CUKUROVA POWER IV

closed

The proposed project consists of the construction and installation of about 300 km of transmission lines, sub-stations at Tarsus, Payas and Antakya, and completion of the Kadincik II project financed out of Loan 623-TU. The project also includes a training program for CEAS' personnel in modern techniques of electric systems engineering and operations and public utility financial planning. The Kadincik II project costs have exceeded the original estimates for two major reasons: (a) there were unexpected equipment price increases (e.g. quoted steel prices increased 70 percent in Europe in 1969); and (b) cost estimates for civil works were based on the Kadincik I contract prices which were subsequently exceeded. The total increase on the project costs is estimated at $3.7 million, of which $2.4 million in foreign exchange. The effect of this cost increase on the viability of the Kadincik II project will be largely offset by an increase in energy, now expected to be generated as a result of a greater availability of water than initially envisaged.