Best offer for ?zmir port above all expectations: $1.275 bln
The highest bid in the ?zmir port tender came from the ?zmir Global-Hutchison-E?B joint venture at $1.275 billion, significantly above the expected price for the operating rights of the port.
The tender for the ?zmir Port, which has the biggest hinterland along the Aegean coast, was opened by Turkish State Railways (TCDD).
Observers were anticipating a best offer around $850 million. Experts say that the amount indicates that a much higher price could have come at the end of the tender, had it been held at a time when the current presidential crisis was not present. Speaking for the E?B, O?uz Sat?c? vowed to make investments that would more than double the port’s capacity, since his group spent so much money in their bid for the port.
Four investors competed in the yesterday’s tender’s outbidding session which started off at $900 million. A joint venture set up by Global-Hutchinson and a maritime company of the Aegean Exporters’ Union (E?B) won the tender with their offer of $ 1.275 billion at the 16th round. Now the Competition Authority has to file a report on the tender to the Higher Board of the Privatization Administration (ÖYK), which will then officially approve the tender result.
The contract will be signed after the ÖYK’s approval. Following the Council of State’s council, the Privatization Administration, the TCDD and the contractor will sign an agreement transferring the operating rights of the ?zmir port to the contractor for 49 years.
Other contenders in the tender were Babcock and Brown-PSA-Akfen joint venture group, Çelebi Holding A.?, Alsancak joint venture group (a partnership between Alsancak Maritime Inc., Bat?çim Bat? Anadolu Cement Industry Inc and Limak Construction Industry and Trade Inc.). Alsancak joint initiative group board member Kemal Çolako?lu said they had been so affected by the tender’s atmosphere that their bid was far more than they had originally decided. “We have been working for almost two years for this privatization,” he added.