Toll roads to be ready for IPO in early 2014
ANKARA - Anadolu Agency
The government has decided to privatize toll roads through public offering. The necesarry regulations will be done in first quarter of 2014, authorities say. DAILY NEWS photo, Emrah GÜRELTurkey’s plans to privatize toll roads and bridges through public offering will be completed in the first quarter of 2014 if all the bureaucratic processes are passed as planned, authorities say.
Currently, the government has been trying to make the necessary regulatory amendments to establish a company that owns the tolls and bridges and to offer this newly set company to the public.
The Finance Ministry had cancelled the $5.7 billion toll road privatization tender last February, finding the winning bid lower than expected. Right after the cancellation, the government worked on several options, but opted for the public offering.
Now the government is looking to change a clause in Turkey’s land road code that features an obstacle to the direct privatization of toll roads and bridges by public offering.
As the preliminary studies regarding the issue have been completed, the next step will be taken next week, which will involve receiving the related ministries’ opinions.
The draft, planned to be included into omnibus bill, is aimed to be sent to Prime Ministry in September.
Even if the draft is passed into law before this year’s end, the authorities foresee the public offering taking place in the first quarter of 2014 at the earliest.
The details of the company that will be founded under the Privatization Administration are coming to surface amid regulatory preparations.
The company that will be set up to offer toll roads and bridges to the public will allocate 1 percent of its revenue for financing maintenance expenses of the roads.
The costs surpassing this amount will be spent from the general budget to protect shareholders from financial losses.