Arbitration in public service concession agreements

Human beings are evolving entities. The society composed of humans cannot be evaluated independently from the evolving human. Society evolves within the framework of human needs and in this process, it derives its power as an inevitable element from law. The concept of "State" as a reflection of law to society is obligated to provide "public services" to meet the needs of citizens and respond to the evolving desires of society. These services, which can be a significant burden on the state in financial terms, began to be carried out in collaboration with the private sector in historical process. In this regard, "public service concession contracts" have emerged. Public service concession contracts are important instruments regulating the provision of public services between state entities and the private sector. These types of contracts are generally long-term and complex, and various difficulties may be encountered in resolving disputes that may arise between the parties. In recent years, it has been observed that arbitration is preferred for the resolution of disputes arising from such contracts. Arbitration, by providing for the effective and impartial resolution of disputes between the parties, not only reduces legal uncertainties but also helps to avoid lengthy court proceedings. However, the existence of an arbitration clause in public service concession contracts has led to various debates in both our country and foreign legal doctrines. In this context, within the scope of this thesis, firstly, the concept of public service will be explained, generally addressing disputes and considering arbitration as an alternative method, procedures for resolving disputes arising from public service concession contracts through arbitration, and the advantages and disadvantages of this model will be examined within the framework of the views of legal experts and judicial decisions.