Gediz Elektrik Dagitim A.S.

Active

In July 2013, a consortium of Elsan-Tumas-Karacay OGG signed the 30 year concession agreement to take over Gediz Elektik Dagitim A.S. (Gediz EDAS). Gediz EDAS distributed electricity to the western provinces of Izmir and Manisa to over 2.4 million customers. The Elsan-Tumas-Karacay OGG consortium won a competitive tender for Gediz EDAS held on December 19, 2012 by beating eight other groups with the highest bid of USD 1.231 billion. The tender was conducted via auction and bidding companies included: Genpa Telekomünikasyon ve Iletisim Hizmetleri Sanayi ve Ticaret A.S., Park Holding A.S., Enerjisa Elektrik Dagitim A.S., Torunlar Gida Sanayi ve Ticaret A.S., Elsan-Tümas-Karaçay Joint Venture Group, Fernas Insaat A.S., Çalik Enerji Sanayi ve Ticaret A.S., IC Içtas Insaat Sanayi ve Ticaret A.S. and Zorlu Holding. The concession was part of a government program to bring private management and investment in the 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 and tariffs needed to be approved by the regulator, Energy Market Regulatory Authority (EMRA).