Aksa Elektrik Toptan Satış A.Ş., a member of Kazancı Holding (Aksa Holding) on January 6 acquired Fırat Electricity Distribution Company from the Privatization Administration (ÖİB) for $230.250 million, in the first privatization exercise in 2011, the ÖİB reported on its web site.
In another case, Kayseri ve Civarı Elektrik T.A.Ş. on January 17 acquired the management rights for 49 years of the Bunyan, the Çamardı, the Pınarbaşı, and the Sızır HEPPs in Kayseri and Niğde provinces from the Privatization Administration (ÖİB) for $69.7 million.
In a related devlopment, Kent Solar on January 25 acquired the management rights of the small Dereköy Hydroelectric Power Plant (HEPP) in İznik, the Cerrah HEPP in Inegöl and the Suuçtu HEPP in Mustafakemalpasa in Bursa province for 49 years for $6.6 million.
MAJOR SALES OF STATE ASSETS CARRIED OUT BY THE PRIVATIZATION ADMINISTRATION IN 2010
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Company Privatized
|
Acquiring Company
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Purchase Amount in Million U.S. Dollars
|
Uludağ Power
Distribution Company
Osmangazi Power Distribution Company
Yeşilırmak Electricity
Distribution Company
Çamlıbel Electricity
Distribution Company
|
Uludağ Enerji (Limak-
Kolin-Cengiz Joint Venture)
Dedeli Yatırım İnşaat Taahhüt Electricity Distribution Co.
Çalık Elektrik Dağıtım A.Ş.
Çamlı Electricity (Limak-Kolin-Cengiz Joint Venture)
|
940.000
485.000
441.500
258.500
|
Çoruh Electricity
Distribution Company
Port of Bandırma
|
Aksa Çorlu Electricity Sales Co.
Celeb, Bandırma International Port Management Co.
|
227.000
175.500
|
Port of Samsun
|
SAMSUNPORT-Samsun Port Administration/
Ceynak Logistics
|
125.200
|
State Railways
Administration Properties in Izmir Konak
|
Konya Yildiz Un İnşaat Makine Sanayi
|
12,600
|
|
Total
|
2,665.300*
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*Excludes minor sales of property
Source: Privatization Administration (ÖİB)
MAJOR SALES OF STATE ASSETS CARRIED OUT BY THE PRIVATIZATION ADMINISTRATION IN 2009 |
Company Privatized
|
Acquiring Company
|
Purchase Amount in Million U.S. Dollars
|
Capital City Electricity Distribution Company
|
Sabancı Holding-Verbund-Enerjisa JV
|
1,250.000
|
Sakarya Electricity Distribution Company
|
AkCez
|
600,000
|
Meram Elecctricity Distribution Company
|
Alcen Enerji Dağıtım
|
440,000
|
|
Total
|
2,290.000
| Source: Privatization Administration (ÖİB)
Status of Major Tenders in 2011
Scores of contracts for projects tendered since 2004 are still waiting to be finalized in 2011. Many of these have been entangled in legal cases. Others are awaiting approval from competition authorities and the Council of State, or for the winners of the tenders to line up financing. Here are thumbnail sketches of major prospective asset sales that are near conclusion, as well as the status of upcoming projects:
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The Privatization Higher Council (ÖYK) approved the sale of the State Railway’s (TCDD’s) Port of Derince, in the Gulf of İzmit, along the northeastern shores of the Sea of Marmara, for $195.250 million. Türkerler Investment Enterprise Group was the highest bidder for the transfer of the operating rights of the port. Türkerler outdistanced Akfen Group, Global Infrastructure Services, Çelebi Holding-Kocaeli Chamber of Industry Joint Venture, and the Limak Group in the bidding the tender, held on August 20, 2007. The port is located close to key industrial regions of İstanbul, İzmit and Adapazarı and is operated by the TCDD. Under the tender specifications, the winner will operate the port for 36 years, and will have to carry out $250 million in new investments. A contract will be signed pending approval from competition authorities.
