Wednesday, July 26, 2006

New generation units at Afşin - Elbistan thermal power plant

It has been reported that a new investment plan totaling $5 billion would be launched within this month at Afşin - Elbistan thermal power plant for additional generation units. Afşin-Elbistan has already a significant share in total Turkish power generation sector.

Officials from Energy and Natural Resources Ministry told correspondents that the international tender inivitation for commissioning `C' and `D' power generation units in the Afşin- Elbistan plant would be announced by the end of next week, at latest. According to the initial plans, private companies will lease the coal fields and operate the power generation units for a period of 30 years with an extension option of 20 years in case of an agreement.

C and D generation units are planned to have an installed capacity of 1,000 to 1,600 megawatts, each. Total cost of the erection of these units are estimated to reach $4 billion. Including the adjacent coal field costs, overall investment would reach $4.5 billion.

The operation of coal fields are planned to churn a total of 17 mln tons of output per year, for each unit.

It is stated that, during the tender process bids with the earliest operation start date, the highest installed capacity, the highest power generation promise, and the highest share offered for Electricity Generation A.Ş. (EÜAŞ) will be favored.

Contract terms in the tender require the latest operation start period to be 6 years, the minimum installed capacity as 1,0000 MW, and, the minimum annual generation volume as 5,000 bln kwh.

A lot of domestic and foreign companies are expected to participate in the tender process. Some companies from USA, Japan, and Germany are said to be interested in the project. Official say that preliminary talks with likely investors on tendering model were positive.

Meanwhile, in another tender EÜAŞ will offer an open-pit coal field with a capacity of 17.2 mln tons of output at its Çöllolar site. The investment amount in the project is estimated as $200 million.

Tuesday, July 25, 2006

EUAS Afsin-Elbistan (A) Thermal Power Plant rehabilitation works tender

Electricity Generation A.Ş. (EUAS), the state owned utility company, has made an international tender invitation for Unit A thermal power plant rehabilitation project at its Afşin-Elbistan facilities in the southeastern province of Kahramanmaraş. The project is financed by a EUR 280 million loan provided from the World Bank.

The project is estimated to cost EUR 380 million. The remaining EUR 100 million fund will be provided from own resources of the company. EÜAŞ will hold the tender in two stages. In the first stage, companies will be demanded to submit their technical bids, only, in sealed envelopes. After assessment of technical bids, qualified
contenders will be invited to participate in the second stage of the tender, for pricing.

The EÜAŞ tender invitation includes outlines of thermal power units in Afşin- Elbistan and lays out the tender target as to reach design values at production capacity and operability criteria.

Project Description

The Afşin-Elbistan A Power Plant is one of Turkey's largest thermal power plants, and the largest such plant to use domestic lignite. The plant has 3 units with a capacity of 340 MW each and one unit of 355 MW, which started commercial operations between 1984 and 1987. The total installed capacity is 1.355 MW.

The plant utilizes lignite of low calorific value mined at the nearby Afşin-Elbistan Lignite Mine.

The power plant has for a long time performed below design for a variety of reasons, including general wear, changes in coal quality, design, and operations and maintenance practice. Currently only one unit is in operation.

EÜAŞ has decided that the power plant should undergo major rehabilitation work, to achieve design performance of generation capacity and availability.

Scope of works for rehabilitation:

Repair, replacement and upgrade of the following power plant systems to restore reliability, availability, power output and improve plant efficiency:

-Firing System
-Balance of Plant Mechanical
-Balance of Plant Electrical
-Electrostatic Precipitator
-Control and Instrumentation
-Ash and coal handling
-Civil works
-Plant chemistry

Within the scopes of works are also diagnostic systems for monitoring of historical data and the analysis of operational data. Environmental monitoring for continuous monitoring and data logging equipment will be provided and implemented.

- Prequalification Criteria
- Previous work experience at thermal power plant rehabilitation projects. In a consortium, each partner should have adequate experience at its segment.
- In last 10 years, completion of at least two rehabilitation projects at minimum EUR 200 mln value, as the contractor or sub- contractor. In a consortium, sum of partners' portfolio will count.
- In last 5 years, completion of a coal firing boiler – as new erection or rehabilitation- serving a thermal power unit with minimum 300-MW output capacity. In a consortium, one partner meeting this condition is enough.
- Average annual construction turnover of the contender should be at least EUR 300 mln. In a consortium the sum of partners count, but the leading partner must provide at least 40 pct of the sum, and other partners at least 25pct of the sum.
- Short term assets of the contender should be at least EUR 40 mln. In a consortium, sum of partners count.
- Legal conflict background: The contenders will provide full information on legal conflicts or arbitration cases which took place in the last 5 years.

The tender will be carried out in line with IBRD guidelines under competitive international tendering procedures, open to all from countries listed in the guideline.

Interested companies may get more information from the EÜAŞ and examine tender documents at the address below:

EÜAŞ, Elektrik Üretim A.Ş.
Termik Santrallar ve Maden Sahaları Daire Başkanlığı
İnönü Bulvarı, No: 27, KLMN Blok, Kat: 3, Oda: 330
Telefon: +90 312 222 33 54
Faks: +90 312 212 53 03

Contenders can obtain an English language tender documents set at a price of EUR 1000 or $1300 from the address given above.

Bid submission deadline in the tender has been set as October 10, 2006. In the second stage of bidding a YTL 5 mln or equivalent bid bond will also be submitted.

Bids will be opened at the presence of contenders on the same day.

The addresses for bid submission and bis opening are as follows:

Elektrik Üretim A.Ş., EÜAŞ
Termik Santrallar ve Maden Sahaları Daire Başkanlığı
İnönü Bulvarı, No: 27, KLMN Blok, Kat: 3, Oda: 338
Elektrik Üretim A.Ş., EÜAŞ
İnönü Bulvarı, No: 27, A Blok, Giriş Katı
Satın Alma ve İhale Komisyonu Odası

Saturday, July 15, 2006

700 MWe Thermal Power Plant by ENKA

`Natural Gas is Expensive,
We will Generate Electricity Burning Coal'

By Ismail Altunsoy, Istanbul

The rapid industrial expansion and population increase have led to increased demand for electricity in Turkey to six to eight percent a year.

The rise in demand is has made private investment in electric power generation attractive.

Enka, Power company that generates 17 percent of the electricity in Turkey, is building a new $1 billion power plant.

The company that currently runs three natural-gas-based power plants in three cities –Gebze, Izmir, and Adapazari— and generates 31.4 billion kWh a year, will operate the new facility burning coal instead of natural gas.

Ozkan Agis, Enka's Energy Coordinator, said that high cost of natural gas has forced the company to resort to coal instead of natural gas to generate electricity.

"Six months ago there was the idea of increasing the capacity of natural-gas burning power plants in Izmir. Though preliminary work was completed, the project was abandoned owing to rapid increases in natural gas prices."

The location of the new 700 mW facility is still undecided, Agis said, but said that the company officials are interested in building it somewhere along the Black Sea or the Marmara Coast.

Coal for the new facility will be imported from either Russia or South Africa, Agis said. "Enka prefers to construct the coal-burning power plant, mostly because it is envrionment-friendly. It will allow Enka to abide by emissions limits set by the European Union. The other reason is stability in prices of imported coal.

The coal-burning power facility will generate electricity at a unit cost of 6.5 to 7 cent. The electricity will then be sold at eight cents per unit.
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