Turkey’s New PPP Law Is On The Way

The draft of Turkey's long-awaited new law on Public-Private Partnerships ("PPP") is now ready for the parliamentary legislative process. Although entitled the Law on Public-Private Cooperation Models, the key rationale behind the draft law – as evident from its provisions – is to balance distribution of project risk between public and private parties to contracts. The draft law declares one of its key goals to be allocating risk to the party which can best cope with it, whether public or private.

Brief History

Until the 1980s, the technique used for long-term delegation of public infrastructure services to the private sector in Turkey was the rarely-used concession method. This method is still regulated mainly by the Concessions Law of 1910, which provides only a general, non-detailed framework for the process. Concession contracts executed pursuant to the concession method are administrative law contracts granting superior authority to the administration or