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.


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