The Constitutional Court Decision on the Cancellation of Provisional Article 30 of Law No. 4046 Has Been Published in the Official Gazette
The Constitutional Court (Court) Decision dated 20.07.2022 and numbered 2022/22 E. 2022/92 K. (Decision) has been published in the Official Gazette dated 02.08.2022 and numbered 31911. With the Decision, the Provisional Article 30 of the Law on Privatization Practices numbered 4046 (Provisional Article) has been canceled.
The Provisional Article introduced an application procedure regarding the extension of the term of the privatization contracts, signed for a period of less than forty-nine years as a result of the privatization of certain ports belonging to Turkish Maritime Enterprises Inc. and the Republic of Turkey State Railways through the method of granting/transferring operating rights, up to forty-nine years. Court found that if the ports were subject to re-privatization at the end of the privatization periods, everyone who satisfied the conditions under Law No. 4046 would have the opportunity to become a party to the privatization contract within the framework of competition conditions, whilst such opportunity was abolished by the Provisional Article.
Therefore, Court found that the freedom of contract has been restricted disproportionately and the Provisional Article prevents other bidders from becoming a party to the additional privatization contract, which is incompatible with the principles of free competition and equality. In the light of the mentioned findings, the Court ruled for the revocation of the Provisional Article.
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