ERDEM-NEWSLETTER-2018-metin

147 ARBITRATION LAW Resolution of Disputes through Arbitration in Agreements Concluded under the Public Procurement Contracts Law* Att. Ezgi Babur von Schwander Important steps have been taken in the resolution of disputes through arbitration in Turkey, in order to incentivize parties to include arbitration clauses into their agreements. Especially with the establish- ment of the Istanbul Arbitration Centre (“ISTAC”), parties have been informed on the resolution of disputes through arbitration, and have been encouraged to include arbitration clauses into the agreements they conclude. Within this context, new laws and regulations have been adopted in order to facilitate the inclusion of arbitration clauses by public authorities and institutions. Acurrent development in arbitration, pertaining to the possibility to include an arbitration clause in agreements concluded under Public Pro- curement Contracts Law numbered 4735 1 , is analyzed in this article. Resolution of Disputes of Public Authorities and Institutions through Arbitration Arbitration is an exception to the general rule stating that disputes should be resolved through the state courts. Accordingly, arbitration may only be stipulated under the condition that the parties to the dis- pute agree thereto, as an alternative dispute resolution mechanism. Especially, and subsequent to the establishment of the ISTAC, important steps have been taken to ensure that public authorities and institutions may select this mechanism. A very important example is the Prime Ministry Circular numbered 2016/25. This circular sets forth that “in order to provide that disputes would be resolved in an * Article of January 2018 1 Public Procurement Contracts Law No. 4734, OG, 22.01.2002, No. 24648.