The civil offset regulation is applicable on the public purchases with a minimum amount of USD 10mn and refers to the term “Industrial Cooperation Program” (ICP) or in Turkish “Sanayi Isbirligi Programi” instead of the term “offset“.
The regulation further mandates ICP implementations basically as a public procurement policy tool for the purposes of:
- providing localization, innovation and technology transfer in the relevant Turkish industry;
- improving production and technology capability in Turkey;
- increasing the quality of products and services;
- and ensuring international mutual cooperation and investment opportunities through public procurements.
So, the offset regulation aims to contribute to the development of the relevant Turkish industries, e.g. railway, healthcare, aviation etc.
It is important to note that the term “local manufacturer or service provider” under the offset regulation means real person manufacturers/service providers, who are Turkish citizens; or legal entity manufacturers/service providers more than 50% of the capital of which are owned by Turkish real or legal persons.
TCDD (Turkish State Railways) will need about 500 HST sets up to 2030 and İstanbul will purchase 1000 metro cars up to 2020. They are just two examples about opportunities in Turkey. Turkey has also the most appropriate location for Middle East projects.