Turkey: Amendments To The Law On Public Private Partnership


The goal of the public private partnership ("PPP") model is the procurement of public infrastructure investments, and the provision of long-term maintenance, operation and construction services, through a contractual relationship, which establishes a partnership between the private and public sectors. As stated in the legislative justification1 of the draft Law on the Amendment to Certain Laws and Decrees, submitted to the Turkish Grand National Assembly and later promulgated as Law No. 6527 ("Law No. 6527"), the structure of PPP model is ever-changing. In order to efficiently realize and implement the projects in the current evolving market conditions, and to provide flexibility for the contractual basis of projects, an amendment of the law was necessary.

Accordingly, Law No. 6428 on the Construction and Renovation of Facilities and Procurement of Services by the Ministry of Health under the Public Private Partnership Model and Amendment of Certain Laws and Decrees ("Law No. 6428") is amended by the Law No. 6527, which was published in the Official Gazette dated 01.03.2014 and numbered 28928. This newsletter article will examine the amendments introduced to Law No. 6428.

Amending the Agreement and its Annexes

Law No. 6527 amended paragraph 9 of article 4 of Law No. 6428, entitled 'Contract'. Prior to the amendment, the article stipulated that the contract would regulate matters governing the termination of the contract where force majeure events arise or through agreement between the contractor and the administration. However, the scope of this article is expanded with the amendment.

Pursuant to this provision, as amended, in cases where force majeure events, extraordinary circumstances or other events affecting the implementation of agreements and its annexes arise, or the provisions of the contract and its annexes contradict one another, the contract or its annexes may be amended by the parties to ensure applicability and comprehensibility of the agreement, provided that the contract price is not amended and upon approval by the Minister of Health.

However, in the event it is understood that the project may not be completed under the existing terms and conditions due to force majeure, extraordinary circumstances or any other circumstances not attributable to contractor, the amount will be adjusted by taking the date of the final bid into consideration, and the required amendments will be made in the contract with the approval of the Minister of Health.

It is explicitly regulated through the amendment introduced by Law No. 6527 that amendments made in contracts after the tender period may have retroactive effect. The legislative justification explains the purpose of this amendment as the prevention of the termination of long-term projects worth significant amounts, of material damages and of the rupture of services.

On the other hand, exactly what constitutes force majeure and circumstances that affect the implementation of the contract and its annexes are not clearly specified under Law No. 6527. Therefore, it would be beneficial for the scope of these terms to be clarified in the secondary legislation governing the application.

Reauthorization of the High Planning Council

Paragraph 9 of Article 4 of Law No. 6428, reads as follows: "... After the High Planning Council's ("HPC") authorization decision, where the pre-feasibility report or projects with respect to construction works are changed and will exceed the limits of the investment cost envisaged in tender documents, then the amended feasibility report or projects and other related documents will be re-submitted to the HPC. Upon the HPC's reauthorization, the draft contract and its annexes will be amended accordingly. ..."

The last sentence of paragraph 9 of Article 4 of Law No. 6428 is exactly preserved in the amending law; pursuant to which, termination of the contract by mutual agreement of the parties and amendments to the contract shall be governed by the provisions of the contact, and in case the contract is terminated, the performance letter of guarantee shall be returned.

Other Amendments

Another amendment is introduced by Law No. 6527 to provisional Article 1 of Law No. 6428. This new amendment relates to provisions on the establishment of a superficies right, on the application of paragraph 7 of Article 3 (entitled 'Principles and procedures of tender') and paragraph 9 of Article 4 on ongoing tenders and works, for which the contract has been executed.

Moreover, another amendment to provisional Article 1 of Law No. 6428 reads as follows: "Decisions given by administrative jurisdictions regarding lawsuits filed against tenders realized within the framework of Additional Article 7 of Law No. 3359 prior to the entry into force of this paragraph shall be complied with by making the necessary modifications in the existing tender documents and contracts, and projects will be conducted accordingly".

As an example, the 13th Chamber of the Council of State issued a stay of execution decisions related to tenders for the health campuses to be established in Ankara-Etlik, Ankara-Bilkent and Elazığ, and decided to apply to the Constitutional Court to challenge the compliance of paragraph 8 of Additional Article 7 of Law No. 3359, which forms the basis of the PPP tenders, with the Constitution2. Within this framework, considering the amendment made to provisional Article 1 of Law No. 6428, it could be argued that through the modification of tender documents and contracts to comply with the decisions of administrative courts, the goal is to prevent the cancellation of tenders.


The PPP model has an ever-changing and evolving structure. In this respect, Law No. 6428, as amended by Law No. 6527, introduces provisions changing the tender process, aims to prevent the termination of long-term projects worth significant amounts, the occurrence of material damages and the rupture of services.


1 Please see. http://www.ttb.org.tr/images/stories/file/2014/ss561.pdf (Access date: 24.03.2014)

2 Please see. http://www.ttb.org.tr/index.php/Haberler/kampus-3268.html (Access date: 24.03.2014)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions