The document outlines the public procurement framework in Turkey, highlighting key institutions like the Ministry of Finance and the Public Procurement Authority (PPA). It describes the roles and responsibilities of these institutions in ensuring effective public procurement processes, including the establishment of a centralized purchasing system. Ongoing efforts to improve administrative capacity and functionality within this framework are also noted.

1. THE REPUBLIC OF TURKEY
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ERKAN OZDEMIR Public Procurement Specialist
Regulation Department Public Procurement Authority
erkanozdemir@kik.gov.tr
Institutional Set Up and
The Role Of Central Institutions in Turkey
7th IPA Regional Public Procurement Conference
9 – 10 September 2014 Vlora, Albania

2. KEY INSTITUTIONS
The institutional framework is already well-established in Turkey. However, legal and institutional improvements introduced to Turkish public procurement system during the accession process require further developments in terms of functionality of the existing framework.
Key institutions involved in public procurement system are the Ministry of Finance and the Public Procurement Authority. Besides these institutions, Turkey has also centralised purchasing system and institutions.
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3. MINISTRY OF FINANCE
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The Ministry of Finance (MoF), as the competent authority, has responsibilities and powers to ensure and steer the implementation of a coherent policy in all areas related to public procurement and to coordinate all aspects related to negotiations between Turkey and EU on Chapter 5: Public Procurement.
The MOF has been assigned the task “to determine the key policies on public procurement in the context of general economic policies and strategies, and to ensure coordination among the related parties in the preparation of the draft laws in this area” by the Law No. 5917, dated June 25, 2009.

4. MINISTRY OF FINANCE
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As for public procurement, the MoF has the final word regarding any legal drafts related to public procurement (including concessions/PPPs) in order to ensure the coherence of the system and the effective and correct adoption of public procurement legislation.
In order to facilitate the negotiation process, “Public Procurement Coordination Unit” was established within the Ministry of Finance-General Directorate of Budget and Fiscal Control. Public Procurement Coordination Unit is currently operating with 11 personel.

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•Coordinating the accession negotiations between the EU and Turkey on Chapter 5: Public Procurement,
•Carrying out needs assessment on administrative and operational capacity at all levels of public administration (central, regional and local level) in order to improve effectiveness of the public procurement system,
•Updating the National Strategy on Public Procurement taking into account the needs assessment,
•Examining the draft laws for consistency with the existing public procurement legislation in terms of terminology, principles and procedures; and compliance with the acquis,
Functions to be carried out under the coordination of MoF can be summarized as follows:
MINISTRY OF FINANCE

6. PUBLIC PROCUREMENT AUTHORITY
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Public Procurement Authority (PPA), which was established in 2002, is a regulatory and supervisory body responsible for regulating and monitoring the public procurement system.
PPA is related to the MoF and has administrative and financial autonomy in the realization of its functions which implies that no organ, entity or person can issue orders or instructions for the purpose of influencing the decisions of the Authority.

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PPA consists of:
the Public Procurement Board (PPB) acting as a decision making body with 9 members,
Presidency,
and service units.
PPB members are appointed by the Council of Ministers upon the proposal of the Ministry of Finance and their term of office is for 4 years and a member can be elected more than once.
The president of the PPA is also the president of the Board.
At present, the Authority has been operating with 333 Personnel including 155 public procurement specialists.
PUBLIC PROCUREMENT AUTHORITY

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The main duties and powers of the PPA are:
to prepare, develop and guide the implementation of Public Procurement Law (PPL) and Public Procurement Contracts Law (PPCL)
to review the complaints about the tender process and proceedings conducted by the contracting entities covered by PPL,
to prepare secondary legislation in relation to the implementation of the PPL and PPCL
to provide training on procurement legislation both in public and private sector, to ensure national and international coordination in this field,
PUBLIC PROCUREMENT AUTHORITY

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to collect, analyze and publish the data concerning the procurements carried out within the framework of the PPL,
to keep the records of tenderers prohibited from participating in tenders
to regulate the principles and procedures with regard the tender notices and to publish the Public Procurement Bulletin in electronic environment,
to establish and operate the Electronic Public Procurement Platform (that platform became operational on September 1, 2010)
PUBLIC PROCUREMENT AUTHORITY

10. CENTRALISED PURCHASING
Centralisation is one of the key procurement strategies.
Full Centralization
•Procurement is carried out by central purchasing bodies
Full Decentralization
•Each contracting entity carries out its own procurement
Hybrid Models
•Combine both centralized and decentralized purchasing.
•Some procurement activities are carried out by central purchasing bodies/by each contracting entities.
The optimal level of centralization is a challenging issue
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11. KEY PLAYERS OF CENTRALIZED PURCHASING SYSTEM IN TURKEY
State Supply Office
Public Hospitals Unions
Economic Operators
Contracting Authorities + Ministries
Public Procurement Authority
Turkish Public Procurement System (TPPS) is a mixture of centralised and decentralised model.
Majority of public procurement is conducted by the individual contracting authorities (currently more than 28.000).
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12. STATE SUPPLY OFFICE
The State Supply Office (SSO), established in 1926, is the national central purchasing body of Turkey.
The SSO purchases various goods and services (such as vehicles, tables, chairs, and other office supplies) listed in its articles of association for other contracting authorities.
The SSO shall procure in accordance with the PPL, whereas purchases of contracting authorities from the SSO are outside the scope of PPL.
Hower, it is not compulsory for contracting authorities to purchase supplies and services from or through SSO. Statistics indicates that the majority of public procurements is conducted by the individual contracting authorities in accordance with the PPL.
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13. PUBLIC HOSPITALS UNIONS
Turkish Institution of Public Hospitals was established by Legislative Decree no 663 dated 11 November 2011.
Public Hospitals Unions (PHU) are established in 52 cities under Turkish Institution of Public Hospitals. PHU conduct public procurement in health sector for all the public hospitals in the relevant region.
PHU shall act in accordance with PPL for their centralized procurement. Framework agreements also provide an instrument to PHU for their centralized purchasing.
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14. MINISTRIES AND CONTRACTING AUTHORITIES
Needs of various contracting authorities subordinate to a Ministry may be procured by the central organisation of that Ministry.
In addition, contracting authorities may come together to procure their common needs through framework agreements or by making protocols in accordance with the PPL (joint procurement).
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15. FURTHER DEVELOPMENTS
Work for improving the administrative capacity is on- going
In order to ensure an effective implementation of a coherent and sound public procurement system, institutional framework will be rendered fully functional and administrative capacities will be further strengthened.
Within this framework, taking into account their institutional set-ups and according to their peculiar needs for strengthening administrative capacity, organisational changes will be introduced in the institutional structures of key institutions.
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