ERDEM-NEWSLETTER-2018-metin

369 MISCELLANEOUS test and such studies/ activities that are to be realized by the domestic companies, institutions and establishments for the purpose of industri- alization, endenization and commercialization in the areas determined by the Ministry, except for those that shall be conducted regarding Category-A activities under the procurement contract. Under Category-C, “ exportation” is defined as the exportation of goods, services or construction work procured under the procurement contract, or in areas that are determined by the Ministry. Liability of Contractors and Credit Facilities In addition, the Regulation encompasses provisions regarding the liability of contractors and credit facilities.According to the Regulation, contractors cannot place any financial burden on the administration or the ministry while fulfilling his obligations. General acceptance of ITP principles, and providing minimal ITP liability ratios determined regarding every category under ITP principles, is obligatory. Under ITP contracts, the contractor submits a letter of guarantee that is in the ratio of 6% of the ITP liability, and which is valid for at least one year after the end of the period of the ITP liability, to the Ministry, under the ITP contract. In the event of increase or decrease in the amount of the procure- ment contract for any reason, including price gap, the total liability of the contractor increases or decreases, proportionally. In the event of complete cancellation of the procurement con- tract, the ITP liability of the contractor ends. In the event of partial cancellation of the procurement contract, the part of the ITP liability proportional to the cancelled section is deemed as invalid. In the event of cancellation, the situations where the ITP letter of guarantee shall be propounded are regulated under the ITP contract. According to the Regulation, credit facilities shall be pursued un- der the conditions determined in the preliminary approval stage, and through using the index approved by the Ministry of Science, Industry and Technology, among the indexes indicated in the ITP index table.