12/14/2007

Foreigners to be allowed to undertake BOT contracts

Today's Zaman - Considering the limited size of the investment budget and a lack of funds, the Justice and Development Party (AK Party) government has decided to expand the scope of the build-operate-transfer (BOT) model's application in Turkey. The AK Party has made some amendments regarding the construction of some investments and infrastructure such as railway stations, a logistics center, cruise ports, integrated facilities, border gates and land routes (with the exception of highways) via the BOT model. Thus the government granted foreigners permission to build and operate the infrastructure in question. Capital stock companies and foreign firms will be able to build such structures with the BOT model, and the government will contribute monetarily to such companies. Investment companies as well as other firms that would like to run their business with this model will need to apply to the Supreme Planning Board (YPK) with a feasibility report concerning their project. BOT agreements will include clauses concerning interest on overdue payments and the rate at which delayed payments will be charged. This will create the opportunity to counter potential losses due to delay for companies involved.

ENGLISH