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The ÖYK on January 7, 2010, approved the sale of Tekel’s old Paşabahçe Spirits Factory and land in İstanbul to As Asya Gayrimenkul Pazarlama İnşaat for TL 333,100,000 ($222.4 million).
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The Ministry of Energy and Natural Resources on May 12, 2011, said a new tender for the sale of the state’s 80% share in Başkent Doğalgaz Dağıtım A.Ş., the Capital City Natural Gas Distribution Company, would be launched within three months. The ÖİB on May 11 cancelled the award to MEKA MMEKA Makina İthalat Pazarlama ve Ticaret A.Ş., the highest bidder, after the joint venture couldn’t raise the $1.221 billion financial package to buy the company by the deadline that privatization authorities had set. The developments came amid reports that the two partners of the winning venture, Mehmet Kazancı and Mehmet Emin Karamehmet, had broken up their joint venture after failing to receive loans from a state bank. The Privatization Administration in May 2011 announced a tender for the remaining 20 % of the natural gas distribution company.
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Binbirgıda Tarım Ürünleri Sanayi ve Ticaret on December 17, 2009, won tenders for the privatization of the Ayvalık Salt Flats (Saltpan), on the Aegean Coast, and the Camialtı Salt Flats (Saltpan) in İzmir, in a move by the government to withdraw completely from salt mining and processing. The government has sold seven salt flats (saltpans) from 2003 to 2006. Salt is mined or recovered in salt flats. Binbirgıda offered TL115 million ($76.8 million) for the Camalti Salt Flat, located northwest of the port city of Izmir. The salt flats include one of the country’s most important migratory birds’ sanctuaries. – The “Izmir Birds’ Paradise.” Binbirgıda also offered TL 9 million ($6 million) for the Ayvalık Salt Flats.
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Limak Ortaklığı Enerji in October 2010 won the tender for the State Railway’s Port of İskenderun, with a $372 million bid, in the second effort to sell the maritime gateway. The Council of State on December 25, 2006, shot down the government’s earlier plan to sell the Port of Iskenderun through the transfer of operating rights for 36 years to the PSA-Akfen Consortium for $80 million. The port, located on the northeastern corner of the Mediterranean Sea, has a 1,426 meter pier and a 750,000 square meter port area and employs 491 persons.
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MMEKA Makine İthalat Pazarlama ve Ticaret A.Ş.’s award of the tender for the privatization of the İstanbul Asian Side Electricity Distribution Company (AYADAŞ), is likely to be cancelled because of the break up of the joint venture. MMEKA offered $1.813 for AYADAŞ. . Some 11 groups placed bids. AYADAŞ, which distributes electricity on the Asian side of İstanbul province has 2,242,189 subscribers and a annual power loss rate of 7.5 %. MMEKA was a joint venture between businessman Mehmet Kazancı, who left his family’s Aksa Doğalgaz, which also bid for the tender, and Mehmet Karamehmet. The joint venture broke up after a state bank refused to finance the deal.
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Park Holding announced its withdrawal from tender in the privatization of the Akdeniz Electricity Distribution Company, for which it had offered the winning bid of $1.165 billion. Some 15 companies bid in the tender. Privatization authorities said they would invite Enerjisa, the second highest bidder, for contract negotiations. Akdeniz provides electricity to Antalya, Burdur and Isparta provinces in southwest Anatolia and has 1.5 million subscribers. But, Park Holding was also seeking to acquire the Bosphorus, Aysedaş, and Toroslar Power Distribution Companies.
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The Competition Board on March 7, 2011, said it won’t permit Yıldızlar SSS Holding and its subsidiary Eti Gümüş from acquiring rights to all four power distribution companies that tender that it competed for or won because it would give it a dominant market share. Yıldızlar won the tender for Toroslar Electricity Distribution Company, with a $2 billion bid. Some 13 firms competed in the tender. Toros supplies electricity in the provinces of Adana, Mersin, Osmaniye, Hatay, Gaziantep and Kilis in southern Turkey and has 2 million subscribers. It was also seeking to gain control over the Bosphorus, Gediz, Trakya and Dicle Power Distribution Companies. The board said Yıldızlar and Eti Gümüş would have to forfeit at least one of the tenders.
