Intergen And Enka Complete $1.5 Billion Financing Of Major Power Plants In Turkey
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
Bechtel is a trusted engineering, construction and project management partner to industry and government. Differentiated by the quality of our people and our relentless drive to deliver the most successful outcomes, we align our capabilities to our customers’ objectives to create a lasting positive impact. Since 1898, we have helped customers complete more than 25,000 projects in 160 countries on all seven continents that have created jobs, grown economies, improved the resiliency of the world's infrastructure, increased access to energy, resources, and vital services, and made the world a safer, cleaner place.
Bechtel serves the Energy; Infrastructure; Manufacturing & Technology; Mining & Metals; and Nuclear, Security & Environmental markets. Our services span from initial planning and investment, through start-up and operations. www.bechtel.com