AN OVERLOOK TO TURKISH STATE ASSET MANAGEMENT

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AN OVERLOOK TO TURKISH STATE ASSET MANAGEMENT
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? TURKEYS CURRENT PRIVATIZATION
PROGRAMME IS UNDERTAKEN BY THREE ( 3
) DIFFERENT GOVERNMENT AGENCIES
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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

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TRANSFER OF OPERATING RIGHTS
Power Plant or Distribution Facility
Tender
Draft Concession agreement submission for review
Danistay (Council of State)
Assignment by Council of Ministers
Concession agreement with the Ministry of Energy
and Natural Resources
-ESA/EPA (TEAS) -Transfer of Assets
Primary Energy Procurement Contract
Agreement with the Energy Fund
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BOT MODEL
Application
High Planning Council
Ministry of Energy
Approval of The Project
Draft Concession Agreement submission for review
Danistay (Council of State)
Tender and Assignment
Concession Agreement with the Ministry of Energy
and Natural Resources
Primary Energy Procurement Contract
Agreement between Assignee and the Energy Fund
-ESA/EPA between Assignee and TEAS
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TURK TELEKOM (TTAS) PRIVATIZATION PROCESS

• The legal framework for the privatization of
  Türk Telekomünikasyon A.S. (TTAS) was established
  with the Law No 4161 enacted on 01.08.1996.
• Under the provisions of the law governing TTASs
  privatization, an independent Tender Committee
  consisting representatives from
• Privatization Administration (CHAIRMAN)
• Undersecretariat of Treasury
• Ministry of Transportation
• Capital Markets Board
• TTAS
• has been established to execute the sale. Tender
  procedures are
• carried out by the Privatization Administration.

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PRIVATIZATION LAW No4046

• 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

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PRIVATIZATION BODIES UNDERLAW No4046

• Privatization High Council (PHC)
• Privatization Administration (PA)
• Privatization Fund (PF)

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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

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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

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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

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PRIVATIZATION METHODS