ACWA Kirikkale Independent Power Project

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In July 2014, ACWA Power obtained the generation license from Turkey’s energy regulator, EMRA, to develop a 950 MW combined cycle power plant in Kirikkale (50 km east of Ankara) as a pure merchant plant. Electricity generated from the plant was expected to be sold in the day ahead market and potentially also through bilateral contracts. Kirikkale Independent Power Project (KIPP) is developed by Acwa Güç Elektrik Isletme ve Yönetim Sanayi ve Ticaret A.S. (“ACWA Guc”), a subsidiary of Saudi based ACWA Power and which includes Samsung C&T Corporation as a shareholder. ACWA Power and Samsung C&T held 90% and 10% equity interests in ACWA Guc respectively. The total investment in KIPP was approximately USD 1.0 billion. The project reached financial close in December 2014 with a debt equity ratio of 65/35. The European Bank for Reconstruction and Development (EBRD) played a key role in securing long-term financing by arranging a syndicated loan of USD 250 million: USD 200 million for the EBRD's own account and USD 50 million syndicated to Banque Saudi Fransi which in addition, was providing parallel financing of USD 100 million under a murabaha Islamic financial instrument. The International Finance Corporation (IFC) provided syndicated loan of US$ 170 million, of which US$ 45 million is syndicated to the Korea Development Bank. Korea Eximbank and Standard Chartered Bank, with cover from Korea Eximbank, joined as parallel lenders with US$ 90 million and US$ 60 million respectively. The plant is expected to be commissioned in May 2017. http://www.power-technology.com/projects/kirikkale-natural-gas-combined-cycle-plant/