The Ministry of Energy & Natural Resources has signed agreements with local/US joint ventures to construct two power plants on a build-operate- transfer (BOT) basis.

The first project is the 199-MW Eskisehir natural gas combined cycle power plant. The plant will be built by the local Ensel and the US' Generation Ventures Associates (GVA) at a cost of $163.5 million. GVA will have a 39 per cent stake in the plant, with Ensel holding the remaining 61 per cent.

Ensel and GVA will operate the plant for 20 years before handing it back to the government. The annual operation costs will be about $57.5 million and power will be charged at 5.145 cents per kWh.

The local Guris and the Nevada-based Ormat International have agreed to construct a 25-MW geothermal power plant at Germencik at a cost of $46.7 million. The two firms will operate the plant for 20 years. The average selling price will be 4.68 cents per kWh.