Parliament passed a new, build-operate (BO) law on 16 July to overcome legal obstacles to private power stations. Passage of the law opens the way for the award of five thermal power projects with a combined capacity of 5,200 MW and costing $4,600 million, Energy & Natural Resources Ministry officials say. Bids for the schemes were returned in February but were frozen after a successful injunction brought by the Chamber of Electrical Engineers (MEED 14:3:97)

The new BO law, drafted by the previous administration, is one of the first legislative acts by the new government of Prime Minister Mesut Yilmaz which won a parliamentary confidence vote on 12 July.

Private power is the key to a $24,000 million energy investment programme, due to last until 2020, which aims to make up for a likely shortfall in capacity after years of underfunding.

Major international companies in the consortia that bid for the five BO plants include the US' Amoco Corporation, Mobil Energy, Exxon Corporation and Stone & Webster, the UK's National Power and Powergen International, Japan's Marubeni Corporation, Belgium's Unit International and Germany's Siemens. Leading local companies include Enka, Gama Endustri and Guris (MEED 14:3:97).

The construction of liquefied natural gas (LNG) terminals at Aliaga and Iskenderun is linked to the progress of the private power projects. Amoco with France's Total and the local Yasar Holding are promoting a $1,600 million project for LNG storage and regasification and a 1,400- MW power station at Aliaga, according to ministry officials. The Royal Dutch/Shell Group is promoting a similar scheme at Aliaga, while a group including Mobil Energy and the US' General Electric Company has been looking at Iskenderun, the officials add.