Turkey : ‘Force majeure’ and growing damage – Sözcü Gazetesi

The “force majeure” discussion arising from Covid-19 in the Build-Operate Transfer (BOT) projects, where the state guarantees contractors, continues. (“Force majeure” in law, in simple terms, the parties’ failure to fulfill their rights and debts in a contract for reasons without flaws.) In the last week of the Eurasia Tunnel contract, there was no explanation from the company or the ministry in the epidemic about the termination of the epidemic. How come? They keep the contracts “secret” from the public, and as soon as they make a statement, the contract will be announced. Fortunately; CIPER has received a hint qualified answer to the questions of CHP Kocaeli Deputy Haydar Akar, who is closely interested in these projects. Akar thinks that there is no “force majeure” clause in Osmangazi and Yavuz Sultan Selim Bridge contracts.

This article, which came to Akar with the signature of Mehmet Tutaş (Assistant General Manager) from the General Directorate of Highways, on April 20, contains information that concerns us all. According to Covid-19, it is stated that there is no application for postponing or not making payments, and in accordance with the BOT application contracts, the income difference that will arise if the guaranteed number of vehicles other than the company fault cannot be reached will be paid from the budget. Very good!

651 MILLIONS IN THREE MONTHS

As of the end of March 2020, there are also numbers of vehicles passing through two major projects:

Osmangazi Bridge: 1 million 776 thousand 362.

Yavuz Sultan Selim Bridge: 3 million 383 thousand 25.

In this case, let’s look at the budget burden ……

On the Osmangazi Bridge ($ 35 + VAT per vehicle), 40 thousand vehicles a day started with 3 million 640 thousand vehicles in January-March period. Warranty of 1 million 863 thousand 638 vehicles not exceeding: 65 million 227 thousand 330 dollars. (8 percent VAT will be added.)

On Yavuz Sultan Selim Bridge (3 dollars + VAT per vehicle), 135 thousand vehicles are guaranteed daily. With this calculation, 12 million 285 thousand vehicles had to pass in the January-March period. The warranty price of 8 million 901 thousand 975 vehicles not exceeding 26 million 705 thousand 925 dollars. (8 percent VAT will be added)

Three months’ budget burden is about $ 93 million (651 million TL). Of course, this account is made year by year. But the number of missing vehicles for three months gives an idea about the blow to the budget.

Erdogan’s setting for the CBRT ‘constitution

The Central Bank of Turkey (CBT) Covidien-19 postponed due to pandemic 2019 ordinary general meeting will be held on May 18th.

The Bank reported that it had postponed the general assembly to a later date, the date of which was previously set for March 20, but had not announced a new date.

The new general assembly date was published in the Trade Registry. The agenda of the meeting was shared with the CBRT general assembly procedure in the registry newspaper dated April 29.

Shareholders are asked to attend the general meeting in Ankara electronically due to Covid-19. In this warning, it was announced that there was no difference between physical participation and electronic participation.

20 CHANGES IN THE MAIN CONTRACT

At the general assembly two weeks later, there is an election for two memberships vacated by the CBRT Assembly. 20 articles of the CBRT main contract will be changed. The changes will actually be made in line with legal regulations that have changed bank law. In the decree numbered 703 issued after the transition to the Presidential Party, there were also provisions regarding the CBRT. Likewise, provisions related to the reserve fund were also put in a separate bag law. Part of the changes that will be presented to the shareholders at the general assembly on May 18, the prime minister and the council of ministers include changing the statements passed to the President. I summarize a few critical changes in content:

– The information and data requested by the CBRT from the banks are obliged to be met instantly.

– The first paragraph of Article 25, which regulates the appointment and term of office of the presidents, is repealed. That clause is as follows: “The President is appointed for a 5-year term with the decision of the Council of Ministers. He can be reassigned at the end of this period. ”

– Separation of 20 percent of the bank’s annual net profit as a reserve fund is abolished. The regulation that accumulated reserve funds can be distributed by participating in profit is introduced.

Public wealth according to the eye

Atatürk Airport was a BOT project. According to the lease contract made with DHMI, TAV will operate until January 3, 2021, and after that date, Atatürk Airport would be the state.

Today, the airport where the Renaissance company broke its runways irrevocably (hospital without a tender) was closed on commercial flights when Istanbul Airport was opened a year ago.

At TAV, he had to transfer Atatürk Airport about 2 years early. But that had a compensation. As a matter of fact, TAV made a statement to KAP (Public Disclosure Platform) last December and after detailed information, it was stated that the amount to be compensated by DHMI was 389 million Euros. This is the official compensation amount. With today’s exchange rate, 3 billion TL is the money that comes out of the budget. Add two billion dollars to the cost of two broken tracks that are in the headline of the SÖZCÜ yesterday. 14 billion TL plus 3 billion TL, i.e. 17 billion TL loss balance for the last four months.

On the one hand, 17 billion TL, which is not accounted for, on the other hand, a public wealth ruined by the eye.