Kosovo Electricity Distribution and Supply (KEDS)

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The Turkish consortium consisting of Çalik & Limak Energy Company won the tender for the privatization of Kosovo Electricity Distribution and Supply (KEDS), with a bid of EUR26.3 million, EUR3.5 million higher than the second bid, as well as the obligation to invest EUR300 million further. The served population is 1.8 million. The agreement was signed in October 2012. The consortium will take operational control from May 2013 onward. The winner is obligated to reduce commercial losses by at least 13.5% within 5 years. The tender was launched in June 2010. Five companies responded to the EoI, of which 4 fulfilled pre-qualification these included: Calik Holding (Turkey), Limak Holding (Turkey), Elsewedy Electric (Egypt), TAIB-Yildizlar Consortium (Turkey/Bahrain). Eventually consortia were formed and 2 bids were submitted. The winner, Limak-Calik, submitted the highest bid. EUR26 million from the sale will flow to the Kosovo Treasury. Previous annual subsidies of EUR25 million are also expected to be canceled going forward. Elsewedy was the second bidder, with EUR22.8 million. The company owns 675km of 35kV network, 445km of 10(20) kV network, 5,863km of 10kV network, 46km of 6kV network, and 11,870km of 0.4kV network. Also: 6,200 transformer stations, 220kV level. The project received IFC (legal advisory, structuring transaction, undertaking marketing and sales) support during the privatization process. The advisory work was supported by DevCo (DfID), Austrian Development Agency, the Dutch Ministry of Foreign Affairs, and the Swedish International Development Agency. N.B. the project received criticism because the eventual sales price was 3x lower than investments made in the company in the 5 years prior. http://mzhe.rks-gov.net/repository/docs/Implementation_Agreement_-_Marreveshja_per_Implementim.pdf http://mzhe.rks-gov.net/repository/docs/Share_Sale_and_Purchase_Agreement__Marreveshja_pe_Shitblerje_te_Aksioneve.pdf http://www.keds-piu.org/en/about-keds http://www.kosid.org/wp-content/uploads/2012/09/KEDS.pdf http://www1.ifc.org/wps/wcm/connect/e00cbd004e4adc988f0caf7a9dd66321/SuccessStories_KEDS.pdf?MOD=AJPERES http://mzhe.rks-gov.net/?page=2,42,563