Post on 10-Jun-2015
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THE REPUBLIC OF TURKEY
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Public Procurement Legislative
Experiences in Turkey
7th IPA Regional Public Procurement Conference
9 – 10 September 2014 Vlora, Albania
ERKAN OZDEMIR
Public Procurement Specialist
Regulation Department
Public Procurement Authority erkanozdemir@kik.gov.tr
Turkey-EU Relations on
Public Procurement
TURKEY-EU negotiations for accession to full membership
started on 3 October 2005.
The accession negotiations are conducted chapter by
chapter and the public procurement is taking place as the 5th
chapter among 35 chapters.
Under Public Procurement chapter two screening meetings
were held in Brussels on 7 November 2005 and 28
November 2005. Following the screening meetings a
screening report was issued by the EU Commission and 3
opening criteria were stated through a letter send by
Austria’s presidency (May 2006).
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Three opening benchmarks can be summarized as:
1-Tasking an institution for the coordination of legal arangments in the area of public procurement in order to guaranteeing a coherent policy during the pre-accession period.
2-Preparation of a strategy paper which should include the time-schedules and stages with regard to the full compliance of the public procurement legislation and the establishment of the necessary administrative capacity
3-The alignment of the national legislation with the EU acquis in ‘scope, definitions and exceptions’.
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Turkey-EU Relations on
Public Procurement
Through an amendment to the legislation for the
roles and responsibilities of
the Ministry of Finance, the MoF
has been designated as the coordinator body
for the policy issues related to
public procurement. Thus the first
opening criterion was fulfilled.
First and second draft
strategy paper and an action plan has been prepared and
submitted to EU Commission for
taking its opinion in 2009
and 2010. Strategy paper has not been finalized yet.
In order to enhance
alignment with the acquis in terms of scope, exclusions,
definitions and thresholds,
concrete steps will be taken in the process of
alingment.
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Turkey-EU Relations on
Public Procurement
Historical Background and Reform in
Public Procurement
In the last decade, in order to align its public procurement
legislation with the EU, Turkey has made extensive and
comprehensive reforms and “Public Procurement Law”,
(PPL, Law no:4734) and “Public Procurement Contracts
Law” (PPCL, Law no:4735) were adopted by the
Parliament on 4 January 2002 and both Laws came into
effect as of 1 January 2003.
The PPL No: 4734 governs the rules and principles of the
new public procurement system, while PPCL No: 4735
establishes the principles and procedures related to
making and implementing public procurement contracts.
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Historical Background and Reform in
Public Procurement (cont.)
In the following period, these two laws (PPL and PPCL)
were amended several times in order to increase
transparency and competition in public tenders, as well as
to reflect new legal initiatives at the EU level.
The most important amendments to the PPL resulted from
efforts to implement a number of the key provisions of the
EC Directive 2004/18/EC and the introduction of the
concepts of framework agreements, dynamic purchasing
system, electronic auction, prior information notice,
standstill period and electronic notification to Turkish
public procurement legislation.
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Historical Background and Reform
in Public Procurement (cont.)
Since March 2011 many stages of the public procurement
process such as preparing the tender documents and contract
notices, downloading of tender documents and submission of
contract award information has been conducted electronically over
the Electronic Public Procurement Platform (EPPP) established by
the PPA in September 2010.
EPPP is one of the most important e-government applications with
over 46.000 registered economic operators, 28.000 registered
contracting authorities and 465.000 registered users is being
continuously improved.
At present, for individual contracts awarded through framework
agreements, all procurement procedures including the electronic
submission and electronic evaluation stages, can be done in
paperless electronic environment.
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Historical Background and Reform in
Public Procurement (cont.)
Along with this reform in the legal framework, the
institutional framework of the public procurement sector
has also been changed significantly. A financially and
administratively autonomous regulatory body, namely the
Public Procurement Authority (PPA) had been established
to regulate and monitor the public procurement field.
These new arrangements constituted a major shift in the
functionality of the public procurement system of Turkey.
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Scope and the Aim of the PPL No: 4734
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At present, the scope of the PPL No: 4734 is as wide as to
cover procurements, which amounts to approximately 30 billion € (in year 2013), by all kinds of public entities and public economic enterprises as well as their specified partnerships governed by public law, or under public control or using public funds.
PPL aims;
to cover a wide range of public agencies spending public money,
to regulate the public procurement sector through the uniform rules
and principles,
to comply with international standards and rules,
to ensure fundamental principles on transparency, competition, equal
treatment, accountability and public supervision.
Tender procedures 10
PROCEDURES
OPEN
PROCEDURE
All suppliers who
respond to a contract
notice may submit
a tender
RESTRICTED
PROCEDURE
Only those suppliers
who have been selected
and invited following a
pre-qualification procedure
may submit tenders
NEGOTIATED
PROCEDURE
1) With publication of a
contract notice
2) Without publication of a
contract notice
Direct purchasing (art. 22)
Design contest (art. 23)
Special procedure for procurement of consultancy services
(art. 48-52)
Awarding criteria
The PPL provides two possible award criteria for the selection of the best offer (economically most
advantageous tender)
The lowest price only
Price and other factors relating to the subject matter of contract, such as operation and maintenance costs, cost-effectiveness, productivity, quality, and technical merit.
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Further Legislative Initiatives (Utilities
Sector)
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Today, Turkish legislation on the award of public contracts
is, to a large extent, compatible with the EU requirements.
However, there is no specific unified legislation in Turkey coordinating the rules and principles relating to the utilities sector and concessions/PPP’s.
Public utilities contracts are currently partially covered by
the PPL.
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Article 47 of the Turkish Constitution provides that concessions
may only be granted to the extent regulated by law. Therefore
concessions may be granted only if a law is enacted for the
grant of such concession.
In Turkey there is no single law that coordinates the rules and
principles relating Concessions/PPPs. They are regulated by
several sector specific laws.
For example concessions related to construction, maintenance
and operation of highway are governed by law No 3465
adopted in 1998 and the construction and renovation of
integrated health facilities through the public private partnership
(“PPP”) are governed by Law No 6428 adopted in 2013.
Further Legislative Initiatives
(Concessions/PPPs)
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Turkey intends to make some new legislative
improvements and amendments with regard to utilities,
concessions/PPPs that will take place in the forthcoming
years, in order to be in full compliance with the EU public
procurement system. In this context, the Ministry of
Finance, PPA and other related institutions will work
closely with EU partners.
Further Legislative Initiatives
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THANK YOU FOR YOUR
ATTENTION