Group Law
NEWSLETTER
www.GroupLaw.com.tr
January 2011
Volume 1 Issue 1
PRIVATIZATION HIGHLIGHTS
• Pursuant to the written statement of Antalya
Fiscal Office, 18 treasury lands valued at
approximately TL 2 million will be sold through
tender in order to contribute unutilized lands and
premises in the economy.
• Privatization High Council (PHC) has approved
the sale of Baskent and Sakarya Electricity
Distribution companies whose total value is
approximately $2 billion, as well as the transfer
of operational right for Bandirma and Samsun
ports. As a result, there remained no obstacle on
the way to the transfers related to these sales.
CAPITAL MARKETS
• A 53.13 % share owned by Nortel in Netas
Company has been purchased by OEP RHEA
Turkey. Nortel Networks Netas
Telecommunications Inc. reported that all shares
owned by Nortel Networks International Finance
and Holding BV (under the supervision of
trustee-NNIF), having 53.13 % stake in the
company, have been purchased by OEP RHEA
Turkey Tech BV.
• OMV has completed the purchase transitions of
PO shares and has announced that its share has
increased to 95.72 percent. Austrian OMV
Company has announced that it has completed
the purchase transactions of a 54.14% share of
• Petrol Ofisi Inc (PO). In its written statement
OMV stated that following the permissions
granted by the relevant authorities in accordance
with the competition rules, the purchase
transitions of a 54.14 % share of PO, which is
one of the leading companies in the Turkish
www.GroupLaw.com.tr
retail and institutional markets of oil products,
have been completed on 22nd December 2010.
• Istanbul Stock Exchange (İMKB) is set to realize
various projects in the year of 2011. The most
important one among the projects is the Turkish
Common Operation Platform. With the help of
this Project the investors will have the chance to
purchase or sell shares through a single button
and further to give order to the New York Stock
Exchange. The Chairman of IMKB, Huseyin
Erkan, stated that the Platform will constitute a
distribution point for the orders given to/from
Turkey.
PROJECT FINANCE & PPP
• According to the announcement made by the
Turkish Ministry of Health, bid deadline for the
tender for “the Work of Construction Works and
the Provision of Products and Services for
Ankara Etlik Integrated Health Campus” has
been moved to 28.01.2011 Friday, 14 pm.
• Turkey's first hospital PPP, the Kayseri
Integrated Health Campus in central Anatolia,
has prequalified eight teams for the US$250m
project. Total amount of PPP Hospitals Program
of the country is more than 5 billion USD in
Turkey.
The teams are:
o Alsim Alarko Sanayi Tesisleri and
Ticaret A.Ş.
o Yıldızlar İnşaat, Ticaret A.Ş. and Lend
Lease Europe Holdıngs
o IC İçtaş İnşaat San. and Tic. A.Ş.
o YDA İnşaat Sanayi Ticaret A.Ş. and Inso
Sistemi Per Le Infrastrutture Sociali
S.P.A İş Ortaklığı
 o Güriş İnşaat and Mühendislik A.Ş.
o Astaldi S.P.A and Türkerler İnş. Turz.
Mad.Enr. Ürt. Tic. San. A.Ş. İş Ortaklığı
o Vamed Engineering Gmbh& Co Kg and
Türk Philips Ticaret A.Ş. İş Ortaklığı
o Obrascon Huarte Lain S.A.
• According to the rumors in the market - IC İçtaş
İnşaat San. and Tic. A.Ş. has been the winner of
the first Project. But what is clear in the market:
There are many other PPP Hospitals in the PPP
Program, each of the participant will definitely
be awarded at least one PPP Hospital and PPP
Hospitals is no more than 15% of the PPP
market in Turkey. Experts say “Turkish
Economy is booming, Turkey has been the
center of EurAsia in terms of political-financial-
geographical-etc positions. Not only hospital
projects but also other elements of PPP program
will be attractive to international investors. There
will be many other tenders in 2011 by the
Privatization Administration and other ministries
along with the municipalities.
• “Addressing The Challenge of Doing PPPs in
Specific Sectors in the Black Sea Region, the
Caucasus and Central Asia” International PPP
event organized by UNECE–BSEC inter-
national PPP Platform Turkey. This event
aimed to bring PPP experts together in the
region. Participants are Government Sector,
Contractors, Finance Sector, International
Investors, Advisors and other stake holders of
PPP. Participants had the opportunity to update
and share their information and experiences
along with the theoretical bases of the PPPs,
furthermore, Networking opportunities among
the participants was provided. The topics
covered is as follows; How to Turn PPP Theory
into Practice, Legal challenges and barriers to
successful PPP development and implementation
Identifying the Legal Barriers to Doing PPPs in
the Region, Best Practices in Water and Waste
Water Sectors, Workshop on Risk Allocation in
PPP Contracts, Best Practices in the Health
Sector, Best Practices in the Roads Sector, From
best practice in theory to actual practice on the
ground. Av. Dr. Ahmet T. KESLI, the President
of International PPP Platform Turkey and
Partner at Group Law Firm, reports that the
event has been the meeting for the key players of
region. Turkey has been using PPPs since 1874
and has extensive experiences to be shared in the
region.
www.GroupLaw.com.tr
• “International and Local Financial Solutions for
Municipalities” event was organized on 24 - 28
December 2010 at Renaissance De Luxe Hotel -
Beldibi / Antalya by MITAGED. Key players of
the sector participated to the event where mayors
and decision makers of the Municipalities
expressed their projects looking for investors and
stakeholders expressed their interest in the
sector. Av. Dr. Ahmet T. KESLI, the President
of International PPP Platform Turkey and
