SİNEM SENKAYA FOREIGN AFAIRS EXPERT MARCH 2012 THESSALONIKI MODERNIZATION OF BORDER CROSSING POINTS: MECHANISM AND LEGAL FRAMEWORK SİNEM SENKAYA FOREIGN AFAIRS EXPERT MARCH 2012 THESSALONIKI

$ 375 Billion Foreign Trade Volume of Turkey 40 % of this volume is conducted through THE LAND BORDER GATES

vehicles and passengers Increasing number of vehicles and passengers passing through the border gates

The services given in the BCPs must be effective and rapid. Modernizing the border gates, which are ineffective and inefficient, becomes one of the most privileged issues.

Build – Operate – Transfer Model Lack of Finance from the Public Budget Build – Operate – Transfer Model

BOT Model in Turkey Legal Framework : Law No. 3996 Concerning the Realization of Certain Investments and Services by the Build-Operate-Transfer Model Dated 1994 I WOULD LIKE TO START WITH INTRODUCING MY COMPANY “GTI”. GTI HAS BEEN INCORPORATED IN 2005, BY THE UNION OF CHAMBERS AND COMMODITY EXCHANGES OF TURKEY, WHICH IS KNOWN AS “TOBB”, AND 137 CHAMBERS AROUND TURKEY. WE MODERNIZE LAND BORDER GATES, WITH THE MODEL, “BUILD – OPERATE – TRANSFER”. MODERNIZATION OF BORDER GATES WITH THIS MODEL, IS THE FIRST PRACTICE IN THE WORLD.

LAW No.3996 The application of the BOT model to the projects and services requiring advanced technology and significant financial resources.

LAW No.3996 CONCEPT: The financing of the initial investment of the private company by selling the related product or service to the users.

LAW No.3996 The Implementation Decree dated 6 / 8 / 1994 Regarding the Codes of Practice of Law No.3996

TOBB As being the highest private sector representative of Turkey, has undertaken the modernization projects in collaboration with the government and the public institutions.

TOBB ; The Union of Chambers and Commodity Exchanges Umbrella organization for the Turkish Private Sector 1.3 million members

High Sensitivity of Border Gates TOBB Organisation with public institution Status

According to the Build – Operate - Transfer Act, TOBB has established a company to carry out the modernization projects.

WHO IS GTİ? Incorporated: 2005 Private Company Partners: TOBB & 137 Local Chambers Modernization of Border Crossing Points with BOT model

Purpose of Modernization Projects To change the existing ineffective and inefficient structure into a new one which, Enables a suitable architecture, Custom formalities easier, Facilitates technological innovations, Provıdes a contemporary environment for the users.

The border gate facility is rebuild. Financed by GTI OPERATE Operation of commercial facilities Operating activities TRANSFER Transfer of facilities to the public free of charge

“Build-Operate-Transfer” No burden for public treasury!!!

BOT Model Avoids additional financial burden on the public budget, Enables implementations of effective management patterns of private sector, Transfer of a modern facility to the government after the concession period.

BOT Model For each project, a «Concession Agreement» including: The cost of the project, The concession perıod, The rights and responsibilities of both sides.

BOT Model During the concession period the revenues from commercial activities such as: Free-shops, Fuel sales, Bank-offices, Restaurants, Markets, Souvenir shops, Outlet shops,

BOT Model And revenues from fees such as: Weigh-bridge, Parking fees from vehicles waiting in the area,

PROJECTS COMPLETED COMPLETED PROJECTS HAMZABEYLİ SARP KAPIKULE HABUR CİLVEGÖZÜ

PROJECTS COMPLETED RECENT PROJECTS DEREKÖY PROJECTS COMPLETED TÜRKGÖZÜ ÇILDIR – AKTAŞ DİLUCU KAPIKÖY ESENDERE NUSAYBİN AKÇAKALE KARKAMIŞ ÖNCÜPINAR YAYLADAĞI These projects are in the approval process

$200.000.000 $90.000.000 Advantages: Investment Made So Far Tax Paid to Government $90.000.000

Eskisehir Yolu, TOBB Ikiz Kuleler, C Blok, Kat: 25-26, Ankara – Turkey +90 312 218 8200 For Info: Ms. Sinem ŞENKAYA – Foreign Affairs Expert www.gtias.com.tr