80 Percent of Baskent Dogalgaz is being Privatized

Ankara natural gas distribution company Baskent Dogalgaz of which the tender for privatization was cancelled in March 2007, is being put on the market again. Deadline for submission of bids for the company 80 percent shares of which has been decided to be privatized was determined as 19th July 2010.

 

The tender for privatization of Baskent Dogalgaz affiliated to Ankara Metropolitan Municipality was lodged in March 2007 and cancelled due to that the consortium with the highest bid had not been fulfilled its obligations. In the new period started on 13th May 2010 with a procurement notice, the Directorate of Privatization Administration (OIB) receiving consultancy from Garanti Yatirim and Nomuro made an introductory meeting yesterday. Ahmet Aksu, Deputy Chairman of OIB stated that privatizations had been realized in success in the last 5 – 6 years and followed by saying that “deadline for submission of bids for Basket Dogalgaz is 19th July. We will award 80 percent shares of Baskent Dogalgaz by auction after having discussions for negotiation within the same month." In the tender for privatization that had been cancelled, Global-Energaz-STFA consortium in which Global Yatirim Holding has shareholding with 51,66 shares, had offered the highest bid with 1,61 billion dollars, the second highest bid  had been offered by Elektromed with 1,55 billion dollars and the third one had been received from Calik Holding.

 

Stating that users in Ankara where Baskent Dogalgaz makes distribution mainly consist of households, Aksu pointed out that this situation brings pre-payment and high level of consumption advantages along with. The customer profile of the second largest natural gas distribution company of Turkey consist of houses with 94,8 percent, commercial with 4,9 percent and free consumers with 0,3 percent.

 

And Halil Ibrahim Kirsan, General Manager of Baskent Dogalgaz, stated that “our company has a foreseeable cash flow with its continuous user group and a subscriber structure which reduces the risk of competition”. Kirsan reminded that the company has distribution license until 31 August 2037. Until August 2017, the distribution tariff unit service amortisation cost has been determined as 55,55 dollars per cubic meter and transportation cost as 7,777 dollars per cubic meter.

 

General Manager Kirsan replied questions with regard to those about what the tariff methodology will be after 2017, in a manner that all natural gas companies are suffering from same problem and everybody wants to estimate the future.

 

BASKENTGAS BY NUMBERS

 

Number of Subscribers 1,2 millions (end of March 2010)

Annual subscriber rise 12,7 percent (last 22 years)

Sale of natural gas 2,1 billions cubic meter/year

Annual sales growth 8 percent (last 7 years)

Network length 8 thousands 300 kilometres

Number of Personnel 440