PPP FEATURES & PRIVATIZATION HIGHLIGHTS Turkeys TAV Offers Bid in Medina Tender.

Turkey's Tepe-Akfen-Vie, or TAV, has offered a bid in the tender held for the Medina International Airport in Saudi Arabia. TAV stated Monday that it offered the bid in the tender for 25-year operating rights of the airport. Saudi Oger Limited Company and Al Rajhi Holding Group also offered bids. Each company has equal shares in the consortium. TAV was established in 1997, as a joint venture between Tepe and Akfen Groups following the bid for the Istanbul Ataturk Airport International Terminal Contract.

BID NOTICE UNDER SEALED BID FOR CONSTRUCTION AND OPERATION OF NORTH MARMARA HIGH WAY (INCLUDING 3RD BOSPHORUS BRIDGE) WITHIN THE SCOPE OF BUILD OPERATE AND TRANSFER (BOT) MODEL
The bidding for the construction and operation of the North Marmara Highway (including 3rd Bosphorus Bridge) within the scope of BOT model will be carried out in compliance with the addenda of the specifications and technical specificaitons on August 23, 2011 at 02.30 p.m. at Ministry of Transportation Generale Directorate of Highways Ycetepe/ANKARA, Block-A, Ground Floor, Small Meeting Hall, before the Assignment Commission by way of sealed bid. TENDER DOCUMENT SUBJECT TO TENDER North Marmara Highway (Including 3rd Bosphorus Bridge) SALES PRICE (VAT INCLUDED) TRY 100.000 AMOUNT OF BID SECURITY TRY 25.000.000 BIDDING DATE/TIME August 23, 2011 02.30 pm

Financing kicks off for US$10bn Turkish road PPP

The sponsors of Turkeys Gebze-Izmir toll road, the worlds largest transport project finance deal, have got financing underway with banks in place to lead the transaction. A kick-off meeting was held in London this week, and structuring and documentation roles are to be handed out among a quintet of Western banks. It comes after an information memorandum released

RFPs due for Turkish hospital Public Private Partnerships

The Turkish Ministry of Health is due to receive RFPs from the eight qualified bidders for the Yozgat Education and Research Hospital PPP. The deadline for the RFPs is 14 July 2011, after which another bidder shortlist will be drawn.

The Pre-Qualification Tender for Kocaeli Integrated Health Campus

The pre-qualification tender for The Construction Works and The Provision of Products and Services for Kocaeli Project has been performed on 30.06.2011 at 15:00. Pre-qualification application list of bidders in order of bid receipt: 1. YDA n. San. ve Tic. A.. INSO Sistemi Per le Infrastructture Sociali SPA Ortaklg 2. Nurol n. Ve Tic. A..- CMB Societa Cooperative Muratori E Braccianti Di CarpiUnieco Societa Cooperativa Ortakl 3. Emsa n. Turz. Tic. Ve San. A..- PBK Architects Inc. Ascension Group Architects LLP Ortakl 4. Yksel naat A..- Yksel Holding A.. Ortakl 5. entrkler Mh. n. Taah. Turz. San. ve Tic. A..- Medical Park Sa. Hizm. A..Sla Dan Bil. E. n. Taah. Tic. Ve Sa. Hiz. Ltd. ti. Ortakl 6. IC ta n. San. ve Tic. A..- Techint Compagnia Tecnica nternazionale S.P.A Ortakl 7. Trkler n. Turz. Mad. Ener. r. Tic. Ve San. A. 8. Eser Taah. Ve San. A..- Hammes Company Healthcare nternational LLC Ortaklg 9. MBD n. San. Turz. Mh. Ve TC. LTD. T. METAG n. A.. Ortakl Pre-qulaification evaluation is stil under progress.

Tender Process for stanbul kitelli Integrated Health Campus

The tender process for the Work of Construction Works and the Provision of Products and Services for stanbul kitelli Integrated Health Campus has been started. The qualified bidders due to the result of prequalification evaluation, can access the tender documents from data room. The bids will be received until 15:00 on 12.09.2011.

