Privatization | Public Private Partnership (PPP)
KILIÇ & Partners Turkey, have first hand knowledge and experience in dealing with public private partnership (PPP) matters. Our team have advised both public and private entities on PPP projects across jurisdictions We have prepared and implemented the legal framework for large scale transactions, including infrastructure projects, renewable energy, transport and road system projects, hospitals, water, energy, natural resources, communication facilities, airports, ports. We carefully consider all aspects of each PPP project, including financial, technical and operational risks of it, for the client to achieve most efficient and beneficial results in a short timescale.
Public Private Partnerships in Turkey
There are three main types of tenders applicable in PPP projects: (i) sealed bids, (ii) open bids and (iii) negotiated procedure. For each PPP project the government enters into an implementation agreement with the relevant project company outlining terms of the PPP project.
The private sector concession over a PPP project may be up to 49 years. However, in most of PPP projects the length of concession period is shorter, normally from 5 to 25 years. At the end of the concession period, the PPP project must be transferred back to the government in a good condition, with zero costs and without any burdens.
Dispute settlement mechanism
Disputes arising from the PPP project agreements may be dealt with either by way of arbitration (i.e. international arbitration, in case a foreign entity is involved) or courts.
Depending on the specific sector of the PPP project, various permits and notifications are required. For instance, a planning permission and/or environmental clearance is necessary to be obtained for certain projects.
Examples of PPP projects in Turkey
PPP projects in Turkey were initially introduced for constructing airports two in Istanbul, one in Ankara and Izmir, sea ports such as Mersin yacht marina, roads and railways including the Ankara high speed railway link and the,Bosporus bridges, as well as the needs of the health care sector (18 integrated healthcare facilities built around Turkey).
We also provide consultancy and the legal framework to help achieve project financing in various industries, for companies, which intend to enter the market with a large scale infrastructure project or expand their current operations. The KILIC & Partners team focus on capital markets, corporate, litigation, PPP, restructuring, real estate, construction, environmental issues, and tax issues. Our international credentials allow us to provide our clients, with professional legal assistance in relation to specific legal requirements in sectors, such as energy, oil & gas, mining and telecoms infrastructure, amongst others. We have successfully dealt with various issues related to project financing, including restructuring and insolvency, debt insurance, derivatives, acquisition finance, public finance, real estate finance, foreign trade and finance.
For more Information on Public Private Partnerships and Project Finance, please consult a member of our International Legal Teams