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Overview

ICBC provides loan for 600 MW Ayas Supercritical Coal-Fired Power Plant Project

Commitments (Constant USD, 2023)$728,341,829
Commitment Year•2009Country of Activity•TurkeyDirect Recipient Country of Incorporation•TurkeySector•EnergyFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2009
Start (actual)
Sep 1, 2009

Geospatial footprint

Map overview

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This project involves the construction of a 600MW supercritical coal-fired power plant near Sugözü village in Yumurtalık district and Adana province. Its exact locational coordinates are 36.82211, 35.86753. More detailed locational information can be found at https://www.gem.wiki/Ayas_power_station and https://www.openstreetmap.org/relation/13440064#map=12/36.8413/35.8601

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • AYAS Enerji Üretim ve Ticaret A.S

Implementing agencies

State-owned companies

  • China National Machinery Import & Export Corporation (CMC)

Loan desecription

ICBC provides loan for 600 MW Ayas Supercritical Coal-Fired Power Plant Project

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2009, ICBC and AYAS Enerji (AYAS Enerji Üretim ve Ticaret A.S.) — a special purpose vehicle and subsidiary of the Turkish armed forces pension fund (OYAK) (49% stake) and AES Entek (51%) — signed a loan agreement for the 600 MW Ayas Supercritical Coal-Fired Power Plant Project. The proceeds of this loan were to be used to finance an EPC contract between China National Machinery and Equipment Import & Export Corporation (CMEC) and Germany’s Evonik Steag Gmb Corporation, which was signed on August 19, 2009. The face value of the loan is unknown. This $750 million project involves the construction of a 600MW supercritical coal-fired power plant near Sugözü village in Yumurtalık district and Adana province. In April 2009, the project received a license for an 800 MW plant from the Energy Market Regulatory Authority (EPDK or EMRA). Site preparation work was reported as completed, and conducted by EKTON Construction & Logistics. Then, on September 1, 2009, the project began implementation. However, it encountered implementation difficulties. In March 2015, Ayas Enerji held an environmental permitting public hearing in Sugözü. Activists and community members with Adana Environmental Platform protested at the meeting. The project's license was challenged due to a high concentration of proposed plants in the area. According to EMRA, the plant was under construction and 19% complete as of January 2019. Satellite photography from plant shows only ground-clearing activity at the project site between January 2019 and June 2019.

Staff comments

1. The Chinese project title is（AYAS）1×600MW超临界电站项目 or 土耳其Ayas电站. 2. In 2009, OYAK, the Turkish armed forces pension fund, bought a 49% stake in AYAS Enerji. It later bought an additional 51% of the company to make it a wholly-owned subsidiary. OYAK subsequently sold 50% of the company to AES Entek, which OYAK described as a "joint venture of the Koç Group and AES." 3. The face value of the ICBC loan is unknown. For the time being, AidData assumes that the $750 million project is being financed according to a debt-to-equity ratio of 70:30. This issue warrants further investigation.