A syndicate of banks and export credit agencies have closed a $1 billion(£0.6bn) power project financing in Turkey.
The cash is for a combined-cycle gas turbine (CCGT) power plant which will be built by the Turkish subsidiary of Saudi Arabian ACWA Powe near the city of Kirikkale in Central Anatolia.
The 950MW project will use a combined cycle in which the fuel – natural gas – is fed into a turbine that generates electricity while the waste heat of the exhaust is captured to produce steam. That in turn drives a steam turbine which produces extra electricity.
The project is expected to help reduce 1.8 million tonnes of carbon emissions.
Nandita Parshad, Director for Power and Energy at the European Bank for Reconstruction and Development (EBRD), which helped arrange some of the financing said: “This is a landmark transaction for many reasons: it brings together international financial institutions and commercial banks to lend on similar terms; it offers the longest tenor to date – 16 years – for a power project in Turkey; it is also the first time in Turkey that an independent power producer is financed on a limited-recourse basis.”