehensive.
For the Ceyhan Project, we secured $1.3 billion in financing. Located within DAPEK, the Eastern Mediterranean Petrochemical Industrial Zone, this $2 billion project includes a Polypropylene Production Facility with a 472,500-tonne capacity and the Ceyhan Liquid Cargo Terminal, developed alongside our international partners. It is one of the largest private sector investments currently underway in Türkiye.On the 1,360-hectare site in Ceyhan, we will produce polypropylene. Türkiye consumes 8 million tonnes of plastic annually and imports 7 million tonnes, of which approximately 4.5 million tonnes is polypropylene. We aim to produce 474,000 tonnes locally, which is expected to reduce the current account deficit by about $300 million annually. The project is scheduled for completion in 2028.
We also established a welding training school in the region, creating a model that prioritises local employment. In the petrochemical sector, this is the most significant investment since Petkim. The international financing we secured is among the largest ever obtained for a single private-sector project in recent years.
What will be the environmental impact of the plastic you will produce?
We are utilising the most advanced technology available in this sector. Emissions are engineered to be 60% lower than comparable facilities worldwide. The hydrogen generated during processing will be utilised as fuel, and the facility will be powered entirely by renewable energy sources. The project is fully financed by international sources, including the IFC and several European banks. As I mentioned, Türkiye’s foreign trade deficit in this area has reached $10 billion. Polypropylene and polyethylene, used across various industries, are among the products contributing the most to this deficit.
Is your other new project the motorway investment that is now under way?
Yes. The Nakkaş Motorway Project has been carried out entirely with foreign financing in partnership with the European Bank for Reconstruction and Development (EBRD). It stands as one of the largest projects undertaken since 2018.Where do you currently stand among the world’s largest contracting companies? What is your position in the Engineering News Record (ENR) rankings?
We have been ranked among the world’s top 50 in ENR since 2015 and consistently feature in the top 10 in Europe. Our global ranking typically fluctuates between 34th and 37th place year by year.
What is the balance between your revenues in Türkiye and abroad today?
Currently, the balance is roughly 50-50. ENR bases its rankings solely on revenues generated outside Türkiye.Low-carbon housing in Europe
I have had the opportunity to see some of your projects in Europe. The Netherlands example stood out as particularly climate-friendly and sustainable. Are you continuing with similar projects?
In our residential project called Horizons, the building produces 33% more energy than it consumes, resulting in a carbon-negative footprint. 96% of the materials used are recyclable, and 60% are reusable. Its water efficiency is equivalent to supplying the clean water needs of 6,000 people. The Netherlands provides an ecosystem that closely follows the European Green Deal.
Such projects are much needed in Türkiye. Do you have similar plans here? Recently, you have mainly focused on healthcare projects in the country.
In Türkiye, we have established a department reporting directly to the Board of Directors, consisting of 200 engineers working exclusively on earthquake-related projects. When delivered, the Adana City Hospital was the world’s largest seismically isolated building, a title that later passed to a project abroad. With the Başakşehir Çam and Sakura City Hospital, that title has returned to Türkiye. While technical specifications require annual testing of 30% of the isolators, we conduct 100% testing. During the Elazığ earthquake, our hospital was designated as a safe zone. All 200 of our buildings in the earthquake-affected region remained intact, having been designed to American standards. ESG, or sustainability criteria, remains a top priority in every project we undertake.
You paused construction during the bee-eater migration
Environmental sensitivity is a major focus in your international projects. Do you apply the same awareness in Türkiye as well? In other words, is sustainability among your priorities for domestic projects as well?
We have a large-scale project in Ceyhan–Adana Yumurtalık where we are conducting extensive work to protect 9,000 sea turtles. We employ 80 biologists, archaeologists, and sociologists within the company. In the Nakkaş Project, we halted construction during the bee-eater migration season. All these practices are independently audited and included in our 2023–2024 sustainability reports. For us, ESG is not a “checkbox” for financing requirements; it is fundamentally our way of doing business and is integrated into our DNA.You also have commercial real estate and shopping centres. How are things going in that segment?
We manage 12 shopping centres under Rönesans Gayrimenkul Yatırım. Remarkably, all of them received the BREEAM “Outstanding” certification simultaneously, a level achieved by only about 1% of buildings worldwide. 98 environmental practices covering waste, water, energy, and land use are regularly audited. On the healthcare side, our hospitals hold LEED Gold certifications.$2 billion of investment in energy over the next four years
You have new investments in the energy sector. What will be the share of wind and solar in your renewable energy portfolio, and what are your new targets?
We have a partnership with TotalEnergies and plan to invest $2 billion over the next four years. We are developing projects across the wind, hydro, and solar axes with the ambition of becoming one of the top three companies in Türkiye’s energy sector. Additionally, we have a state hospital investment in Kazakhstan under a public-private partnership model. Once these projects are completed, the revenues generated from investment will exceed those from construction.Türkiye’s first sustainable Eurobond
What are you working on in the area of green financing?
We issued Türkiye’s first sustainable Eurobond in our sector, worth $425 million, providing funding for projects aligned with 15 of the 17 Sustainable Development Goals. International development institutions supported over 50% of the total amount. We have established robust sustainable finance frameworks for both the holding company and the energy businesses
What are your new goals in this area?
Our long-term target is to achieve carbon neutrality by 2040. We aim for 50% female representation on the Holding’s Board of Directors, which currently stands at 40%; Rönesans Gayrimenkul Yatırım has already reached 50%. We view sustainability as an integrated whole encompassing environmental, social, and governance dimensions. Our partnerships with the IFC and other international partners have been instrumental in deepening our corporate governance culture.We previously met regarding your foundation’s work. What kind of social responsibility do you feel you have in this field?
Through our foundation, we have supported 14,000 university students to date, providing not only scholarships but also personal development and mentoring opportunities. We prioritise supporting young people across the educational spectrum, from science and vocational high schools to higher education and even kindergarten, mentoring them through to their first year of employment. Through our Compass programme, we offer one-year work placements at Rönesans. This year, 1,850 students participated. Our “Design the Sustainable Future” competition has completed its 11th year, reaching nearly 400,000 students and visiting 150 universities. We also collaborate with Esmiyor and Impact Hub.
Uncertainty is here to stay.
The world is going through a difficult period. Global balances are shifting. Digitalisation and artificial intelligence are transforming business models and professions. In Türkiye, opening up new economic fields can be challenging. What advice would you give to young people?
We have experienced, and continue to experience, brain drain, yet Türkiye has a profound need for advanced technology and production.Uncertainty has always existed; it is merely more visible today. For large companies, waiting for an entirely predictable climate is a luxury. We have maintained our focus, invested in our country, created jobs, and led the way in engineering. Young people should concentrate on one fundamental question: “Where can I create value?” The environment in which today’s young people grow up and receive their education is vastly different from ours. Open educational resources are now accessible, and short-term free online courses provide immense opportunities. People can now constantly update their skills, which is a necessity for everyone.
There Is One More Step
You launched a programme called “There Is One More Step”. What does it involve, and is it still running?
I founded the programme during the pandemic. I provide one-on-one mentoring to 100 young women across the fields of science, art, sports, and technology. When we meet, it fosters an environment of interdisciplinary learning and mutual motivation. I fully intend to continue this initiative.Source: Elif Ergu Demiral / Gazete Oksijen