TurkPower Corp., a Turkish-American consulting and service operations firm focused on the Turkish energy market, had entered into an exclusive agreement with Enerpro International SA back in November of 2009 and today updated investors on the status of the project. The two companies entered into the agreement to participate in Enerpro’s arrangement with Horizon Enerji Dagitim ve Elektrik Uretim A.S. (“Horizon”) to consult Horizon in the development, construction and financing of its 1320MW capacity Coal Power Plant (Thermal Power Plant “TPP”) project in the Ceyhan area of Turkey.
Current news states that Horizon now holds all necessary licenses to construct and operate the power plant. This is a step in the right direction and one of the first steps to building a power plant in one of the most burgeoning energy markets in the world. The Turkish energy market has been declared the second fastest growing energy market and second fastest growing economy thus far in 2010. TurkPower Corporation aims to become a noted player in the mining industry, expanding their current offerings as a full service operator for wind, hydro, solar, coal, and geothermal energy parks in Turkey.
Total investment necessary to fund the proposed 1320MW capacity Coal power Plant is approximately $2 billion, of which 30% is to be in the form of equity. According to the agreement, TurkPower shall receive consulting fees upon closing of the Horizon TPP for consulting services, plus a 0.5% success fee on completion of an electric production deal for Horizon. The Company is optimistic, but taking a careful approach to presenting any compensation estimates as a binding agreement with a purchaser or investor for the Horizon project has yet to be signed.
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