ANNOUNCEMENT 07 Nov 2017

The government of Turkey on 7 November 2017, published  Circular No. 2017/22 on Official Gazette number 30233. This Circular established that local government bodies are for the first time obliged to use minimum 51% domestic goods in rail projects.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Turkish Gazette. Circular No. 2017/22. Turkish. http://www.resmigazete.gov.tr/eskiler/2017/11/20171107-8.pdf

Inception date: 07 Nov 2017 | Removal date: open ended
Still in force

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. 

Previously, on 29 March 2016, the Ministry of Transport, Maritime Affairs and Communications issued a Circular encouraging the use of domestic products in rolling stock (see related state act).

AFFECTED SECTORS