256 NEWSLETTER 2021 lution”) entered into force.2 The legal basis of the Resolution is Additional Article 1 of the Law, which states that public administrations may conclude energy performance contracts. With the aforementioned additional article, it is stated that the Public Procurement Law will not be applied regarding the tenders of the public administrations within the scope of energy performance projects (except for penalty and prohibition provisions). Article 5 (Tender procedure and basic principles) and the following provisions of the Resolution govern the basic principles. Accordingly, certain thresholds have been set for the tenders to be held under the Resolution. Article 5(2) of the Resolution states that the investment amount shall be at least two million Turkish Liras, and the simple payback period must be at least two years. The maximum term for the contract is stated as fifteen years under Article 7(2) of the Resolution. Energy efficiency contracts concluded by public administrations will be executed within the framework set out by the Law and secondary legislation. In this context, project stages, such as tender (Article 6 of the Resolution - General principles and procedures regarding the tender process) and implementation, monitoring, verification (Article 8 of the Resolution - Implementation period, monitoring period and savings verification activities) should be designed in accordance with the relevant legislation. Energy Service Companies: ESCO An energy service company would be the characteristic party of energy performance contracts, regardless of whether the counter party is public administration or private company. These companies that are referred internationally as by the abbreviation of ESCO (Energy Service Company), undertake technical tasks and, depending on the nature of the project, undertake the financing of the company. An ESCO is responsible for conducting the preliminary inspections in the relevant facility or area, determining the energy amount that can be saved and developing a related project and, as a result, the implementation of the relevant project. 2 OG No. 31220, 21.08.2020.
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