Private power deal takes shape

29 September 2000
Power And Water

Three landmark build-operate (BO) power projects first announced in October 1997 are within weeks of reaching financial close, a leading adviser on the deals says. The total value of the three projects is estimated at $2,000 million (MEED 31:10:97).

The largest single lender to the transaction is the US' Export-Import Bank (Eximbank), which has committed close to $1,000 million.

The other senior lenders are Office National Ducroire of Belgium, Hermes of Germany and the US' Overseas Private Investment Corporation (OPIC).

Taylor DeJongh of the US, which is advising Eximbank, says meetings were held between the senior lenders and their advisers with government authorities during August to finalise outstanding local issues and to obtain updated information about payment and gas issues in Turkey. 'The financial closing is expected this fall, ' Taylor DeJongh said in a 13 September statement.

The developer is a joint venture of InterGen of the US and the local Enka. The project entails the construction of a 777-MW plant at Adapazari, a 1,554-MW plant at Gebze and a 1,524-MW power station in Izmir. Project sources say the base price in the power purchase agreements covering the three plants has been set at just over $0.04 a kWh.

GE Power Systems of the US will supply turbines for the projects.

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