Turkey Railway Machines Industry Inc. Surplus Assessment and Sale of Assets Regulation.

Railway Machines Industry Corporation of Turkey:

TURKISH RAILWAY MACHINES INDUSTRY JOINT STOCK COMPANY NEEDS FURTHER EVALUATION AND REGULATIONS FOR ASSETS SALES

FIRST PART

Purpose, Scope, Basis and Definitions

Purpose and scope

ARTICLE 1 - (1) The purpose of this Regulation is to: Turkey Railway Machines scrap of Industry Joint Stock Company, surplus rail vehicles, motor vehicles, construction machinery, machine tools, raw material supplies and equipment, semi-finished products and to regulate the procedures and principles relating to the sale will be identified for replacement parts.

Rest

ARTICLE 2 - (1) This Regulation has been prepared on the basis of the provisions of the Decree Law No. 8 on Public Economic Enterprises dated 6 / 1984 / 233.

Definitions

ARTICLE 3 - (1) In this Regulation;

a) Quantity: Railway Machines Industry Corporation of Turkey conducts picking up within the Directorate General of certain services and / or applying technical and administrative departments,

b) General Director: Turkey Railway Machines Industry Corporation Director General,

c) Scrap: Expired, repairable and / or cost-effective, uneconomical, diminished or unused technical damage, due to its deformation, but expressing value as scrap, machinery, machinery, equipment, spare parts and all kinds of raw materials, semi-finished and finished materials,

ç) Surplus assets: All kinds of railway vehicles, work machines, workbenches, equipment, fixtures and spare parts and primary materials, semi-finished products, which are owned by the Company, have no movement for 5 year and more, and cannot be used or consumed due to being more than needed. and manufactured materials,

d) Tenderer: Real and legal persons who submit a tender,

e) Sales authority: Authorities within the sales authorization limits determined by the Board of Directors,

f) Company: Turkey Railway Machines Industry Inc.,

g) Vehicle: All motorized and non-motorized transportation vehicles,

i) a letter of guarantee: with the letter of guarantees given by banks organized as part of the bail bonds surety insurance by resident insurance companies in Turkey

h) Executive Management: Turkey Railway Machines Industry Inc. General Manager and Deputy General Manager of,

i) Board of Directors: Turkey Railway Machines Industry Inc. Board of Directors,

expresses

Basic principles

ARTICLE 4 - (1) The relevant units of the administration are responsible for ensuring transparency, equal treatment, reliability, confidentiality when necessary, proper and timely sales and efficient use of resources.

SECOND PART

Determination and Valuation Process

Detection procedures

ARTICLE 5 - (1) To determine whether the vehicles are scrap or surplus, they are made by means of a commission established in accordance with the provisions of Article 5 of the Vehicle Law dated 1 / 1961 / 237 and numbered 13.

(2) The determination of whether the assets other than vehicles are scrap or surplus (except for the materials that do not move) are carried out by the commission established with the approval of the Senior Management by the unit where the asset is located.

(3) 5 is responsible for the determination of materials that do not move for years and more, in coordination with the Material Department and the Production Planning and Control Department.

Value appreciation transactions

ARTICLE 6 - (1) The value appraisal commission shall consist of at least three members determined by the Executive Management, provided that two personnel are experts in the business.

(2) One of the members is appointed by the Executive Management as the chairman of the commission. The Commission convenes with the full number of members and takes decisions by majority vote. Members are responsible for their votes and decisions and cannot abstain from voting or abstain from voting. In case of a counter vote, the holder of the opposite game shall sign the rationale for the commission decision.

(3) The Commission shall complete its work at the latest in thirty days.

(4) Commission members are independent in their decisions, cannot interfere with their duties and cannot be advised of their duties.

(5) The Commission may refer to the information of the relevant department or personnel in matters it requires.

(6) All kinds of price surveys are carried out by the value appraisal commission established by the Senior Management and the estimated value is determined excluding the Value Added Tax.

