The debates on the proposal to amend the Public Procurement Law in the Parliament and the actions that spilled into the streets are in the news in Northern Cyprus, also known as the Turkish Republic of Northern Cyprus, TRNC. TRNC is not recognized by any other country in the world except Turkey. The government here is asking Parliament for a mandate to extend the contract with the electric power company AKSA ‘without a bid.’ The CTP, The Republican Turkish Party, which made the first contract with AKSA but is now the main opposition, opposes the proposal in Parliament.

What causes these arguments is a power generation and distribution system on the verge of bankruptcy. From time to time, power cuts already began in various regions. However, it is reported that the real crisis will be in the summer when electricity use will increase many folds. Even if all the power plants in the hands of the public and AKSA operate at full capacity, the electricity need cannot be met. The government’s solution proposal is to draw a cable to the island through a power plant built on Turkish territory after renewing the contract with AKSA.

Socialists say the solution is only through expropriation.

We talked to Münür Rahvancıoğlu, Secretary General of the Independence Road movement in TRNC, about the background of the electricity crisis in Northern Cyprus, the debates in the Parliament, and the demands of the street opposition.

Secretary General of the Independence Road Münür Rahvancıoğlu

24 years background of the bankruptcy

Rahvancıoğlu started the interview by explaining the background of the developments.
In 1999, the coalition government of the Social Liberation Party (TKP) (later renamed the Communal Democracy Party) and the National Unity Party (UBP) signed the first contract with AKSA. A contract was signed on purchasing sufficient power from AKSA as needed after the electricity generation capacity did not meet the need.

In 2009, a contract was signed with AKSA, the power corporation, significantly impacting the current crisis. The coalition of the Republican Turkish Party (CTP) and the Freedom and Reform Party (ÖRP), currently the main opposition party, signed the 15-year contract with AKSA. However, the scope and obligations of this contract are much broader than those made in 1999.
Within the scope of the contract, AKSA established a new power plant in Kalecik. The state provided the land. Installation expenses were divided over the years and passed on to the state. The state again covered the cost of fuel in electricity generation. Moreover, the state started to pay an annual rent of $28 million to the power plant, and the state covered almost all expenses. Purchases with foreign currency were also guaranteed for the produced electricity. Moreover, the electricity produced was more expensive than the state-owned power plant. Kilowatts are overpaid by $4 per hour to this private corporation.

They said, “A purchase guarantee is already given to AKSA. The deal is done,” and the state-owned power plant started to operate at the reduced capacity of only 15 percent.

One billion dollars paid for surplus electricity alone

Rahvancıoğlu stated that the bill for unused power since 2009, which was paid due to the purchase guarantee, has reached $1 billion. Rahvancıoğlu noted that even the rental price of two years would cover the cost of building a brand new power plant and that these figures are also reflected in the Court of Auditors’ reports. Rahvancıoğlu continued:

When you make a deal under such heavy conditions, electricity becomes very expensive, especially for homes. The burden on the state also increases. Almost all of the budget allocated for energy is spent on existing power plants and purchase guarantees. No new investments can be made. Even if all the power plants operate at 100 percent capacity, this electricity will not be enough in the summer.

The government’s solution is to tender that precisely suits AKSA

The contract with AKSA expires in January 2024. The completed contract can be extended for another three years with the same conditions without an additional agreement, or a new bid can be opened by terminating the contract. The UBP-led coalition government wants to extend the contract for the next 15 years. However, it wants to do this without a new bidding process and by forming the requisition that fits precisely to AKSA’s qualifications. Since the Public Procurement Law prevents this, the government proposes to amend it. However, the CTP, the Republican Turkish Party, the first to sign this contract with AKSA, opposes the procedure this time.

One of the actions taken before the Parliament against the proposed amendment to the law

Can an interconnected system be established with Turkey?

Prime Minister Ünal Üstel states that with the renewal of the contract, steps will be taken to establish an interconnected system with Turkey. However, Rahvancioglu says this is impossible from both the technical and the international law perspectives.

Rahvancıoğlu said:

Northern Cyprus is already connected with the Republic of Cyprus (the internationally recognized Republic of Cyprus, in the southern part of the island, a member of the European Union). In other words, we can buy electricity from the south if needed. The connection already exists. But Turkey has no such connectivity with the EU. If such a connection is established between Turkey and Northern Cyprus, the Republic of Cyprus will cut the link since a network will be established between the EU and Turkey.

Therefore, what the Northern Cyprus government intends to establish differs from a system connected with Turkey. They want to provide electricity to Northern Cyprus through a power plant built on Turkish territory but not connected to Turkey’s network but with the same heavy payment terms. Why don’t they build this power plant in Northern Cyprus? Technically, it will have no connection with Turkey.

Energy workers blamed for outages

When the Northern Cyprus Electricity Authority (KIB-TEK) workers decided to strike against the market-oriented transformation, the strike was banned. But the workers went on strike anyway. Rahvancioglu said the government blamed the workers for the recent power cuts and said the workers were sabotaging the lines.

Workers categorically deny the allegations of sabotage, saying the cuts were due to a lack of proper maintenance. Rahvancioglu added that the government could not even answer or know when maintenance was last done on the power plant.

A still from the Independence Road’s March 9 demonstration in front of the Prime Minister’s Office

“AKSA is a hump on our backs, the remedy is expropriation”
In addition to the actions of EL-SEN, the union of the (KIB-TEK) workers, demonstrations are taking place in front of public institutions such as the Parliament and the Prime Minister’s Office or various centers. The Road to Independence also supports the actions of EL-SEN, as well as holding banners at intersections. The Path to Independence states that the solution to the crisis lies in expropriation.

Rahvancıoğlu says the power plant established in Kalecik and owned by AKSA should be expropriated.

Land, installation expenses, and fuel come from the state; Too much money has already been given with the purchase guarantee. Even just for surplus, unused electricity, $1 billion was paid. There is no obstacle to the expropriation of this power plant. AKSA is a hump on our backs. The solution to this crisis lies in expropriation.

Purchase guarantees and overpayments should end as soon as possible so that public resources can be spent on new investments, new power plants, and the establishment of environmentally friendly and cheaper electricity-generating systems.

Part of the opposition has a say in the amendment to the Public Procurement Law. They say that “the law should not be changed.” They say “a 5-year contract should be made instead of 15 years”. But, no, public electricity is a right. Expropriation should be carried out immediately. There is no other way out.

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