355 / 473
NEWSLETTER 2013
342
Incentives, Treasury Guarantee
In line with the old regulations, tax incentives are provided in the
form of exemption from the stamp duty set forth under Stamp Duty Law
No. 488 and the Charge Law No. 492 for the work projects and papers
executed under Law No. 6428.
One of the most important provisions of Law No. 6428 is clause 8/A.
According to this provision the Treasury may assume debt for projects
which are terminated before the end of the term of the agreement and
which are transferred to the relevant administration. The debt assumption
shall be realized by way of a Council of Ministers decision. The Treasury
shall assume the debts and other financial obligations of the private party
under foreign financing schemes. However, in order for this possibility to
apply, the project agreement must be for investments and services:
i. to be carried out under Law No. 3996 regarding the Realization
of Certain Investments and Services within the Framework of
the Build Operate Transfer Model and which are of a minimum
amount of one billion Turkish Lira; or
ii. to be carried out under Law No. 6428 and Decree having the Force
of LawNo. 652 relating the Organization and Duties of the Ministry
of Education with the build-lease-transfer model and which are of
a minimum amount of five hundred million Turkish Lira.
According to this provision, advice regarding debt assumption from
the Undersecretariat of the Treasury shall be obtained either before the
announcement of the tender specifications, or after the tender and before
the signing of the agreement. Debt assumption may be partial or for the
entire debt.
Termination
In cases where the private party has not performed his obligations
arising from the agreement or Law No. 6428, the project agreement may
be terminated by the administration.
If the private party has not fulfilled his undertakings during the
designated construction period, the administration shall serve a written
notice requesting that the work be completed in a reasonable amount of
time. The lenders shall be informed of this situation as well. At the end