TURKEY: Ministry loses appeal against private power injunction

04 April 1997

The Energy Ministry has lost an appeal against an injunction by the country's supreme administrative court against the use of the build-own-operate (BOO) method for six emergency power projects (MEED 14:3:97).

The ruling is final and also effectively annuls the legality of a June 1996 decree introducing the BOO method, court officials say. The injunction

was successfully sought in the country's supreme administrative court, the Council of State or Danistay, by the Chamber of Electrical Engineers (EMO). The EMO charged that the six projects were not introduced by valid legislation.

The Ministry is urgently looking for ways around the Danistay's final ruling. One option is a new BOO law providing extensive Treasury guarantees for foreign lending in support of the six plants to reassure financial backers. The other is to switch to the build-own-operate-transfer (BOOT) method, which might be a quicker solution, the officials say.

A total of 16 consortia bid for the six plants, which will have a total output of about 5,200 MW and a combined cost of about $4,600 million (MEED 14:3:97).

Five of the plants are gas-fired; they are: Adapazari (700 MW); Gebze 1 (700 MW); Gebze 2 (700 MW); Ankara (700 MW) and Izmir (1,400 MW). The planned 1,000-MW Iskenderun scheme will use imported coal.

The bidders, mainly international companies with Turkish partners, and their project choices, are:

Germany's Siemens and the UK's Powergen (Gebze 1 and 2)

Siemens with Steag of France (Iskdenderun)

Enron Corporation and General Electric Company (GE), both of the US with Rumeli Elektrik (Gebze 1 & 2)

Enron Corporation (Izmir)

the local Ova Elektrik (Gebze 1 and 2 and Izmir)

the local Gama Endustri (Iskenderun)

the US' Amoco Corporation with Otak (Izmir)

the US' Mobil Corporation and GE with Bayindir (Izmir)

the US' Intergen with Enka (Adapazari, Gebze 1 and 2, Ankara, and Iskenderun). Enka is also in a consortium including the US' Exxon Corporation

Belgium's Unit International and Japan's Marubeni Corporation (Adapazari, Gebze 1 and 2, and Ankara)

the US' Arco with Tomen (Adapazari, Gebze 1 and 2, Ankara, and Iskenderun)

Stone & Webster and KMR Power Corporation, both of the US (Adapazari)

Destec Europe and the US' Mobil Power with Genel Enerji (Adapazari)

the UK's National Power with Mimag and Bayindir (Adapzari, Gebze 1 and 2, Ankara, and Iskenderun)

the local Guris (Adapazari and Ankara).

You might also like...

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