Privatisation 2006 by wpr1947

VIEWS: 31 PAGES: 32

									    REPUBLIC OF TURKEY
       PRIME MINISTRY
PRIVATIZATION ADMINISTRATION

     TEDAŞ PRIVATIZATION

      Osman Demirci, Ph.D.
            March 2006
                 OUTLINE
 Accomplishments in Privatization

 Electrical Energy Sector Liberalization

  Privatization of Electricity Distribution

  Privatization of Electricity Generation

 Conclusion


                                               2
          PRIVATIZATION IMPLEMENTATIONS
•Revenue 1985-2003: $8,048 BILLION
•Revenue 2003-2005: $18.297 BILLION




                                          3
PRIVATIZATION in 2005




                        4
         MAJOR UPCOMING PRIVATIZATION PROJECTS

         COMPANY                               INDUSTRY   PA (%)

PETKİM                         Petrochemical                   54.36


TEDAŞ (20 EDAŞ) Electricity Disturibition                  100.00
TEKEL                          Tobacco

PORTS                          Sea Ports                      100.00
Bandırma, Samsun, Derince
İzmir (7-June-2006)


Bursa Çelik Palas,             Hotels                          99.99
Istanbul Tarabya (29-3-2006)




                                                                   5
          ELECTRICITY ENERGY SECTOR
               LIBERALIZATION

OBJECTIVES

• Efficiency in Operations Of The Assets

• Electricity Energy Supply Security and Supply Quality

• Decrease in Theft/Loss Rates

• Investments performed by Investors

• Consumer’s Benefit from Competition and Service Quality in
  the market


                                                               6
                                    REFORM PROCESS
                                         17 March 2004
                                                 Strategy    Transition
                                                               Period
                                                  Paper
 3 March 2001                                                Roadmap
                                                Balancing
      Electricity
                                                   and
     Market Law                 Settlement
                      Mostly                    Settlement
       No 4628                 Communique
                    compatible                  Regulation
                       with
                     Directive
                    2003/54/EC
        2001                      2003             2004             2006            2007             2011




 EPDK, the Regulator                                             Distribution     Generation
                                                                 Privatization   Privatization

        TEAŞ unbundling                                           20 DisCo        6 Portfolio
                                              Market Opening                                     Market Opening
                                                                                 Gencos with
                                             %30 with Eligible                                       %100
                                                                                   16,3 GW
                                             Consumer Limit of
GenCo TransCo TradeCo
                                                7.8 GWh/yr

                                          TEDAŞ taken into
                                         Privatization Program
                                              02 April 2004                                             7
8
Ministry of Energy and Natural Resources (ETKB)




                Coordinator
                  ETKB




                                                  9
1. PRIVATIZATION (ÖİB)
   a. Distribution Companies
   b. Privatization Metodology
   c. Data Room
   d. Tender Process

2. REGULATION (EPDK)
   a. Tariff Regulations
   b. Investment Approval – Inspection - Enforcement
   c. Service Quality Measurement – Enforcement
   d. Balancing and Settlement

3. TRANSMISSION SYSTEM OPERATOR (TEİAŞ)
   1. Market Financial Settlement Center (TEİAŞ-MFSC)
   2. National Load Dispatch Center (TEİAŞ-NLDC)
                                                       10
4. ENERGY PURCHASE CONTRACTS
         TEDAŞ                                                  FURTER INFORMATION
                                                                SHALL BE OBTAINED FROM:
                                                                Osman Demirci, Vice President
                                                                İsa Altıntaş, Projet Leader
                                                                Tel: (011)(90)(312) 435 4790
                                                                ialtintas@oib.gov.tr




•   Share                                            : 100 % PA
•   Energy Sale (Billion kWh)                        : 86.2, 92.8 @ 2004, 2005
•   Net Gelir (Billion YTL)                          : 12.5
•   Consumers                                        : 27,251,558
      Residential: 22,617,716 (83.0%) Commercial: 3,507,852 (12.8%)
      Industry: 301,391 ( 1.1%)       Irrigation: 344,638 ( 1.3%) Others: 479,961 ( 1.8%)

• Personal                                           : 31,256
      Labourer: 5,477 (temp) + 16,115 (perm)        Employee: 831 (cont) + 8,833 (perm)

• Estimated Tender                                   : May 2006



                                                                                                11
20 DISTRIBUTION COMPANIES HAVE BEEN FORMED IN
DISTRIBUTION REGIONS DEFINED IN ELECTRICAL ENERGY
SECTOR REFORM AND PRIVATIZATION STRATEGY PAPER
ISSUED BY HIGH PLANNING COUNCIL.




