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Provisions Regarding Privatization
Implementation of Privatization
The provisions of EML are repeated under Article 31 of the Draft
Law. In that respect, the transactions and procedures of privatization
with respect to the Turkish Electricity Distribution Joint Stock
Company (“TEDAS”), Electricity Generation Joint Stock Company
(“EUAS”) and the businesses, affiliates, subsidiaries, enterprises, oper-
ational units and assets shall be conducted by the Presidency of the
Privatization Administration in accordance with the Law on
Implementation of Privatization numbered 4046 and dated 24.11.1994
2
in light of the suggestions and opinions of the Ministry of Energy and
Natural Resources.
Exceptional Provision regarding Environmental Requirements:
As per Article 9 of the Draft Law, EUAS or its subsidiaries, affili-
ates, business or assets or the publicly owned companies which are pri-
vatized according to the privatization legislation are granted a grace
period until the end of 2018 in order to comply with the environmen-
tal laws and to obtain the required permits. Accordingly, it is indicated
that because of non-compliance to environmental laws within this peri-
od or beforehand, their activities cannot be ceased and no sanction can
be applied. This exceptional provision is very important for the gener-
ation companies which are or will be subject to privatization.
Temporary Articles on Extension of Some Deadlines
Some deadlines set forth in accordance with the EML are extend-
ed with the Draft Law. Some of them are as follows:
- Price equalization mechanism which is stated to be applied
until the end of the year 2012 is extended until the end of the
year 2015.
- The corporate tax and VAT exemptions which were applied
until the end of the year 2010 to the mergers, spin-offs and
ENERGY LAW
247
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Official Gazette 27 November 1994, Nr: 22124.