The legal infrastructure Under Law No: 6428, "The Construction and Renovation of Facilities and Procurement of Services by the Ministry of Health under the Public Private Partnership Model and Amendment of Certain Laws and Decrees" and Regulation for the Construction and Renovation of Facilities and Procurement of Services by the Ministry of Health under the Public Private Partnership Model, dated 2014;
- It is not subject to the Public Procurement Law.
- The usage fee shall be paid cash with three monthly plans.
- The fee shall be paid from working capital and/or centralized management budget.
- The contractor may transfer all rights and duties arising out of the contract.
- The contract determines the principles how the loss of the contractor shall be reimbursed in the event of termination of the contract.
Undertaking of Debts
According to the Law No 4749 Public Finance and Debt Management Law, the Council of Ministers is entitled to decide that the Undersecretariat to undertake the financial obligations of the Ministry of Health PPP (“Public Private Partnership”) implementation agreements concerning investments and services with the minimum amount of 500 million Turkish Liras including the financial obligations arising from derived products related with obtaining finance from abroad for investments and services and providing of such finance, in case that the contracts are terminated before the expiration date and it is foreseen that the facilities are transferred by related institutions.
The Contract is consisting of Projects Agreement and 29 Schedules.
Exemption from tax
Project companies are exempted from stamp tax, company fees and value added tax (“VAT”) during the construction period in order to minimize the finance of Projects. The term of VAT exemption is determined before and this exemption applies during the investment period.