Glo Newsletter 8

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1 August – 31 August 2011 Volume 4 – Issue 1

I. PPP & PRIVATIZATION HIGHLIGHTS:

• Tepe-Akfen-Vie Offers Bid in Medina Tender. Turkey's Tepe-Akfen-Vie, or TAV, has offered a bid in the tender held for the Medina International Airport in Saudi Arabia. TAV stated that it offered the bid in the tender for 25- year operating rights of the airport. Saudi Oger Limited Company and Al Rajhi Holding Group also offered bids. Each company has equal shares in the consortium. TAV was established in 1997, as a joint venture between Tepe and Akfen Groups following the bid for the Istanbul Ataturk Airport International Terminal Contract.

• Bid Notice Under Seald Bid For North Marmara High Way (Including 3rd Bosphorus Bridge) Within the Scope of BOT Model. The bidding for the construction and operation of the “North Marmara Highway” (including 3rd Bosphorus Bridge) within the scope of BOT model will be carried out in compliance with the addenda of the specifications and technical specificaitons on August 23, 2011 at 02.30 p.m. at Ministry of Transportation General Directorate of Highways Yücetepe/ANKARA, Block-A, Ground Floor, Small Meeting Hall, before the Assignment Commission by way of sealed bid.

TENDER DOCUMENT SUBJECT TO TENDER “North Marmara Highway” (Including 3rd Bosphorus Bridge) SALES PRICE (VAT INCLUDED) TRY 100.000 AMOUNT OF BID SECURITY TRY 25.000.000 BIDDING DATE/TIME August 23, 2011 02.30 pm

• The Pre-Qualification Tender for Kocaeli Integrated Health Campus. The pre-qualification tender for The Construction Works and The Provision of Products and Services for Kocaeli Project has been performed on 30.06.2011 at 15.00. Pre-qualification application list of bidders in order of bid receipt:

1. YDA İnş. San. ve Tic. A.Ş. – INSO Sistemi Per le Infrastructture Sociali SPA İŞ Ortaklıgı.

2. Nurol İnş. Ve Tic. A.Ş.- CMB Societa Cooperative Muratori E Braccianti Di Carpi- Unieco Societa Cooperativa İş Ortaklığı.

3. Emsaş İnş. Turz. Tic. Ve San. A.Ş.- PBK Architects Inc. – Ascension Group Architects LLP İş Ortaklığı.

4. Yüksel İnşaat A.Ş.- Yüksel Holding A.Ş. İş Ortaklığı.

5. Şentürkler Müh. İnş. Taah. Turz. San. ve Tic. A.Ş. - Medical Park Sağ. Hizm. A.Ş.- Sıla Dan Bil. Eğ. İnş. Taah. Tic. Ve Sağ. Hiz. Ltd. Şti. İş Ortaklığı.

6. IC İçtaş İnş. San. ve Tic. A.Ş. - Techint Compagnia Tecnica İnternazionale S.P.A İş Ortaklığı.

7. Türkler İnş. Turz. Mad. Ener. Ür. Tic. Ve San. A.Ş.

8. Eser Taah. Ve San. A.Ş.- Hammes Company Healthcare İnternational LLC İş Ortaklıgı.

9. MBD İnş. San. Turz. Müh. Ve TİC. LTD. ŞTİ. METAG İnş. A.Ş. İş Ortaklığı

Pre-qulaification evaluation is stil under progress.

AugustAugustAugustAugust 2011 Newsletter 2011 Newsletter 2011 Newsletter 2011 Newsletter

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• Pre-Qualification Evalution for İzmir Bayraklı Integrated Health Campus. The pre-qualification tender for The Construction Works and The Provision of Products and Services for İzmir Bayraklı Integrated Health Campus has been performed on 06.07.2011 at 15.00. Pre-Qualification Application list of bidders in order of bid receipt:

1. Kayı İnş. San. ve Tic.t A.Ş. – SIMED INTERNATIONAL B.V İş Ortaklığı.

2. Nurol İnş. ve Tic. A.Ş - CMB Societa Cooperativa a Muratori e Braccianti Di Carpi Unieco Societa Cooperativa İş Ortaklığı.

3. MBD İnş. San. Tur. Müh. Ve Tic. Ltd. Şti - Metag İnş. Tic. A.Ş. - Kaya İnş. İth. İhr. Taah. Tur. D.gaz Tic. Ltd. Şti. İş Ortaklığı.

4. Yüksel İnş. A.Ş. - Yüksel Holding A.Ş. İş Ortaklığı.

5. AveB Gayrimenkul Geliştirme İnşaat Yatırım A.Ş. (Pilot ortak) - United Medical Group - Samsung C&T Corporation- Ünal Akpınar İnşaat İmalat San. Ve Tic. A.Ş. İş Ortaklığı.

6. Emsaş İnş. Tur. Tic. ve San. A.Ş (Pilot Ortak) PBK Inc. - Ascension Group - Forcimsa Empresa Constructora S.A İş Ortaklığı.

