Aydin-Germencik Geothermal Plant

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Local developer Gurmat Elektrik Uretim, a company of Guris Group, developed a 47.4-MW geothermal plant at a site near the city of Izmir, in Aydin province. The project, which was to be driven by steam from the Germencik geothermal reservoir, was to be Turkey's first privately owned geothermal power plant. Under Turkey's Renewable Energy Law, the project is guranteed a power sales tariff of €5/kWh to €5.5/kWh as well as priority dispatch. In January 2008, WestLB, the mandated lead arranger for the project, announced that it had closed a US$88.5 million senior secured non-recourse debt facility. The deal was oversubscribed with Vakif, Isbank, Akbank, Tekfen and TSKB committing US$132.5 million. The facility has a one year grace period during construction followed by 10 years of straight line amortisation with an average life less than six years. The plant became operational in April 2009.