Turkish Power Plant from German Companies in South Africa

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Researched by Industrialinfo.com (Industrial Information Resources Inc.; Houston, Texas). South African subsidiaries of German companies are nearly halfway through delivering on a contract to supply equipment for a 1,210 mega-watt (MW) power plant on Turkey's southern coast. Being built near the port city of Iskenderun, the plant consists of two generating units with a net capacity of 605MW each. Siemens Power Generation and Babcock Borsig Power are in a consortium with Turkey's gama-Tekfen to build the $1.4 billion power plant.

The projected increases in demand for power in Turkey are based on figures from the past ten years, which show an increase of 37%, which is nearly four times faster than the demand growth in the European Union.

Equipment delivered to date represents 44% of the project total and includes boilers, coal handling and ash-handling equipment, pumps, and heat exchangers. Siemens share of the equipment contract is worth $56.5 million and the boiler equipment from Steinmuller is worth $63 million. South African bank ABSA is part of an international financing consortium and has put $130 million up for the project and the local Credit Insurance Guarantee Corporation is providing export insurance cover with re-insurance from the government.

The complete turn-key project was awarded by Isken, which is owned by Germany's power utility Steag. Isken will operate the plant and the electricity generated will be sold to Tukji-Elektrik uretin-Iletim, the country's electricity utility, under a 20-year contract.