Legal Update: Thresholds in Public Procurement Law of Turkey Increased

Şafak HerdemManaging Partner, Herdem Attorneys At Law

The monetary limits and threshold values are determined in Article 8 of the Public Procurement Law No. 4734 and updated in accordance with the annual rate of change values published by the Turkey Statistical Institute (“TSI”). All transactions of the procurement process such as public procurement announcement dates and rules, domestic bidder advantage and rules of qualification are shaped according to the range of the approximate cost amount corresponding to the threshold values and monetary limits table.

The new Public Procurement General Communique No. 2020/1 were published on the Official Gazette dated January 29, 2020. Accordingly, threshold values and monetary limits specified under Public Procurement Law No. 4734 (“Law No.4734”) are increased to 7.36 percent considering the December 2019 Domestic Producer Price Index annual change rate announced by TSI. Procurements held as per article exceptions of Law No. 4734 along with the procurement which are not in scope of the Law No 4734 will not be affected by the new limits as stated by Public Procurement Authority in its guideline published on its website.

The new limits will be effective from February 1, 2020. You can reach the comparable values with the previous period on the annex of the relevant communique via link: https://www.resmigazete.gov.tr/eskiler/2020/01/20200129-6-1.pdf