THE PRICE OF THE WINNING CONSTRUCTION TENDER FOR THE HIMMET DEDE MINE AND HEAP LEACH FACILITY IN THE KAYSERI PROVINCE WAS HIGHER THAN ITS COUNTERPARTS.

My Answer: How do you select a tender for the first industrial complex of its kind to be built, a project that will take four years to build? How was it selected?

There are two fundamental issues regarding theTender for the Himmetdede Plant:

• How was the project evaluated and the estimated price decided on?
• How do we know that the tender was fairly selected, and that the pricing was appropriate?

The Himmet Dede project and the estimated cost of the project were determined by one of the world’s three biggest institutions in this field, the SRK,who submitted a technical report of 500 pages. The tender was selected butthe contract was not awarded. After the tender process was completed, despite the fact that it wasn’t a legal obligation, I asked the SPK to analyse and assess the tender and to issue a report statingthat the price quoted in the tender was fair and reasonable, when compared to its counterparts, if indeed that was the case.

The final part of the detailed 245 page long report by the SPK reads as follows:

“THE PROJECT PRICING ASSESSMENT REPORT, WHICH WAS PREPARED IN ACCORDANCE WITH THE SPK’S DECLARATION ON INTERNATIONAL ASSESSMENT STANDARDS, WAS FINALISED, USING THE COMPARATIVE COUNTERPART APPROACH,WITH THE HELP OF INDEPENDENT SPECIALIST INTERNATIONAL INSTITUTIONS. ACCORDING TO THE CONCLUSION OF THE REPORT, THE PRICING FOR THE HIMMETDEDE PROJECT IS FAIR AND REASONABLE.”

The contract was awarded to the winning tender after this rock solid report was received.

The problem is not the priceof the tender. The majority of the industrial complex was finished and production was started up.However, the government didn’t give the legal permissions, that Koza was lawfully entitled to. For that reason, the construction was left unfinished, and that is the problem.

How would you initiate a tender for an industrial complex, that in 2012, would be the first of its kind to be built in Turkey? Does anyone know of another way?

Is there any assessment that needed to be done that was not done, any legal procedure that was missed, a single dollar-worth of bonus that anyone gave anyone for an incomplete job when there wasn’t any calculation of profit and loss?

THE ANSWER: NO, THERE ISN’T. ANY LOSS? NO, THERE IS NONE. THEN WHAT REASON IS THERE FOR THE SPK TO MAKE A CRIMINAL COMPLAINT?