Kolin-Kalyon Energy and Celikler Partnership won the tender bid for the privatization of Cayirhan B area located in the Nallihan district in the province of Ankara, at cost of $60.04 per megawatt hour, on Monday.
In total, four companies participated in the tender held in Turkey's Privatization Administration in Ankara, which was conducted through reverse auction.
A coal power plant, with 800 megawatts of installed capacity, will be built in the Cayirhan B area that will be privatized for a period of 15 years.
Limak Investment and Energy and Construction Co. (Limak Yatırım Enerji Uretim İsletme Hizmetleri ve Insaat AS) and IC Ictas Energy Investment Holding (IC İctas Enerji Yatirim Holding AS) were eliminated from the tender in the first and second rounds of the auction.
Fina Energy Holding (Fina Enerji Holding AS) presented the second lowest offer of $61.40 per megawatt hour.
The government and the tender-winning investor will sign an electricity purchase agreement for the area in which electricity will be sold to Turkey's Electricity Generation Company (EUAS).
The country aims to increase the share of local resources in its electricity generation and to enhance energy security.
In order to reach this goal, the country started to privatize its local sources including renewables.
Cayirhan is an example of Turkey's new privatization plans to allow private investors to produce electricity from lignite reserves.
Additionally, one of the biggest solar power plants, with 1,000 megawatts, will be constructed in Karapinar in the Central Anatolian Konya province.
Celal Kologlu, a member of the board of the directors of Kolin Energy, said that the project is estimated to cost $1.1 billion while it will provide two thousand employment opportunities.
'We have confidence in our country and we will continue to make investments. This is energy generation based on domestic sources. We know that this will help reduce the current account deficit,' he said.
By Ebru Sengul, Dilara Zengin & Nuran Erkul
Anadolu Agency
enerji@aa.com.tr