BOT framework in public investments extended
Posted by meb at May 22nd, 2008
The scope of the build-operate-transfer (BOT) method has been expanded in a move enabling public institutions to launch BOT tenders in more fields, with amendments to the BOT investment law and the law on public waterworks investment published in yesterday’s Official Gazette.
Investments requiring advanced technology and sizable financial resources by public institutions can now be put out to bid via the BOT method. With the amendment, the construction of major highways that run parallel to toll roads, stations adjacent to railways, and all ground facilities next to airports can be accomplished via BOT tenders.
Seaports and adjacent facilities, border gates, national parks, and nature parks and the facilities they contain are also included under the new BOT framework.
The government bodies that seek to make a BOT investment must apply to the Supreme Planning Board (YPK) with feasibility studies. Upon approval, the body will be able to sign contracts with domestic and foreign firms.
The compensation criteria in the case of a failed investment will also be in the contract, in addition to the penalty charges to be imposed in the event of a delay in payment on the part of a government body.
Governmental bodies will be able to make additional payments from the national budget if the return of an investment does not meet the investment cost. The criteria for these payments from the national budget are also laid out in yesterday’s amendments.
Regarding investments by the Public Waterworks Administration (DSİ), lands owned by the state and used for investment contracted via the BOT method will be allocated to the contracted company during the contract period at no fee.
source: Today’s Zaman
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