US embassy cable - 03ANKARA3976

UNCLAS ANKARA 003976 
 
SIPDIS 
 
 
SENSITIVE 
 
 
STATE FOR E, EB/CBED, EB/IFD, AND EUR/SE 
DEPARTMENT PASS OPIC FOR ZAHNISER, MAHAFFEY 
NSC FOR BRYZA AND QUANRUD 
USDOC FOR 4212/ITA/MAC/OEURA/CPD/DDEFALCO 
USDOC FOR 6110/TD/BI/OEIM/MBEEMAN 
USDOE FOR PUMPHREY/ROSSI 
TREASURY FOR OASIA 
 
 
E.O. 12958: N/A 
TAGS: EINV, ENRG, ECON, PREL, TU 
SUBJECT: UPDATE ON BOT COMPANIES 
 
REF: ANKARA 3343 
 
 
1. (SBU) Summary:  President of the Energy Market Regulatory 
Authority (EMRA) Yusuf Gunay told EconCouns June 17 that EMRA 
was working on a response to the recent letter from the 
export credit agencies regarding the BOT contracts (reftel). 
The U.S. BOT companies, Trakya Elektrik (Enron) and Doga 
Enerji (Edison Mission), told us they had had no contact with 
EMRA or the Ministry of Energy since they submitted their 
license applications on June 2.  End summary. 
2. (SBU) EconCouns and econoff met with EMRA president Yusuf 
Gunay June 17 to follow up on the May 16 meeting with the 
export credit agencies (ECA's) and senior GOT officials 
regarding the GOT's contracts with the Build-Operate-Transfer 
(BOT) power projects (reftel), which include U.S.-owned 
companies Trakya Elektrik (Enron) and Doga Enerji (Edison 
Mission).  EconCouns noted that we had understood from that 
meeting that EMRA would clarify for the BOT companies that no 
contractual rights would be forfeited if the companies 
complied with the new licensing requirement.  EconCouns said 
we had also understood from a subsequent conversation with 
EMRA officials that EMRA was working on a response to the 
letter it had received from the ECA's following the May 16 
meeting. 
 
 
3. (SBU) Gunay responded that EMRA was working on a response 
to the letter and on the clarifications regarding the 
contracts; EconCouns encouraged Gunay to respond as soon as 
possible.  Gunay asked if we had heard about possible 
discussions between the BOT companies and the Ministry of 
Energy regarding a buy-out.  He said he had heard a rumor 
that such discussions were taking place, and that the Turkish 
Treasury had determined that it had sufficient room in the 
budget to purchase the BOT companies according to the buy-out 
provisions in the contracts. 
 
 
4. (SBU) The local representatives for Doga and Trakya told 
us June 18 that they had had no contact with EMRA or the 
Ministry of Energy since they submitted their license 
applications on June 2.  They said they had not had any 
discussions with the GOT regarding a buy-out, but noted that 
this was an option provided for in the contracts, and 
therefore an option they would be willing to pursue. 
PEARSON