Published on the National Gazette: 08.02.06 No:26074

Law on The Establishment and Duties of Development Agencies

Law No. 5449 Date of Approval: 25.1.2006






Objective and Scope, Definitions, Establishment, General Coordination



Objective and Scope



Article 1


The objective of this law; is to set out the principles and procedures regarding the establishment, duties, authorities and coordination of the Development Agencies which shall be organized for the purpose of accelerating regional development, ensuring sustainability and reducing inter-regional and  intra-regional development disparities in accordance with the principles and policies set in the National Development Plan and Programmes through enhancing the cooperation among public sector, private sector and non-governmental organizations, ensuring the efficient and appropriate utilization of resources and stimulating local potential.






Article 2


In the application of this law;

a) Region means: NUTS II Region indicated in Annex 1,

b) Agency means: Development Agency,

c) Establishment Decree means: Decisions of Council of Ministers regarding the establishment of Development Agencies.







Article 3


Agencies shall be established by the decision of the Council of Ministers upon the proposal of the Minister responsible for the State Planning Organization on the basis of regions. The province where the Headquarters of the Agency placed shall be indicated in the Establishment Decree. Council of Ministers shall be authorised to rearrange the regions specified in the list at Annex 1 and to abolish the established Agency. Agencies shall have legal personality and shall be subject to the provisions of private law except the ones stated in this law.



General Coordination



Article 4


State Planning Organization shall be responsible for the coordination of Agencies at national level.

State Planning Organization shall:

a) take precautions to decrease the inter-regional and intra-regional development disparities; provide consultancy and guidance for agencies on planning, programming and project designing; monitor and evaluate the implementation of plans and programmes,

b) by determining the principles and procedures regarding the assessment of institutional performance of agencies and performance of programmes in implementation, it shall either evaluate them or have them evaluated,

c) determine the principles and procedures concerning the allocation of the national and international funds intended for regional development to agencies and their use,

d) provide inter-agency cooperation and support joint project generation,

e) ensure cooperation and coordination between related institutions and organizations at central level in order that agencies can carry out their functions effectively and efficiently,

f) approve the Annual Working Programmes of the agencies,

g) approve the Secretary General of the agency selected and proposed, among the candidates having appropriate qualities, by the Administrative Board,

h) determine the principles and procedures concerning plans and programmes, aids and transfers, qualifications and recruitment of the personnel, use of budgeting and accounting standards, activity reports, monitoring, evaluation and auditing; and principles and procedures regarding working of the investment support offices by taking into account the opinions of related public institutions and establishments.




Duties and Authorities

Duties and Authorities of the Agency



Article 5


Duties and authorities of the agency are as follow:

a) to provide technical support to the planning studies of local authorities,

b) to support the activities and projects ensuring the implementation of regional plan and programmes; to monitor and evaluate the implementation process of activities and projects supported within this context and to present results to the Undersecretariat of State Planning Organisation,

c) to contribute into the improvement of the capacity of the region concerning the rural and local development in accordance with the regional plans and programmes and support the projects within this extent,

d) to monitor other projects implemented by public sector, private sector and non-governmental organizations in the region and considered as important in terms of regional plan and programmes,

e) to improve cooperation in between public sector, private sector and non-governmental organizations to achieve regional development objectives,

f) to use or have them used the resources allocated to agency in pursuant to Article 4 (c) of this Law, in conformity with regional plan and programmes,

g) to carry out researches, or to have them carried out, concerning the determination of resources and opportunities of the region, acceleration of economic and social development and enhancement of competitiveness, and to support other researches carried out by other persons, organisations and institutions,

h) to promote, or have them promoted, business and investment facilities of the region at national and international level, in close cooperation with other related institutions,

i) to follow and coordinate centrally the permission and licence transactions and other administrative transactions of the investors in regional provinces within the extent of the duties and authorities of public institutions and organisations, in order to finalise them within the time stated in the related legislation,

j) to support small and medium-size enterprises and new entrepreneurs in the fields such as management, production, promotion, marketing, technology, financing, organisation and labour force training, by ensuring cooperation with other related institutions,

k) to promote activities related to bilateral or multilateral international programmes to which Turkey has participated in the region and to contribute to

the development of projects within the context of these programmes,

l) To prepare a web-site to broadcast updated activities and financial structure of the agency and other matters concerning the agency.