Eastern Anatolias biggest mall to be built in Van

Mafe naat will build the biggest shopping mall and wellness center in eastern Turkey in Van for 55 million euros. Mafe naat Project Coordinator Erkan Erol said the center will include 43,850 square meters of closed space -137 shops, an eight-screen multiplex, 15 fast food restaurants, three restaurants, a large grocery store and a playground for children. Upon completion, at least 1,500 people will be employed at the shopping mall and wellness center. With this project, Van will become a center of attraction in the region. Shopping mall will be constructed on pekyolu Boulevard in Van, a highway that connects the provinces of Hakkari, Bitlis, Ar, Siirt and rnak and neighboring Iran.

Istanbul ferry services privatization complete, investments underway

The agreement to finalize the privatization of the Istanbul Ferry Lines (IDO), a subsidiary of the Istanbul Metropolitan Municipality, was signed between the winning consortium and municipality officials, thus closing the USD 861 million deal. The income from the transaction will be used for new transportation projects in Istanbul, said Ahmet Selamet, acting Mayor of Istanbul, at the signing ceremony held at the Halic Congress Center. IDO was put on sale by the municipality in January as part of a larger privatization program that is expected to continue with the gas distribution company IGDAS later this year.

The Tepe-Akfen-Souter-Sera joint venture group won the tender for the companys operating rights with a USD 861 million bid. The group aims to improve IDOs maritime transportation services with the addition of new lines and infrastructure upgrades. The company operates 42 vessels of various kinds transporting ferry passengers and cars between 32 destinations in Istanbul and nearby locations.

Electricity generation privatizations kick off

Following the electricity distribution grids, Turkey is set to privatize its electricity generation plants with the exception of some strategic dams. A total of 22 strategic dams installed on international waters will continue to be run by the state, while the remaining will be privatized after being divided into nine separate portfolios. Within the scope of the program, a total of 41 power plants including thermal and hydraulic will be privatized. This represents the total of nearly 13,000 megawatts installed power. According to these figures, the two-thirds of the installed power held by the EA will be transferred to the private sector, within the scope of the privatization process.

Turkmen President Meets Turkish Businessmen, Approve new projects

Turkmen President Gurbanguly Berdimuhamedow met with a number of leading Turkish businessmen who have undertaken massive projects in the key Central Asian nation, approving the construction of three state buildings by Turkeys Renaissance Holding. Executives from Polimeks naat, Engin Grup, Cotam Enterprises, Erku International Contracting and Construction, Lotus Energy and Norsel International LTD were all present at Wednesdays meeting, which was held at the presidents Serdar residence. The projects Berdimuhamedow approved during the meeting include the construction of administrative buildings for two ministries and Turkmenistans highway authority. Construction on the three buildings will start in July and they are expected to be finished in two years. Turkish businessmen told Berdimuhamedow at the meeting that they were ready to undertake much bigger projects. Turkmenistan is a significant country not only in Central Asia, but also worldwide for overseas Turkish investments and businesses. Some 600 Turkish firms are currently operating in Turkmenistan. Just last year, Turkish companies won public tenders for $4.5 billion worth of projects in the country. The net worth of projects Turkish entrepreneurs have undertaken in the Central Asian nation since it became independent in 1991 tops $24 billion.

Yldz selling companies after major investment

Turkeys Yldz Holding, which owns food giant lker and global chocolate maker Godiva, announced Friday that it would sell shares of some of its companies in a bid to clear up its financial statements. Yldz acquired ok, a former sister company of retailer giant Migros, two weeks ago for 600 million Turkish Liras. The holdings board has decided to sell PNS Pendik Nisata, an amyl producer, for 24.85 million liras; Besler Gda, the largest margarine manufacturing company in the country, for 23.2 million liras; and Salam Real Estate

Investment Trust, for 5.4 million liras, a filing by the holdings lker Biskvi to the Istanbul Stock Exchange.

