By Hacer Boyacioglu/ Referans Gazetesi 17th March, 2008
WATER AND ENERGY WERE TAKEN OUT OF PUBLIC AUCTION LAW / TURKEY
"A draft law was prepared by Turkish Government (PPA-Public Procurement Authority) which takes the bids in water, energy, postal services and transportation services out of the PPA law.This means that private and public corporations will be able to organize auctions in these four significant sectors by their own and auditing will be limited only with rutine controls made by public audit Office and similar mechanisms. It is stated that the major aim of this legal change is to liberate decision making and free competition processes in given sectors. According to the draft, the bids of raw material made by energy and water corporations can not be subjected to any complaint to official authorities.
The works regarding the draft have started long time ago under the integration process in EU directives. EU demanded from Turkish Government to prepare a separate legislation for energy, water, postal services and transportation services in the name of EU integration. The draft which will flexiblize regulations regarding the bids in these four sectors has now been opened to the view of institutions and corporations. Accordingly following public and private institutions have been included in the coverage of regulation: public administrations, public enterprises or the holders of this right who acquired it as concession.
The draft also takes employment contracts, purchases of training, research, dispute and mediation services completely out of the PPA law. The bids on raw material for water and energy sectors are also counted in the coverage of exeptions of the law. Accordingly, any water purchase made by individual municipalities will be kept out of auditing mechanisms by claiming that water is raw material. Moreover, construction corporations whose investments are less than 5 million 150 thousands Euro and the purchases of good and services that total cost is around 412 thousands are left to the initiatives of corporations themselves.
ACTIVITIES WHICH ARE TAKEN OUT OF THE LAW
a.. To build Networks for the production of gas, heat and electricity
b.. Production, transportation and distribution of drinkable water
c.. All works ragerding building and running the railways, busses and rail systems
d.. Postal services
e.. Seeking and extracting of petroleum, coal and phase
f.. Constructing and running the terminals for airports, ports
ACTIVITIES WHICH ARE INCLUDED IN THE COVERAGE OF EXCEPTIONS OF THE LAW
Total fourteen fields are taken out of PPA law.
- All services ragarding selling and renting on water, energy, postal services, transportation services
- Purchases in training and research services
- Purchases of raw material in water and energy sectors
- Purchases for the business abroad
- Purchases of real properties
- Purchases which are made according to the international agreements
- Purchases on dispute and mediation services"