THIRD PART

Sales

Sale of vehicles

ARTICLE 7 - (1) Sales transactions of surplus or scrap vehicles shall be carried out in accordance with the provisions of Article 13 of the Vehicle Law and the Council of Ministers Decision dated 20 / 3 / 1971 and numbered 7 / 2156.

Sale of scrap

ARTICLE 8 - (1) If it is determined that the assets other than vehicles are scrap, the assets that are scrapped are delivered to the Material Department. The Department of Materials carries out the sale of such materials to the Machinery and Chemical Industry Authority in accordance with the scrap material sale procedure and the Decree of the Council of Ministers dated 20 / 3 / 1971 and numbered 7 / 2156.

Sale of surplus assets

ARTICLE 9 - (1) The assets that are determined to be in excess of the assets other than the vehicles are delivered to the Department of Materials to start the sales transactions. Surplus assets are requested by TCDD General Directorate and its Subsidiaries by the Department of Materials. 3 / 7 / 2003 dated and No. 4916 Various Laws and the Ministry of Finance on the Organization and Duties of the Law on Amendments to the provisions of Article 37 Law on the sale of the organizations can be made upon request. The list of surplus assets that have not been sold is sent to third parties by the Material Department for the sale and sales to the Trade and Marketing Department.

Establishment of sales commission

ARTICLE 10 - (1) Sales commission selected by the Board of Directors for the sale of motor vehicles, other sales representative; The unit consists of at least two personnel, one from the Department of Commerce and Marketing, one from the Department of Financial Affairs and one from the Department of Materials. The member elected as a substitute of the original member cannot be from a different unit unless there is a requirement.

(2) One of the members is appointed by the sales officer as the head of the commission.

(3) A copy of the tender document shall be sent to the tender commission members within three days following the announcement in order to ensure that they carry out the necessary examination. The tender process file may be reviewed by the commission members at the Department of Trade and Marketing.

(4) In case the principal members cannot attend the meeting due to permission, report, assignment and similar reasons or leave the office, substitute members shall serve in their place. In this case, the excuse of the principal member is communicated to the chairman of the commission in writing and this is recorded in the minutes of the meeting.

Duties and powers of sales commission

ARTICLE 11 - (1) The duties and powers of the Commission are as follows:

a) To make sales transactions according to the selected sales method.

b) Taking and evaluating bids by checking the bid bonds received according to the selected sales method.

c) To cancel the tender if the prices given are not deemed sufficient as a result of the examination of the bids or by rejecting all the bids submitted.

ç) To decide on the sale if the prices given are considered sufficient.

d) To apply the information of the relevant personnel when required by the quality of the sales transaction.

e) The sales commission convenes with the full number of members and takes decisions by majority vote. Members are responsible for their votes and decisions and cannot abstain from voting and cannot abstain. In case of a counter vote, the holder of the opposite game shall sign the rationale for the commission decision.

f) The members of the sales commission are independent in their decisions, cannot interfere with their duties and cannot make any suggestions about their duties.

g) The decision taken by the sales commission is submitted to the approval of the sales officer. The sales commission decisions are finalized after they are approved according to the limits of the sales authorization.

Sales procedures

ARTICLE 12 - (1) The following procedures shall be applied for sales to be made within the scope of this Regulation:

a) Closed tender procedure.

b) Auction procedure.

c) Direct selling procedure.

(2) The salesperson shall determine which or which of these procedures will be applied according to the nature of the sale.

(3) The sales commission may finalize the tender which starts with one of the above mentioned procedures, provided that it is specified in the announcement and specification to be made to the tenderers who continue the tender.

Closed tender procedure

ARTICLE 13 - (1) A closed tender procedure is a procedure in which all tenderers may submit a tender in a sealed envelope.

(2) Provided that the bid price exceeds the estimated price, the sale commission may be executed with the decision of the sales commission and the approval of the sales officer.

Auction procedure

ARTICLE 14 - (1) The bidders determined by the sales commission, who have given the required collateral and have fulfilled the necessary conditions stated in the tender document, can participate in the auctions made through the auction procedure.

(2) The minimum amount that can be increased in the bids to be submitted at each stage of the auction with the initial value requested is determined by the commission.

