A breakthrough has come for 16 build-operate-transfer (BOT) power projects valued in total at about $5,000 million in the shape of a decision by the council of state that they do not constitute concessions. A ruling late in 1994 by the country’s constitutional court said the council should decide whether BOT projects should be considered concessions or not (MEED 19:5:95). The new decision enables BOT ventures to seek foreign arbitration in disputes and reduces their likely tax liabilities.
With a total output of 2,904 MW, the BOT power plants include eight large power stations to operate by hydroelectric and thermal sources, respectively: Birecik (672 MW); OF-Solaki (380 MW); Konaktepe (210 MW), and Dilek Guroluk (180 MW); and thermal: Cankiri Orta (125 MW); Esenyurt (180 MW); and two plants of around 500 MW each at Ereglisi on the Sea of Marmara. BOT ventures and their financing advisers now hope final agreements can be concluded soon for several projects at an advanced stage of negotiation, including Birecik, Ereglisi, and Esenyurt.