Enerjisa Tufanbeyli Coal Plant

Active

Prospective

Enerjisa Enerji Uretim AS (Turkey) was developing the 450MW Tufanbeyli lignite-fired thermal power plant, Tufanbeyli, Adana Region, Southern Turkey. The project was to consist of 3x 150MW generators using Circulating fluidized bed technology. Enerjisa is a joint-venture between Turkish Haci Omer Sabanci Holding AS, and Swiss Verbund AG. Commissioning was expected for 2015, when the project was expected to sell its output to the wholesale market without a purchasing guarantee. The coal was expected to be mined from a local surface mine, also expected to be operated by Enerjisa. The EPC contract was awarded to SK Engineering & Construction, from Korea, ITOCHU Corporation, from Japan, and SK E&C Engineering and Construction Company, from Turkey in 2011. Total value of the EPC contract was estimated at YEN 80 billion (US$817 million). The project seems to operate under a new "Royalty Model" from the Turkish Energy Ministry, where Turkish Coal Enterprises (TKI) receives royalties on electricity production instead of charging for the coal for a period of 30 years. The project reached financial closure on July 25th 2012, with a EUR750 million (US$921 million) financing package by a consortium of banks. The debt was split as follows: EUR750 million 11 year, and EUR350 million equity. The EUR750 million debt consisted of a EUR608 million insured portion, and a EUR 142 uncovered portion. The debt was distributed as follows: Akbank (EUR62 million), Bank of Tokyo Misubishi UFC (EUR94 million), HSBC (EUR 80 million as part of EUR608 million loan, and EUR20 million as part of EUR142 million laon), BNP Paribas (EUR 60 million as part of EUR608 million loan, and EUR30 million as part of EUR142 million loan), Deutsche Bank (EUR 50 million), Erste Bank (EUR 30 million), Natixis (EUR 40 million), Raiffeisenbank Hungary (EUR 94 million), Societe Generale (EUR 50 million), UniCredit Group (EUR 140 million). The project received a risk insurance on the EUR608 million portion of the loan from Korea Trade Insurance Corporation, covering 95%. Total project cost was estimated at EUR1.1 billion (US$1,350 million). Legal advisors to the project were Clifford Chance (Soc-Gen), Paul Hastings (K-sure), and White & Chase (Enerjisa). The expected coordinates were: 38.263333, 36.220556 In 2012, E.ON acquired Verbund's shares in Enerjisa in return for 8 run-of-river hydropower projects totaling 351MW in Germany as well as EUR300 million in cash payments. The swap was expected to be finalized in the first quarter of 2013 after approval from the European Commission. http://www.sourcewatch.org/index.php/Tufanbeyli_Power_Station http://www.thelawyer.com/clifford-chance-and-us-duo-fuel-750m-turkish-power-plant-financing/1014387.article http://www.law360.com/articles/364286/turkey-s-enerjisa-lands-921m-loan-for-thermal-plant http://www.itochu.co.jp/en/news/2011/110517.html http://www.banktrack.org/manage/ajax/ems_dodgydeals/createPDF/tufanbeyli_coal_power_plant

Energy

Turkey

World Bank Group

Project

Geothermal, Hydro, Power Generation (CCGT), Commercial, Government