(3) Bidders shall continue the auction if the bid is made at or above the initial value to be taken as basis for the auction. Bidders shall submit new bids by increasing the previous bid. If there is no new bid in this auction, the chairman of the commission announces that the tender will be completed on the last bid and if the bid does not arrive after the announcement, the auction is ended.

(4) Auction transactions are recorded in minutes. The minutes shall be signed by the commission members and the bidders.

Direct selling

ARTICLE 15 - (1) Construction machinery, machinery and equipment, fixtures, tools, equipment and materials which are not used or surplus due to being out of service in accordance with Article 4916 of Law No. 37, are provided to municipalities, special provincial administrations, agricultural development cooperatives, irrigation cooperatives, irrigation unions and other public The Board of Directors is authorized to sell, rent, sell and lease the companies and their institutions by mutual agreement and to direct sales without resorting to other sales methods.

(2) In this method; it is not obligatory to obtain collateral, to prepare specifications, to announce and to sign the contract.

CHAPTER FOUR

Tender Preparation and Participation Rules

Preparation of tender process file

ARTICLE 16 - (1) A transaction file is prepared by the Department of Trade and Marketing for each work to be tendered. This document contains all the documents related to the tender process such as the proceedings received, the tender document, the texts of the announcement, the applications or offers submitted by the tenderers, the determination commission, the appraisal commission and the sales commission minutes and resolutions according to the stage of the tender.

Specification and contract

ARTICLE 17 - (1) Administrative works, contracts and technical specifications, if deemed necessary, shall be issued and included in the tender transaction dossier.

Matters to be included in specifications and contract

ARTICLE 18 - (1) In the specifications and contracts, according to the nature of the sales transaction, besides the special and technical conditions, the following matters shall be included:

a) Parties.

b) Subject of sale.

c) Measure, feature and quantity.

ç) Certificate of sight.

d) Increase limit.

e) Conditions to participate in the tender and to give up the tender.

f) The way of bidding.

g) Transfer, place of delivery and conditions.

ğ) Obligations of the Parties.

h) Period of contract.

ı) Payment terms.

i) Amount of provisional and definite collateral and what will be accepted as collateral.

j) Guarantee and return of documents.

k) Expenses included in the single price and / or contract price.

l) Criminal conditions.

m) Termination and liquidation of the contract.

n) Financial and technical qualifications sought for those who are required to participate in the tender.

o) Validity period of tenders.

ö) Place of dispute settlement.

p) Legal residence and / or notification addresses.

r) Whether the contract is approved by a notary public.

s) Other issues and prerequisites that may be deemed necessary.

Those who cannot participate in the tender

ARTICLE 19 - (1) The following may not participate directly or indirectly in any way on behalf of themselves or others:

a) Those who are prohibited from participating in public tenders temporarily and permanently in accordance with the provisions of the Public Procurement Law no. Those convicted of offenses or organized crimes within the scope of the Anti-Terror Law No. 4.

b) The sales person of the Company and the persons in charge of such boards.

c) Those who are responsible for preparing, carrying out, finalizing and approving all kinds of tender procedures related to the subject matter of the Company.

ç) Spouses and blood relatives up to third degree and relatives up to second degree, adoptions and adopters of the persons mentioned in paragraphs (b) and (c).

d) the partners and companies of those mentioned in subparagraphs (b), (c) and (ç) (except for joint stock companies where they do not serve on the board of directors or hold more than 10% of their capital).

e) Tenderers of foreign countries to be determined by the decisions of the President to be taken in accordance with subparagraph (4734) of paragraph (b) of the first paragraph of Article 53 of Law 8.

f) The organizations such as foundations, associations, unions, ballot boxes within the structure of the Company or whatever companies are established for any purpose related to the company and the companies that these organizations are partners cannot participate in the tenders of these administrations.

g) Natural and legal persons notified to the terrorist organizations by the General Directorate of Security or related to them, and the foreign and real persons who are related to this subject by the MIT.