Information Compilation

Article 6


Agency has the authority to request the necessary information within the context of its duties directly from institutions and organizations. These institutions and organizations are obliged to give requested information in due time.





Structure of the Agency




Article 7


The organizational structure of agency shall consist of;

a) Development Council

b) Administrative Board

c) General Secretariat

d) Investment Support Offices


Development Council


Article 8


Concerning regional development objective, Development Council shall be established in order to enhance the cooperation among public institutions, private sector, non-governmental organisations, universities and local governments in the region and to direct/guide the agency. Development Council shall be composed of maximum 100 members representing the provinces in a balanced way. Public institutions and organisations that will send representatives to the Development Council and the number of the representatives to be sent by private sector and non-governmental organisations, duration of their duty and other matters shall be determined by the Establishment Decree.

Development Council shall select a chairman and a deputy chairman among its members in the first meeting to be held. The period of office of the chairman and deputy Chairman is two years. When the relation of chairman and deputy chairman with the institution that they represent terminates, their chairmanship and deputy chairmanship shall terminate and chairman and deputy chairman shall be re-elected in the first following meeting.

Development Council shall meet at least twice a year with the invitation of the chairman. Furthermore, the council is asked for a meeting by the chairman upon the request of one-five of the total number of the members.

Development Council shall convene with one member more of the half of the total number of members and shall take decisions with the majority of those who are present. In the case of not achieving meeting quorum, the chairman shall determine a new meeting date without exceeding fifteen days and majority is not required in this meeting.



Duties and Authorities of Development Council



Article 9


Duties and authorities of Development Council are as follow:

a) to select respectively the representatives of private sector and/or non-governmental organizations and their doubled associate members who shall take place in Administrative Board in the regions composed of a single province,

b) to discuss and evaluate annual activity and internal audit reports of the agency and to make recommendations to Administrative Board,

c) to make recommendations to Administrative Board regarding problems and solution proposals, promotion, potential and priorities of the region,

d) to report the results of the meeting to the Undersecretariat of State Planning Organisation and publish conclusion notice of meeting.




Administrative Board



Article 10


Administrative Board is the decision-making body of the agency. In the regions composed of one province, Administrative Board consists of governor, mayor of metropolitan municipality, Chairman of the Provincial Council, Chairman of the Chamber of Industry, Chairman of the Chamber of Commerce and three representatives of private sector and/or NGOs who are selected by Development Council; in the regions composed of more than one province, it consists of governors of all the provinces, mayors of metropolitan municipalities or mayors of provincial municipalities where there is no metropolitan municipality, Chairman of the Provincial Council and Chairmen of Chambers of Commerce and Industry as one for each province.


However if the chambers of commerce and industry are established separately in the provinces of the regions composed of more than one province, the representative to join the Administrative Board is determined by the Administrative Board of the Turkish Union of Chambers and Stock Exchanges. Chairman of Administrative Board represents the agency. Chairman of Administrative Board is the governor. Administrative Board selects a deputy chairman among its members in its first meeting.


In the regions composed of more than one province, chairman of Administrative Board shall be the governor of the province determined as headquarters of the agency in the first year, while, in successive years, the governors in the region alternately shall be the Chairman of the Board according to the alphabetical order of the provinces. Period of office of the members of the Administrative Board elected by Development Council is two years in the regions composed of a single province. However, members whose membership ceases before they have completed their term of office, the residual term of office is completed by associate members in order. Members whose terms of office expire may be re-elected. Membership of Administrative Board is not impediment for members to exercise their functions in the institutions and organisations they represent. Members of Administrative Board may not disclose or use the confidential information about the Agency and the secrets they learned during the implementation of the law in their field of study for the interest of themselves and others’ even though they quit their post.


Members of Administrative Board can not attend any meeting and voting related with the commercial enterprises of which they are owner or partner and on matters that are in direct concern of themselves, their spouses, or relatives of natural cognation or affinity relations up to second degree.


