The European Bank for Reconstruction and Development (EBRD) has arranged a comprehensive long-term financing package of $250m for construction of a $1bn combined-cycle gas turbine power plant in Turkey.
The 950MW plant is located near Kirikkale city in Central Anatolia, around 50 km east of Ankara. It is expected to support the growing power requirements in the country.
Acwa Guc Elektrik Isletme ve Yonetim Sanayi ve Ticaret, a Turkish subsidiary of ACWA Power, will be developing the project, which is anticipated to reduce CO2 emissions by more than 1,825,000t annually.
EBRD Power and Energy director Nandita Parshad said: "This is a landmark transaction for many reasons. It brings together international financial institutions and commercial banks to lend on similar terms, offers the longest tenor to date, 16 years, for a power project in Turkey and is also the first time in Turkey that an independent power producer is financed on a limited-recourse basis."
ACWA Power president and CEO Paddy Padmanathan added: "The Kirikkale power project, which when completed will be a highly competitive electricity generator, is the company’s first investment in Turkey.
"It is a solid foundation for the multi-fuel power-generation portfolio we seek to establish in this thriving economy.
"The project represents yet another milestone in ACWA Power’s market expansion beyond the countries of the Gulf Cooperation Council."
Image: The 950MW power plant is expected to support the growing power requirements in Turkey. Photo: courtesy of European Bank for Reconstruction and Development.