Degirmendere, Karacay, Kuzuculu HPPs - Group 11

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On March 2nd 2011, the Turkish Privatization Administration (Ozellestirme Idaresi Baskanligi or OIB) signed with the Turkish energy firm Ka-Fnih Enerji Uretim a 49 year concession granting the operating rights of three mini hydro power plants, known as Group 11 and with a total capacity of 1.172 MW. The capacity of the minihydro power plants were 0.5 MW Degirmendere, 0.4MW Karacay, 0.272MW Kuzuculu plant, located in Osmaniye and Hatay, Turkey. The plants were transferred under the Transfer of Operating Rights (TOR) scheme for 49 years, years with no investment obligations to expand or rehabilitate the power plant. Based on this information, the project was classified as a lease contract in the PPI Database. The project was expected to sell electricity produced in the liberalized electricity market in Turkey. In June 2010, Ka-Fnih Enerji Uretim won the operating rights of Group 11 mini hydro plants in an open tender held for 49-year operating rights by offering US$7.02 million in the public auction. The tender of this power plant received 20 bids in total. The tender, which were conducted by competitive bidding, followed the sale of other groups that started in May from the same tender that ended in February. Group 11 was one of the 19 groups of small and medium hydro power plants which OIB tendered to private consortia in February 2010. The 19 groups comprised a total of 52 small and medium size hydro power generation plants which were owned by state-owned power firm Elektrik Uretim A.S. (EUAS) and had a total capacity of 141 MW. A group had between one and five dams and were grouped based on their geographical proximity. The 19 groups were auctioned in by competitive bidding attracting 615 bids. The privatization process of most of the 19 groups concluded in 2011.