Privatization and PPP

Recent decades have born witness to a concentrated privatization program in Turkey, with the state divesting ownership of a large number and a range of state-owned enterprises and assets into private hands.

Since the 1980s, Turkey has privatized major banks, airlines, telecommunications, highways, bridges, sea-ports, and lotteries, as well as food, petrochemical and steel production facilities including natural gas and electricity distribution and power generation assets. Recently, construction, commodities and energy facilities have been coming into the privatization spotlight.

What has emerged in place of state-owned enterprise is the use of PPPs (Public-Private Partnerships), which have received a high level of government support in a range of sectors, including health, transport, energy and infrastructure. PPP involves a contract between a public sector authority and a private party, in which the private party provides a public service or project and assumes substantial financial, technical and operational risk in the project.

Our firm helps clients navigate the complex and often bureaucratic tender procedures associated with securing and financing PPP contracts. Our clients are both local and international entities, including lenders, investors, contractors, subcontractors, operators and technical advisors. These clients are involved in a range of PPP models, such as Build-Operate, Build-Operate-Transfer, Transfer of Operational Rights, and Build-Lease.

Our firm supports clients to fully understand their rights and obligations, reaching innovative and groundbreaking transaction and operational structures. Due to the long term nature of PPP and government contract arrangements, an accurate understanding of rights and responsibilities is particularly important.

As the country continues to privatize more and more industries, our support to clients encompasses the full lifecycle of PPP transactions, from planning and financing through to construction, operation and exit. We work closely with clients to ensure appropriate and efficient allocation of investment risk, liabilities and revenue between the parties. This involves detailed due diligence activities, as well as consideration and assessment of compliance issues, financing vehicles, environmental impacts, procurement regimes, tax structures and dispute resolution mechanisms, among others important considerations.

Our related expertise in mergers, acquisitions, financial and employment matters enable us to provide full legal support to clients involved in Turkish privatization and PPP processes.