Turkey's energy regulator has introduced regulations for
sale-purchase and tender procedures for electricity distribution
companies. These include a TRY 20 million upper limit for tenders
conducted through a single contract regarding purchases of goods
and services, or asset sales. The regulations outline four tender
methods for sale-purchase transactions, as well as tender processes
for goods, services and sale of assets and services within the
framework of electricity distribution activities which are not
covered by the Public Procurement Law.
The Energy Market Regulatory Authority ("Authority")
published the Regulation on Preparing and Implementing
Sale-Purchase and Tender Procedure for Electricity Distribution
Company ("Regulation") in Official Gazette number 29722
on 25 May 2016, entering into effect on the same date.
The Regulation aims to implement principles such as transparency
and reliability for electricity distribution companies during
Key aspects introduced by the Regulation include:
Four tender methods for purchase and
sale transactions, as well as the tender processes for procurement
of goods, services and sale of assets and services within the
framework of distribution activities. Within this scope:
Open Tenders:Applicable to all works
which do not exceed the upper limit.
Negotiated Tenders:Applicable to all
works which cost less than TRY 1 million and applicants on the
short list have been notified at least 7 working days before the
Direct Supply Method and Sales out of
the Scope:Distribution companies can use these methods in case of
natural disasters, epidemics, urgent and unexpected situations
which may cause loss of property or mortality and these require
urgent purchase. Distribution companies make the purchase via
market investigation, without a tender process.
A TRY 20 million upper limit is set
for 2016 regarding tenders made through a single contract regarding
purchases of goods and, services, or asset sales. The limit will be
update annually according to the consumer price index.
Works which form part of an economic
or technical unit cannot be separately tendered.
Except for construction work,
contractors or suppliers who are awarded a tender cannot hire
sub-contractors. Additional work increases or decreases cannot
exceed 25% of the contract amount.
Existing framework agreements with
terms of more than two years must be terminated by 31 December
2017. Distribution companies must also update their contactor and
supplier shortlists by 25 June 2016.
The Regulation does not apply to:
Rental and purchase of real
Purchase of goods and services such
as electricity, water, gas, phone, meetings, training,
accommodation, transportation, medical expenses, advertising.
Procurement of services within the
scope of research and development.
Purchase of goods and services worth
less than TRY 100,000, taking into account the financial and
technical integrity of the construction and construction
Please see this link for full text of the Regulation
(only available in Turkish).
Information first published in the
MA | Gazette, a fortnightly legal update newsletter produced by
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