Arab Investment in Turkey, Says Top Professional

Kuwait Investment Authority, KIA, Qatar Investment Authority, QIA, and Abu Dabi Investment Authority, ADIA, have planned to make major investments in office blocks, residences, hotels and shopping malls in Turkey, Avi Alka told the Hrriyet Daily News. ADIA has more than $600 billion in assets located all over the world, while KIA is estimated to have in excess of $200 billion and QIA $60 billion. Arab investment in Turkey totaled $10.6 billion at the end of last year, according to Ibrahim S. Dabdoub, chief executive of the National Bank of Kuwait.

ENERGY SECTOR UPDATES US Companies Planning To Invest in Turkey For Solar Projects
Favorable and appealing investment conditions draw international energy companies to Turkeys growing renewable energy sector. Boosted by the legislation adopted early this year that favors locally produced equipment over imported hardware, 15 companies from the USA consider investing in Turkey for the production of material related to harvesting energy from the sun. The first such project will turn a former food processing plant into an assembly facility for solar panels in the Black Sea province of Kastamonu. The solar panels produced by the assembly facility will both be used in projects in Turkey and also be marketed to the Middle Eastern countries. The US companies are eager to invest in solar energy projects in Turkey, according to Michael Lally, Commercial Counselor to the US Embassy in Ankara. Recalling that the US Eximbank has allocated a USD 1 billion loan for renewable energy projects in Turkey.

France May Join The Multi-National Nabucco Project

Turkey is considering the involvement of France in the multi-national Nabucco project amid plans to extend its scope to include a seventh partner. There could be one or more partners to the project, Energy Minister Taner Yldz told to journalists, and after one day five transit countries undersigned Project support agreements with Nabucco nternational Company. We will evaluate different proposals as almost every party said we need to be more flexible, said the minister, when asked about the possibility of the French involvement. Turkey blocked French company Gaz de Frances participation in the European Union-backed Nabucco project for political reasons.

Siemens Mulls Wind Turbine Blade Production Facility in Turkey

One of the worlds biggest manufacturers of wind turbines, Germanys Siemens AG, may establish a wind turbine rotor blade production facility in Turkey, provided that demand for wind energy in Turkish markets continues at its current rate, Siemens Turkey CEO Huseyin

Gelis told Todays Zaman. Gelis said the demand for wind energy is on the rise in Turkey. While questioning whether they have plans to establish a wind turbine rotor blade production facility in Turkey, he said they can source the blades relatively cheaper from abroad, but would consider producing them in Turkey if the demand increase by as much as three times its current level. Turkey has huge potential for wind power, with estimates ranging from 50,000 to as high as 150,000 megawatts (MW) in electricity generation. Such potential for wind energy, together with new legislation on the horizon, offers great opportunities for foreign investors interested in expanding into the renewable energy markets of fast-growing economies such as Turkey. Turkey currently has 980 wind energy plants; 200 of them were deployed last year. Only about 2,000 MW were generated by wind farms in operation in Turkey by the end of last year.

Vestas Vie with rivals for Turkey wind power sales

Vestas is preparing for tough competition to increase its market share. Speaking to Bloomberg News, Mehmet Ali Neyzi, the managing director in charge of Turkey and the Middle East for Vestas, said that the firm currently commands a market share of 30 percent Vestas Wind Systems, the worlds largest wind-turbine maker, will compete with Enercon and Nordex for market share in Turkey as the government awards more wind-power licenses. According to Mehmet Ali Nevzi, Now that the government has paved the way for new licenses, after a suspension period, competition has started to increase, and we want to keep our market share, though some minor fall is possible. A new law guarantees the government will purchase wind and hydro power for 7.3 U.S. cents per kilowatt hour, and there are additional incentives planned for using locally made equipment, potentially adding 0.4 cents to 2.4 cents to the guaranteed price for five years. This is attracting investment after three years of lull, Neyzi said. Purchase prices for wind power in Europe are about 13.15 U.S. cents.

