ANNOUNCED AS TEMPORARYNo
Public procurement localisation
The government of Turkey via publishing No. 2017/22 for the first time imposed a localisation requirement applicable to the railway-related projects undertaken by a range of local government entities i.e. local municipalities, special provincial administrations as well as other related entities.
Specifically, according to Circular No. 2017/22, local government Turkish entities, were for the first time required to use a minimum of 51% of local goods, when engaging in railway projects that revolve around the manufacturing of subways, light rail systems, trams as well as other similar vehicles.
Furthermore, Circular No. 2017/22 also established that local Turkish government entities must also undertake measures to encourage domestic production. The scope of the prior as per the highlighted Circular is to ensure that the overall use of domestic goods and services in rail projects is expanded within the Turkish jurisdiction. Nevertheless, the Circular does not specify a list of specific measures that local government entities must undertake in order to expand the use of domestic goods and services in their rail projects.
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