Sumgayitelektriksebeke

cancelled

The government of Azerbaijan, through its Ministry for Economic Development, granted a 25 year concession to rehabilitate, operate and transfer (ROT) electricity distributor Sumgayitelektriksebeke to BARMEK Azerbaycan Elektrik Sebeke. Sumgayitelektriksebeke was a joint-stock company with 160,000 subscribers, 10% of which had meters at their disposal. Sumgayitelektriksebeke was the main electricity supplier to Sumgayit and northern districts of Azerbaijan. The ROT contract was awarded on July 29 2002 by the Ministry for Economic Development, and approved on August 28 2002 decree of the president of Azerbaijan. BARMEK Azerbaycan Elektrik Sebeke was a local subsidiary of Turkish company BARMEK, a diversified holding company that covered a series of operations ranging from electricity and defense contracts to various construction work. BARMEK agreed to invest $80 million in the development of the Sumgayit electricity network during the 25-year concession period. Barmek Azerbaycan Elektrik Sebeke was also supposed to pay $0.2 million to consulting company Ernst $ Young and $0.4 million to the Economic Development Ministry for the concession. In 2006, after months of mutual accusations, arrests, investigations, and political statements, the Turkish electricity company Barmek had broken its contract with the Azerbaijani government to manage electricity supplies for Baku, Sumgait (a major industrial town in the north of Baku) and the whole northern part of Azerbaijan. Sent an e-mail to: office@economy.gov.az See: http://msp.gov.az/html/eng/tender3a.html and: http://economy.gov.az/HTML/Ministry/address.htm None