Electricity distribution in Istanbul privatized

ISTANBUL- Hürriyet Daily News

A three-firm consortium on Dec. 14 won the tender for the privatization of Boğaziçi Elektrik (BEDAŞ), the distribution company for Istanbul’s European side, with an offer of $1.96 billion. The Cengiz-Kolin-Limak Joint Venture Group, which also won the tender for the electric distribution in the Mediterranean region for $546 million last month, won the tender in its 17th round. Seven bidders, including Park Holding and Çalık Holding, competed to take over BEDAŞ, which has 10 million registered users.

İsmail Ergüneş, the executive chair of the joint venture, said after the tender that the group was now the leader in electricity distribution.

“This is major responsibility,” he said. “We plan an annual investment of $100 million. Our vision is to first become a regional energy company, then a global one. We are open to foreign investors who will contribute to this vision.”

The previous privatization process of BEDAŞ had failed. Joint venture MMKEA was the top bidder with a $2.9 billion price in August 2010, but the tender was canceled in October 2011 when the venture failed to make the payments.