The tender methods consist of 1) closed bidding, 2) bargaining, 3) public auction and 4) closed bidding among designated bidders.

1. Closed Bidding Method

Written proposals enclosed in properly-arranged envelopes are delivered to PA. The submitted proposals cannot be withdrawn for any reason whatsoever. The envelopes are then opened in serial sequence read aloud by the commission chairman or an assignee and recorded as a list which is later signed by the chairman and members. Non-complying or conditional proposals are not accepted. Should more than one bidder propose the same price and all are determined to comply, written second proposals are requested from those bidders, if present, and the process is continued until a higher price is obtained. If no proposals are submitted or the proposals are not deemed acceptable by the Tender Commission, a new tender is opened under the same conditions or if deemed beneficiary by the Tender Commission, the tender can be finalized by the bargaining or public auction method.

2. The Bargaining Method

The tender process may be commenced by inviting more than one bidder to submit their proposals in closed envelopes. More than one bargaining session may be held with the bidders and these are conducted separately with each bidder. At any stage of the bargaining, the Commission may decide to hold joint bargaining with the bidders. During the bargaining process, in response to new conditions emerged, the Tender Commission may stipulate new principles provided that these rules do not lead to any unfair competition and do not violate the basic principles and tender specifications. All bidders are equally treated. If deemed necessary by this Commission, the tender may be finalized by the public auction method upon participation of the bidders involved in the bargaining procedure. This is pre-announced in the invitation to the bidders and/or the tender specifications. The proceedings are taken under memorandum by the Commission, which is later endorsed by the commission members and the bidders.

3. The Public Auction Method

Only bidders having submitted the required temporary bid bond and pre-qualified by the Tender Commission may participate in the public auction. The initial value and the minimum increments at each stage of the public auction is determined by the Tender Commission.

The duration of the public auction is determined by the Commission and conveyed to the bidders before the auction. This duration may be extended once at most, provided that it does not exceed half the previous duration time if the Commission deems fit and proper.

All proceedings and bidding orders are recorded by the Commission in the presence of the bidders. The public auction continues if proposals received are at the same level or are higher than the initial proposed value. The bidders are supposed to submit their new proposals in order to go over the previous offer. If no new proposals are submitted, the chairman of the Commission announces that the tender is to be concluded on the last proposal received. If there are no new proposals submitted notwithstanding the announcement, the public auction is concluded.

The auction proceedings are recorded in a memorandum endorsed by the Commission members and the bidders.

4. Closed Bidding Method Among Designated Bidders

If some of the following conditions hold, certain bidder or bidders, who qualify to enter into partnership in the form of a joint venture aiming at spreading the ownership and bearing the required technical or professional capability and financial standing or management responsibilities and powers, are invited to bid by the close bidding method, with a prior consent of the Tender Council:

• the applied tender method does not yield any intended result in at least two tenders,
• the organization in the portfolio of privatisation has significant contributions to the local and national economy,
• it is deemed necessary for prevention of a probable monopoly, preservation or increase of employment possibilities,
• partial or full commitment is given for technological innovations and investments.

If only one proposal is received, the tender is conducted through the bargaining method, whereas if more than one proposal is received, the public auction method is utilized.

5. Selection of the Appropriate Method

For tenders related to privatisation, implementation through sales of assets, one of the methods of closed bidding, bargaining or public auction is adopted. The method is determined by PA in the light of the characteristics of the organization and the outputs of the Value Assessment Commission.

In the closed bidding tenders, upon consideration of value assessment results and evaluation of the proposals, the Tender Commission may decide to conclude the bid by the bargaining or public auction method.

For tenders involving the block sale of shares of the organization in the privatisation portfolio, the bargaining method is utilized.

Privatisation tenders with methods other than sales, PA opts either the bargaining or public auction method, by considering the attributes and properties of the organization to be privatised, characteristics of the services offered and structure and legal status thereof.

Moreover, privatisation implementation by domestic or international public offering of stocks or stock exchange sales or sales to securities investment funds or securities investment partnerships are subject to capital market legislation.