A venture of Mitsubishi Heavy Industries, Mitsubishi Corporation and Itochu with the local Enka was the low bidder with a basic price of $545 million for a contract to build a combined-cycle power plant fuelled by natural gas near Bursa. Five bids were returned for the project by ventures of foreign with local companies in complex bidding involving several currencies, options and alternatives:
Japan’s Mitsubishi Heavy Industries, Mitsubishi Corporation and Itochu, with Enka – the basic price of around $545 million, with a discount of 18 per cent amounts to $469 million; plus two alternatives of $499.5 million and $499.4 million.
Zurich-based ABB Asea Brown Boveri and Japan’s Marubeni Corporation, with Bayindir – basic price is $557 million; including optional items: $568 million.
Germany’s Siemens and Japan’s Nissho Iwai, with Siemens local subsidiary Simko – basic price with discount is $572 million; with optional items: $591 million.
The US’ General Electric Company (GE) and Austria Energy & Environment (AEE), with the local Gama – basic price $576 million; inclusive of optional items and discount: $649.5 million.
The UK/French GEC-Alsthom and Japan’s Mitsui & Company, with Guris – basic price $600 million; including optional items, $676.6 million.
The Mitsubishi-led venture made a direct offer last year which included an offer of 60 per cent financing by the Export-Import Bank of Japan (Jeximbank). After Prime Minister Tansu Ciller’s visit to Tokyo in late February and early March, Jeximbank renewed its funding offer on condition that the Bursa plant is awarded to a Japanese company.
Contractors now expect the client, Turkish Electricity Generation & Transmission Corporation (TEAS), to move quickly to an award, because the 1,400-MW plant is urgently needed. The Bursa area, the centre of the country’s automotive industry, at present has a generating deficit of around 800 MW.