and tendering conditions that offer choices to the investor, not in spite of the market conditions but rather in accordance with the market conditions. The privatization program that was announced by our Government within the scope of the economic reform program, in the beginning of the year 2003 is promptly being carried out by the PA. Tenders are being announced and concluded in a timely manner in accordance with the schedule foreseen in the program.

As a matter of fact, all tenders for privatization planned for the 1st and 2nd quarter of 2003, which also included PETKİM, TÜPRAŞ and TEKEL, have been opened and the privatization process for some has already been completed.

In this scope, a tender, announced for the sale of the 88,86 % controlling share of PETKİM in January was completed in June. The result of the tender has already been approved by the Privatization High Council which is the final decision making body of the PA, the members of whom are the Prime Minister and four Ministers.

Tender process for other big compa­nies TEKEL (cigarette and alcohol business) and TÜPRAŞ (oil refinery) have also been launched June.

The deadline for submitting proposals for the 65.76% share of TÜPRAŞ owned by our Administration is the 18th of September 2003. 34.24% of the shares belonging to the aforementioned firm is being traded in the İMKB (Istanbul Stock Exchange) and the London Stock Exchange. As a result of this sale, TÜPRAŞ, which almost makes up the total refinery capacity in Turkey, shall become a completely private company that is subject to the Turkish Trade Law.

As for the other large company that has been tendered, TEKEL was first restructured by the PA and TEKEL Cigarette Industry Establishment' and 'Alcoholic Beverages Industry Establishment' have been respectively transformed into 'Cigarette Industry Enterprise and Trade Company Incorporated' and 'Alcoholic Beverages Industry Enterprise and Trade Company Incorporated' along with all claims and liabilities. The 'Marketing and Distribution Establishment' which was also owned by TEKEL, has become two companies namely, 'Cigarette Marketing and Distribution Company Incorporated and 'Alcoholic Beverages Marketing and Distribution Company Incorporated' and has been associated with the aforementioned companies registered.

Advertisements were issued in June to start the tendering process for the sale of 100% of the stocks for Cigarette Industry Enterprise and Trade Company Incorporated and Alcoholic Beverages Industry Enterprise and Trade Company Incorporated separately. The last date for offers is the 26th of September 2003. The privatization processes of both compa­nies are expected to be completed until the end of the year.

Within the framework of the 2003 privatization program, the PA is working to privatize Turkish Airlines (THY), whose shares are still 98.2% state owned and only 1.8% are being traded in the İMKB, primarily via public offering, keeping in mind the market conditions.

The 2003 Privatization Program also includes the 2 Bosphorus Bridges and 6 motorways, vehicle inspection stations, energy production and distrib­ution facilities have also been taken into the scope of privatization.

The preparatory work for vehicle inspection stations shall be carried out by the Ministry of Public Works and the General Directorate of Highways, preparation for energy production and distribution facilities shall be carried out by the PA in collaboration with the Ministry of Energy and Natural Resources, Energy Market Regulatory Authority, Electric Production Co. Inc. and TEAŞ (Turkish Electric Production and Distribution).

Again, as foreseen in the privatiza­tion program for the year of 2003, efforts are also underway for the priva­tization of İMKB, the Gold Stock Exchange, National Lottery and Halk Bankası (Halk Bank). Privatization Administration has made an applica­tion to the Capital Markets Board of Turkey (SPK) for the preparation of the necessary draft bill in order to facilitate the İMKB and Gold Stock Exchange to become corporations and, thus, to be privatized. In this framework, SPK has assigned the İMKB to hire consultant services in order to determine the method of sale to facilitate the sale and transfer of the stock by transforming these stock exchanges into incorpo­rated companies.

Parallel to the above endeavors, Turban, TZDAŞ and Tümosan have been joined under the umbrella of Sümer Holding and liquidated. A decision has been made to liquidate TDÇİ and the process is ongoing.

It is the opinion of the PA that having the confidence and support of all stakeholders, including the public, is a prerequisite for successful privatiza­tion implementation which is of utmost importance to our country.

2003 PRIVATIZATION PROGRAMME

The privatization to be made in the year 2003 is expected to bring in a revenue of 4 billion dollars.