Troubled with millions of dollars of debt from natural gas deals with BOTAŞ, the Ankara Municipality decided to separate its gas distribution business from its Electricity, Gas and Bus Company (EGO) in 2007.
In reply to a written question submitted by Republican People's Party (CHP) deputy from Bartın Rıza Yalçınkaya, Yıldız also said that following the completion of the privatization of Başkent Doğalgaz Dağıtım A.Ş., Ankara's natural gas distribution company established in 2007 to take over the task of gas distribution from EGO, the company's debts will be paid in accordance with rules set forth by the Supreme Privatization Board (ÖYK).
Asked how the natural gas delivery company will pay the debts, Yıldız said the government had recently opened a tender for the privatization of gas distribution. “We informed companies that bid in the tender about the gas unit's debts,” he said, adding that EGO shares in Başkent Doğalgaz Dağıtım A.Ş, Ankara's current natural gas distribution company, were confiscated as part of efforts to pay off its debts.
The minister noted that work on repaying the accumulating debts of the State Economic Enterprises (KİT) in the energy sector has been continuing in coordination with the Treasury Undersecretariat. In line with this aim, a draft law was presented to the Prime Ministry in January 2009. Yıldız also said the estimated cost to build the Nabucco natural gas pipeline project is estimated at 7.9 billion euros, which will be covered by shareholders RWE (Germany), OMV (Austria), MOL (Hungary), Transgaz (Romania), Bulgargaz (Bulgaria) and BOTAŞ (Turkey).