Erzurum and Nevsehir Hydroelectric Plants Project

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On March 4 2008, Soyak Group subsidiary Senerji En. Ür. A.S. signed the 11-year-term agreement for a US$ 230 million loan from the Turkish Akbank to finance two hydroelectricity power plants (HEPPs) near the cities of Erzurum and Nevsehir. Senerji would use the loan for construction and operation of 82.5 MW Erzurum Güllübag Dam and HEPP on Coruh river near the city of Erzurum in Southeast Turkey. The company obtained a 49-year generation license from the Energy Market Regulatory Authority (EMRA) as of January 11, 2007 for that plant. Senerji would also use the loan proceeds for the construction and operation of a 67 MW Nevsehir Bayramhacili HEPP for which it obtained a 35-year generation license as of January 20, 2006. Nevsehir Bayramhacili Dam and HEPP were to be built on Kizilirmak river near Nevsehir in the Central Anatolia Region. The loan, priced at around 200bp, would mature in 11 years and would have a grace period of 3.5 years. Akbank would extend the facility in several installments throughout the course of the project. Construction was already under way thanks to a US$50 million bridge loan also from Akbank.