(2) Tenderers who participate in the tender despite the prohibitions in the first paragraph shall be excluded from the tender and their temporary guarantees shall be recorded as revenue as a penalty. In addition, if this decision cannot be determined during the evaluation of tenders, if a sales decision is made on one of these, the guarantee shall be recorded as revenue as penalty and the sale shall be canceled.

(3) In cases where partial bids are submitted, the part remaining under the tenderers participating in the tender despite the above prohibitions shall be canceled and their guarantees shall be recorded as revenue as penalty.

(4) The principles and procedures regarding the notifications under paragraph (g) of the first paragraph shall be determined by the President. The bidders found to be within the scope of the sub-clause shall be excluded from the tender, but the provisions of the second paragraph shall not apply to their guarantees. There is no legal, administrative, financial and penal responsibility for the public officials involved in the execution of the transactions within the scope of the same paragraph. The person who uses the information and records obtained within the scope of the activities carried out in accordance with the provisions of this paragraph in contradiction to the law, gives, distributes or seizes it to another person shall be punished according to the provisions of the Turkish Penal Code No. 26 / 9 dated and 2004.

Prohibited acts or behaviors

ARTICLE 20 - (1) Tenderers are prohibited from performing the following acts or behaviors:

a) To engage in mischief or attempt to engage in fraud, promises, threats, penetration, gain of interest, agreement, deed, bribery or other means of sale.

b) To hesitate the tenderers, to prevent participation, to offer or encourage tenderers to deal, to act in a way that affects competition or sales decision.

c) To arrange, use or attempt to forge fake documents or counterfeits.

ç) To submit more than one tender in person or by proxy, directly or indirectly, on behalf of himself or others by an tenderer in sales, except in case of alternative bidding.

d) To participate in the tender although it is stated that it cannot participate in the tender according to Article 19.

(2) It is decided to prohibit the Company from participating in the sales tenders for a period of one year for those who are found to have acted or acted in the first paragraph and the temporary guarantee is recorded as revenue. If this situation cannot be determined during the evaluation of tenders, if a tender has been made on one of these, a decision shall be made against the buyer for one year from participating in the sales tenders of the Company and the tender guarantee shall be recorded as revenue and the tender shall be canceled.

(3) Even if it is determined after the sale, the Republic of Turkey is authorized to conduct criminal proceedings in accordance with the provisions of the Turkish Penal Code against the acts or behaviors specified in the first paragraph and the real or legal persons who act or constitute a crime in accordance with the Law No: 5237. A complaint is filed with the public prosecutor's office.

SECTION FIVE

Tender Procedures

Announcement of the tender

ARTICLE 21 - (1) The tender shall be announced on the Company website at least 7 days prior to the date of the tender and shall be notified to the eligible companies. The tender may be announced by other procedures if deemed necessary by the Company.

(2) It is essential that the tender conditions are not changed after the announcement. However, when an amendment is required for compulsory reasons, with the approval of the salesperson, the amendment shall be announced by the same procedures in which the tender was announced and the deadline for the tender shall be extended if necessary.

Mandatory issues

ARTICLE 22 - (1) Advertisements;

a) Name, address, telephone and fax number, internet address of the administration,

b) The size, characteristics and quantity of the goods subject to the tender and the tender procedure to be applied,

c) The place where the tender will be held and where and until which day and hour the tenders shall be submitted,

d) Where the specification and other documents to be determined can be obtained with or without a fee,

d) Matters related to receipt of collateral,

e) The Company is not subject to the State Procurement Law No. 8 dated 9 / 1983 / 2886 and is free to hold the tender or not,

f) Other prerequisites to be deemed necessary according to the nature of the sale,

It is indicated by a clear and understandable expression.

Preparation and submission of proposals

ARTICLE 23 - (1) All documents required to participate in the tender, including letter of bid and bid bond, shall be placed in an envelope or package. The name, surname or trade name of the bidder, the full address of the bidder, the work for which the bid belongs and the envelope or package is signed by the bidder and sealed with the stamp of the bidder. Envelopes that do not meet these requirements are excluded from the evaluation before they are opened.

