Turkey to launch 2 power grid auctions on Wednesday
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Turkey's Privatization Administration (PA) will launch sale tenders for two electricity distribution networks on Wednesday, an official told Reuters. The sales are expected to bring Turkey much needed foreign direct investment.
The launch of the two new tenders, coupled with the sale of two other grids launched last week, marks the acceleration of Turkey's broad sell-off program after several delays. The sales are expected to bring in foreign direct investment, which Turkey needs to finance a large current account gap.
The PA will set a May 26 deadline for companies to apply for prequalification and a July 15 deadline for bids for the two networks, which are in Meram in central Turkey and Aras in the east.
Last week it set a bidding deadline for two other grids, in the capital Ankara and Sakarya in northwest Turkey. These two were meant to be sold in 2007 as the first of 20 grids slated for sale, but the auctions were postponed until after the parliamentary election.
Before the sale was delayed, companies that applied for prequalification and qualified included Germany's Energie Baden-Wurttemberg and E.ON, and Spanish Iberdrola in a joint venture with Turkey's Calik Holding.
With a fast-growing population of over 70 million and a growing demand for energy, Turkey is seen as an attractive market for foreign investors.
Turkish firms that have prequalified include Enka Insaat, Dogan Holding and Akenerji.