MIGA has issued guarantees to Tractebel S.A. of Belgium, and BNP Paribas of France, for the amounts of $35 million and $80.5 million, respectively, to cover their $39 million loan guaranty and $84.7 non-shareholder loan to Baymina Enerji A.Ş, (Baymina). The guarantees are for 15 years, and protect against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.
The project, which is located approximately 40 kilometers to the southwest of Ankara, consists of the construction and operation of a combined cycle power plant, comprising two gas turbines and one steam turbine, delivering a total net capacity of 763 megawatts (MW). The World Bank has been working with the government of Turkey on its energy sector reform, and MIGA’s participation in this project supports this effort, and reflects the project’s significant positive developmental impact that is anticipated. Based on conservative economic growth scenarios, Turkey will need at least 2,000 MW of additional installed capacity per year to meet increased demand. The project, which is due to be commissioned in late 2003, is therefore expected to help meet the increased demand and allow Turkey to both rely less on imported electricity and to focus more on natural gas as a fuel source (as part of its national energy strategy).