Istanbul Anatolian Side Electricity Distribution Company (AYEDAS)

Active

Prospective

On March 15, 2013, Enerjisa Elektrik Dagitim offered the highest bid of USD 1.227 billion to acquire 100% shares of Istanbul Anadolu Yakasi Elektrik Dagitim A.S. (AYEDAS), a state-owned power distribution company that distributes electricity to 4.7 million people who live in the Anatolian side (Asian side) of Istanbul with 18,500 km long distribution power line. Enerjisa is joint venture equally owned by Turkey's Haci Omer Sabanci Holding A.S. and Germany's E.ON. Enerjisa signed a thirty year Transfer of Operating Rights (“TOR”) agreement in August 2013 that was backed by Share Sale model ("TSS model"). Under the TSS model, asset ownership of new as well as existing distribution assets belong to the state-owned power distribution company Turkiye Elektrik Dagitim Anonim Sirketi (TEDAS), while the investor (Enerjisa) attains the right to operate the distribution network together with the obligation to undertake all new necessary investments. According to this model, Enerjisa is the sole owner of the shares of AYEDAS and has the sole license (monopoly) for the distribution of electricity in the designated region from Energy Market Regulatory Authority (EMRA). All EMRA approved investments shall be realized by Enerjisa and will be recovered through the tariffs. Except for cases of investor misconduct, the part of investments not recovered via the tariffs shall be paid by TEDAS to the private operator upon the expiry or termination of the contract. The competitive tender was conducted by turkish privatization administration, Ozellestirme Idaresi Baskanligi (OIB). Enerjisa took over AYEDAS in August 2013 after it paid 40% of the bid amount in cash. The balance will be paid in three equal installments in three years. http://www.eon.com/en/sustainability/regional-activities/turkey.html http://www.enerjisa.com.tr/en-US/Corporate/OurCompanies/Pages/IstanbulAnotolianSideDistributionCompany.aspx

Energy

World Bank Group

Project

Power Generation (CCGT), Power Transmission, Government