TURKEY: Court ruling fails to deter private power bids

14 March 1997

Tenders were submitted to the Energy Ministry by 16 groups on 28 February for the construction on a build-own-operate (BOO) basis of six major thermal power stations with a combined output of 5,200 MW and an estimated total cost of about $4,600 million.

The bids were submitted despite an injunction against the tender process by the country's supreme administrative court, the Council of State or Danistay (MEED 7:3:97). Most of the consortia also tendered for more than one of the six plants. However, many of the 45 groups originally shortlisted did not submit bids, industry sources note (MEED 8:11:96).

Major international companies in the bidding consortia of contractors, equipment suppliers and operators include the US' Amoco Corporation, Mobil Energy Corporation, Exxon 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.

The Energy Ministry has said it will appeal against the injunction, sought in a case by the Chamber of Electrical Engineers (EMO) on the grounds that the six plants were tabled by a Council of Ministers (cabinet) circular, rather than by appropriate legislative bodies.

The tender process could be delayed by up to two months, ministry officials themselves acknowledge. However, contracting sources also say that evaluation of the complex and differing bids will probably be a lengthy process anyway due to inadequate tender documentation.

The plants, all fuelled by gas unless otherwise specified, are: Adapazari (700 MW); Gebze 1 (700 MW); Gebze 2 (700 MW); Ankara (700 MW); Izmir (1,400 MW); and Iskenderun (imported coal - 1,000 MW). The first two are due to be commissioned in 2000, the following two in 2001, Izmir in two stages between 2001 and 2005 and Iskenderun in 2003. These plants, together with another seven BOO thermal stations, are key elements of a $24,000 million integrated construction programme drafted by the ministry up to and beyond 2020 to avert projected deficits.

In a related development, the EMO has also brought similar actions in the Danistay against four build-operate-transfer (BOT) projects already under way. These are the 672-MW Birecik hydro-electric dam on the Euphrates in the southeast, two 500-MW, combined cycle, gas-fired plants at Ereglisi on the Sea of Marmara and a smaller 180-MW, gas-fired, combined-cycle plant in the Istanbul suburb of Esenyurt.

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