TURKEY: BOT hydro choice expected soon

18 February 1994

The Energy Ministry is expected to choose a contractor in March for the $300 million-400 million Yedigoze hydroelectric project. Build-operate- transfer (BOT) bids were most recently submitted in July 1993. The scheme calls for the construction of a dam on the Seyhan river near Adana in the southeast.

The project has a history dating back to the mid-1980s (MEED 10:5:86). This time around, it is being contested by groups mostly led by local companies: the Uzan group; a venture of Bayindir with Yuksel; Erg Insaat; the Ata consortium, which built the Ataturk dam; and Italy's Italstrade. The Uzan group is lobbying hard for the project on the strength of its ownership of two private-sector utilities, Cukurova Elektrik and Kepez Elektrik, but Erg has submitted the lowest price, according to contracting sources.

According to the BOT proposals, the contractor will raise construction financing, build the dam, and then operate the project for 10-15 years. It will recover its costs and make profits from electricity sales to the Turkish Electricity Board (TEK).

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