                                                    12
PRIVATIZATION METODOLOGY




                           13
                TOR CONTRACT

1. Objective
2. Definitions and Abbreviations
3. Scope of Contract
4. Duration of Contract
5. Principles of Transfer and Re-Transfer
6. Rights and Obligations of Parties
7. Force Majeure
8. Termination of Contract
9. Principles Pertaining to the Termination of Contract
10.Transfer of Contractual Rights
11.Settlement of Disputes
12.Other Provisions
13.Effectiveness of Contract

                                                      14
           SHARE SALE CONTRACT

1. Parties
2. Definitions and Abbreviations
3. Scope of Contract
4. Sales Price and Payement
5. Transfer of Shares
6. Provisions on Employees
7. Profit Sharing
8. Declarations by the Administrations
9. Declarations and Commitments of the Buyer
10.Capital Structure of the Company after the Transfer
11.Violations of Contract Provisions
12.Miscellenous Provisions
13.Settlement of Disputes
14.Effectiveness
                                                     15
            DRAFT TENDER DOCUMENTATION


1. Tender Document Objective
2. Infomemo and Tender Document
3. Pre-Qualification
   a. Technical (0.2) : Sold kWh>=DisCo kWh
   b. Experience (0.2): # of Customer >= # of DisCo, 3 years
   c. Financial (0.3): Asset $ >=1.5 x DisCo Asset $
   d. Financial (0.3): Capital $ >= 0.6 x DisCo Asset $
4. Info Room




                                                          16
ELECTRONIC DATA ROOM CONTENTS
A.   General Information

B.   Financial Information

C.   Operational Information

D.   Main Contracts

E.   Legal Affairs & Regulatory Environment

F.   Environmental Information

G.   Personnel

H.   Distribution Network

I.   Information Technology

J.   Macroeconomic And Market Data


                                              17
18
19
   Electicity Market Tariffs Regulations
Communiques:

1. Regulation of Distribution System Revenue

2. Regulation of Retail Service Revenue and Retail
   Prices

3. Regulation of Transmission System Operation
   Revenue

4. Regulation of Transsmission System Revenue

5. Determination of Transmission and Distribution
   Connection Charges
                                                             20
http://www.emra.gov.tr/english/regulations/electricity.htm
TARİFFS




          21
TARİFE




         22
TARİFFS




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TARİFFS




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25
ENERGY MARKET




                26
           ROAD MAP FOR TARGET MARKET DESIGN

The Transition Period Turkish
wholesale electricity market
consists of:
    a) Bilateral Contracts
    Markets between the market
    participants
    b) An real-time system
    balancing, operational and
    day-ahead planning
    mechanism by the
    Transmission System Operator
    – TEIAS/NLDC. The TSO will
    procure balancing and other
    services from the market
    participants through an Real-
    Time Balancing Market (RTBM)
    and long term contracts for     The Transition Period Turkish Wholesale
    procurement of ancillary        Electricity Market arrangements are restricted to
    services.                       the existing infrastructure capabilities.

                                                                                   27
    MARKET SIZE & OVERVIEW: GENERATION


Installed Capacity        Electricity Generation
    36,8 GW                    150,0 TWh




                                                   28
EÜAŞ Portfoy GenCo




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      ENERGY PURCHASE CONTRACTS

1. TETAŞ and DisCo: 60% fixed
2. EÜAŞ-Portfoy and DisCo:
  • 25% fixed and 15% optional




                                  30
     ENERGY PURCHASE CONTRACTS



3. Time table for transactions
4. Guarantee
5. Termination of Contract




                                 31
         INVESTOR OPPORTUNITIES

1. Return on investments
2. Beating the theft/loss parameters
   targeted in the tariff
3. Beating the efficiency targets embedded
   in the operating expense component of
   the tariff
4. Competition on energy generation cost.
   (vertical integration, private producers)

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