Syndication of a DM 465 million ($324 million) project loan for the Birecik hydroelectric dam has closed and could be signed in mid-October, according to Istanbul bankers. A final contract for the build-operate-transfer (BOT) project could be signed by year end, they add.

The eight-year loan with six years' grace will carry interest of 225 basis points over the London interbank offered rate (Libor), and additional fees of 75-100 basis points.

Arranged primarily by Chase Manhattan Bank, the loan attracted subscriptions of DM 550 million ($384 million) but was not increased to the higher figure. It will be combined with project credits valued at around DM 1,300 million ($909 million).

Under negotiation for eight years, the 672-MW Birecik dam will be one of the first major BOT schemes to come to fruition in Turkey. It is being proposed by a consortium headed by Germany's Philipp Holzmann and the local Gama.