Administrative Board meets at least once in every month with the invitation of the Chairman and with the one member more of the half of the total number of its members. In the absence of the Chairman, deputy Chairman presides the meeting of the board. Administrative Board shall take decisions with the absolute majority. In the case of equality, decision shall be taken according to the vote of the Chairman. Secretary General of the Agency attends the meetings of Administrative Board with no voting right.



Duties and Authorities of Administrative Board



Article 11


Duties and authorities of Administrative Board are as follow:

a) to accept the annual work programme and submit it to The Undersecretariat of State Planning Organisation for approval,

b) to revise the budget according to the needs during the year,

c) to approve annual financial report and the results of final budget,

d) to decide purchase, sale and rent of movable and immovable properties and purchase of service,

e) to submit six-month interim report and annual activity report to the Undersecretariat of State Planning Organisation,

f) to approve the budget of the Agency and submit it to Undersecretariat of State Planning Organisation,

g) to approve the proposals concerning giving support to the programmes, projects and activities submitted by the General Secretariat and the aids to individuals and organisations,

h) to accept donations and grants extended to the Agency

i) to decide recruiting and dismissing of the personnel,

j) to approve the service units determined by Secretary General and the division of labour among them,

k) to identify the Secretary General and submit to the Undersecretariat of State Planning Organisation for approval,

l) to determine the limit of authority of secretary general about the issues concerning purchase, sale and rent of the movable properties except vehicles, and purchase of service, Determining the limits clearly, Administrative Board may delegate some of its duties and authorities to Secretary General where necessary.




Secretariat General



Article 12


Secretariat General is the executive body of the Agency. Secretary General is the superior Chief of Secretariat General and investment support offices. Secretary General is responsible to the Administrative Board.




Qualifications of the Secretary General



Article 13


Those to be assigned as Secretary General shall have the following qualifications:

a) to have bachelor’s degree among the departments of law, economics, public administration, international relations, statistics, labour economics and industrial relations, mathematics, sociology, architecture, city and regional planning or engineering branches or to be graduated from equivalent higher education institutions located abroad,

b) to have sufficient information and experience in the fields of activity of the Agency; to have worked actively in the fields requiring necessary expertise for at least ten years,

c) to have a minimum score of 70 points in English from Public Sector Personnel Foreign Language Examination (KPDS) or have the document equivalent to this and having an international acceptance.




Duties and Authorities of Secretary General



Article 14


Duties and Authorities of Secretary General;

a) to implement the decisions of Administrative Board,

b) to prepare annual work plan and budget, and submit them to Administrative Board,

c) to collect revenues of the Agency, to make the expenditures in accordance with the procedures and principles to be determined by the Article 4, and according to the budget and decisions of Administrative Board,

d) to decide on the purchase, sale and rent of moveable properties except for vehicles, and purchase of service according to the limits to be determined by Administrative Board,

e) to engage in/organize activities for improving project generation and implementation capacity of people, institutions and organisations in the region,

f) to assess project and activity proposals of private sector, non-governmental organisations and local administrations and make suggestions to Administrative Board for providing financial support,

g) to monitor, evaluate, audit the supported projects and activities; and prepare reports,

h) to cooperate and develop joint projects with domestic and foreign institutions and agencies related to regional development,

i) to provide technical assistance to planning studies of local authorities,

j) to determine the performance criteria of personnel and evaluate their performance,

k) to make proposals to the Administrative Board related to personnel’s recruitment and termination of contracts,

l) to attend the national and international meetings about regional development on behalf of the Secretariat General of the agency and carry out foreign contacts,

m) to perform secretarial works and other services within the sphere of duties of the agency,

n) to use authorities delegated by Administrative Board.


Investment Support Offices



Article 15


Investment support offices composed of maximum five experts one of which is coordinator shall be established in the provinces of the region with the decision of Administrative Board. If the number of experts working in the investment support offices can not fulfil the needs of the region and province, this number may be increased with the decision of Administrative Board and approval of the Undersecretariat of State Planning Organisation. Investment Support Offices are responsible to Secretariat General for their duties. Services supplied to the investors in investment support offices are completely free of charge.