7. Astaldi S.p.A - Türkerler İnş. Tur. Madencilik Enerji Üretim Tic. ve San. A.Ş. İş Ortaklığı.

8. Eser Taahhüt ve Sanayi A.Ş. - Hammes CO. Healtcare International LLC İş ortaklığı.

9. Sıla Danışmanlık Bil. Eğt. İnş. Taah. Tic. Ve Sağl. Hizm. Ltd. Şti. - Şentürkler Müh. İnş. Taah. San. Tur. San. Ve Tic. A.Ş. - Medical Park Sağ. Hiz. A.Ş. İş Ortaklığı.

10. IC İçtaş İnş. San. Ve Tic. A.Ş. – Techint Compagnig Internazionale S.p.A İş Ortaklığı.

11. YDA İnş. San. ve Tic. A.Ş. - INSO Sistemi Per Le Infrastrutture Sociali S.p.A İş Ortaklığı.

12. Akfen İnş. Tur. Ve Tic. A.Ş.

• The pre-qualification tender for Physical Therapy and Rehabilitation (PTR), Psychiatry (P) and High Security Forensic Psychiatry (HSFP) Hospitals. The pre-qualification tender has been performed on 08.07.2011 at 15.00. Pre-Qualification Application list of bidders in order of bid receipt:

1. İlci İnşaat San. ve Tic. A.Ş. 2. Emsaş İnş. Tur. Tic. ve San. A.Ş - PBK

Inc. - Ascension Group - Forcimsa Empresa Constructora S.A Joint Venture.

3. IC İçtaş İnş. San. Ve Tic. A.Ş. - Techint Compagnig Internazionale S.p.A Joint Venture.

4. Akfen İnş. Tur. Ve Tic. A.Ş. 5. Sıla Danışmanlık Bil. Eğt. İnş. Taah.

Tic. Ve Sağl. Hizm. Ltd. Şti. - Şentürkler Müh. İnş. Taah. San. Tur. San. Ve Tic. A.Ş. - Yorum İnşaat A.Ş. - KLV İnşaat Taah. Madencilik Tic. ve San. Ltd. Şti. - Ş.A.M. Yapı San. ve Tic. Ltd. Şti. Joint Venture.

6. Türkerler İnş. Turizm. Madencilik Enerji Üretim Tic. ve San. A.Ş.

• Tender Process for İstanbul İkitelli Integrated Health Campus. The tender process for the Work of Construction Works and the Provision of Products and Services for İstanbul İkitelli Integrated Health Campus has been started. The qualified bidders due to the result of prequalification evaluation, can access the tender documents from data room. The bids will be received until 15.00 on 12.09.2011.

• The pre-qualification tender for the Isparta City Hospital has been Performed. Pre-Qualification Application list of bidders in order of bid receipt:

1. Assigna Infraestructuras S.A. 2. Yüksel İnş. A.Ş. – Yüksel Holding

A.Ş. Joint Venture 3. Emsaş İnş. Tur. Tic. ve San. A.Ş -



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Forcimsa Empresa Constructora S.A Joint Venture

4. Türkerler İnş. Tur. Mad. Enerji Üretim Tic. Ve San. A.Ş.

5. YDA İnş. San. Ve Tic. A.Ş. – INSO Sistemi per Le Infrastrutture Sociali S.P.A. Joint Venture

6. IC İçtaş İnş. San. Ve Tic. A.Ş. - Techint Compagnia Internazionale S.p.A Joint Venture

7. Akfen İnş.Tur. Ve Tic. A.Ş. 8. Kerem Yapı İnş. Tic. Ve San. Ltd.

Şti. – Silahtaroğlu İnş. Nak. Harf. Ve Tic. Ltd. Şti. – DİSERA Tıbbi Mal. Loj. San. Ve Tic. A.Ş. – Dirim Tıp Özel Sağlık Ürünleri San. Ve Tic. A.Ş. – ATLAS Med. Elektronik Paz. Ve Yat. Ltd. Şti. – EGESOFT Bilgi Tek. San. Ve Tic. Ltd. Şti. – Teknikmed Med. Lab. Ürünleri Tıbbi Cihazlar ve Med. Malzemeler Tic. Ve San. Ltd. Şti. Joint Venture

9. Eser Taah. Ve San. A.Ş. – Hammes Co. Healtcare Int. LLC Joint Venture

• Final Bids for Elazığ Integrated Health Campus The bids were received on 29/04/2011 for the Work of Construction Works and the Provision of Products and Services for Elazığ Integrated Health Campus, as a result of evaluations, the bidders which take in first three place, were requested to give final bids on 15/08/2011 at 3:00 pm. The list of the bidders which take in first 3 place, in order of bid receipt on 29/04/2011:

1. Sıla Dan. Bilş. Eğt. İnş. Taah. Tic. ve Sağ. Hizm. Ltd. Şti. – Şentürkler Müh. İnş. Taah. Turz. San. ve Tic. A.Ş.- Şentürkler Oto Mak. Turz. Gıda Eğl. Sağ. Hiz. S.S.O.K İşl. San. Tic. A.Ş. - Medical Park Sağ. Hizm. A.Ş. Joint Venture

• Ankara Etlik Health Campus Awarded to Astaldi and Turkeler Construction.

