* Bids above expectations
* Results to encourage further privatisations
* Money seen entering state coffers next year
* Eti Gumus top bid $485 mln for Osmangazi grid
* Calik Enerji top bid for Yesilirmak grid $441.5 mln
(Adds details, background)
By Hatice Aydogdu
ANKARA, Nov 6 (Reuters) - Turkey's privatisation agency
auctioned off three electricity distribution grids on Friday for
a higher than expected $1.15 billion, in auctions seen paving
the way for increased energy privatisations in the short term.
The three grids that serve a total 3.7 million customers
were seen bringing in at most $1 billion, and the high bids gave
a positive signal for four more grids being put up for sale on
Monday, analysts said.
Turkish mining company Eti Gumus submitted the highest bid
of $485 million for the Osmangazi electricity distribution grid
in northwest Turkey, while Calik Enerji submitted the top bid of
$441.5 million for Yesilirmak grid in northern Turkey.
The government is looking to revive the pace of Turkey's
privatisations, which have slowed in 2009, aiming for revenues
of around $7 billion from privatisations in 2010.
"We estimated $1 billion at the most so the result is quite
is impressive. This round of privatisation was going to serve as
an indication for further privatisation of distribution grids
and also generation facilities, so it's a positive indication,"
said Irmak Bademli of Eurasigroup.
Turkey's Privatisation Administration (OIB), which tendered
off a total of three power distribution grids on Friday,
approved 29 participants for the three tenders, including the
Turkish-Czech consortium of Akenerji <AKENR.IS> and CEZ
<>, which was among the first to pull out of all three
auctions.
Akenerji shares closed down 4.17 percent at 13.80 lira,
while CEZ was down 1.54 percent.
MORE PRIVATISATIONS
Turkish energy firm Aksa Elektrik made the highest bid of
$227 million for the Coruh grid also in northern Turkey.
Aksa's President of the Board of Directors Cemil Kazanci
said the sum would be paid in one instalment and that the grid
in northern Turkey would need investment of about $120 million
over a period of 3-4 years.
"The prices are high and I think these distribution regions
have good (growth) potential in investors eyes. It's also
positive for public financing," said Ayse Colak of Tera
Securities.
Turkey has forecast a budget deficit of 50.1 billion lira
($33.77 billion) next year as it has tried to spend its way out
of the financial crisis and a loan deal with the International
Monetary Fund looks less likely.
"These will most likely be collected next year, so it will
enter the budget then," said Colak.
Both Eti Gumus and Calik Enerji said they planned to
participate in future power distribution and generation tenders.
An OIB source told Reuters the agency planned to start the sale
process for four more grids on Monday.
Turkey is also looking to start the process for the sell-off
of a number of power generation facilities.
Turkey's power sector is seen as having strong growth
potential, with consumption set to rise to pre-crisis levels of
6-8 percent annual growth from 2010, analysts say.
The Osmangazi power grid in northwestern Turkey had a
consumption of 5,042 Gigawatt hours and 1.28 million clients in
2008, according to data on the OIB website.
The distribution grid also has one of the lowest rates of
stolen or lost electricity, a major problem in Turkey's
distribution infrastructure, at 5.2 percent versus some grid
rates of as much as 64 percent in poor southeastern Turkey.
Yesilirmak's consumption last year was 4,063 gigawatts and
has 1.467 million subscribers. The grid has a rate of 9.1
percent for lost or stolen power.
Coruh had consumption of 2,267 gigawatt hours last year and
nearly 1 million customers.
($1=1.4835 lira)
(Additional reporting by Thomas Grove and Melis Senerdem in
Istanbul; Writing by Thomas Grove; Editing by Andrew Callus and
Simon Jessop)