Iraq Signs Gas Deal with Turkish Firm

Iraq, eager to supply natural gas to its overburdened power plants, has signed agreements with Korea Gas, Kuwait Energy and the Turkish Petroleum Corporation, or TPAO, to develop two gas fields. The three companies secured rights to develop the Mansouriya field in Iraqs eastern Diyala province, while TPAO and Kuwait Energy won a license for the Siba field in southern Basra province, Oil Minister Abdul Kareem al-Luaibi said. The government awarded rights to both deposits in October, together with a license for a third field called Akkas. Speaking at the ceremony, TPAO Chairman Mehmet Uysal said they had undersigned a historic deal. The company is eyeing further contracts in the country.

Zorlu to build largest geothermal power station in Turkey

Zorlu Doal Elektrik, a sister company of Turkish energy producer Zorlu Enerji, will construct the countrys largest geothermal power station in Kzldere in the southwestern province of Denizli. Japans Sumitomo Corporation and Fuji Electric, both world-renowned

companies, won the tender to build the power station, which will provide 60 megawatts of electrical power and 50 megawatts of thermal power capacity. On average 1 MW of power can supply electricity to as many as 300 U.S. households per year. According to TurkStat figures, the average person in Turkey consumes 540 kW of electricity in one year. We have made an important step toward Turkeys largest geothermal power station, which we aim to finish in 2013, Arif zozan, Zorlus general director, said in a statement.

COMPETITION NEWS Hearing of the investigation continued about Efes Pazarlama ve Datm Tic. A. (Efes Marketing and Distribution Trade Inc.) shall be held on 12.07.2011
Hearing of the investigation In accordance with the decision of the Competition Board dated 01.07.2010 continued with a view to detecting whether it complied with the decision of the Competition Board dated 22.4.2005 in relation to withdrawing the exemption concerning Efes Pazarlama ve Datm Tic. A.. (Efes Marketing and Distribution Trade Inc.), shall be held on Tuesday, 12.07.2011 at 10.00 hrs. In accordance with the Communiqu on Hearing Meetings Held in the presence of the Competition Board, it is required that complainants and third persons who want to attend the meeting apply to the Competition Board by the end of the office hours on Friday, July 1, 2011 with a petition containing information and documents that put forward their relation of interest with the subject matter of the meeting.

The investigation conducted about Anadolu Elektronik Aletler Paz. ve Tic. A.. (Anadolu Eiectronic Instruments Marketing and Trade Inc.) and Samsung Electronics stanbul Paz. ve Tic. Ltd. ti. (Samsung Electronics stanbul Marketing and Trade Co. Ltd.) has been completed. The decision was announced at 14.00 hrs (27.06.2011)
The decision of the Board as to the investigation was announced on (27.06.2011) at 14.00 hrs. by Fevzi ZKAN, the Vice-President of the Competition Authority. As a result of the investigation made with a view to determining whether the undertakings cited infringed the Act No. 4054 by means of determining the resale price of their purchasers; it has been decided that an administrative fine of TL 1.066.669,72 be imposed on Anadolu Elektronik Aletler Paz ve Tic. A.. (Anadolu Eiectronic Instruments Marketing and Trade Inc.) and that Samsung Electronics stanbul Paz. ve Tic. Ltd. ti. (Samsung Electronics stanbul Marketing and Trade Co. Ltd.) did not infringe competition within the scope of article 4 of the Act No. 4054.

"Competition Law Compliance Program" has been published

If undertakings or associations of undertakings have knowledge about competition infringements beforehand, many problems such as severe administrative sanctions can be prevented. Within this framework "Competition Law Compliance Program" is prepared by the Competition Authority with the aim of guiding undertakings and associations of undertakings while they are preparing their own compliance programs and includes answers to possible questions about compliance programs. Competition Law Compliance Programs that are applied in many countries in order to raise the awareness of undertakings or associations of undertakings about competition rules can ensure the prevention of competition

infringements before they occur. Compliance programs are consisted of methods showing the measures that undertakings or associations of undertakings use to avoid actions and decisions violating the competition legislation and how those measures are applied in the organization.