The world's largest medical complex will be built in the capital of Turkey, Ankara Etlik Health Campus project has been awarded to Italian Astaldi partnership with Turkerler Construction. Turkish-Italian construction effort on campus will be finished in three years by the Turkerler- Astaldi partnership and the concession period will be 25 years. The lowest tender of 319 million pounds ($197 million) a year's rent and gave the Italian Astaldi partnership with the Turkerler Construction. IC Ictas Construction-Dia Holding 321.90 million pounds ($199 million) a year's rent, YDA Construction-INSO System SPA 322.5 million $199.5 million) for the year offered to rent. The 600,000 sq m new construction facility, which is designed using a public private partnership (PPP) model, is the first large-scale project in the Turkish Ministry of Health’s reimagination of the public health system. The Etlik medical campus consists of six freestanding hospitals, general hospital, cardiovascular, orthopedics, neurosciences, children's, women's and oncology facilities. Which are connected by a diagnostic and treatment base that share some of its services with the specialty facilities. • Tender Process for Yozgat Education and Reseach Hospital The bids received on 29.07.2011 for the work of the Construction Works and the Provision of Products and Services for Yozgat Education and Research Hospital in order of bid receipt:

1. Impresa Pizzarotti & C.S.P.A - Yenigün İnşaat Sanayi ve Ticaret A.Ş. - Metag İnş. Tic. A.Ş. Joint Venture

2. YDA İnş. San. Ve Tic. A.Ş. – INSO Sistemi Per Le Infrastrutture Sociali SPA Joint Venture

3. İLCİ İnşaat Sanayi ve Ticaret A.Ş. 4. IC İçtaş İnş. San. ve Tic. A.Ş. – Techint

Compagnia Tecnica İnternazionale S.P.A Joint Venture

5. Eser Taah. ve San. A.Ş. – Hammes Company Joint Venture

6. Şentürkler Mühendislik İnşaat Taahhüt Turizm Sanayi ve Ticaret A.Ş.- Sıla Danışmanlık Bilişim Eğitim İnşaat Taahhüt Ticaret ve Sağlık Hizmetleri Limited Şirketi - Medical Park Sağlık Hizmetleri A.Ş.-



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Şentürkler Otomotiv Makine Turizm Gıda Eğlence Sağlık Hizmetleri Spor Salonu Otopark Kreş İşletmeleri Sanayi Ticaret A.Ş. Joint Venture

• The Tender Process for Mersin City Hospital. The tender process for the Work of Construction Works and the Provision of Products and Services for Mersin City Hospital has been started. The qualified bidders due to the result of prequalification evaluation, can access the tender documents from data room. The bids will be received until 15.00 on 23.09.2011.

• Financing Began for US$10bn Turkish Road PPP. The sponsors of Turkey’s Gebze-Izmir toll road, the world’s largest transport project finance deal, have got financing underway with banks in place to lead the transaction. A starting meeting was held in London, and structuring and documentation roles are to be handed out among the few western banks.

• Eastern Anatolia’s Biggest Mall to be Built in Van. Mafe İnşaat will build the biggest shopping mall and wellness center in eastern Turkey in Van for 55 million euros. Mafe İnşaat Project Coordinator Erkan Erol said the center will include 43,850 square meters of closed space -137 shops, an eight-screen multiplex, 15 fast food restaurants, three restaurants, a large grocery store and a playground for children. Upon completion, at least 1,500 people will be employed at the shopping mall and wellness center. Shopping mall will be constructed on İpekyolu Boulevard in Van, a highway that connects the provinces of Hakkari, Bitlis, Ağrı, Siirt and Şırnak and neighboring Iran.

• Istanbul Ferry Services Privatization Complete, Investments Underway. The agreement to finalize the privatization of the Istanbul Ferry Lines (IDO), a subsidiary of the Istanbul Metropolitan Municipality, was signed between the winning consortium and

municipality officials, thus closing the USD 861 million deal. “The income from the transaction will be used for new transportation projects in Istanbul,” said Ahmet Selamet, acting Mayor of Istanbul. IDO was put on sale by the municipality in January as part of a larger privatization program that is expected to continue with the gas distribution company IGDAS later this year. The Tepe-Akfen-Souter-Sera joint venture group won the tender for the company’s operating rights with a USD 861 million bid. The group aims to improve IDO’s maritime transportation services with the addition of new lines and infrastructure upgrades. The company operates 42 vessels of various kinds transporting ferry passengers and cars between 32 destinations in Istanbul and nearby locations.