Duties and Authorities of the Investment Support Offices


Article 16


Duties and authorities of the Investment Support Offices are as follow:

a) to follow and coordinate centrally the permission and licence transactions of investors in private sector within duties and authorities of public institutions and organisations and other administrative works and transactions on time specified in the related legislation or, if no specific time was given, urgently on behalf of the Administrative Board in the provinces of the region; and to monitor the investments,

b) to inform and guide the investor in accordance with the application conditions and required documents within the framework of the related legislation,

c) to carry out pre-examination about the applications,

d) to carry out the transactions stated in the regulations to be enacted under the article 4,

e) to inform the Governorship and Secretariat General about the works and transactions.



Application for Investment Support Offices



Article 17


Investors apply to investment support offices providing the information and documents specified in the related legislation. The time spent in the investment support offices does not affect the time specified in the related legislation. Investors’ application to investment support offices under this law is optional. Applications made to the related authorities by investment support offices for permission and licence transactions and other administrative works and transactions shall be considered to be made by the investor himself/herself. The investments and transactions for which application will be made to the investment support offices are determined within the scope of the regulations to be enacted under the item (h) of the article 4.






Personnel Regime, Budget and Audit

Qualifications, status and rights of the Agency Personnel



Article 18


Services of the Agency shall be carried out by the experts and support personnel employed pursuant to the provisions of Labour Legislation. Additionally, for carrying out internal audit in the agencies, an internal auditor shall be employed. The number of the support personnel who shall carry out the tasks such as secretarial works, public relations, archive, administration, financial issues and personnel may not exceed the 20% of total number of the agency personnel. Experts and internal auditor to be employed shall be selected among the candidates who have bachelor’s degree in the departments of law, economics, public finance, management, public administration, international relations, statistics, labour economics and industrial relations, mathematics, sociology, architecture, city and regional planning and engineering branches or being graduated with an equivalent bachelor’s degree from higher education institutions located abroad; have a minimum score of 70 points in English from Public Sector Personnel Foreign Language Examination (KPDS) or have the document equivalent to this and having an international acceptance. Besides, internal auditor shall be required to have work experience as auditor in public sector at least for ten years. 


Among the personnel working in public institutions and organizations those who have the qualifications specified in this Law may be employed as secretary general, internal auditor or expert in the agency depending on their own will or their institutions’ assent. When the work contract is signed, their relations with their institution terminate. Wages and other financial and social rights shall be determined in the work contract signed. Those who are employed in this way in the agencies shall be appointed to a vacant post or position conforming their career and status in three months at the latest in their previous institution considering their educational state, year of service and titles when their service ceases in the Agency and shall start to work in a month at the latest without any procedure. However, while appointing these people, their administrative titles in their previous institutions shall not be taken into account. Among people within the scope of this paragraph, the appointment transactions of those who were appointed to their post in their previous public institutions and organisations with joint decree shall be carried out under this paragraph with the approval of concerned minister. The service of the people returning to their old institutions is evaluated on the basis of acquired rights salary degree and levels under this paragraph. In this case, severance pays shall not be made and this period shall be taken into account when accounting the post-retirement gratuity. The number of personnel employed in this context cannot exceed 30% of the total number of the personnel. Personnel of the Agency are subject to the Social Security Law of 17/07/1964,No 506, with respect to retirement and social security.


Members of Administrative Board, Secretary General and all personnel of the Agency should:


a) be a Turkish citizen,

b) not be deprived of public rights,

c) not be sentenced for crimes committed against the state, disgraceful and defaming crimes such as embezzlement, defalcation, malversation, corruption, theft, fraudulence, forgery, abusing the beliefs, fraudulent bankruptcy or smuggling except for using and consuming, rigging official tenders and purchase and sale and disclosing secrets of state. Wages, daily allowances and other social and financial rights of Secretary General and other personnel are determined by Administrative Board in accordance with lower and upper limits determined by the decision of The High Planning Council. All disputes related to the agency personnel are resolved in the labour courts.




