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Intergen And Enka Complete $1.5 Billion Financing Of Major Power Plants In Turkey

Washington - September 28, 2000 InterGen and its Turkish partner Enka today announced the loan signing of the Gebze, Adapazari, and Izmir natural gas-fired power facilities in Turkey. Taken together, the total financing of $1.5 billion for the three facilities represents one of the largest private sector greenfield power project financings ever completed. Total project cost for the three plants will be over $2 billion.

The Gebze (1555 MW), Adapazari (780 MW), and Izmir (1525 MW) facilities represent the largest private sector power investment yet in Turkey and a 15% increase in Turkey's electrical generating capacity. The power stations are Turkey's new Build, Own, and Operate (BOO) program. The Izmir project is located in Aliaga, near the city of Izmir. The Adapazari and Gebze power projects are located 150 km east of Istanbul.

Limited recourse facilities from the U.S. Export-Import Bank (Ex-Im), Overseas Private Investment Corporation (OPIC), Hermes of Germany, OND of Belgium, and a commercial bank facility have been arranged. Co-arrangers ABN AMRO, BNP Paribas, Société Genérale and Westdeutsche Landesbank will provide the underlying funding for the export credit agency facilities as well as the commercial bank facility. The OPIC facility is funded by OPIC direct loans to each of the projects and will be used to finance costs that are ineligible for export credit agency cover. Finansbank of Turkey is providing letters of credit facilities to the Projects.

BOTAS, the Turkish state-owned gas company, will supply natural gas to all three facilities.

Bechtel Power and Enka will be constructing the plants. Construction of the Gebze, Adapazari, and Izmir facilities commenced this summer, and the plants are scheduled to enter full commercial operations in 2002. General Electric will be responsible for the supply and long-term maintenance of the combustion turbines, Alstom will be supplying the steam turbines out of Germany, and CMI will be providing the waste heat boilers from Belgium.

"With the Build, Own, and Operate framework, the Turkish Government and Turkish Electricity Generation and Transmission Corporation (TEAS) demonstrated a commitment to solving Turkey's energy challenges. We responded by developing projects that will be low cost and environmentally advanced. We look forward to a long-term presence in Turkey's power sector," said Carlos Riva, President and CEO of InterGen.
"We will produce electricity at affordable prices that will raise the competitiveness of Turkish industry. We look forward to begin commissioning ahead of schedule, by the end of 2001, and relieving Turkey from power shortages for many years to come. We are grateful to our financiers for the support they have shown to our projects and to Turkey," said Sinan Tara, President of Enka.

The adjacent Gebze and Adapazari facilities will result in significant related economic activity in the region. The Adapazari area was one of the regions severely affected by the 1999 Marmara earthquake. Enka, InterGen, and Bechtel have all played an active role in responding to the earthquake, in areas ranging from rescue and medical missions to municipal support and the establishment of a free boarding school for children who lost their families or homes in the earthquake.
The Izmir plant will facilitate the development of gas delivery infrastructure to Turkey's Aegean coast. Commercial operation is projected to commence in 2002.

InterGen is an international power generation firm. The Company is operating or building a total of thirteen power stations representing 10,350 MW. It also has secured contracts, bid awards, or governmental mandates for power stations representing an additional 6,755 MW. The Company has projects operating and under construction and/or mandate in the United Kingdom, the Philippines, Colombia, Mexico, China, Egypt, Turkey, Brazil, Australia, and Turkey, and is developing projects across the globe. InterGen is a Shell-Bechtel venture.

Enka is one of Turkey's largest construction firms. Founded in 1957, the Istanbul-based firm has 14,000 employees in projects in Turkey, Croatia, Russia, Kazakhstan, Azerbaijan, Ethiopia, and North Africa. Enka has played a major part in building existing TEAS power stations and BOTAS pipeline infrastructure since the early 1970s.