PRESS RELEASE 08.10.2008
A GIANT VENTURE IN ENERGY SECTOR
AKENERJİ AND CEZ HAVE UNITED THEIR POWERS
Akenerji, which operates under Akkök Group of Companies, has signed a strategic partnership agreement with the Czech Company CEZ, one of world’s leading companies in energy business.
Akenerji, which is one of the largest electricity production companies of the private sector in Turkey,has signed a strategic partnership agreement based on equal partnership in the Turkish energy market, with CEZ, Europe’s most profitable full-integrated and 7th largest energy company with a total 30 billion euro of market value.The agreement will be finalized after the official applications of both companies in their home countries and abroad, the notifications to the concerned institutions and organisations and permissions are obtained and share transfer transactions are completed and the country will benefit from about USD 303 million as foreign capital.
Ömer Dinçkök, Chairman of Board of Directors of Akkök Group of Companies, who stated that they would proceed with resolution in the Turkish energy sector with its target of liberalisation , said in his statement “Akenerji, which started its operations in 1989, is one of the private sector establishments that is aware of the significance of energy for the growth of Turkey. In the process of liberalisation in the market, we will continue to grow in production and distribution by taking support from our partner’s profound experiences in these fields . The SEDAS tender that we won in July with an offer of 600 million dollars together with Cez and that was approved with a decision of Privatization Administration on September 19, 2008, is a first move in such an endeavour.As Akenerji, we will combine our experiences and knowledge in energy sector in Turkey,with the experiences of our partner CEZin distribution on the international platformsand distribute through SEDAŞa total of 8 TWh (Terawatt/hour) electricity a year to 1 million 300 thousand users. With the positive results of our negotiations with CEZ, which started in November 2007, an important progress was achieved for the Turkish energy sector. We are very proud of signing the partnership agreement with Mr. Martin Roman, the CEO of CEZ, in the presence of the prime ministers of both countries. From this point on, we will proceed with resolution together with our partner CEZ in the business of production, distribution, and wholesale and retail trade of electricity energy in Turkey .Our target for growth during the partnership process is to reach 3 billion dollars. Our target for energy is to reach 3 thousand megawatts in 2013.”
Mehmet Ali Berkman, CEO of Akkök, who underlined the fact that when current market conditions are taken into consideration, the agreement made is also significant in terms of the introduction of direct foreign investment into the Turkish economy, stated ‘‘The rapid growth of the liberal market structure of Turkish energy sector by comprising electricity production and distribution privatizations will ensure the increase of our contribution to the solution of future electricity supply problems. Today the partnership we established with CEZ, which is one of the world’s largest energy companies with their annual turnover of 8.6billionUSD, is significant for creating foreign investors’ trust in the energy sector. Besides, the agreement made has strengthened Akenerji’s ambition about being one of the key players in the Turkish energy market. In addition to the present established power of 496 MW and renewable energy investments of 390 MW,Akenerji will increase its electricity production capacity by attaching importance to source diversity; thus the company will reduce production costs on the one hand, and it will continue its considerable contribution in meeting the need for electricty energy in our country on the other”.
CEZ , which is one of the largest and world’s leading energy companies with its distribution experience and established power of over 14 thousand MW in production in 12 countries, provides services to 7 million active subscribers in the centre of Europe in distribution as well as the supply of coal, nuclear and renewable energy.