The government has taken a number of steps to open up the electricity sector to private investment. Consortia have been selected to negotiate both for the construction of five build-operate (BO) projects for thermal power stations valued at about $4,600 million, and for 10 operation and maintenance leases for existing thermal power stations.

The consortia selected for the BO plants came from 35 original bidders. The client is Turkish Electricity Generation & Transmission Corporation (TEAS), which completed technical evaluations in early October (MEED 4:4:97). TEAS' recommendations now need to be approved by the Energy & Natural Resources Ministry, according to a BO law passed in July (MEED 1:8:97).

The consortia and their power plants are:

the local Enka with the US' InterGen - Gebze (two 700-MW plants), Izmir (1,400 MW) and Adapazari (700 MW)

Germany's Siemens with Austria's Steag - Iskenderun (1,400 MW)

the UK's National Power with locals Bayindir and Mimag - Ankara (700 MW)

All the stations will be fired by natural gas, except for Iskenderun which is to be fuelled by coal. These power stations and seven other BO projects yet to be tendered will be a large contributor to the significant increases projected in demand for imported natural gas.

The Energy & Natural Resources Ministry has also selected bidders to negotiate 20-year leases to operate and maintain another 10 thermal power plants, all fuelled by lignite (MEED 16:5:97). The lease sales are expected to raise a total of $1,240 million.

The bidders with their projects are:

National Power and the US' Pacificorp with the local Bayindir and Mimag - two projects: the 630-MW Yatagan plant with a transfer price of $160 million; and the Yenikoy and Kemerkoy plants, with a combined capacity of 1,050 MW and transfer price of $250 million

the local Suzer Holding - two projects: the 210-MW Orhaneli plant with a transfer price of $90 million; and the Soma A and B plants, with a combined capacity of 1,034 MW and transfer price of $255 million

the US' NRG with Peabody and locals Koc Holding and Demir Export - the 300-MW Kangal plant with a transfer price of $125 million

locals Korona, Avrupa & Amerika Holding, Ucel Haddecelik and Ege Metal - the 300-MW Catalagzi B plant with a transfer price of $75 million

the local Temtas - the 429-MW Tuncbilek plant with a transfer price of $100 million

the local Park Enerji - the 300-MW Cayirhan plant with a transfer price of $185 million

However, tenders for two other leases to operate the Ambarli and Hamitabat plants have had to be cancelled by the ministry because state pipeline and gas agency Botas cannot guarantee gas supplies, according to contracting sources.