The Energy Market Regulatory Authority (EPDK) is set to hold its first ever tender in Turkish lira, which will see five companies bid against each other to land natural gas distribution projects in Turkey's Ağrı and Tunceli. According to the EPDK authorities, two more tenders will soon be finalized to expand natural gas distribution coverage in Turkey.
Aksa Natural Gas Distribution Company, Fernas Construction Company, Akmercan Tourism Company, Siirt-Batman Natural Gas Distribution Company and the Alöz Engineering Company will vie today for the two natural gas distribution projects, which will cover Ağrı's city center and the province of Doğubayazıt, as well as two other similar projects in Tunceli on Dec. 28.
The tenders will be held in Turkish lira. The company to place the best bid will obtain the distribution licenses for 30 years. The distribution fee to be finalized in the tenders and will be in effect for the next eight years. At the end of this period, the EPDK will re-evaluate the fees.
With Ağrı and Tunceli coming under the gas distribution network, there are be only three provinces left in Turkey that do not have access to natural gas. Overall, 78 out of 81 provinces are part of Turkey's national gas infrastructure. The EPDK will also float tenders for the Artvin, Şırnak and Hakkari provinces in the near future in its attempt to bring all of Turkey under natural gas coverage.
Moreover, the tenders will be held in Turkish lira instead of U.S. dollar, after it was revealed that the currency preference did not see any decline in the investors' interest.
On Dec. 7, the EPDK announced that natural gas distribution tenders would be floated in lira henceforth, instead of the dollar, in reply to President Recep Tayyip Erdoğan's call to switch to Turkish lira from U.S. dollar to ease the exchange rate pressure.
The dollar has seen record-high levels after Donald Trump won the presidential elections in the U.S., which resulted in uncertainties in the markets. The lira was at 3.1556 against the U.S. dollar Nov.8, the day before the U.S. elections, which climbed to 3.5099 Monday.
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