In this Law, the following terms and phrases shall have the meanings assigned thereto, unless the context requires otherwise:
Law: Private Sector Participation Law. CEDA: Council of Economic and Development Affairs.
Ministry: Ministry of Finance.
NCP: National Center for Privatization. Statute: Statute of the National Center for Privatization.
Implementing Regulations: Implementing regulations of the Law.
Private Party: A private legal person that is party to a privatization contract with the government.
Infrastructure: Public utilities or assets that directly or indirectly provide public services.
Asset: Any asset, whether permanent or temporary, movable or immovable, tangible or intangible, including rights. Public Service: Any service directly or indirectly provided by a government agency, whether essential services, for the purpose of providing goods or services to the public, or non-essential services, for the purpose of supporting governmental activities and functions.
Public-Private Partnership (PPP): An arrangement relating to infrastructure or public service whereby a contract between the government and a private party is concluded; it shall fulfill the following contractual stipulations:
1. The contract is for a term of 5 years or more.
2. The private party carries out two or more of the following arrangements: design, build, manage, operate, maintain, or finance assets, whether such assets are owned by the government, the private party, or both.
3. The risks are qualitatively and quantitatively allocated between the government and the private party.
4. The financial consideration owed by or to the private party is based on the performance of its obligations under the contract.
Divestment: An infrastructure or public service contractual arrangement whereby the ownership of an asset is transferred from a government agency to a private party.
Private Sector Participation (PSP): PPP or divestment.
Contract: PSP contract.
Ancillary Contract: A contract relating to a PSP contract which is necessary for the execution of a PSP project and which is concluded on behalf of the government with a private party or a third party.
Prequalification: The verification process carried out by the executive agency prior to submission of bids to ensure that bidders are qualified and capable of executing the works associated with the PSP project. Unsolicited Proposal: A proposal relating to a privatization project which is not submitted in response to a Request for Proposal (RFP).

1. The governing rules shall, as per the type of the PSP project, determine the agency, or agencies, having the authority to issue the necessary approvals for the PSP project, including approvals for tendering and awarding projects; concluding contracts; or exercising other powers or performing other duties in accordance with this Law, and the rules for exercising such powers and performing such duties. Said agency shall hereinafter be referred to as the “relevant agency”.
2. The governing rules shall, as per the type of the PSP project, determine the agencies entrusted with reviewing and preparing PSP projects and having the powers relating to tendering and awarding projects and concluding contracts, as well as other powers or duties in accordance with this Law, and the rules for exercising such powers and performing such duties. Said agency shall hereinafter be referred to as the “executive agency”.
3. The governing rules shall determine the relevant agencies in charge of executing the PSP project, as per their powers and duties and the type of the PSP project.
4. The Council of Ministers shall issue the governing rules referred to in paragraphs (1), (2), and (3) of this Article.

PSP projects shall aim to:
1. achieve the strategic objectives of government agencies, rationalize public spending, increase State revenues, and increase the efficiency of the national economy in the face of challenges and regional and international competition;
2. improve the coverage and quality of services, ensure they are readily available at reasonable costs, increase the efficiency of assets relating to PSP projects and improve their management, and organize or restructure the sectors, bodies, assets, and public services set for privatization;
3. encourage local and foreign private sectors to invest and actively participate in the national economy through projects that achieve the development objectives of the government and the economic viability of the public and private sectors, and increase the private sector’s contribution to the GDP; and
4. expand citizens’ ownership of public assets, increase job opportunities, and achieve optimal utilization of the national workforce.

This Law shall apply to contracts concluded by ministries and other government agencies as well as companies which the government establishes or directly or indirectly owns more than 50% of their capital for the purpose of executing a PSP project. This Law shall not apply to contracts concluded prior to its entry into force; however, it shall apply to such contracts if they are amended, extended, or renewed after its entry into force. PSP projects which are approved prior to this Law's entry into force and the contracts of which have not been concluded shall be subject to the provisions applicable at the time of approval, unless the NCP's board of directors decides otherwise.

The Implementing Regulations shall determine the applicable methods for PPP or divestment, and the terms and conditions required for each method.

1. The executive agency shall, as specified by the Implementing Regulations, conduct the necessary analysis and review prior to seeking the Ministry’s or the relevant agency's approval of the tasks assigned thereto under this Law.
2. The relevant agency shall approve PSP projects after the executive agency obtains the Ministry's approval, in accordance with this Law.

1. If the relevant agency approves an infrastructure or public service project for a government agency, and the estimated value of said project exceeds the limit set by the Council of Ministers, or if the term of the original, extended, or renewed contract is five years or more, the Ministry shall, prior to project tendering, or concluding, renewing, or extending the contract, as the case may be, refer the project-related matter to the NCP to conduct a preliminary study on the viability of privatizing the project and submit the results to the Ministry within 60 business days from the date of referral to take necessary action.
2. A mechanism for the implementation of paragraph (1) of this Article shall be set by the Ministry in coordination with the NCP and shall be complied with by relevant agencies.

The Ministry shall assume the following powers and duties:
1. Ensuring the availability of adequate funds for the PSP project prior to tendering.
2. Securing necessary allocations, as determined by the Ministry, to cover the financial obligations incurred by any government agency under the contract or any ancillary contract on their due dates, and making necessary arrangements therefor.
3. Approving any additional financial obligations to be incurred by the State Treasury, resulting from the amendment, suspension, extension, renewal, or termination of a PPP contract, prior to submitting any of such requests by the executive agency to the relevant agency or taking any action in this regard.
4. Approving and providing the financial and credit support necessary for the PSP project stipulated in the contract or the ancillary contract, and making any arrangement or concluding any agreement necessary for such support.

CEDA may, upon the recommendation of the NCP’s Board of Directors, review any infrastructure or public service project to determine whether it constitutes a PPP or divestment project subject to the provisions of this Law, irrespective of whether or not the definition of PPP or divestment applies thereto.

Financial and credit support may, pursuant to a resolution by the Council of Ministers or its designee and upon the Ministry's recommendation, be provided to a PSP project if such support is not stipulated in the contract or its ancillary contracts, subject to applicable laws.