Revenues and funds to be managed



Article 19


Revenues of the agency and funds to be controlled by the agency are as follow:

a) Appropriation to be determined by High Planning Council according to the population, development level and performance measures of each Agency from the residual fund after the shares transferred to local administrations and funds by tax refunds are deducted from the general budget and tax revenue of the previous year, and from the transfer allowance to be allocated five per thousand each year,

b) Financial sources provided from European Union and other international funds,

c) Activity revenues,

d) Over the budget revenues of the previous year, appropriation to be transferred from the current year budget at the rate of 1% for special provincial administrations excluding getting into debt, allocated revenues and aid items received from the organisations having general, additional and private budgets; for municipalities; appropriation to be transferred from current year budget at the rate of 1% excluding getting into debt and allocated revenue items.

e) Appropriation transferred from the current year budget at the rate of 1% of previous year final budget revenues of the chambers of industry and commerce in the region.

f) Aids and grants provided by national and international institutions and organisations.

g) Revenues turning over from the previous year.Council of Ministers is authorized to increase the rate determined for special provincial administrations up to 5% or to reduce it to the rate determined by this Law; and to reduce the rate determined for municipalities by half or to increase it to the rate determined by this Law.

Appropriations stated in the sub-paragraphs (d) and (e) of the first paragraph shall be transferred to the Agency’s account by the end of June. In the case that appropriations stated in sub-paragraph (d) have not been transferred within due time, they shall be cut off from the appropriation allocated to these administrations from general budget tax revenues sum by Ministry of Finance and/or Bank of Provinces and transferred to account of the relevant Agency. Collection of other receivables shall be subjected to general provisions.







Article 20


Expenditures of the Agency comprises

a) Planning, programming and project expenses,

b) Expenses for supporting projects and activities,

c) Research and development expenses,

d) Promotion and education expenses,

e) Purchase of moveable and immoveable property as well as services,

f) Administrative and personnel expenses,

g) Other expenses related to the duties.

Total of annual personnel expenditure of the agency shall not be exceed fifteen percent of the revenues of the latest year’s final budget.




Financial transparency and accountability



Article 21


Agencies are responsible for informing the public on time about obtaining and utilizing financial resources for auditing purposes. To this end:

a) clear definition of their duties, authorities and responsibilities,

b) preparation of annual work programme and budget, negotiation of them in authorized bodies, their implementation and accessibility of implementation results and reports by public,

c) declaration of supports given to the projects and activities in a certain periods not exceeding a year to public,

d) keeping the accounts of agency according to a standard accounting system and an accounting system in compliance with the generally–accepted accounting principles are compulsory. Those having responsibility and authority for obtaining, utilizing and ensuring financial audit of resources, are also responsible for effective, economical, efficient and legal utilization, use, accounting and reporting of those resources and taking necessary precautions to prevent the their misuse.







Article 22


Budget, prepared in compliance with the national and regional level plans and programs, annual working plan and indicative allocation record determined by High Planning Council, shall indicate the revenues and expenditures estimation of the Agency within the budget year. Budget year shall be the legal calendar year. Extra budgetary expenses shall not be allowed.



Preparation and approval of the budget



Article 23


Agency prepares consecutive year’s budget by taking into account the estimations about the ceilings of the appropriations determined as indicators and other revenue items concerning the transfers to be made to the agencies from general budget every June according to the criteria defined in the subparagraph (a) of the first paragraph of article 19 by Supreme Planning Council. Taking into account national and regional plans and programmes, General Secretariat shall prepare the draft budget and working programme and submit them to the Administrative Board at the beginning of August.

Following the approval of the Administrative Board, the draft budget and working programme shall be submitted to the Undersecretariat of State Planning Organization until the beginning of September at the latest for the review. Being finalized within fifteen days after General Budget Law enters into force, budget shall be submitted to Undersecretariat of State Planning Organization..

The allowances determined according to first paragraph, sub-paragraph (a) of Article 19, shall be included in the budget of the Undersecretariat of State Planning Organization.These allowances shall be allocated to agencies according to monthly expenditure programme by State Planning Organization.Until finalization of budget, expenditures of ongoing activities shall be related to the current year’ s budget.




