Boyabat Hydroelectric Power

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Boyabat Elektrik Uretim ve Ticaret Ltd Sirketi was created to build and operate 510 MW Boyabat Hydroelectric Plant on Kizilimak river in Boyabat, Turkey. The project company was owned by Unit Investment N.V. (33%), Dogus Holding (33%) and Dogan Group (33%). When completed, this will be the largest hydroelectric plant in Turkey to be owned by the private sector. The project would be developed without any government guarantee and electricity sales would be done in the liberalized electricity market. The project cost was estimated to be US$1,214 million. The project reached financial closure on January 15 2010. The total project cost was US$1.15 billion, of which US$464 million was equity and US$750 million was debt. The US$464 million in equity was provided equally by the three project sponsors. The US$750 million loan, which had a 12 year tenor, was provided by Garanti Bank (27.5%), Yapi Kredi (27.5%), Isbank (25%) and TSKB 20%. The pricing on the 12-year debt is around 500bp over Libor door-to-door, not including arranger fees. Construction of the project began in Apr 2008 with a bridge loan from Garanti Bank, Yapi Kredi and TSKB. Dogus Insaat is the engineering, procurement and construction (EPC) contractor. The project was scheduled to begin operations in Nov 2012.