ICBC provides $220 million buyer's credit loan for 405 (3x135) MW Şırnak Silopi Thermal Power Plant Project

Project narrative

In 2010, ICBC issued a $220 million buyer’s credit loan to Silopi Elektrik Üretim A.Ş. — a special purpose vehicle and a joint venture of Ciner Holding (85% ownership stake) and GSD Holding (15% ownership stake) — for the 405 (3x135) MW Şırnak Silopi Thermal Power Plant Project. This loan carried the following terms: a 13-year maturity and an interest rate of 2.465%. Its originally scheduled maturity date was December 20, 2022. Sinosure provided buyer’s credit insurance. The proceeds of the loan were to be used by the borrower to support the construction of second and third of the three 135MW power-generating units at the Silopi Thermal Power Plant in the village of Selçık within the district of Silopi and the provinces of Şırnak. China Machinery Engineering Corporation (CMEC) was the contractor responsible for implementation. In 2004, a production license was obtained for the installation of the first 135MW power-generating unit and a contract was signed with CMEC. An Environmental Impact Assessment (EIA) report was received in 2005. After the contract with CMEC came into force in 2006, the construction and installation works were undertaken and the first 135-MW unit went online in May 2009. It was eventually decided to install two additional 135 MW units at the power plant. A second contract with CMEC, which went into effect in February 2011, supported the installation of these units. Unit 2 went into operation on May 8, 2015 and Unit 3 went into operation on December 18, 2015. During its implementation, the project encountered several major obstacles. The power plant was attacked by PKK militants on August 25, 2014. The attackers fired rocket-propelled grenades at the plant three times, injuring one member of the security staff at the plant in the Şırnak province. They also kidnapped three Chinese engineers. To rescue the engineers, Turkish security forces launched a wide-ranging rescue operation. Then, in July 215, PKK militants kidnapped 15 workers from the project site after burning six construction machines.