(2) In the tender letter, it should be stated that the tender document has been read and accepted completely, the quoted price should be written in accordance with the number and letter, there should be no deletions, scrapings and corrections on it and it must be signed by authorized persons by writing the name, surname or trade name. In case there is a difference in the text and numbers of the proposed price, the proposal shall be excluded from the evaluation.

(3) Bids shall be submitted to the Company in return for the numbered receipts until the time specified in the tender document. Bids submitted after this time shall not be accepted and shall be returned unopened. Offers can also be sent by post or cargo. The bids to be sent must reach the Company by the time specified in the tender document. The time of receipt of the bids, which will not be processed due to the delay, is determined by a record and returned to the public after not being evaluated.

(4) Bids submitted may not be withdrawn or modified for any reason, except in case of changes to the tender document.

(5) In tenders made according to the auction procedure, if the tenderer is not present in the commission, the tender submitted shall be accepted as final and final tender.

Receiving and opening tenders

ARTICLE 24 - (1) The number of bids submitted by the sales commission at the time specified in the tender document shall be determined by a minute and announced to the attendants and the tender shall be started immediately. The sales commission examines the envelopes in the order of receipt. Envelopes are opened in the order of receipt in front of the tenderers and the tenderers.

(2) Check whether the documents are incomplete and the letter of bid and bid bond are duly checked. The tenderers whose documents are missing or whose letter of bid and bid bond are not duly determined shall be recorded in minutes. Bidders and bid prices are announced. The minutes prepared for these transactions are signed by the sales commission.

Evaluation of tenders

ARTICLE 25 - (1) The sales commission may request clarification from the bidders regarding unclear issues to be used in the evaluation of the bids. However, this disclosure is in no way requested or made in order to make changes in the bid price or to make bids that do not comply with the conditions stated in the tender document.

(2) In the event that documents other than those specified in Article 24 are missing or if there is a lack of insignificant information in the documents, the tenderers are required to complete this missing information in writing within the time specified by the Company.

(3) Arithmetic errors in bid prices are corrected by the commission based on the unit price. The tenderer shall be confirmed in writing. In case the tenderer does not accept the bid, the bid bond shall be excluded from the evaluation and the bid bond shall be recorded as revenue.

(4) The bid of the tenderers who do not complete the information within the specified period shall be excluded from the evaluation and the preliminary guarantee shall be recorded as revenue. Tenderers whose bids are duly duly evaluated shall be evaluated in detail.

(5) In closed bid procedure; In the event that the most suitable bid is submitted by more than one tenderer, the tender shall be continued with the tenderers who are present by the sales commission in the auction procedure and the tender shall be concluded. In this case, the bids of those who are not present shall be accepted as the final bid. If no tenderer is present at the tender, the tenderers are asked to submit their final written offers. In this case, in case the equality is not broken, the tender shall be drawn by drawing lots.

Rejection of all tenders and cancellation of the tender

ARTICLE 26 - (1) Upon the decision of the sales commission, the Company is free to reject all tenders and cancel the tender. In case of cancellation of the tender, all tenderers shall be notified in writing. The Company shall not be liable for any rejection of all bids. The Company informs the bidders about the reasons for the cancellation of the tender.

Deciding and approving the sale

ARTICLE 27 - (1) As a result of the evaluation made in accordance with the articles 24 third and 25, the tender shall be placed on the tenderer giving the highest price.

(2) The sales commission submits its reasoned decision to the salesperson for approval.

(3) The sales commission may decide to sell by taking into consideration the market fair prices in case the bid subject of the assets subject to the sale has been tendered below the estimated price in the next tender, provided that the tender has already been held at least once.

(4) The sales representative approves or cancels the tender decision.

Notification of finalized tender decisions

ARTICLE 28 - (1) Following the approval of the tender decision, all tenderers shall be notified by hand or by registered mail to the notification address or by fax in return for signature within five working days at the latest. The tenderer, remaining on the tender after the notification of the decision, becomes the buyer and has to sign the contract within ten working days.

Privacy Policy

ARTICLE 29 - (1) Confidentiality is essential in the process from the preparation of the tender dossier to the approval of the decision of the sales commission. Those who explain the transactions related to these matters, cause them to be heard by disobeying the confidentiality requirements and unnecessarily delaying the transactions are executed according to the relevant legislation.

