Karacaoren 1 & 2 Hydro Plants Privatization

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Karacaoren 1 & 2 Hydro Plants Privatization entails the acquisition of Transfer-of- Operating-Rights for 49 years. The HPPs are located within the boundaries of Antalya and Burdur districts and have been operational for the last 23 years. Kremna Enerji ve Ticaret A.S. is the SPV, fully owned by Gama Enerji A.S., which will implement the project. On the other hand, GEAS is owned 50.5 per cent by Gama Holding A.S., 30 per cent by Tenaga Nasional, 14.5 per cent by IFC and 5 per cent by AMC Global Infrastructure Fund. GEAS was selected as the winning bidder at the privatization tender held on 9 November 2015 for the HEPPs. HEPPs will operate on a fully merchant basis, trading most of the output on the spot market. Financial closure was achieved in mid June 2016 after Gama Enerji had secured $132 million debt financing. Total project cost is $195.2 million, which includes $177 million price tag, fund replacement and rehabilitation capital expenditures and development, financing costs, and a 12-month debt service reserve account. IFC, the Industrial Commercial Bank of China (ICBC), and EBRD each lent $44 million with a 16 year tenor. Debt represent 68 per cent of total financing, with the remaining being sponsors' equity contribution ($63.2 million). There are 10 hydro power plants due to be privatized by the Turkish government, including the two Karacaoren plants. http://aaenergyterminal.com/newsSub.php?newsid=340184 http://www.bakermckenzie.com/en/newsroom/2016/06/gama-enerji-secures-financing http://www.ebrd.com/work-with-us/projects/psd/karacaoren-hepps.html