Newsletter-21

310 NEWSLETTER 2016 Competition Procedure and Finalization According to Article No. 10, which is titled as “RERA Right of Use competition procedure and RERA Right of Use competition fina- lization,” legal entities that have fulfilled the criteria determined and announced by the Ministry are authorized to participate in the compe- tition to be made for assignment of connection capacity of a RERA. Tenders shall be held as reverse auctions starting from the maximum electricity purchase price set by the Ministry for kilowatt-hours per each RERA. Respectively, reverse auction procedures commence and competition continues till the offering of the lowest price and tender shall be awarded to that participant offering. In a reverse auction, legal entities’ price offers are valid and binding without the obligation of signature. Guarantee letters, except for the most advantageous first three price offers, are returned within 3 business days following the tender date. The winner of the tender shall then be invited to sign the Right of Use Agreement. The Ministry is entitled to terminate the competition at any point at its own discretion. Signing and Performing of the Right of Use Agreement According to Article 11 of the Regulation, it is regulated that the legal entity, which is invited to sign the Right of Use Agreement, shall sign the Right of Use Agreement within 30 calendar days upon the receipt of notification of the invitation. In the event that the first lowest price bidder signs the agreement, the second and third lowest bidders’ guarantee letters are returned within 3 calendar days as of the signature date. If the first lowest price bidder fails to sign the Right of Use Agreement within this 30 days’ period, with the approval of the Ministry, the second lowest bidder and the third lowest bidder are invited to sign the Right of Use Agreement, respectively. The winner of the tender is obliged to complete the establishment of the relevant legal entity, as it is guaranteed, in accordance with the shareholding structure that is submitted in the application prior to the signing of the Right of Use Agreement.