(zaman.com) - Turkey managed to successfully achieve the sale of public institutions despite an apparent difficulty in privatization in 2005.
A considerable amount of foreign capital for investment purposes entered the banking sector. However, there are criticisms that the business circles have deviated from the economy agenda and should re-focus on privatization, reports Trend.
There are more concerns on whether the latest fluctuation in the markets will or will not decrease the price of the companies to be privatized. Turkish Privatization Administration Chairman Metin Kilci who realized a sale worth $8.1 billion in 2005 says there is no need to worry.
Kilci states they will make the first announcement on electricity distribution tenders anticipated by the energy sector next week.
The Administration aims at privatizing Istanbul European Side Electric Distribution and Transmission (BEDAS) and Istanbul Anatolian Side Electric Distribution and Transmission (AYEDAS) as well as at least two of the distribution regions of Sakarya, Baskent, Meram and Dicle and is happy with the high interest of the companies.
Turkeys leading holdings such as Koc, Sabanci, Calik, Zorlu as well as the world energy giants such as Germanys E. ON, RWE and Siemens, Spains Iberdrola and Endesa, Italys Enel and USs AES are closely following the tenders.
Authorities speak about an amount of $5 billion or higher for Istanbuls
European side and more than a total of $10 billion for the distribution tenders.
Privatization Administration Chairman Kilci made important statements on many issues including the files opened against them and the tenders of Milli Piyango (National Lottery), Petkim Petrochemical Co and Galataport.
Turkey is having miracles in the economic field, Kilci says. Nobody was interested in the sales in Turkey until three years ago. As a country that just overcame a crisis, we had difficulty in convincing even the local investors. Thanks to the atmosphere of stability that cam afterwards, we promoted our institutions in many countries. We met hundreds of investors. Now investors are competing for every tender we have, Kilci noted.
Kilci spoke optimistically about the sale of the electricity distribution network , but did not give a schedule.
He informed that the tenders of a few regions will be completed by the end of the year. It is not right to give a price. This will be tested under the free market circumstances, Kilci told.
With is huge consumption potential and service subscribers, Istanbul will be one of the first regions to be privatized.
There are more than 3.5 million users on the European side of the city alone and annual electricity revenue in Istanbul exceeds YTL 2.3 billion.
The Administration is expected to give priority to Istanbul, eagerly anticipated by local and international energy companies, and offers of up to $5 billion are envisaged.
National Lottery and Petkim Postponed to 2007
Kilci informed that 54 percent of Petkim shares are held by the Privatization Administration and seven percent by the Retirement Fund, and added that they have no plans to conduct a study on the privatization of Petkim in the near future.
Kilci said the preparations for the National Lottery tender continue, however it is impossible that it will be completed by the end of 2006; while the necessary legal regulations for the privatization of National Lottery was presented to parliament, it is still waiting to be accepted.
The president of the Privatization Administration said Gulf capital especially is interested in the privatization of Halkbank, the tender for which, will be conducted by the end of 2006 after the decision is taken on whether to open a public offer or block sale tender.
Competing Companies
Local Companies: Koc, Sabanci, Zorlu, Calik, Boydak, Park, Ak; Energy, Dogus-Anadolu-Dogan Holdings.
International Companies: E.ON, RWE, Siemens (Germany), Iberdrola, Endesa (Spain), Enel (Italy), AES (ABD), Citygroup (Malaysia).