Turkey's Biggest Grid BEDAS Attacts $1.96 Billion in Privatization Tender

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Researched by Industrial Info Resources (Sugar Land, Texas)--Turkey's biggest energy grid, Bogazici Elektrik Dagitim AS (BEDAS) (Istanbul, Turkey), sold for $1.96 billion to the Cengiz-Kolin-Limak consortium. In a privatization tender that was held in Privatisation Administration (PA) headquarters in Ankara, the consortium, which includes three construction firms from the capital city Ankara, gave the highest bid for BEDAS operating rights for 30 years. BEDAS is currently servicing 4.1 million subscribers in the European side of Istanbul and is the second regional distributor to be sold in the last two months.

Turkey is trying to catch up in the privatization of its state-owned energy distributors. Turkish Finance Minister Mehmet Simsek said that the government plans to close energy grid privatizations before the end of 2012. For additional information on privatizations, see November 21, 2012, article - Turkey Aims to Close Energy Grid Privatizations in 2012.

The consortium already owns three of the countries' 21 regional power distribution companies: Uludag, Camlibel and Akdeniz. It paid $546 million for Akdeniz Elektrik Dagitim on November 14, 2012. The company has 1.6 million subscribers with a consumption of 5.4 gigawatt-hours (GWh). For additional information, see November 14, 2012, article - Turkey's Akdeniz Grid Attracts $546 Million Privatization Tender.

A privatization tender for Gediz Elektrik Dagitim, which distributes power in the region of Turkey's main Aegean port, Izmir, is expected to be completed before the end of the year. If the Cengiz-Kolin-Limak consortium wins the upcoming tender for Gediz, the consortium will control almost 25% of the privatized electricity grids.

In early 2011, BEDAS attracted a winning bid of $2.99 billion, but the winning bidders failed to complete purchases in the planned time frame. Since then, the Energy Market Regulatory Authority (EMRA) made significant changes to the tenders to increase investors' appetite for the bidding process. In early November, EMRA re-affirmed the loss-illegal rate for state-owned grids, which are not yet privatized.

In 2010, Turkey sold rights to operate nearly 20% of its power grids, raising more than $5 billion through tenders.

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