TURKEY: Bursa power plant financing signed

19 July 1996

Japanese funding totalling $517.7 million has been signed up for a 1,400-MW gas-fired plant near Bursa. The contracting consortium for the plant is headed by Japan's Mitsubishi Heavy Industries.

The funding package includes $409.7 million in export credits to be extended via the Export-Import Bank of Japan (Jeximbank), and $108 million in commercial financing arranged by Mitsubishi Bank.

The consortium also includes Japan's Mitsubishi Corporation and Itochu Corporation, and the local Enka. It was awarded the contract on 9 December after a tender competition which excited controversy because the consortium's low bid was nearly half the amount it offered in direct negotiations with client Turkish Electricity Generation & Transmission Corporation (TEAS) in 1994 (MEED 8:12:95).

However, the rapidly expanding industrial city of Bursa in northwest Anatolia urgently requires the plant, having a generating shortfall of about 800 MW at present. Work on the first, 700-MW combined-cycle unit is to be completed in 30 months, and subsequently in 32 months on the second.

The plant will consume about 1,700 million cubic metres of natural gas annually.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications