Enerjisa-II

completed

EnerjiSA is a 50:50 joint venture formed in May 2007 by H.O. Sabanci Holding A.S. (Sabanci) from Turkey and Verbund International GMBH from Austria, which is a wholly owned subsidiary of VERBUND AG (Verbund). Sabanci is one of the leading industrial and financial conglomerates in Turkey, and Verbund is the largest vertically integrated electricity group in Austria. The joint venture is developing a portfolio of power plants, as well as electricity distribution and supply and wholesale/trading. EnerjiSA, through its own development, operated four natural gas-fired combine cycle and combined cycle co-generation power plants (65 to 120 MW capacity), as well as four hydroelectric power plants with capacities ranging from 7 to 48.5 MW with a total installed capacity of 456 MW. Thereafter, IFC and several other major lenders were involved in Phase 1 of EnerjiSA’s capital investment program, via IFC investment # 26016, publically disclosed in January 2008. This comprised a billion euro investment in development and construction of the Bandirma 1 combined cycle natural gas-fired power plant (NGPP), the Canakkale wind power project (WPP) and nine hydro power plants (HPPs) with a total installed capacity of approximately 1.9 GW. This proposed investment, which is being arranged by IFC, Unicredit Bank Austria AG and WestLB AG London branch, is to finance Phase 2 of EnerjiSA’s capital investment program. The proposed investment involves the raising of up to 700 million euros of debt finance to develop the next four EnerjiSA power investments in Turkey, namely:The 920 MW Bandirma II NGPP, to be located on the same 204 ha site as the almost completed Bandirma I NGPP, 30 km west of the town of Bandirma on the southern coast of the Sea of Marmara, Balikesir Province. Expected annual power production will be 6,700 GWh. Construction is due to begin in 2011 and be completed by late 2013.The 80 MW Yamanli II HPP in Kahramanmaras and Adana Provinces which consists of two stages: 1) a 16.5 m weir on the Goksu River, an 9.2 km power tunnel and a power house; 2) a 22 m weir, a 5.5 km power and a second power house. Studies for the evaluation of the Hocabey weir are in progress. The gross head of the two stages is 312 m and 98 m, respectively, for the two phases, and expected annual power production will be 294 GWh. Construction is due to begin in 2011 and be completed in 2014. Both stages comprise ‘in-stream’ type HPP arrangements whereby no significant reservoir is created and thus the scheme’s power output is largely reliant on natural stream flow.The 60 MW Dogancay HPP, consisting of an 8.8 m weir on the Dogancay River, Adana Province (a tributary to the Seyhan River), a 6810 m conveyance tunnel and a powerhouse. The gross head of the scheme is 313 m and annual power production will be 153.812 GWh. Construction is due to begin in 2011 and be completed by late 2013. This is an ‘in-stream’ type of HPP arrangement in which there is no significant reservoir created and thus the scheme’s power output is largely reliant on natural stream flow.The 39 MW Dagpazari wind power plant (WPP), which will include approximately 19 wind turbines at a class 1A wind site on mountainous terrain at an elevation of approximately 1450m in Mut District, Mersin Province. Annual power production will be 115 GWh. Construction is due to begin in 2011 and be completed by early 2012.These projects will have a total installed capacity of 1,099 MW. The financing package is expected to include an IFC A Loan of EUR 75 million and an IFC B loan of up to EUR 530 M in addition to potential other multilateral and bilateral institutions and two Turkish banks coming in as parallel lenders. These projects will also require the construction of transmission lines to national grid sub-stations. These will be constructed by EnerjiSA on behalf of Turkey Electricity Transmission Corporation (TEIAS).