PRIVATISATION IN TURKEY

Turkey basically aims at

1. Minimizing the state involvement in the industrial and commercial activities within the economy (hence confining the State activities to only social security, basic health and education, national defence and some large scale infrastructure investment projects), maximising the private sector participation in the economy, and providing efficient allocation of resources,

2. Providing a robust, fair, well-functioning and problem-free market environment,

3. Decreasing the financial burden of State Economic Enterprises on public finance,

4. Expanding and deepening the existing capital market by promoting wider shared ownership,

In this regard, privatisation is very crucial and the current economic stabilisation program of Turkey envisaging the privatisation of giant enterprises of the country. The Turkish government emphasizes that they are strongly determined to privatise as many enterprises as possible.

Especially, the following factors are expected to lead to successful privatisation in near future in Turkey: i)Turkey’s potential integration into European Union, ii) establishment of independent regulatory and supervisory authorities, iii) recent developments in the investment climate and iv)very desirable outcomes of the current economic program.

In recent yearts the giant public companies and assets such as Turkish Telecom (TT) and Turkish Petroleum Refineries (TUPRAS) has been privatised.

The privatisation tenders concluded In 2007 are as follows:

Moreover, more than USD 25 billion have been obtained as a result of privatisations between 2003 and 2007.

Privatisation of the giant public companies and assets such as

Turkish Electricity Distribution Co. (TEDAS) and its affiliate companies,

Natural gas distribution regions

Electricity Generation Co.’s (EÜAS) Power Plants,

Public Banks (Turkish Ziraat Bank and Halk Bank),

Tobacco and Cigarette Factories (TEKEL)

National Lottery Licences

Sugar Factories

as well as many of smaller companies and assets are in the agenda of the Government. In addition to attaining the above mentioned targets, substantial privatisation revenue worth billions of US$ is expected.

This document briefly explains how privatisation is carried out within the context of current laws and regulations.