AkEnerji

completed

Akenerji Elektrik Üretim A.S. (“Akenerji” or “the Company”) is in the process of expanding its power generation capacity in Turkey. In IFC’s proposed investment, IFC’s A loan of up to $65 million and C loan of $10 million will be targeted to support (i) five of Akenerji’s hydropower projects under construction / development in the Seyhan River Basin and (ii) future potential power distribution projects pursued by Akenerji (collectively referred to as the “Project”). In power generation, Turkey is currently dependent on foreign resources such as natural gas. 60 % of power is generated through using foreign resources. Therefore, it is important in the country to diversify the power generation resources through use of local resources including wind and hydro power beside other resources. Akenerji currently has three operating gas-fired power plants and a wind farm with total capacity of 370 MW. The Company is in the process of developing nine hydro power plants with a total capacity of 376 MW. Further expansion plans include development of new power plants of various resources, with an approximate total capacity of 2000 MW. These are still mostly under environmental assessment stage. The five hydropower plants to be supported by IFC’s financing are located on the Goksu River in Adana Province, as follows: Feke I: a run-of-the river 30MW hydropower plant (more than 40 % constructed) Feke II: a reservoir type 70MW hydropower plant (more than 60 % constructed) Himmetli: a run-of-the river 27MW hydropower plant (EIA cleared, construction not yet started) Gokkaya: a reservoir type 30MW hydropower plant (EIA cleared, construction not yet started) Saimbeyli: a run-of-the river 3 MW hydropower plant (EIA cleared, construction not yet started) . Feke I will include a 15 m high weir, a 6.9 km long x 6m diameter headrace tunnel, a 193m long x 3.6m diameter penstock and a powerhouse; gross head of the scheme is estimated at 67 m which will produce approximately 115 GWh of power annually. Feke II will include a 71 m high dam wall, a 317 m headrace tunnel, a 110 m long x 4 m diameter penstock and a powerhouse; gross head of the scheme is estimated at 63 m which will produce approximately 223 GWh of power annually. The size of the reservoir area will be approximately 257 hectares. Himmetli will include an 8 m high weir, a 4 km long, 4 m diameter headrace tunnel, a 56 m long x 3.6 m diameter penstock and a powerhouse. Gross head of the scheme is estimated at 65 m and will produce approximately 106 GWh of power annually. Gokkaya will include a 70 m high dam wall, a 3.7 km headrace canal, a 184 m long x 3.35 m diameter penstock and a powerhouse. Gross head of the scheme is estimated at 81 m and will produce approximately 119 GWh of power annually. The size of the reservoir area will be approximately 100 hectares. (Note: Himmetli, Gokkaya and Saimbeyli have been grouped for technical reasons and are referred to as ‘Yamanli III’, although they are separate plants). Saimbeyli will include a 7 m high weir, a 3.7 km long x 3m length transmission conduit, a 137m long x 1,2m diameter penstock and a powerhouse; gross head of the scheme is estimated at 63m which will produce approximately 12 GWh of power annually. The hydropower plants will also require the construction of transmission lines to national grid sub-stations. The longest of these will be approximately 60 km, for Feke II, with the remainder between 5 and 15 km in length. These will be constructed by Akenerji on behalf of Turkey Electricity Transmission Corp. (TEIAS). In addition to these project components, Akenerji intends to invest in as yet unidentified electricity distribution projects in Turkey in response to the privatization process being implemented by the Government of Turkey. Pursuant to Turkish law, these prospective investments will be limited to minority shareholding by Akenerji because entities involved in power generation business are not allowed to become a majority shareholder of electricity distribution companies.