ERDEM-NEWSLETTER-2018-metin

150 NEWSLETTER 2018 On the other hand, if it is agreed that the dispute shall be resolved within the IAA, the provisions to be included in the relevant agreements differ. In such case, as there is no institutional arbitration, more detailed provisions may be found concerning the selection of arbitrators. In disputes to be resolved within the provisions of the IAA, the arbitral tribunal shall be composed of three arbitrators. Each one of the parties shall select one arbitrator, and these two arbitrators shall select the third arbitrator within thirty days. In the event that one of the parties does not appoint its arbitrator within thirty days upon receipt of the request of appointment from the other party via notary public, or if the two arbitrators appointed by the parties do not appoint the third arbitrator within thirty days upon their appointment, the arbitrators shall be appointed by the civil court of first instance located at the seat of the relevant administrative authority, upon request of one of the parties. In this case, the third arbitrator appointed by the court shall act as chairman. In arbitrations to be conducted in accordance with the IAA, it is possible to select the applicable substantive law in conformity with the preference of the parties. Similarly, the language of arbitration may also be selected accordingly. As place of arbitration, the seat of the relevant administrative authority, or Istanbul, may be selected. Pursu- ant to the IAA, the competent court for the matters that are within the authority of state courts is the civil court of first instance located at the seat of the relevant administrative authority. Conclusion With the regulations analyzed, above, the will pertaining to the use of arbitration and especially, ISTAC arbitration, by state authori- ties has been solidified. Accordingly, important discretion has been granted in favor of Turkish and foreign investors who enter into public procurement contracts. Another advantage that the parties may ben- efit from, provided by ISTAC arbitration, is the possibility to file the lawsuit for amounts lower than the proportional fees charged by Turk- ish courts, with the requirement that the arbitral award shall be given within a very short period of time. It is certain that these developments will contribute the development of arbitration as a dispute resolution mechanism in Turkey.