Galataport draft zone plan ready, tender may open
Posted by meb at June 9th, 2007
The privatization process for the Salıpazarı-Karaköy Cruise Port Complex — commonly known as the Galataport tender — is presumed to start up again soon.The Privatization Administration (ÖİB) had completed a provisional building development plan for the region and, two months ago, sent it to the High Commission for Monuments — a state institution that analyzes projects to determine whether they carry the potential of inflicting damage on cultural assets located in the area. The privatization process will resume if the commission raises no objections to the project.
The ÖİB attempted to lease the region for 49 years in 2005 in a controversial tender, and a consortium — embodied by famous Israeli businessman Sami Ofer and his Turkish partner Mehmet Kutman — won it after outbidding their competitors with $4.3 billion. But this auction was later nullified by the Turkish Maritime Organization (TDİ), stating certain conditions had not been met.
ÖİB President Metin Kilci said if the High Commission for Monuments approves the plan, the new privatization process will start in a few months. However, it has not been decided yet whether the new tender will also be for a 49-year lease; it will probably be less than that, Kilci said.
Kilci was talking to Today’s Zaman in an exclusive interview on Thursday, from his office in Ankara, where he expressed his assessments on a wide variety of issues regarding the country’s privatization projects. “Former amounts were in accordance with the build-operate-transfer model. But from now on, they will all be within the framework of the privatization law. Much of it will change completely,” he said.
Kilci also mentioned the initial public offering (IPO) of Halkbank’s 25 percent share last month, greatly welcomed by the markets with a seven-fold demand. “The IPO was the largest in Europe since 2004, and we achieved a perfect result there,” he said. This was an indication that there was no “hazy weather” in the economy, he asserted. The IPO came a few days after the Turkish Armed Forces (TSK) issued its electronic memorandum — the “e-memo” — criticizing the government on its perceived stance against secularism. Despite the political environment, investors pledged allegiance to the economic stability, Kilci claimed, adding that this IPO also indicated foreign investors’ trust in the Turkish economy. Another point he stressed was on the electricity distribution tender, which was due to be held by the end of last year. Kilci said they hadn’t received any instruction from the government, causing them to delay the tender until after the elections. However, the decision to delay the tender also gave them an opportunity to complete investment in the infrastructure first, avoiding any potential trouble after the privatization. He said that the investment program was mainly aimed at removing major defects in the system. Kilci, however, avoided giving any possible date for the electricity tender.
On the privatization of the National Lottery Administration (Milli Piyango İdaresi), Kilci said they had prepared a bill and submitted it to the Prime Ministry. “It hasn’t hit Parliament for a general discussion yet,” he noted and went on to say: “Only after this bill passes through Parliament and becomes law is it possible to privatize the lotteries. But the study has been waiting a long time at the Prime Ministry.”
It has already been revealed that numerous companies are interested in the sale of the state lottery companies. Among them are the Koç, Sabancı, Doğuş, Doğan, Anadolu, Alarko, Oyak and Çukurova groups.
Golden share for Petkim
Kilci acknowledged that a golden share — a privileged small share of a strategically important company that bestows upon its owner a right to veto in crucial decisions — will be used for Petkim. A 1 percent golden share is already present in Türk Telekom and Erdemir, and the state is enjoying the benefits of this share by participating in the management of these companies and affecting major decisions. Yet again, Kilci believes that the term “strategic company” should be used very carefully. A study was conducted to determine which companies were “strategically important” in 1994, Kilci explained, adding that a golden share would be valid for Petkim even though Petkim was not on the 1994 list.
source: Today’s Zaman
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