REPUBLIC OF TURKEY
PRIME MINISTRY
PRIVATIZATION ADMINISTRATION
www.oib.gov.tr
OECD
Privatization Network and Advisory Group on Privatization
18-20 SEPTEMBER, 2000
BUDAPEST
AN OVERLOOK TO TURKISH
STATE ASSET MANAGEMENT
MINISTRY OF FINANCE
OR
TREASURY
PRIVATIZATION LAW: 4046
PRIVATIZATION HIGH COUNCIL DECISION
PRIVATIZATION ADMINISTRATION
PRIVATIZATION FUND
OTHER RELEVANT LAWS & BODIES
(TURK TELEKOM INDEPENDENT COMITTEE,
MINISTRY OF ENERGY)
 TURKEY’S CURRENT
PRIVATIZATION PROGRAMME
IS UNDERTAKEN BY THREE ( 3 ) DIFFERENT GOVERNMENT AGENCIES:
AGENCIES WHICH CARRY OUT THE
ÖZELLEŞTİRMENİN
FELSEFESİ
PRIVATIZATION
PROCESS
IN TURKEY
PRIVATIZATION ADMINISTRATION
RELATED REGULATION: LAW NO: 4046
SEEs, ORGANIZATIONS, MAJORITY OF SHARES OF WHICH ARE OWNED BY THE STATE
THAT ARE NOT UNDER THE STATUS OF SEE, STATE OR TRAESURY SHARES IN
PARTICIPATIONS/ AFFILIATES, ASSETS OR PARTICIPATIONS OF THE ADMINISTRATIONS
WITH NATIONAL AND SUPPLEMENTAL BUDGETS WHICH ARE NOT DIRECTLY RELATED TO
PUBLIC SERVICES.
MINISTRY OF ENERGY
RELATED REGULATION: LAW NO: 3096
PRIVATIZATIONS RELATED TO PRODUCTION, TRANSMISSION AND DISTRIBUTION OF
ELECTRICITY.
TURK TELEKOM (TTAŞ) TENDER COMITTEE
RELATED REGULATION : LAW NO 4161(IN ADDITION TO THE LAW NO.406)
TURK TELEKOM PRIVATIZATION IS CARRIED OUT BY AN INDEPENDENT A TENDER
COMMITTEE CHAIRED BY PRIVATIZATION ADMINISTRATION
COMMISSION EXPENSES ARE COVERED FROM THE PRIVATIZATION FUND.
ENERGY PRIVATIZATION
presently governed under Law 3096 by Ministry of
Energy
models used: BOT and Transfer of Operating Rights
ongoing preparations for a new electricity market law
to restructure the energy sector
TRANSFER OF OPERATING RIGHTS
Power Plant or
Distribution Facility
Tender
Draft Concession agreement
submission for review
Assignment by Council of Ministers
Danıştay
(Council
of State)
Concession agreement with the Ministry
of Energy and Natural Resources
-ESA/EPA (TEAŞ)
-Transfer of Assets
Agreement with
the Energy Fund
Primary Energy
Procurement Contract
BOT MODEL
Application
Ministry of
Energy
High Planning
Council
Approval of The Project
Draft Concession Agreement
Tender and Assignment
submission for review
Danıştay
(Council
of State)
Concession Agreement with the Ministry
of Energy and Natural Resources
-ESA/EPA between
Assignee and TEAŞ
Agreement between
Primary Energy
Assignee and
Procurement Contract
the Energy Fund
TURK TELEKOM (TTAŞ)
PRIVATIZATION PROCESS
The legal framework for the privatization of Türk Telekomünikasyon A.Ş.
(TTAŞ) was established with the Law No: 4161 enacted on 01.08.1996.
Under the provisions of the law governing TTAŞ’s privatization, an
independent Tender Committee consisting representatives from





Privatization Administration (CHAIRMAN)
Undersecretariat of Treasury
Ministry of Transportation
Capital Markets Board
TTAŞ
has been established to execute the sale. Tender procedures are
carried out by the Privatization Administration.
PRIVATIZATION LAW No:4046
The major law covering privatization activities in Turkey
 describes state assets that may be subject to privatization under this
law
 provides adequate framework / funds / mechanisms for privatization
 establishes Privatization High Council, Privatization Administration
and Privatization Fund
 establishes a social safety net for workers who lose their jobs as a
result of privatization
PRIVATIZATION BODIES UNDER
LAW No:4046
Privatization High Council (PHC)
Privatization Administration (PA)
Privatization Fund (PF)
PRIVATIZATION HIGH COUNCIL (PHC)
 ultimate decision making body
 a subset of Council of Ministers
 consists of the following 6 Ministers:
1) Prime Minister (Chairman)
2) Deputy Prime Minister
3) State Minister responsible from Privatization
4) State Minister responsible from Treasury and economic affairs
5) Minister of Finance
6) Ministry of Industry and Trade
 decides to take state assets in or out of privatization portfolio
 decides the method of sale
 approves privatization transactions
PRIVATIZATION ADMINISTRATION
(PA)
 the execution organ for privatization under Law 4046
 has public legal entity and an exclusive budget
 executes decisions of PHC
 advises PHC in their decisions regarding transfer of assets into
privatization portfolio, needs of restructuring or rehabilitation
 manages the privatization fund
PRIVATIZATION FUND (PF)
 managed by Privatization Administration
 proceeds generated from sale of shares, securities or other
negotiable instruments are allocated to this fund
 used for restructuring / rehabilitation and capital increases of
state owned companies, privatization expenses, social safety net
expenses
PRIVATIZATION PROCEDURE UNDER LAW 4046
Inclusion of the State Asset to the Privatization Portfolio
Inclusion to the Privatization Program
Preparation / Rehabilitation
(PHC determines the organization to be assigned)
Inclusion to Privatization Program
Financial and Legal Preparation for Privatization
Determination of the Privatization Strategy by PHC
and Implementation by PA
Sale Approval by PHC
Removing from the Privatization Program
PRIVATIZATION METHODS
Determined Strategy
Sale
Block Sale
Domestic / International Offering
Share Sale at Istanbul Stock Exchange
Sale to Investment Funds
Combination of These Methods
Lease
Transfer of
Management Rights
Establishment of Rights
other than ownership
Income Sharing Model