Denizli CCGT Power Project

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The Denizli Power Project was an 775MW combined-cycle gas fired power plant in Kaklik, on the outskirts of Denizli in west Anatolia. The plant was to be developed on a merchant basis in the liberalized Turkish electricity market. RWE & Turcas South Power Generation Inc (or RWE & Turcas Guney Elektrik Uretim A.S.)was the project company created to build, own and operate the plant. It is a joint venture of Germany's RWE (70%) and Turkey's TURCAS Elektrik Uretim A.S. (30%), a company fully owned by Turkish TURCAS Petrol A.S. The estimated cost of the project is US$ 725 million (500 million euros) which is to be covered by both sponsors. The plant was being built by Greek engineering company Metka under an EPC contract of an estimate worth of US$ 580(450 million euro). The equipment will be provided by Siemens Energy under a US$ 159 million (110 million euro) contract which was announced in February 2010. The project received a 49-year generation license in April 2009. Construction broke ground in April 2011 and it was expected to be completed by the end of 2012 - when the plant was scheduled to be connected to the grid. RWE entered the project in June 2009 when it took over compatriots E.ON’s 70% stake in a joint venture with Turkish energy group Turcas to build an 840-MW gas-fired power plant in Denizli and an 800-MW hard coal-fired power plant. Financial closure date established according to the 25% construction criteria Actual Investments: US$70 million since that is the only investment amount that is shown in RWE's 2010 annual report.