The first limited recourse financing of a gas-fired
power plant in the Turkish merchant sector has closed. It has
shown that its possible to get domestic banks comfortable
with accepting construction, merchant and gas supply risk in a
market undergoing liberalisation.
The 865MW gas-fired combined cycle power plant in
Gebze, near Istanbul, reached financial close on July 12. Four
domestic Turkish banks provided the financing, which consisted
of a $700 million term loan facility and an $80 million letter
of guarantee facility.
The plant was constructed under a engineering,
procurement and construction (EPC) contract was signed under
English law. The regulatory framework was structured under
Regulatory approvals were required from Turkeys