Yesterday, the Turkish Presidency announced its decree on amending the Project-Based State Aid on Investments Decision of the Turkish Council of Ministers Nr. 2016/9495, which had been initially issued on 17 October 2016. As already known, the purpose of such decision (the “Decision”) was to determine terms and conditions for support innovative, research and development focused, and high value-added investments on project basis in order to meet Turkey’s critical needs that may emerge currently or in the future, to ensure supply security, to reduce external dependence, and to realize technological transformation in accordance with the targets foreseen within development plans and annual programs of Republic of Turkey.
According to the amendment entered into force as of yesterday, the Turkish Ministry of Industry and Technology has been authorized to enter into contracts with investors defined in Foreign Direct Investment Act Nr. 4875 dated 5 June 2003 and to undersign investment project contracts subject to civil law with regard to investment projects with a fixed investment amount of minimum 5 billion Turkish Lira and having the qualification of a complete new investment.
At the same time with this amendment, if a contract of this type would be signed, the works and transactions that fall within the scope of the other ministries and public institutions and organizations within the scope of this contract shall be carried out by the responsible institutions and organizations in the framework of the relevant legislation. The Ministry of Industry and Technology will be responsible for the monitoring and coordination of these works and transactions.
As it is known, in accordance with the Foreign Direct Investment Act, which came into force for the first time in 2003, there is no difference between the investments made by foreign investors in the areas stipulated within the scope of such Act and those made by Turkish investors.