Turkey's Largest Electricity Grid Privatization Continues to Suffer Setbacks

---

Researched by Industrial Info Resources (Sugar Land, Texas)--The Turkish government's effort to privatize the country's electric power grid has suffered another setback as Park Holding, the third bidder for Bogazici Elektrik (BEDAS), the electricity distribution grid for Istanbul's European side, joined the first two in failing to make a payment before the January 31 deadline.

With its $2.5 billion bid in July 2011, Park Holding was authorized by the Privatization Board to buy the grid, as local companes MMEKA and Aksa lost their rights in the auction by failing to make a downpayment on time.

The Privatization Board is now set to open a new tender, because Park was the final bidder. Also Enerjisa, a partnership between Austrian utility Verbund AG (Vienna, Austria) and an energy company owned by Haci Omer Sabanci Holding AS (PINK:HOMJF), said on Dec. 30 it had withdrawn from buying the natural gas grid on the Asian side of Istanbul after bidding $1.52 billion.

Although most of the privatization tenders of the power grids failed, the privatization authority collected aproximately $220 million. Energy firm Aksa Elektrik Perakende Satis AS (Istanbul, Turkey) won Trakya Elektrik, which operates in western Turkey, with a $622 million bid and Eti Gumus and Sogutsen Seramik joint venture secured 100% control of Gediz Elektrik with a $1.9 billion tender.

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

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.