CHAPTER SIX

guarantees

Values ​​to be accepted as guarantee

ARTICLE 30 - (1) Values ​​to be accepted as collateral are as follows:

a) Turkish currency in circulation.

b) Letters of guarantee.

c) Government domestic debt securities issued by the Ministry of Treasury and Finance and documents issued in lieu of these notes.

(2) The securities issued in the subparagraph (c) of the first paragraph and the documents issued in lieu of these notes shall be accepted as collateral on the sales value corresponding to the principal, by adding interest to the nominal value.

(3) is considered to be collateral edit their letters of guarantee banks or participation banks operating in Turkey on counter guarantee of Concerned by the legislation allowed to operate in Turkey issued by foreign banks with guarantee letters will organize operating outside Turkey banks or other lenders.

(4) Guarantees may be replaced by other values ​​considered as collateral.

(5) In any case, the guarantees received by the Administration shall not be confiscated and no precautionary measures shall be imposed on them.

Bid bond

ARTICLE 31 - (1) The bid bond is determined by the sales representative, provided that it is not less than 3% of the bidder's bid.

(2) The bids of the tenderers that submit less than the amount specified by the Company shall be excluded from the evaluation.

(3) Time is specified in the bid bond letters. This period cannot be less than thirty days from the validity period of the bid.

(4) Letters of guarantee shall be submitted to the sales commission in the tender envelope.

(5) The collaterals other than letters of guarantee must be deposited in the bank accounts or cashiers of the Company and their receipts must be presented in the envelope.

Return of the bid bond

ARTICLE 32 - (1) Letters of guarantee given by the tenderer remaining on the tender and of the second economically most favorable tenderer shall be kept after the tender. The bid bonds given to the other tenderers shall be returned.

(2) The bid bond remaining on the tenderer and the second economically most favorable tenderer shall be refunded if the tenderer remaining on the tender invests the sales price or gives a final guarantee and signs the contract.

(3) The bid bond shall be returned to the tenderer or authorized representative by the Company.

Performance bond

ARTICLE 33 - (1) The performance bond is determined by the sales representative, not less than 6% of the tender price.

(2) In case the sales price is paid in advance, the performance bond may not be taken.

Return of Performance Bond

ARTICLE 34 - (1) The performance bond shall be returned after it has been determined that the sale transaction has been carried out in accordance with the specifications and contract provisions and that there is no debt to the Company.

CHAPTER SEVEN

Contract

Duty and responsibility of the tenderer in the conclusion of the contract

ARTICLE 35 - (1) The tenderer remaining on the tender shall sign the contract.

(2) If the contract is not signed, the bid bond of the tenderer remaining on the tender without any protest and no further decision is recorded as revenue. In this case, the Company may sign a contract with the tenderer who submits the second most appropriate bid, provided that it is approved by the sales representative. However, in order to sign the contract with the tenderer which is the second most suitable tenderer, it is obligatory to be notified in accordance with the article 28.

(3) In the event that the second most suitable bidder does not sign the contract, the bidder of this bidder shall be registered as revenue by the procedure specified in the second paragraph and the tender shall be canceled.

Bidding of the contract

ARTICLE 36 - (1) The contracts are prepared by the Company and signed by the Company authorities and the purchaser. Unless otherwise specified in the tender document, it is not obligatory for the notary to register and have the contracts approved.

(2) If the recipient is a joint venture, the contracts shall be signed by all partners of the joint venture.

PART EIGHT

Miscellaneous and Final Provisions

Repealed regulation

ARTICLE 37 - (1) dated 28 and published in the Official Gazette No. 9 1997 Turkey Railway Machines Industry Inc. General Directorate (TÜDEMSAŞ) Purchase, Sale and Tender Regulation has been repealed.

Force

ARTICLE 38 - (1) This Regulation shall enter into force on the date of its publication.

Executive

ARTICLE 39 - (1) The provisions of this Regulation are executed by Turkey Railway Machines Industry Inc. General Manager.