Projects

Coal fired thermal power plant

Iskenderun, Turkey

Siemens

Coal fired thermal power plant

Description

  • 1,320MW (2x 660 MW) coal fired thermal power plant in located in Iskenderun (close to Adana), Turkey
  • Turnkey supply by Siemens
  • Owned by STEAG and OYAK

Our Role

  • ViTO identified the opportunity and project location and introduced the project to Siemens
  • ViTO conducted lobbying activities for implementation of Build-Operate (BO)legislation in Turkey and coordinated environmental impact assessment working closely with the local NGOs in the region
  • Furthermore, ViTO maintained close relations with the Turkish Minister of Energy and TEAS. All local permits, including the jetty, were acquired jointly with several local consultants

Situation

  • Although there was a power purchase agreement (PPA) in place, international deals such as Isken power plant were not bankable as there was no international arbitration clause in the Turkish legislation
  • Build-Operate-Transfer(BOT) was not accepted by international banks
  • In addition, the project was viewed with environmental concerns due to a growing awareness for environmental issues by the Turkish society and authorities

Results

  • Due to the BO law, the German Government gave the project site the status of federal German territory there by facilitating long-term financing at competitive conditions through German a banking consortium
  • The project received a total foreign direct investment of USD 1.5 billion
  • PPA between the investors and the Turkish energy authority was reached through successful advising and lobbying by ViTO together with international law offices
  • Today, the power plant continues to be one of the most feasible and successful coal fired power plant in the world. BO law and German export incentives made this project one of its kind