North Cyprus Government | Kib-Tek Privatisation Draws Nearer

North Cyprus Government – Kib-Tek Privatisation Draws Nearer

According to Kibrisli newspaper (05.02.14) Besir Atalay, Turkish Deputy Prime Minister responsible for Cypriot Affairs, has said to TRNC Prime Minister, Ozkan Yorgancioglu, that the privatisation of the KIB-TEK electricity authority is a precondition for transferring electricity from Turkey to north Cyprus.

The newspaper refers to an agreement between Turkey and north Cyprus where it was decided that KIB-TEK should reduce its electricity production and distribution costs and improve the way it operates by December 2014 and that privatisation of the organization has been postponed until May 2015. However, it is alleged that Turkey wants the privatisation earlier and Yorgancioglu has asked for time to discuss the issue.

Seeing as one of the main costs to KIB-TEK is in servicing its debt, and the main reason for the debt is government non-payment of its bills, and the main reason for non-payment is no money to do so, reduction of KIB-TEK costs isn’t going to happen.

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