Fernas Garzan Dam & HPP

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In February 2011, the power generation company Fernas Energy Electricity Generation Co. Inc., a subsidiary of Turkey's Fernas Insaat, completed project financing for the construction and development of a 49-MW hydro plant located in the region of Batman, southeast Turkey. Garzan Dam & HEPP Project was developed on a greenfield, merchant basis. In May 2008, the Project was awarded to FERNAS Energy Electricity Generation Co. Inc., in BO basis. Financial closure was reached in February 2011 when Yapi ve Kredi Bankasi A.S Bank, Turkey's fourth largest private bank, part-owned by Koc Financial Services (in turn 50% owned by Italy's UniCredit and Turkey's Koc Holding), extended a $65.5 million credit package to Fernas Energy. The loan matures on over a period of 10 years. Fernas Construction Company has undertaken the construction of the Project. Garzan plant was 70% completed in February 2011 and was expected to enter commercial service by the end of the year. The scope of works includeed engineering, procurement, construction, installation, pre-commissioning and commissioning of 4.5 million m³ of rock fill dam, spillway, 697 m. long derivation tunnel, 386 m. long energy tunnel, 409 m. long penstock and electromechanical turbine and generator with a capacity of 47.45 MW. 209.79 Gwh/year. Yapi Kredi had so far taken part in the financing of up to 5 GW of energy projects. The on-going liberalisation of the electricity and gas markets in Turkey encouraged these projects as it required forward-thinking engagement and collaboration between sponsors and lenders.