Farcan Enerji Uretim Anonim Sirketi

completed

The purpose of the Project is to finance a greenfield approximately 835 MW natural gas fired combined cycle gas turbine power plant investment with an estimated project cost of USD 900 million located 50 km east of Ankara, near the city of Kirikkale, Turkey (the “Project”). The Project is sponsored by International Company for Water and Power Projects (“ACWA Power”) and Eser Holding Anonim Sirketi (“Eser Holding”) (together the “Sponsors”). The Project will be developed by Farcan Enerji Uretim Anonim Sirketi (“Farcan Enerji” or “the Company”), which is currently owned 70% by ACWA Power, and 30% by Eser Holding. As part of the Project, the Company will also build 380 kV transmission lines from the plant to the national grid (about 63km). Natural gas will be supplied from the existing natural gas pipeline (Samsun-Ankara gas pipeline) owned by BOTAS Petroleum Pipeline Corporation which passes through the border of the plant site. The Company selected a closed wet cooling system to limit water usage. Water will be extracted from 9 Caisson wells to be established at the riverbed of Kizilirmak River, which is located about 100 to 150 m from the Project site. The 835 MW plant called “ESER Natural Gas Combined Cycle Power Plant” will be developed on land of approximately 22.7 ha located within the boundaries of Kiliclar Municipality of Yahsihan District in Kirikkale Province. The 22.7 ha site is owned by the Treasury of the Government of Turkey, and will be leased to the Company. The site is a hilly natural meadow and is not presently used for any purposes. The exact routing of the connecting transmission lines will be determined after a joint site visit by the Company and TEIAS (Turkish Electricity Transmission Company). Based on the available information, the first transmission line is from the Project site to the future Kayas Substation, which will be constructed by TEIAS (30km), and from the Kayas Substation to the existing Golbasi Substation (25km). The second transmission line is planned to be from the Project site to the new Kirikkale Natural Gas Combined Cycle Power Plant under development (8km). The routing of these lines is not expected to pass any urban or ecologically sensitive areas. About 3km of existing road from the national Ankara-Kirikkale highway to the Project site will be used as an access road to the Project site. This existing 3km roadfrom the national highway to the Project site will be widened to allow transportation of heavy equipment. The Company is expected to sign the Engineering, Procurement and Construction (“EPC”) agreement with Samsung C&T Corporation, and to start construction late in 2012. The construction period will be about 30 months, and the Generation Licence to be issued by Energy Market Regulatory Authority (EMRA) will allow the Company to operate the plant for 49 years. The plant will be operated by ACWA Power’s subsidiary company called NOMAC, an Operation and Maintenance (O&M) operator.