• Electricity Generation Plants Privatizations Began. Turkey is set to privatize its electricity generation plants with the exception of some strategic dams. A total of 22 strategic dams installed on international waters will continue to be run by the state, while the remaining will be privatized after being divided into nine separate portfolios. Within the scope of the program, a total of 41 power plants including thermal and hydraulic will be privatized. This represents the total of nearly 13,000 megawatts installed power. According to these figures, the two-thirds of the installed power held by the EÜAŞ will be transferred to the private sector, within the scope of the privatization process. The Group Law Firm have provided consultancy for the privatization process of EÜAŞ which has been the biggest privatization deal of Turkey with estimated income of more than $35 billion.

• The Most Profitable Organizations.

According to the survey, EUAS was the most profitable organization with value of 4 billion 850 million 920 thousands 203 TL in 2010-2009. While Turkish Petroleum Corporation was ranked second with the profit of 1 billion 297 million and 369



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thousands TL. Public Organizations hold the first ranks by landslide on pre-tax profit. TUPRAS was at third place with the profit of 929 million 422 thousands and 37 TL. Ford Automotive was ranked fourth, Philsa Philip Morris Sabanci was ranked the fifth, and Eti Mine was ranked the sixth. Anadolu Efes Brewery was at the seventh place in the list, while Arçelik at eigth, Oyak Renault at the ninth, and the Turkish Coal Institute was at the tenth position in the list. Being 4 out of the first 10 organizations the number of the most profitable Public Organization has increased as compare to the list in 2009. • Afken Group Targeting Highway and Bridge Privatization. The Akfen group is targeting highway and bridge privatizations in Turkey, According to the chairman of Akfen Holding. Akfen Holding, part of the Tepe Akfen-Souther-Sera joint venture that offered the highest bid, at $861 million, for the İstanbul Ferry Lines (İDO), acquiring it in the final negotiations of the long-planned privatization in early April, is currently the biggest group in privatization deals. Akfen Holding's total payments for privatization in Turkey have surpassed $7 billion, including those of operations in the Port of Mersin and the İstanbul, Ankara, İzmir and Antalya airports. • Turkmen President Meets Turkish Businessmen, Approve New Projects. The Turkmen President Gurbanguly Berdimuhamedow met with a number of leading Turkish businessmen who have undertaken massive projects in the key Central Asian nation, approving the construction of three state buildings by Turkey’s Renaissance Holding. Executives from Polimeks İnşaat, Engin Grup, Cotam Enterprises, Erku International Contracting and Construction, Lotus Energy and Norsel International LTD were all present at meeting. The projects Berdimuhamedow approved during the meeting include the construction of administrative buildings for two ministries and Turkmenistan’s highway authority. Construction on the three buildings will start in July and they are expected to be finished in two

years. Some 600 Turkish firms are currently operating in Turkmenistan. Just last year, Turkish companies won public tenders for $4.5 billion worth of projects in the country. The net worth of projects Turkish entrepreneurs have undertaken in the Central Asian nation since it became independent in 1991 tops $24 billion. • Yıldız Selling Companies After Major Investment. Turkey’s Yıldız Holding, which owns food giant Ülker and global chocolate maker Godiva, announced that it would sell shares of some of its companies in a bid to “clear up its financial statements.” Yıldız acquired Şok, a former sister company of retailer giant Migros, two weeks ago for 600 million Turkish Liras. The holding’s board has decided to sell PNS Pendik Nisaşta, an amyl producer, for 24.85 million liras; Besler Gıda, the largest margarine manufacturing company in the country, for 23.2 million liras; and Sağlam Real Estate Investment Trust, for 5.4 million liras, a filing by the holding’s Ülker Bisküvi to the Istanbul Stock Exchange. • Arab Investment in Turkey, Says Top Professional. Kuwait Investment Authority, KIA, Qatar Investment Authority, QIA, and Abu Dabi Investment Authority, ADIA, have planned to make major investments in office blocks, residences, hotels and shopping malls in Turkey. ADIA has more than $600 billion in assets located all over the world. Arab investment in Turkey totaled $10.6 billion at the end of last year, according to Ibrahim S. Dabdoub, chief executive of the National Bank of Kuwait.



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II. ENERGY SECTOR UPDATES

• US Companies Planning To Invest in Turkey for Solar Projects. Favorable and appealing investment conditions draw international energy companies to Turkey’s growing renewable energy sector. 15 companies from the USA consider investing in Turkey for the production of material related to harvesting energy from the sun. The first such project will turn a former food processing plant into an assembly facility for solar panels in the Black Sea province of Kastamonu. The solar panels produced by the assembly facility will both be used in projects in Turkey and also be marketed to the Middle Eastern countries. “The US companies are eager to invest in solar energy projects in Turkey,” according to Michael Lally, Commercial Counselor to the US Embassy in Ankara. Recalling that the US Eximbank has allocated a USD 1 billion loan for renewable energy projects in Turkey. • France May Join the Multi-National Nabucco Project. Turkey is considering the involvement of France in the multi-national Nabucco project amid plans to extend its scope to include a seventh partner. “There could be one or more partners to the project,” Energy Minister Taner Yıldız told to journalists, and after one day five transit countries undersigned project support agreements with Nabucco İnternational Company. “We will evaluate different proposals as almost every party said we need to be more flexible,” said the minister, when asked about the possibility of the French involvement. Turkey blocked French company Gaz de France’s participation in the European Union backed Nabucco project for political reasons. • Siemens Mulls Wind Turbine Blade Production Facility in Turkey. One of the world’s biggest manufacturers of wind turbines, Germany’s Siemens AG, may establish a wind turbine rotor blade production facility in Turkey, provided that demand for wind energy in Turkish markets continues at its current rate, According to Siemens Turkey CEO Huseyin Gelis. Turkey has huge potential for wind power, with estimates ranging from 50,000

