The deadline for MMEKA, a joint venture between Mehmet Emin Karamehmet and Mehmet Kazancı which was the top bidder for the electric distribution grids in Istanbul, to pay the promised privatization amount ends Tuesday.
The company requested additional time for the payments of the Boğaziçi and Ayedaş, including one on the European side of Istanbul and another on the Anatolian side. The Privatization Authority will decide a possible additional time to be granted for MMEKA and additional caution money rate. The authority is expected to announce its decision on the same day.
The energy duo failed to pay the $1.2 billion for the privatization of the 80 percent of Başkent Doğalgaz, the natural gas distributor in the capital city of Ankara, even though it had received two deadline extensions.
MMEKA Makine committed $4.8 billion to the privatization tender of two electricity distribution grids of Istanbul. If the duo cannot pay a total of $3 billion for the tenders of the Boğaziçi and Ayedaş grids by May 31, the rights will be granted to second or third bidders.
MMEKA’s offer for the Boğaziçi grid on the European side of Istanbul was $3 billion and it was followed by Aksa Elektrik, lead by Cemil Kazancı, with $2.7 billion. The third bidder was Park Holding, which offered $2.5 billion.
The winner’s offer for the Ayedaş electricity grid on the Asian side of the city was $1.813 billion. The second bidder was Yıldızlar SSS with a total of $1.812 billion, followed by Enerjisa $1.5 billion and Aksa Enerji $1.4 billion.
The number of subscribers of the electricity distribution grid in the Anatolian side is 2.24 million while the number of subscribers is 4 million on the European side.
May 29, 2011
SOURCE: HURRIYET DAILY NEWS
