Alkumru Hydroelectric Project

active

Limak Holding was developing the 267MW Alkumru Hydroelectric Project on the Botan River in Siirt, Southeastern Anatolia province. The project was developed on a greenfield, merchant basis, and was awarded through a license scheme. In 2007, Turkey’s Energy Market Regulatory Authority (EMRA) granted Limak Holding a 49 year generation license for the Alkumru project. In late 2007, following the award of the license, Limak Holding launched the development phase. However, due to the 2008/9 global financial crisis, it was unable to secure project financing until 2009. Financial closure was reached in September 2009, when Limak Holding announced that it had finalized a US$350 million credit deal with Turkey's Is bank and Yapi Kredi Bank which will allow it to complete construction of the 267-MW Alkumru hydropower project. The terms of the agreement allow for repayment to begin after four years and to be completed within 12 years. The total project cost was US$466 million, with the balance (US$116 million) financed by the sponsor's equity contribution. The project was expected to be operational by end 2010. Expected operational in 2011