to as high as 150,000 megawatts (MW) in electricity generation. Such potential for wind energy, together with new legislation on the horizon, offers great opportunities for foreign investors interested in expanding into the renewable energy markets of fast-growing economies such as Turkey. Turkey currently has 980 wind energy plants; 200 of them were deployed last year. Only about 2,000 MW were generated by wind farms in operation in Turkey by the end of last year. • Vestas Vie With Rivals for Turkey Wind Power Sales. Vestas is preparing for tough competition to increase its market share. Mehmet Ali Neyzi, the managing director in charge of Turkey and the Middle East for Vestas, said that the firm currently commands a market share of 30 percent Vestas Wind Systems, the world’s largest wind-turbine maker, will compete with Enercon and Nordex for market share in Turkey as the government awards more wind-power licenses. According to Neyzi, “Now that the government has paved the way for new licenses, after a suspension period, competition has started to increase, and we want to keep our market share, though some minor fall is possible.” A new law guarantees the government will purchase wind and hydro power for 7.3 U.S. cents per kilowatt hour, and there are additional incentives planned for using locally made equipment, potentially adding 0.4 cents to 2.4 cents to the guaranteed price for five years. This is attracting investment after three years of lull, Neyzi said. Purchase prices for wind power in Europe are about 13.15 U.S. cents. • Iraq Signs Gas Deal with Turkish Firm. Iraq, eager to supply natural gas to its overburdened power plants, has signed agreements with Korea Gas, Kuwait Energy and the Turkish Petroleum Corporation, or TPAO, to develop two gas fields. The three companies secured rights to develop the Mansouriya field in Iraq’s eastern Diyala province, while TPAO and Kuwait Energy won a license for the Siba field in southern Basra province, Oil Minister Abdul Kareem al-Luaibi said. The government awarded

rights to both deposits in October, together with a



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license for a third field called Akkas. Speaking at the ceremony, TPAO Chairman Mehmet Uysal said they had undersigned a historic deal. The company is eyeing further contracts in the country. • ICCI - 17th International Energy and Environment Fair and Conference 2011 The most consistent energy and environment event regularly organized every year in Turkey since 1994, was held on June 15–17, 2011. It is the only platform at which both conference and fair events about energy and environment subjects in international meaning are realized in Turkey. It is the most effective meeting place which gathered private sector, public and academicals institutions related to energy and environment, including the Ministry of Energy and Natural Resources, and the Ministry of Environment and Forestry, the recognizable associations of the industry such as the Turkey Cogeneration Association, Electricity Generation Companies Association (EÜD), Wind Energy Plants Investors Associations (RESYAD), Hydroelectricity Plants Industrial Businessmen Association (HESİAD), Regional Environment Center, ASME and Cogen Europe had supported the ICCI 2011. Round about 7000 participants had attended the conference and more than 150 speakers had spoken to the conference according to their subjects. • Zorlu to Build Largest Geothermal Power Station in Turkey. Zorlu Doğal Elektrik, a sister company of Turkish energy producer Zorlu Enerji, will construct the country’s largest geothermal power station in Kızıldere in the southwestern province of Denizli. Japan’s Sumitomo Corporation and Fuji Electric, both world-renowned companies, won the tender to build the power station, which will provide 60 megawatts of electrical power and 50 megawatts of thermal power capacity. On average 1 MW of power can supply electricity to as many as 300 U.S. households per year. According to TurkStat figures, the average person in Turkey consumes 540 kW of electricity in one year. “We have made an important step toward Turkey’s largest geothermal power station, which we aim to finish

in 2013,” Arif Özozan, Zorlu’s general director, said in a statement.



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III. COMPETITION NEWS

• Compition Board Fines Bear Group.

