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NEWSLETTER 2013
340
Projects planned under Law No. 6428 shall not be subject to the
State Tender Law No. 2886 nor the Public Tender Law No. 4734. The
tender authority is the highest-ranking administrator of the related unit
of the central organization of the Ministry of Health and its affiliated
institutions. For works that are to be conducted by local units, the tender
authority shall be the highest ranking administrator of such local unit.
This provides flexibility to the tender process.
The private party shall provide a bid bond and a performance bond
each equal to at least 3% of the fixed investment amount (the total
investment amount relating to the construction or renovation works and
medical equipment requiring high financial sources as stated within the
agreement) or the bid. During the operation period, the investor shall
provide a bond in the amount of 1,5% of the fixed investment amount
or the bid. Moreover, the private party equity allocated for construction
cannot be less than 20 % of the periodic investment amount as determined
within the project agreement.
Agreement
A special vehicle company to be established by the private party shall
be party to the agreement to be entered into with the Administration. This
agreement shall be governed by private law. Its term shall be determined
by the Administration and shall not exceed 30 years.
It has been explicitly set forth that the private party shall be liable
for all damages which may arise due to their defaulting in respect of
their contractual obligations or causing third party damages, and that
penal clauses for such circumstances shall be regulated within the project
agreement.
Turkish law shall govern disputes arising in connection with the
agreement. Courts of the Turkish Republic shall have jurisdiction.
However, it is also possible that the dispute be resolved by arbitration in
accordance with the Act on International Arbitration under the condition
that the choice of law is Turkish Law.
Financing and Fee
The private party is responsible for the financing of all of the works
to be realized within the scope of the project agreement.