Iskenderun Enerji Uretim ve Ticaret AS

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The Turkish government awarded a build, own and operate power generation project to Iskenderun Enerji Üretim ve Ticaret A.S. (Isken). The greenfield project was signed on the basis of a 20 year take-or-pay energy sales agreement between Isken and state owned Turkish Electricity Generation and Distribution Company (TETAS). According to the contract Isken was to construct and operate a 1210 MW coal-fired plant in the bay of Iskenderun, southeast Turkey. Project company Iskenderun Enerji Üretim ve Ticaret A.S. was created by German firms STEAG AG (75%) and RWE Power AG (25%). In May 2004 STEAG sold a 24% stake in Isken to Ordu Yardimlasma Kurumu (OYAK), the Armed Forces Pension Fund. In September 2004 OYAK increased its stake in Isken to 49%, by purchasing the 25% RWE owned. Financial closure for the project was reached on June 26, 2000. STEAG and RWE provided 25% of the funding from their own sources. The rest of 75% was furnished by a banking syndicate lead by KfW, Dresdner Bank and WestLBof. All TETAS payment obligations were backed by the Turkish Undersecretariat of Treasury. The government of the Federal Republic of Germany provided a Garantie für Kapitalanlagen im Ausland (GKA) guarantee protecting the invested capital and the bank loans. Credit insurance was furnished by three credit insurance agencies: Hermes of Germany, Österreichische Kontrollbank AG (OeKB) of Austria, and Credit Guarantee Insurance Cooperation Ltd. (CGIC) of South Africa. The project was completed in 39 months and on November 22 2003 the Iskenderun power plant began commercial operation. Germany's Siemens Power Corporation Group was lead builder for the project. The total cost of the project was around $1.5 billion, at the time the largest foreign investment in Turkey. The power plant consisted of two Benson boilers, two turbine generators, two flue gas desulphurization plants, one 150m high stack with two flues, a 380 KV switchyard and associated annex buildings. The power plant was expected to meet up to 8% of Turkey’s energy needs. According to a previous program description Iskenderun Enerji Uretim ve Ticaret AS was initially owned by Steag AG 90%, and 10% by Siemens.