The Competition Board has impose a fine of 8.1 million Turkish Liras to Anadolu Efes for having “applied practices that distort competition in final sales points, which is forbidden by a board’s decision,” after an investigation. The investigation was initiated in July 2010 to inspect whether Anadolu Efes acted in line with the board’s decision, which annuls the exemption for exclusive contracts. The board investigated whether Efes Pazarlama, the marketing subsidiary of the group, and the company’s distributors had asked sale points to sell beer of no other brand but Efes and/or whether the company had made operations of rival products in sales points difficult. The fine consists of 0.3 percent of Anadolu Efes’ annual gross income. “We will evaluate all our legal rights regarding the [board’s] decision,” the company announced in a statement Tuesday on the Istanbul bourse’s website • The Investigation Conducted about Anadolu Elektronik Aletler Paz. ve Tic. A.Ş. (Anadolu Eiectronic Instruments Marketing and Trade Inc.) and Samsung Electronics İstanbul Paz. ve Tic. Ltd. Şti. (Samsung Electronics İstanbul Marketing and Trade Co. Ltd.) Has been Completed. The Decision Was Announced at 14.00 hrs (27.06.2011). The decision of the Board as to the investigation was announced on (27.06.2011) at 14.00 hrs. By Fevzi ÖZKAN, the Vice-President of the Competition Authority. As a result of the investigation made with a view to determining whether the undertakings cited infringed the Act No. 4054 by means of determining the resale price of their purchasers; it has been decided that an administrative fine of TL 1.066.669,72 be imposed on Anadolu Elektronik Aletler Paz ve Tic. A.Ş. (Anadolu Eiectronic Instruments Marketing and Trade Inc.) and that Samsung Electronics İstanbul Paz. ve Tic. Ltd. Şti. (Samsung Electronics İstanbul Marketing and Trade Co. Ltd.) did not infringe

competition within the scope of article 4 of the Act No. 4054. • An Investigation Has Been Commenced about 10 Undertakings Which Run the Activity of Bosch Dealership in Kayser. The Competition Board, in its meeting dated 09.06.2011, commenced an investigation about Oflazlar Dayanıklı Tüketim Malları Tic. San. Ltd. Şti, Başmısırlı Dayanıklı Tüketim Mamülleri, Tekiş Ticaret, Çetinkara Dayanıklı Tüketim Malları, Yakut Dayanıklı Tüketim Malları Yakacak İnşaat Taahhüt ve Turizm San. Tic. Ltd. Şti, Ada Dayanıklı Tüketim Malları San. ve Tic. Ltd. Şti, Akkaş Dayanıklı Tüketim Malları Tekstil İnş. Taah. Yakacak Ürünleri ve Gıda Maddeleri Tic. San. Ltd. Şti, Özçınar Dayanıklı Tüketim Malları, Mesa Dayanıklı Tüketim Malları Tekstil İnş. Taah. Nak. ve Gıda Maddeleri Tic. ve San. Ltd. Şti, Hilal Dayanıklı Tüketim Mamülleri Tic. ve San. Ltd. Şti. that are engaged in the dealership of Bosch at the center of the province of Kayseri with a view to being able to determine whether they infringe article 4 of the Act No. 4054 by means of applying the same price. • "Competition Law Compliance Program" Has Been Published. If undertakings or associations of undertakings have knowledge about competition infringements beforehand, many problems such as severe administrative sanctions can be prevented. Within this framework "Competition Law Compliance Program" is prepared by the Competition Authority with the aim of guiding undertakings and associations of undertakings while they are preparing their own compliance programs and includes answers to possible questions about compliance programs. Competition Law Compliance Programs that are applied in many countries in order to raise the awareness of undertakings or associations of undertakings about competition rules can ensure the prevention of competition infringements before they occur. Compliance programs are consisted of methods showing the measures that undertakings or associations of undertakings use to avoid actions and decisions violating the competition legislation and how



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those measures are applied in the organization. • Prof. Dr. Metin Toprak, has Appointed to the Vacant Competition Board membership. Prof. Dr. Metin Toprak, who was appointed to the vacant Competition Board membership, has taken office. Having been appointed as member of Competition Board according to the quota set for the Ministry of Industry and Trade and for which appointment a decision was published on the Official Gazette issue dated July 1, 2011, Prof. Dr. Metin Toprak took his oath of office on 7 July 2011 before the Supreme Court of Appeals 1st Presidential Tribunal. IV. INSURANCE UPDATES

• US-based MetLife Acquires Turkish Insurance Company. A Turkish lender largely owned by Europe’s Dexia, has agreed to sell its insurance operations in Turkey for EUR 161.9 million to the US-based MetLife. According to the agreement on the sale of the 99.86 percent stake, Deniz Bank branches will continue to sell MetLife’s individual retirement and life insurance policies for 15 years. “Turkey is a strategic market for MetLife,” said Michel Khalaf, the US company’s regional CEO. “A strong long term partnership with a banking leader such as Deniz Bank is very important to us.” MetLife has been operating in Turkey under the name MetLife Alico since 1988. • Insurer Lloyd’s to Enter Turkey. British Lloyd’s, one of the oldest names in the insurance business, has announced its decision to enter the Turkish market. Turkey is one of the largest and fastest growing markets in Europe, which Lloyd’s regrets not having entered earlier, said Lloyd’s Chairman Peter Keith Levene. Istanbul is a regional finance center with increasing importance, Lloyd’s Chairman said of Turkey’s financial capital, noting Istanbul’s rise to prominence as a hub for international finance. “Turkey’s booming financial services sector and remarkable performance during the global financial crisis changed the country’s perception in the West,” said Levene. “It is now the world’s

fastest growing country with lucrative investment opportunities,” he added.



