The Law Amending some Provisions of the Labor Code and
other Decree Laws (''the New
Law'') published in the Official Gazette dated
September 11, 2014, and numbered 29116 has gone into effect
on the day of its publication in the Official Gazette. As per
Article 88 of the New Law, Additional Article 6 has been added to
the Law on Organization and Duties of General Directorate of State
Hydraulic Works numbered 6200. The purpose of this Additional
Article 6 is to determine which water constructions will be subject
to mandatory audit and examination obligation, and also to set
forth the general terms of such audit and examination works.
Pursuant to the Additional Article 6, the following water
constructions will be subject to mandatory audit and examination by
the General Directorate of State Hydraulic Works
(''DSI'') or audit companies
designated by the DSI:
Dam, regulator, head pond, tunnel, canal, water distribution
pipeline and other relevant water constructions of Hydroelectric
Power Plants ("HPP") that are
constructed for electricity generation purposes in accordance with
the Electricity Market Law numbered 6446 and water utilization
Construction of barrage, pond, regulator and other relevant
water constructions by the real persons and legal entities.
These audits and examination works will be carried out by DSI or
an audit company designated by DSI and all costs and fees relating
to such works will be paid by the relevant parties.
As per the New Law, ongoing water constructions are also subject
to the same mandatory audit and examination process. The investors
of such projects shall notify DSI for a mandatory audit and
examination within 60 (sixty) days starting from 11 September
The legal consequences of non-compliance with the mandatory audit
and examination process are also regulated under Additional Article
6 of the Law on Organization and Duties of General Directorate of
State Hydraulic Works numbered 6200. Accordingly, legal entities
holding a generation license in accordance with the Electricity
Market Law numbered 6446 that are not audited by DSI will be
subject to an administrative fine in an amount of TRY 5,000 (five
thousand Turkish Liras) per Mw of the HPP depending on
its capacity. Moreover, the water utilization agreement of
the investor may also be terminated by DSI in case the investor
refrains from applying to DSI for the audit following the written
notification served by DSI.
If the water constructions are not in compliance with the relevant
regulations and their approved projects, then DSI will grant to the
investors 30 (thirty) days to remedy such deficiencies. DSI may
also suspend a part of the construction or the construction in its
entirety in case these deficiencies are not remedied by the
investor within 30 (thirty) days following the DSI's
The administrative fines applied in accordance with the New Law
shall be paid within 30 (thirty) days as of their notification date
to the relevant investor. The administrative fines applied for
non-compliance with the mandatory audit and examination requirement
will be subject to appeal to the administrative courts within 1
(one) month starting from their notification to the relevant
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.
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