An investigation has been commenced about 10 undertakings which run the activity of Bosch dealership in Kayser.
The Competition Board, in its meeting dated 09.06.2011, commenced an investigation about Oflazlar Dayankl Tketim Mallar Tic. San. Ltd. ti, Bamsrl Dayankl Tketim Mamlleri, Teki Ticaret, etinkara Dayankl Tketim Mallar, Yakut Dayankl Tketim Mallar Yakacak naat Taahht ve Turizm San. Tic. Ltd. ti, Ada Dayankl Tketim Mallar San. ve Tic. Ltd. ti, Akka Dayankl Tketim Mallar Tekstil n. Taah. Yakacak rnleri ve Gda Maddeleri Tic. San. Ltd. ti, znar Dayankl Tketim Mallar, Mesa Dayankl Tketim Mallar Tekstil n. Taah. Nak. ve Gda Maddeleri Tic. ve San. Ltd. ti, Hilal Dayankl Tketim Mamlleri Tic. ve San. Ltd. ti. that are engaged in the dealership of Bosch at the center of the province of Kayseri with a view to being able to determine whether they infringe article 4 of the Act No. 4054 by means of applying the same price.

INSURANCE UPDATES US-based MetLife acquires Turkish insurance company

A Turkish lender largely owned by Europes Dexia, has agreed to sell its insurance operations in Turkey for EUR 161.9 million to the US-based MetLife, A statement from the lender said on Monday. According to the agreement on the sale of the 99.86 percent stake, DenizBank branches will continue to sell MetLifes individual retirement and life insurance policies for 15 years. Turkey is a strategic market for MetLife, said Michel Khalaf, the US companys regional CEO. A strong long-term partnership with a banking leader such as DenizBank is very important to us. MetLife has been operating in Turkey under the name MetLife Alico since 1988.

TELECOMMUNICATION NEWS Vodafone lauches woman act in Technology

The Vodafone Turkey Foundation, or VTF, has launched a new project aiming to remove gender inequality in technology usage. During a meeting in Istanbul, a protocol to reveal the Womens Movement in Technology, which will be the Turkey leg of the global womens program conducted by the Cherie Blair Foundation and the GSMA Development Fund, was signed. The project aims to introduce more women to technological opportunities and to increase their mobile phone usage. Cherie Blair, who is considered an opinion leader in human rights and global womens entrepreneurship, attended the Vodafones meeting. This

is an important effort to provide womens usage of technological opportunities, said Blair, speaking at the meeting.

MSCELLANEOUS Turkey led the highest economic growth in the world for the first quarter this year. Turkey is Eurasias Rising Tiger. The Wall Street Journal
With private investments and domestic consumption leading the charge, Turkey claimed the top spot in economic growth worldwide for the first quarter of 2011 with a blistering 11 percent, according to the Turkish Statistics Institute, or TurkStat. At this rate Turkey will surpass $742 billion, its pre-crisis 2008 level of gross domestic product, by the end of the year, Premier Recep Tayyip Erdoan said to Justice ruling partys, parliamentary group. The fastest growing sectors in the quarter were wholesale and trade, which boasted a 17.2 growth rate. Construction was another leader at 14.2 percent while the energy, transportation and communication sectors also supported the growth. Argentina and China followed Turkey with rates of 9.9 percent and 9.7 percent.

Ford to export Made in Turkey trucks to 65 countries

Turkeys Ford Otosan plans to export Ford Cargo model vehicles to 65 countries all over the world. Already an exporter of light commercial vehicles and Transit model vans, Ford Motor Company and Koc Holding JV now aims to grab a share of the heavy truck markets of countries in Eastern Europe, the Middle East, Russia, Central Asia and North Africa. Ford was the first company to manufacture trucks in Turkey, said Ford Otosans General Manager Nuri Otay about the companys first venture into heavy commercial vehicle production in 1960. Ford handed over its global truck business to Iveco in 1986 and is now seeking to re-enter the market through its subsidiaries in Turkey and Brazil. Ford has invested over USD 400 million in its Inonu plant, which began production in 1981. The investment in the production of the new truck at Ford Otosans Inonu plant will reach USD 75 million.

