Akdeniz Elektrik Dagitim A.S.

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In December 2010, Park Holding (Ciner Group) won the concession on Akdeniz Elektrik Dagitim A.S. under the BROT scheme at the bidding price of US$1.170 billion, as the highest bidder at the tender, beating off the competition with 14 other rivals. In April 2011, the Privatization Administration approved it. The concession was part of a government program to introduce private operation of, and investment in, the 20 regional electricity distribution companies owned by the state-owned Turkiye Elektrik Dagitim A.S. (TEDAS). The program followed a Transfer of Operating Rights and Share Sale model ('TSS model'). In this model, the private investor became the sole owner of the distribution companies' equity and the unique licensee for distributing electricity in each region for a period of 30 years. However, TEDAS retained ownership of the distribution network assets and of certain other items essential for operating the distribution assets. The private investor was obliged to undertake the necessary network investments, recoverable through the tariffs. These investments were embedded in the tariffs during the first tariff implementation period (2006-2010). After 2010, the private investor was to submit an investment plan annually to the Electrity Market Regulatory Authority (EPDK) for its approval.