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V. TELECOMMUNICATION / MEDIA UPDATES

• Vodafone Lauches Woman Act in Technology. The Vodafone Turkey Foundation, or VTF, has launched a new project aiming to remove gender inequality in technology usage. During a meeting in Istanbul, a protocol to reveal the “Women’s Movement in Technology,” which will be the Turkey leg of the global women’s program conducted by the Cherie Blair Foundation and the GSMA Development Fund, was signed. The project aims to introduce more women to technological opportunities and to increase their mobile phone usage. Cherie Blair, who is considered an opinion leader in human rights and global women’s entrepreneurship, attended the Vodafone’s meeting. “This is an important effort to provide women’s usage of technological opportunities,” said Blair, speaking at the meeting.

• S. African Naspers Acquires 70 Percent of Turkish Markafoni Shares. South African Multinational multimedia company Naspers has entered the Turkish ecommerce market by purchasing 70 percent of Markafoni, the first and leading private shopping club in Turkey, through its subsidiary MIH-Allegro. The company did not release the value of the deal. The acquisition includes the sale of Markafoni Turkey, Markafoni Ukraine and Zizigo, the biggest online shoe store in Turkey. The acquisition is expected to bring dynamism to the Turkish e-commerce market and also facilitate Markafoni's efforts to become a global brand. Markafoni, an online shopping site offering discounts of up to 90 percent on well-known brands in many categories, has approximately 12 million visits per month. Markafoni is currently Turkey's third biggest e commerce company with 3.5 million members. Established in 1915 in Cape Town, Naspers is a leading multinational media group listed on the Johannesburg Stock Exchange (JSE). The group is active in multiple markets such as Internet platforms, pay television and print media.

VI. MİSCELLANEOUS

• Turkey Led the Highest Economic Growth in the World for the First Quarter this Year. ‘Turkey is Eurasia’s Rising Tiger’. The Wall Street Journal. With private investments and domestic consumption leading the charge, Turkey claimed the top spot in economic growth worldwide for the first quarter of 2011 with a blistering 11 percent, according to the Turkish Statistics Institute, or TurkStat. At this rate Turkey will surpass $742 billion, its pre-crisis 2008 level of gross domestic product, by the end of the year. The fastest growing sectors in the quarter were wholesale and trade, which boasted a 17.2 growth rate. Construction was another leader at 14.2 percent while the energy, transportation and communication sectors also supported the growth. Argentina and China followed Turkey with rates of 9.9 percent and 9.7 percent.

• FDI Inflow to Turkey may Reach USD 12 billion in 2011. Driven by rapid growth, foreign direct investment (FDI) inflow to Turkey is expected to reach about USD 10 billion in 2011, and depending on the global positive economic trends, it may hit USD 12 billion, according to the International Investors Association of Turkey (YASED). YASED Chairman Izzet Karaca, said that high growth is critically important in creating jobs and reducing unemployment, in reference to Turkey’s 11 percent first quarter growth. “Turkey should enjoy being the world champion of GDP growth in the first quarter,” he said.

• EIB Funds Development in Turkey. The European Investment Bank (EIB) has allocated a total of EUR 445 million in loans to Turkey in four separate financing deals. According to the agreement between EIB and Turkey’s Undersecretariat of Treasury, the financing package will be utilized to support projects on climate change and entrepreneurship. Signed by EIB Vice-President, Mr Matthias Kollatz-Ahnen, Undersecretary of Turkish Treasury, Ibrahim Canakci, Turkiye



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Kalkinma Bankasi (TKB) General Manager, Metin Pehlivan, Turkiye Sinai Kalkinma Bankasi (TSKB) acting General Manager, Orhan Beskok, the EIB loan will be made available through the Undersecretariat of Treasury in favor of the Ministry of Environment, Forestry and Urbanization, the Turkish State Railways (TCDD), and with the Turkish development banks TKB and TKSB. Ibrahim Canakci said that EIB has been a leading international partner of Turkey since the 1960s. Praising EIB’s ongoing contribution to Turkey’s economic development, Undersecretary Canakci said that the financing deals with the bank proved invaluable in financing major investments in key sectors.

• Three Turkish Banks in Global Most Profitable List. Two public and one privately-owned Turkish bank made it to the Top 25 list in terms of return on capital in The Banker magazine’s Top 1,000 World Banks ranking. State-owned Halk Bank and Ziraat Bank ranked 6th and 9th respectively in the most profitable 25 banks of the world, while private Garanti Bank secured the 22nd place. The data from the ranking reveal that the majority of the most profitable banking institutions are from the emerging countries with Turkey, China and Indonesia being top performers. The three Turkish banks’ combined capital-to-asset ratio of 7.6 percent is strikingly high in comparison with the average 5.35 percent, said the editorial.