Aksa Elektrik Toptan Satış A.Ş., a member of Kazancı Holding (Aksa Holding) on February 18, 2010, was the highest bidder for Van Electricity Distribution Company with $100.1 million offer. Van Electricity supplies power to the provinces of Van, Bitlis, Hakkari and Muş, in southeast Turkey, and has 402,976 subscribers. Five other companies had prequalified for Van Electricity Distribution Company. These were: Kolin İnşaat Turizm Sanayi ve Ticaret A.Ş.; Sanko Tekstil İşletmeleri San ve Tic. A.Ş.; Cengiz Elektrik San ve Tic. A.Ş.; Çalik Enerji Sanayi ve Ticaret A.Ş.; and Aydem Elektrik Dağıtım. Turkey’s 20 power distribution companies control 800,000 km of power lines and 2,500 transformers and have a total market value of $3.2 billion, but investment analysts predicted that the country could attract more than $17 billion in funds through the tendering process because of the intense competition. Several have already been privatized. The fact that Aksa is owned by members of Kazancı family, who also partially own MEKA- MMEKA and İş Kaya MMEKA, two groups that have won numerous power distribution tenders, raised concerns over possible irregularities, and some critics have suggested the tender be relaunched. Karavil Dayanıklı Tüketim Malları İnşaat Otom. Pet. Ürün Paz. Sanayi ve Ticaret Ltd.- Ceylan İnşaat ve Ticaret A.Ş. Joint Venture Group in August was the highest bidder for Dicle Electricity Distribution Company with a $228 million offer. Dicle provides power in the provinces of Diyarbakır, Mardin, Siirt, Sanlıurfa, Batman and Sırnak in southeast Turkey and has one million subscribers, the Privatization Administration said on its web site. The other companies that bid were: Cengiz Elektrik Toptan Satış A.Ş., Kolin İnşaat Turizm Sanayi ve Ticaret A.Ş., Çalık Enerji Sanayi ve Ticaret A.Ş. Limak İnşaat Sanayi ve Ticaret A.Ş., Eti Gümüş A.Ş.& Soğutsen Seramik Sanayi İnşaat Madencilik İthalat İhracat A.Ş. Joint Venture Group, İs-Kaya İnşaat Sanayi ve Ticaret Ltd. Sti.- MMEKA Makine İthalat Pazarlama ve Ticaret A.Ş.- Rosse Enerji İnşaat A.Ş. Joint Venture Group, Aksa Elektrik Perakende Satış A.Ş. and IC İçtaş İnşaat Sanayi ve Ticaret A.Ş. -
Ak Can Şeker was the highest bidder for the Portfolio C State Sugar Mills, which includes the Kastamonu, Kırşehir, Turhal, Yozgat, Çorum and Çarşamba Sugar Mills in central Turkey, with a $606 million offer, privatization officials said on December 8, 2009. Ak Can Şeker edged out Kuzey Anadolu Şeker Fabrikaları Joint Venture Group. Other groups that bid for the sugar mills were: Türkiye Tarım Kredi Kooperatifleri Merkez Birliği; Konya Şeker Sanayi Torunlar Gıda Sanayi ve Ticaret-Gülsan Holding Joint Venture; Elektrosan Elektrobakır Sanayi; Yıldırım Holding; Özaltın İnşaat ve Ticaret; and Çeliker Taahhüt İnşaat ve Sanayi A.Ş.
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Yıldırım Dış Ticaret was the highest bidder for the privatization of Emekli Sandığı’s (State Employees’ Pension Fund) Foça Holiday Village, in Foça, a resort town on the Aegean Coast 70 km north of Izmir, with an $8.2 million bid. Formerly operated by the French Club Mediteranee organization, the Foça Holiday Village includes 350 bungalows, two restaurants, two bars, an olympic swimming pool, nine tennis courts, basketball and volleyball courts and a gymnastic saloon.
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