A contract valued at $77.1 million for the installation of a flue-gas desulphurisation (FGD) system at the Yatagan thermal power station has been signed by a venture of the local Guris and Germany’s Gottfried Bischoff & Company with the Turkish Electricity & Generating Corporation (TEAS). This means that all but one of a series of contracts for thermal power station expansions together with the installation of FGD systems has escaped a treasury austerity review (MEED 23:9:94).

The contract calls for the installation of an FGD system for the three 210-MW boilers and generating sets at the Yatagan power plant in Mugla province, southwestern Turkey. The FGD unit is required to counter the chronic pollution emissions from the sulphurous lignite (brown coal) fuelling the plant. Installation will take around 30 months from mobilisation.

However, 100 per cent credit financing still needs to be arranged, which will take around three to four months, according to industry sources. Two thirds of the venture’s financing package will probably be a concessionary loan from Germany’s Kreditanstalt fuer Wiederaufbau, with the remainder coming from Canada’s official export credit agency, the Export Development Corporation.

The installation of an FGD system at the Kemerkoy thermal power station is the only remaining contract to be awarded in the government’s thermal power expansion programme.