Work begins on Rudeshur power project

30 July 2004
Turkey's STFAhas begun mobilisation for the civil and mechanical works contract on the initial phase of the country's first private power plant at Rudeshur. The final signature of the contract follows the achievement of financial close on the Eur 225 million ($270 million) funding package for the project.

The contract for STFA, awarded by engineering, procurement and construction (EPC) contractor Unit Internationalof Belgium, is worth Eur 32 million ($38.5 million) and calls for civil erection, electro-mechanical engineering and equipment supply. The work is due to take about 22 months. The local Arian Mah'taab Gostar Companyis carrying out the project on a build-operate basis.

Financing was arranged by Hypovereinsbankand was structured as a blend of export credits, from Germany's Hermes and Belgium's Office National du Ducroire, and commercial debt. About Eur 150 million ($180 million) was raised at syndication, with four banks coming on board - BNP Paribas, Calyon, Dexair and Fortis Bank. Germany's Fichtneris the consultant.

In the first phase, the single-cycle plant will have capacity of 750 MW, eventually rising to 2,000 MW. Unit hopes to be granted notice to proceed on the 500-MW second phase by year-end. Energy conversion agreements are in place, with gas being sourced from Iran National PowerCompany. The offtaker is state power company Tavanir(MEED 7:5:04).

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