• Ford to Export “Made in Turkey” Trucks to 65 Countries. Turkey’s Ford Otosan plans to export Ford Cargo model vehicles to 65 countries all over the world. Already an exporter of light commercial vehicles and Transit model vans. Ford Motor Company and Koc Holding JV now aims to grab a share of the heavy truck markets of countries in Eastern Europe, the Middle East, Russia, Central Asia and North Africa. “Ford was the first company to manufacture trucks in Turkey,” said Ford Otosan’s General Manager Nuri Otay about the company’s first venture into heavy commercial vehicle production in 1960. Ford handed over its global truck business to Iveco in 1986 and is now seeking to re-enter the market

through its subsidiaries in Turkey and Brazil. Ford has invested over USD 400 million in its Inonu plant, which began production in 1981. The investment in the production of the new truck at Ford Otosan’s Inonu plant will reach USD 75 million.

• Turkish Company Invests $94 mln for Huge Restoration. Dati Investment Holding has invested $94 million for the restoration of the oldest shopping center in Istanbul, a hotel and the marina in the Ataköy district of Istanbul. Having acquired the area’s marina, hotel and mall complex for $200 million in 2004 through privatization, Dati has invested nearly $60 million in a luxury hotel with 255 rooms located in Ataköy belonging to the Sheraton Hotel chain, said Gökhan Kıran, board chairman of the company. The group has also invested $17 million for the construction of 20 luxury residences and 100 shops in the Ataköy Marina which has a capacity for 700 yachts. Istanbul’s first shopping mall, the 23- year-old Galleria, has gone through an extensive restoration with a total investment of $17 million. Nearly 3,000 square meters of indoor space have been added to the mall, which has reached a total size of 44,500 square meters. • Hilton Launches Cheap Hotel Chain Hampton by Hilton in Turkey. Hilton Worldwide has announced plans to enter the cheap hotels business in Turkey through a brand to be called Hampton by Hilton. The company has signed agreements on four Hampton by Hilton hotels and is running two other projects in 2011. The four Hampton by Hilton hotels will be built in Istanbul’s Kayaşehir neighborhood, Tekirdağ’s Çorlu district, the Black Sea province of Rize and the southeastern province of Gaziantep. Hilton has projects for two more Hampton by Hilton hotels in Bursa and Ordu, Collini said, adding that the company thus wants to six cheaper hotels up and running by the end of the year. • Angels’ in Turkey for Brilliant Ideas. Angel Investment, a group famous for contributing to the emergence and success of companies such as Facebook and Apple, is



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now in Turkey to help entrepreneurs get off the ground, according to a local association head. Turkish entrepreneurs who plan big businesses but lack resources will be able to find financing through the newly founded Business Angel Association Turkey, or TBAA, according to the body. The group has intermediated in financing totaling $26 billion for 270,000 investors in the United States and 4 billion euros for 75,000 investors in the European Union in the past. • IWES 2011 3rd Waste Technologies Symposium and Exhibition Will be Held on November 3-4, 2011 With the increasing significant importance of waste management 3rd Waste Technologies Symposium and Exhibition, will be organized on November 3-4, 2011, shall act as a meeting platform where all sector representatives, performers, suppliers, investors and decision makers, local and central managements, academic and public representatives who agreed on the necessity of the said technologies, meet. As it is the case every year, the issue of following all developments and technological advancements in the area of waste technologies, and making these technologies widespread, will be the top agenda items of IWES 2011.

• Medical Park Seeks Hospital Investment in Turkey. The top executive of the Medical Park said they have the potential to secure a 10 percent share in the country’s health tourism industry. The group targets to total $40 million in health tourism revenue this year with new hospital investments, aiming to increase this figure to $500 million in the next five years. “If the issue is taken seriously, some $5 billion can be earned in the country’s health tourism in the next five years,” Muharrem Usta, board chairman of Medical Park said, speaking during a press meeting. “As Medical Park, we may get 10 percent of this total amount.” One of the leading private hospital groups with its 17 hospitals, Medical Group aims to expand its “patient segment” with new hospital investments in Acarkent, a luxury site in Istanbul’s Beykoz

neighborhood, Ulus neighborhood and Aegean province of İzmir.

VII. CONTACTS: Phonne : +90(212) 211 66 11 Fax : +90(212) 211 55 75 Address : Pekintaş Plaza Kat: 9 Buyukdere Caddesi No: 32 34394-00 Mecidiyekoy Istanbul/ TURKEY E-mail : info@GroupLaw .com.tr Website : www.GroupLaw .com.tr Disclaimer : This newsletter has been prepared for informational purpose only; It has neither prarpered for advertising purpose nor with the intention of creating an attorney-client relationship. None of the information contained in this legal newsletter shall constitute legal advice or anything correlated thereto.

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Glo Newsletter 8