AMENDMENT OF THE REGULATION ON THE IMPLEMENTATION OF THE ORGANIZED INDUSTRIAL ZONES

The Regulation Amending the Regulation on the Implementation of the Organized Industrial Zones (the “OIZ”) (in Turkish, “Organize Sanayi Bölgeleri Uygulama Yönetmeliğinde Değişiklik Yapılmasına Dair Yönetmelik”, hereinafter referred to as the “Regulation”), has been published in the Official Gazette and entered into force on 16 April 2020. The Ministry of Industry and Technology (the “Ministry”) has emphasized the importance of planned industrialization within sustainable growth and has stated that the changes had been made with the intent to maintain production and relieve the industrial sector of the difficulties faced in light of the Covid-19 outbreak.

We would like to bring forth to your attention the major amendments adopted therewith:

1. 1. Meetings/ General Assemblies
   As per the amended Article 9 of the Regulation, the duty of determining the occupancy rate of OIZs and notifying the Ministry to that end within one week as well as the duty and authority of notifying and gathering the general assembly, has been delegated from the enterprising committee, to the board of directors.

   As per the amended Article 14, notices for ordinary and extraordinary meetings can now be made via the registered electronic mail system (KEP) as well, without prejudice to the formerly accepted delivery methods i.e. mail, signed letter, registered letter with return receipt, aiming at facilitating the process.

   If it is decided to maintain the current enterprising committee at the general assembly meeting, the number of members who may be elected by the assembly to the committee has been increased from 8 to 9, both for permanent and substitute members, as per the Article 11.

2. Change in the Type of OIZ
   Pursuant to the Article 5/7, the type of the OIZs defined as combined or specialized (in Turkish “karma veya ihtisas”) during their establishment period may be amended with the approval of the Ministry, upon adoption of a decision by the enterprising committee or the general assembly in this respect.
3. Building Areas/ Land Allocation
   The limitations and allowed surface usage volumes linked to the floor area ratio (in Turkish “emsal”) in OIZs have been redefined in detail as per the amendments brought to the Article 36 setting forth the modalities for the establishment of construction plans.

   The Article 56/4 setting forth the regulation regarding the sale of land in foreign currency in OIZs has been repealed.

   Besides, as per the Article 41/3, it will also be possible to readjust parcel boundaries through incorporation or allotment (in Turkish “tevhit veya ifraz”), provided that all of the participants affected by the said change express their demand and give their accord for it, and that the grounds thereof is indicated expressly at the resolution of the board of directors.

   Moreover, in case of return or cancellation of land allocations, the amount to be refunded to the participant should not exceed the up-to-date parcel allocation fee, as per the Article 62/3.

4. Alternative Energy and Sustainability
   As per the Article 43/1.g.1, it has been determined that the establishment of wind and solar power-based electricity generation facility may not be done on the ring roads in the parcels and on the green spaces and shall be made on the roofs and facades. If it is not possible to do so for static and architectural reasons or if additional capacity is needed, the floor space to be established should not exceed 25% of the parcel area. In light of the demands from the recycling sector, it will also be possible to establish recycling and disposal facilities with the decision of the enterprising committee or the general assembly, provided that the facilities are built within the technical infrastructure area of the OIZ, in accordance with the Article 54/2.c.

   As per the Article 54/3, in the event the OIZ decides for any facility that it cannot be established in the OIZ, if the person wishing to establish the facility makes an application to that end, the final decision in this respect shall be made by the Ministry.

5. Donations
   Donations are now within the scope of the powers and duties of enterprising committees and general assemblies; decisions to donate shall be submitted to the approval of the Ministry, pursuant to the Article 23/1.cc.
6. Establishment of Private OIZs
   Pursuant to the amendments brought to the Article 5/5 regulating the incorporation of private OIZs, as part of the effort to reduce potential bureaucratic obstacles and simplify the legislation, title deed submissions will no longer be required in requests for the establishment of private OIZs since information regarding land registry/cadaster can be accessed via public archives.

Our Law Firm remains at your disposal for any further clarifications you may need about the subject matter.