T.C. Kamu İ hale Kurumu/Turkish Public Procurement Authority OVERVIEW OF TURKISH PUBLIC PROCUREMENT SYSTEM/AUTHORITY and EU DIMENSION Abdullah KORKMAZ Head of International Relations and EU Department 22 – 23th of September 2011, St. Petersburg 1

 No on 4 January 2002 – Public Procurement Law  The purpose of PPL is to establish the principles and procedures to be applied in procurements held by all public entities and institutions governed by public law or under public control or using public funds.  No on 5th of January 2002 – Law on Public Procurement Contracts  PPCL regulates the period following signature of contract and focuses on contract management issues. 2 Reform in Public Procurement

PPL aims:  to cover a wide range of public agencies spending public money,  to regulate the public procurement sector through the uniform rules and principles,  to comply with international standards and rules,  to ensure fundamental principles on transparency, competition, equal treatment, accountability, public supervision. 3 Reform in Public Procurement

Public Procurement Authority (PPA)  One of the novelties of the PPL was establishment of an independent regulatory and monitoring body namely Public Procurement Authority (PPA).  PPA is a public legal entity having administrative and financial autonomy while maintaining a linkage to the Ministry of Finance.  The authority is independent in fulfillment of its duties; no organ, office, entity or person may issue orders or instructions for the influencing the decisions of the Authority. 4

 PPA consists of: Public Procurement Board (acting as management organ with 10 members), Chairmanship, Service units,  The chairman of the PPA is also the chairman of Board.  The Board members are nominated by different ministries, high courts and private sector’s unions, and appointed by Council of Ministers.  At present, the Authority has been operating with (around) 230 personnel. 5 Public Procurement Authority (PPA)

PRESIDENT VICE PRESIDENT REGULATION DEPARTMENT REVIEW DEPARTMENT I REVIEW DEPARTMENT II REVIEW DEPARTMENT III VICE PRESIDENT MONITORING PUBLIC PROCUREMENT AND INFORMATION SERVICES DEPARTMENT HUMAN RESOURCES AND TRAINING DEPARTMENT ADMINISTRATIVE AND FINANCIAL AFFAIRS DEPARTMENT VICE PRESIDENT INTERNATIONAL RELATIONS AND COORDINATION WITH EU DEPARTMENT RESEARCH, DEVELOPMENT AND DOCUMENTATION DEPARTMENT BOARD AFFAIRS AND DECISIONS DEPARTMENT LEGAL CONSULTANCY PRESS AND PUBLIC RELATIONS CONSULTANCY PPA CONSULTANCY PRESIDENCY PRIVATE OFFICE PRESIDENCY CONSULTANCY PUBLIC PROCUREMENT BOARD 6 Public Procurement Authority (PPA)

Duties of PPA are:  to prepare, develop and guide the implementation,  to review the complaints about the tender process and proceedings conducted by the contracting entities covered by the law,  to prepare secondary legislation in relation to the implementation of the PPL and PPCL,  to provide training on procurement legislation both in public and private sector, to ensure national and international coordination in this field, 7 Public Procurement Authority (PPA)

 to collect, analyze and publish the data concerning the procurements carried out in the framework of this law,  to keep the records of prohibited tenderers,  to regulate the principles and procedures with regard the tender notices and to publish the Public Procurement Bulletin in electronic environment,  to establish and operate the “Electronic Public Procurement Platform” 8 Public Procurement Authority (PPA)

 In Turkey, 150 thousand contracts (average) are awarded annually under the Public Procurement Law (PPL). The value of public procurement, which was nearly:  31 billion TRY (≈15,5 billion Euro) in 2005,  increased to 39 billion TRY (≈ 20 billion Euro) in 2006 and 66 billion TRY (≈ 33 billion Euro) in 2007  84 billion TRY (≈ 42 billion Euro) in  66,3 billion TRY (≈ 33 billion Euro) in 2009  and 69,6 billion TRY (≈ 35 billion Euro) in 2010, which corresponds to around 13,5 % of GDP. 9 Public Purchases as of Amount

10 Public purchases as of 2010

 TURKEY-EU negotiations for accession to full membership started on 3rd of October  Under Public Procurement chapter; two screening meetings were held in Brussels on 7th of November 2005 and 28th of November TURKEY-EU Negotiations