Turkish company invests $94 mln for huge restoration

Dati Investment Holding has invested $94 million for the restoration of the oldest shopping center in Istanbul, a hotel and the marina in the Ataky district of Istanbul. Having acquired the areas marina, hotel and mall complex for $200 million in 2004 through privatization, Dati has invested nearly $60 million in a luxury hotel with 255 rooms located in Ataky belonging to the Sheraton Hotel chain, said Gkhan Kran, board chairman of the company. The group has also invested $17 million for the construction of 20 luxury residences and 100 shops in the Ataky Marina which has a capacity for 700 yachts. Istanbuls first shopping mall, the 23year-old Galleria, has gone through an extensive restoration with a total investment of $17

million. Nearly 3,000 square meters of indoor space have been added to the mall, which has reached a total size of 44,500 square meters.

Hilton launches cheap hotel chain Hampton by Hilton in Turkey

Hilton Worldwide has announced plans to enter the cheap hotels business in Turkey through a brand to be called Hampton by Hilton. The company has signed agreements on four Hampton by Hilton hotels and is running two other projects in 2011. The four Hampton by Hilton hotels will be built in Istanbuls Kayaehir neighborhood, Tekirdas orlu district, the Black Sea province of Rize and the southeastern province of Gaziantep. Hilton has projects for two more Hampton by Hilton hotels in Bursa and Ordu, Collini said, adding that the company thus wants to six cheaper hotels up and running by the end of the year.

International Arena VINCI : 7.8 Billion for the Tours-Bordeaux Railway Line
French Rail Agency (RFF) has signed with LISEA, led by Vinci, the concession contract of the high-speed line Tours-Bordeaux railway line the longest funded PPP Europe. Over a period of fifty years, the contract covers the financing, design, construction, operation and maintenance of the HSL. The amount of investment reached a staggering $ 7.8 billion euros (return to the main Vinci) which 6.2 billion will be spent on work that will begin in the first half of 2012 and will last six years. LISEA contribute funding to the tune of 3.8 billion. The rest is covered by a public subsidy of state, local and EU amounting to nearly 3 billion and a contribution of RFF in the order of 1 billion.

Madrid, Barcelona airport concessions

Spains airports operator has launched a consultation period to gather input for the concession of Madrid and Barcelonas airports, due to be officially tendered in July, revealing more details on the privatisations in the process. According to a document released by the airports operator, Aena, Madrids Barajas and Barcelonas El Prat airports will be transferred to two special purpose vehicles (SPV) fully owned by Aena. The airports operator will then sell a large majority stake in the two SPVs to the private sector, while keeping a minority stake in the two vehicles. Juan Ignacio Lema, the head of Aena, had previously told that Aena was aiming to keep a stake of around 20 percent in both vehicles. Aena said it would tender both airports to the private sector for a period of 15 years, extendable for a further five years.

Aussie Hospital PPP gets A$2.5bn from 15 Banks

SA Health Partnership - a consortium led by InfraRed Capital Partners - has reached financial close for Australias largest public-private partnership (PPP) in the healthcare sector: the new Royal Adelaide Hospital, located in the south of Australia. This is a large project with over A$100 million (73 million; $106 million) of equity committed by us, commented Sebastien Pochon, director of infrastructure at InfraRed. It highlights InfraReds commitment to the Australian PPP market, as demonstrated by our earlier investment in the Victoria Desalination

project, he added. The new hospital will cost A$1.85 billion to build and will offer a total of 800 beds once it opens in 2016. Following the five-year construction period, the private partner will also be responsible for operating the hospital over a 30-year concession.

Russia rescues Bank of Moscow in record bail-out

Russia's fifth largest bank, Bank of Moscow, has been given the biggest bail-out in Russian history. The $14bn rescue came after another bank, VTB, gained control through a hostile bid, only to uncover bad loans valued at $9bn - a third of the bank's assets. Bank of Moscow's former head, Andrei Borodin, has fled the country, and a warrant has been issued for his arrest. The bank was used by ex-Moscow Mayor Yuri Luzhkov to fund property projects.