Budget results



Article 24


Secretary General shall submit the budget results to the Administrative Board in March following the end of the budget period. The budget results shall be discussed and decided by the Administrative Board. In case of disapproval, budget results shall be sent to the Ministry of Interior and Undersecretariat of State Planning Organization. These institutions shall act according to provisions of this Law and/or other related laws.






 Article 25


Agencies shall be subjected to internal and external audit. In the context of internal audit, activities, accounts, transactions and performance of the agency shall be audited by the chairman of the administrative board or secretary general and an internal auditor. Internal audit reports shall be submitted to the Administrative Board and development council. Within the context of external audit, every kind of accounts and transactions of agency shall have been examined by the Administrative Board every year in March at the latest according to the principles and procedures that will be determined by the Ministry of Interior, Ministry of Finance and the Undersecretariat of State Planning Organization jointly and, if seen necessary, been examined by independent auditing institutions established according to the Capital Market Board legislation. Independent external auditing institutions shall submit their report to Ministry of Interior and Undersecretariat of State Planning Organization concurrently. Considering the outcomes of this external audit, the Ministry of Interior shall be authorised to carry out the procedures related to the transactions that are considered as crime; and the Undersecretariat of State Planning Organization shall be authorised to evaluate the level of performance and take necessary measures.

According to this article, regarding the criminal liability of partners, administrators and employees of independent auditing institutions, the provisions of article 47 (B) (3), 48 and 49 of Capital Market Law (law no.2499) shall be applied.






Miscellaneous Provisions




Article 26


Agencies are exempted from any kind of duties, taxes and levies related to tasks in the implementation of this Law.




Provisions not applicable



Article 27


The Agency shall not be subject to the provisions of the Public Finance Administration and Control Law (Law no.5018), Public Procurement Law (Law no. 2886) and new Public Procurement Law (Law no. 4734).



Article 28


Following sub-paragraph has been added to the Decree-Law on the Establishment and Duties of State Planning Organization (Law no. 540): “l) to ensure the coordination of Development Agencies and carry out related tasks and transactions.”



Article 29


The statement “to ensure the coordination of Development Agencies and carry out related tasks and transactions” has been added to article 14 of Decree Law no.540 after the statement of “ to develop projects and coordinate studies to solve any problem that may arise during the implementation of structural adjustment policies”.



Article 30


Sub-paragraph (f) of article 2 of Decree-Law on the Establishment and Duties of Southern Anatolia Project (GAP) Regional Development Organisation (Law no. 388) has been amended as “making/having them made development master plans and implementation plans”, following sub-paragraph has been added to that article and and last paragraph of article 3 was abolished. “I) To execute its coordination role upon development agencies to be established in regions covering Adıyaman, Batman, Diyarbakır, Gaziantep, Kilis, Mardin, Siirt, Şanlıurfa and Şırnak provinces in accordance with the principles and procedures determined by State Planning Organization.



Provisional Article 1


Until all of the agencies are established and being operational, the amount of transfer allowances to be allocated according to Article 19 (1)(a) shall be determined considering the number of agencies established. Agencies shall be authorised to use their share for the rest of the year by the date they are established.



Provisional Article 2


The maximum number of personnel that can be employed in the agency for the first year shall be stated in the establishment decree.



Provisional Article 3


The tasks and transactions, related rights and responsibilities thereof and fixtures of Project Implementation Units established to implement and coordinate Regional Programmes within the framework of Turkey-EU Financial Cooperation shall be transferred to the related agency in one month, latest, following the publication of the establishment decree.


Among those working in above-mentioned project units; applying to related agency which is established in the region where s/he is assigned, within six months of the publication of the establishment decree of this agency, the ones having qualifications stated in the article 18 except for education field shall have priority to be recruited as expert, others shall have priority to be recruited as support staff according to related provisions of this Law.



Provisional Article 4


Development Council shall hold its first meeting within one month as from the publication date of establishment decree with the chairmanship of the governor of the province determined as the headquarters of the agency.