 Following the screening meetings a screening report was issued by the EU Commission and 3 opening criteria were stated through a letter send by Austria’s presidency (May 2006). 12 TURKEY-EU Negotiations

These criteria can be summarised as: 1- Turkey tasks an organization for procurement with guaranteeing a coherent policy during the pre-accession period. 2- Turkey presents to the Commission its comprehensive strategy, which should include all reforms necessary in terms of legislative alignment and institutional capacity-building in order to comply with the procurement acquis, with time-schedules and milestones. 3- Turkey, as a first step, puts into force amendments to the scope of its legislation in order to ensure that it covers all relevant areas and fits with the scope of the classical (2004/18/EC) and utilities (2004/17/EC) directives, and repeals accordingly all exemptions to the procurement regime contained in various specific laws. 13 Three Opening Criteria

 A road map, titled “National Programme of Turkey for the Adoption of the EU Acquis”, and a Council of Ministers Decree regarding the implementation and monitoring of the Programme was published in the Official Gazette on 31 December National Programme

 I n order to harmonise national public procurement legislation with the EU Acquis, preparation of a new public procurement law, introduction of a regulation with regard to the procurements of the institutions operating in the energy, water, transportation and postal services sectors (utilities) and,  Introduction of framework laws concerning award of concessions and,  Public-Private Partnership contracts are stated in the National Programme. 15 National Programme

 Through an amendment on the legislation for the roles and responsibilities of the Ministry of Finance this agency appointed for the general policy setting and coordination for the public procurement related issues. Thus first opening criteria was fullfilled.  Preperation of a strategy paper and an action plan has been completed and submitted to EU Commission.  A draft law has been submitted to the Parliament which is almost fully align with EU legislation (and other related laws). 16 Strategy Paper

 1- Project Name: “Creating Low Carbon Pathway via Green Procurement” Project Owner: (Regional Environmental Center –REC, Turkey) Beneficiary Organisation: PPA, Turkey, Fund: Foreign & Commonwealth Office, Prosperity Fund  Project Start Date: July 2011  Project End Date: March 2012  2- Project Name: “ Training in Public Procurement in Western Balkans and Turkey”  Project Owner: ITCILO (International Centre of the ILO)  Starting Date: April 2011  Duration: December Recent Projects

PROCEDURES OPEN PROCEDURE All suppliers who respond to a contract notice may submit a tender RESTRICTED PROCEDURE Only those suppliers who have been selected and invited following a pre-qualification procedure may submit tenders NEGOTIATED PROCEDURE The terms of the contract may be negotiated directly with suppliers Direct purchasing Design contest Special procedure for procurement of consulting services 18 Tender procedures

Successive stages  Complaint application to the contracting entity  Appeal applications to the Public Procurement Authority (subject to a certain fee)  Appeal to administrative courts.  The complaint and appeal applications are mandatory before filling a lawsuit. 19 Complaint Review System

20 Procurement type No. of complaints No. of Procurements* Share in total (%) Goods ,30 Services ,65 Works ,86 Total ,21 * Exceptions are not included. Main Figures on Complaint applications to PPA in 2010

 A platform administered by PPA where contracting authorities and economic operators involved with public procurement procedures can conduct these procedures on the internet. It has been in use since  Procurement notices and documents prepared and published on EKAP:  The number of registered contracting entities >  The number of registered economic operators >  The number of registered users >  The number of tenders conducted online: the first tender where offers were taken electronically was conducted on in the pilot sector of medical devices. 21 Electronic Public Procurement Platform (EKAP)

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Standard Training Programme Training Date Participant Entity/Number of Entities Number of Participants 2006 (January-December) ( January-December) ( January-October) (Agust-December) Contact Meetings 2009 (April-July) 19 Cities (January-December) TOTAL

Conclusion  A comprehensive legal framework has been produced and mass training has been delivered.  Over the past 9 years after its establishment, currently, the PPA is a stable and well organised institution and it has a well- established internal structure, high qualified staff and a clear set of rules of procedure.  Turkey needs to bring its national legal order on public procurement in line with EU legislation, and, this process has to start long before accession and has to be well advanced when the country eventually becomes a full Member State. 24

25 THANKS!