Newsletter & Legal Alerts

Q3-2011 Northern Marmara Highway (including the third Bosphorus Bridge)

According to the General Directorate of Highways’ Invitation to Investors (published in the Official Gazette dated March 8, 2011 and No. 27868) (the “Tender Announcement”), the tender regarding the construction, operation and transfer of “Northern Marmara Highway” (including the third Bosphorus Bridge) was scheduled to take place on August 23, 2011 through the sealed tender method. However, according to the latest announcement of the General Directorate of Highways (published in the Official Gazette dated August 15, 2011 and numbered 28026); the bidding period has been extended until January 10, 2012. The tender, which will be realized within the frame of Law on Performance of Certain Investments and Services in accordance with the Build-Operate-Transfer Model (Law No: 3996) (published in the Official Gazette dated June 13, 1994 and numbered 21959) (the “BOT Law”), will include the financial supply, project design, construction, operation, any kind of maintenance and repair during operation and the transfer back to the Administration the Northern Marmara Highway, well-kept, operative, functioning, without charge and free from all obligations and commitments. The participants are required to (i) discharge TL100,000 for the purchase of the Information Memorandum and the Tender Specifications, and (ii) submit a bid bond in the amount of TL25mn in order to qualify for submitting a bid for the relevant tender.

Published on: October 2011


Q3-2011 Privatization of Highways & Bridges

According to the Decision of the Privatization Administration (Decision No. 2010/88)  (published in the Official Gazette dated October 20, 2010 and numbered 27735) (the “Privatization Decision”) and the Privatization Administration’s Invitation to Investors (published in the Official Gazette dated August 25, 2011 and numbered 28036) (the “Tender Announcement”), the Privatization Administration resolved for the privatization of certain highways and bridges as well as their connection roads and  the service facilities, maintenance and operation facilities, toll collection centres and other units of goods and services production and other assets located in such highways and bridges which are under the responsibility of the General Directorate of Highways and the construction, maintenance, reparation and running of which is under the responsibility of the General Directorate (together, the “Privatization”).  The motorways and the bridges will be privatized in a single package. Privatization will be realized on the basis of the transfer of operational rights model. Accordingly, the operational rights will be transferred for a period of 25 years following the physical transfer of such motorways and bridges. The sealed tender method and bargaining method will be used during the negotiations phase. Offers in US dollars shall be accepted during the tender process. While the participation of foreign entities is not restricted subject to, among others, the foreign investment legislation, only legal entities and joint venture groups can take part in the tender, and those wishing to apply for preliminary qualification are obligated to apply to the Administration until November 18, 2011 at the latest.  The Privatization process shall be completed by December 31, 2012. The participants are required to (i) discharge USD50,000 for the purchase of the Information Memorandum and the Tender Specifications, and (ii) submit a bid bond in the amount of USD200mn to qualify for submitting a bid for the relevant tender. After completion of the Privatization process, the obligations of the operators concerning maintenance, repair, operation and other works shall be determined by the General Directorate as well as the Privatization Administration. Additionally, the General Directorate is further authorized to supervise compliance of the operators with such obligations.

Published on: October 2011


Q2/2009 Tax exemption for marine motor vehicles

The Decree Regarding the Establishment and Duties of the Undersecretariat of Maritime Works was amended on 16 May 2009. The amendment has introduced tax exemptions for all types of marine motor vehicles for non-commercial use. On the other hand, the Law No. 5897 imposes an annual charge depending on the size of the marine motor vehicle, ranging between TL200 and TL3,200 for both commercial and non-commercial marine motor vehicles.

Published on: July 2009