A venture of Germany's Lurgi Energie & Umwelt and the local Vinsan has completed financing and contractual terms for an order to install a solid waste incineration plant in Izmit. A DM 300 million ($176 million) package has been arranged for the contract by Banque Paribas.

The complexity of the package explains the lengthy negotiations since the preliminary selection of the venture for the award in May 1993. It includes export credit, commercial financing and a promissory note arranged by the London-based emergent markets division of Banque Paribas. About four institutions participated in the commercial syndication. The credits in the package are guaranteed by the treasury and cover 100 per cent of the capital investment. Since the contract was awarded, the economy has been beset by a foreign exchange crisis.

The project calls for the installation of a hazardous waste incineration plant with integrated electricity generation. It includes a waste water interceptor and treatment plant, and a land disposal facility. The venture has overall responsibility for the turnkey construction of all the units. When completed in 36 months' time, the complex annually will burn 30,000 tonnes of hazardous waste, provide a landfill facility for 750,000 tonnes of waste, and treat 21,000 cubic metres of waste water daily.