Baskent Elektrik Dagitim A.S.

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In January 2009, Enerjisa, a 50:50 joint venture between Sabanci [Turkey] and Verbund [Austria], assumed control of the assets of Baskent Elektrik Dagitim A.S. (Baskent EDAS, or BEDAS), one of Turkey’s largest electricity distribution companies, for a concession term of 30 years. Baskent EDAS, which was incorporated in October 1995, serves more than 3 million customers in the cities of Ankara, Bartin, Çankiri, Karabük, Kastamonu, Kirikkale and Zonguldak. 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. Enerjisa won a competitive tender held on July 1, 2008, for the Baskent EDAS concession with a bid of US$1,225 million. Enerjisa beat off competition from four rival bidders, namely Hema Endustri, AkCez, Dogan Holding-Saray Hali-Kantur-Akdas Insaat joint venture, and Park Ticaret. In September 2008, the Privatization High Council approved the award in September 2008. On January 28, 2009, Enerjisa signed the final purchase contract (share transfer agreement) with the Turkish government to assume control of Baskent EDAS. The sponsors were to pay half of the purchase price upfront and the remainder in installments in 2011 and 2012. http://www.enerjisa.com.tr/en-US/Corporate/OurCompanies/Pages/EnerjisaBaskentElectricityDistributionCompany.aspx