Partner at Group Law Firm, delivered a
presentation on the PPPs in the Municipalities.
Dr. Kesli invited the parties to be brought
together in the International PPP Platform
Turkey. Some of the municipalities asked for
investors to their projects.
• “World Infrastructure Summit” organized by
Infrastructure Journal on 29th November – 1st
December 2010 Hotel Rey Juan Carlos,
Barcelona. Key players of the PPP across the
Europe presented their fruitful presentations to
the distinguished guests of the event. Av. Dr.
Ahmet T. KESLI, the President of International
PPP Platform Turkey and Partner at Group Law
Firm, participated in the event and a round table
was directed by Dr. Kesli as the Chairman on
“The emerging PPP model in Turkey, Great
Potential of Turkish Investment Market, PPP
structures outside the EU: the EIB lending to
Turkey”.
TELECOMMUNICATION UPDATES
• The implementation of the monetary penalty
imposed on Turkcell has been suspended by
temporary injunction until the conclusion of the
proceedings. Turkcell Communication Services
AS declared that they applied to the Court with
the request of being granted by temporary
injunction for the decision held by the
Information & Communication Technologies
Authority (ICTA) concerning the payment of
“the lacking Treasury share” and monetary
penalty. It further stated that the court has
suspended by temporary injunction the
implementation of the decision of ICTA until the
conclusion of the actions to be filed and has been
filed before the International Chamber of
Commerce (ICC) by Turkcell up to the present
for the same subject-matter.
 COMPETITION UPDATES
• The Competition Board made a decision on the
privatization of the electricity distribution zones
of Bogaziçi, Gediz, Trakya and Dicle. The Board
held that the acquisition of Bogazici, Gediz and
Trakya all together by Is-Kaya-MMEKA and
Aksa Elektrik will result in restriction of the
competition in the relevant markets via creating
a dominant position in terms of Kazanci Holding
and no permission could be granted for the
mentioned transactions. However, it further
decided that the acquisition of any two of them
by the mentioned undertakings could not cause
any problem in terms of the Law numbered
4054.
BANKING SECTOR
• A non-life insurance agency contract has been
signed between Fortis Bank and Zurich
Insurance. Zurich will be liable to pay 40 million
liras within the context of this contract.
According to Fortis Bank`s statement published
on the Public Clarification Platform, the amount
to be paid by Zurich within the scope of the
agreement was determined as 40 million liras
and an additional conditional payment. The
payment will be done shortly before the
completion of the legal merger of Zurich
Insurance and Fortis Bank under the roof of
Turkish Economy Bank (TEB).
• Akbank has signed the Cancun Communique
drafted prior to the United Nations Climate
Change Summit and urges governments to
global cooperation and to take immediate actions
against the climate change. Cambridge
University and Corporate Leaders’ Group of the
Prince of Wales on Climate Change, an
organization involving larger companies, have
recently published the Cancun Communique
written ahead of the United Nations Climate
Change Conference held in Cancun, Mexico.
The signatories of the declaration are asking for
a consensus on an urgent and comprehensive
international agreement that will be legally
binding after 2012. The statement urges the
governments to implement low-carbon economy
at local, national and regional level. The State-
ment underlines the fact that the cost of non-
action regarding climate change is higher than
taking urgent actions, while it stresses the
www.GroupLaw.com.tr
importance of energy efficiency and low-carbon
systems.
ENERGY MARKET UPDATES
• After failing to reach an agreement with South
Korea, Turkey is holding exclusive talks with
Japan over building a nuclear power plant and
hopes to conclude a deal within three months,
Energy Minister Taner Yildiz said on 23rd
December in Tokyo before holding talks with
Toshiba, Tokyo Electric Power and Itochu Corp.
"Within three months, the main frameworks
should be drawn," including financing,
insurance, partnerships and power tariffs, he
said.
OTHER NEWS
• A new bill about Investment opportunities in the
Turkish Media Sector is currently at the stage of
the Parlament's approval and is expected to
become effective by the end of this year. The
draft bill mainly reflects the EU media
principles, in particular those concerning foreign
capital and shareholding ratios applied in the EU
member states. From that perspective, the new
Law will facilitate foreign media ownership in
Turkey by allowing foreign entities and real
persons to have share holding ratio representing
a maximum 50 percent of the paid capital in a
Turkish media corporation.
• A report published by the British House of
Commons in late June, revealed the growing
strategic importance of Turkey as the major
energy gateway alternative for Europe. The
House of Commons urged the British
government to push for the opening of energy
routes through Turkey by scheduling talks on EU
accession as quickly as possible. Reminding
readers that Turkey is a natural hub situated
between several vital energy suppliers and
consumers of 71% of the world's proven gas and
73% of oil resources, the report emphasized a
potentially large role for Turkey in maintaining
future EU energy security.
CONTACTS :

Tel:+90(212) 211 66 11 – Fax:+90(212) 211 55 75

Pekintaş Plaza Kat: 9 Büyükdere Cad. No: 32
34394-00 Mecidiyekoy – İstanbul / TURKEY
Email: info@GroupLaw.com.tr
www.GroupLaw.com.tr

www.GroupLaw.com.tr