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Cablegate: Update On Bot Companies

This record is a partial extract of the original cable. The full text of the original cable is not available.

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.

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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

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