April 12 2010-PA’s Project for the Privatization of TCDD’s Harbors

WORK goes on being carried out for the privatization procedures in connection with the transfer of operating rights towards the harbors owned by Turkish State Railways Administration (TCDD).

According to TEBA information, The tender for the transfer of operating right of İskenderun Harbor for 36 years is expected to be announced in the coming days. Relevant sources note that for the tender announcement, approval of the Prime Ministry is awaited. It is expected to make the announcement soon for the tender, whose information document, specifications and calculations for cost have been completed earlier.

For the transfer of Bandırma Harbor, a grace period by end-May has been extended

It is reported that a grace period by end-May has been extended to Çelebi Joint-Venture Group, which won the tender for the transfer of operating right of Bandırma Harbor for 36 years. Relevant sources communicate that if this group made an application to sign the contract valued at $175,500 million, it can be signed by end-May.

The same sources add that the transfer period will expire on April 22, 2010 in connection with İzmir Harbor, the contract for which is to be signed with Çelebi Holding but so far no application has been made to this end by this holding.

As might be recalled, we informed you earlier that State of the Council had approved the Concession Contracts towards the TOR procedures for Bandırma and Samsun Harbors, and that invitations had been made to the companies for contract signing (TEBANEWS#1451/March 8, 2010). As known, Privatization Administration (PA) approved the transfer of Bandırma Harbor to Çelebi Joint-Venture Groups in return for $175,500 million (TEBANEWS#1378/September 29, 2008).

According to the information obtained from the circles close to the subject, the land use issue continues in Derince Harbor, for which State of the Council-Department-1 approved the Concession Contracts. It is reported that PA tries to solve this land use issue and if a positive view is extended for this by State of the Council, PA is to invite Türkerler Joint-Venture for contract signing.

As known, PA approved transfer of Derince Harbor to Türkerler Joint-Venture Group in return for $195,250 million (TEBANEWS#1335/November 26, 2007).

April 12 2010-Alparslan II Enerji Üretim A.Ş. Company’s Alpaslan II Dam and HEPP Project

DSİ examining feasibility reports of the project approved implementation of gravity irrigation in the project. It is targeted that DSİ, expected to approve the feasibilities these days, will sign the Water Use Right Agreement in April

IT HAS BEEN learnt that the studies have been accelerated in order to carry Alpaslan II Dam and HEPP Project within USA Protocol to the construction stage, which emerges as one of the most important steps in achieving the realization of HEPP projects, by exercising the assignment right of Alparslan II Enerji Üretim A.Ş. company while putting into use new investments in order to provide future supply security of Turkey.

Upon approval of granting a license to Alparslan II Enerji Üretim A.Ş. company for the construction of Alpaslan II Dam and HEPP Project, feasibility studies of the project have been taken into examination by DSİ Department of Feasibility and Planning. Related sources, reporting most of the examination studies were completed by the first week of April, inform that DSİ approved implementation of gravity irrigation in the project. DSİ is expected to approve the feasibilities these days.

As may be recalled, in our recent news story, we informed you that the feasibilities on determining how much gravity irrigation would be used for the project were completed and company delivered all its studies to General Directorate of DSİ as of the third week of March (TEBANEWS#1453/March 22, 2010).

According to the research conducted by TEBA at this point, irrigation model to be implemented in Alparslan II Dam and HEPP Project will affect the energy to be generated. It is reported that gravity irrigation should be used in this project due to location of the project, demands of the people living in the region and project is addressing to social purposes. Furthermore, it is also stated that the amount of energy to be generated in HEPP will decrease to a small extent due to usage of gravity irrigation

While it is expected that Alparslan II Enerji Üretim A.Ş. company to undertake the project will have detailed negotiations with DSİ regarding decrease in the amount of energy to be produced. It is projected that DSİ will emphasize the necessity of using gravity irrigation in the project. Related sources inform that decrease in the amount of energy can result in revision of the project; and that Alparslan II Enerji Üretim A.Ş. company will undertake the revision studies in this case.

It is targeted to sign the Water Use Right Agreement by the end of April

Sources close to the subject report that DSİ’s project calendar is to sign the Water Usage Right Agreement in April with Alparslan II Enerji Üretim A.Ş. company by the end of April. Accordingly, it is asserted that the company might be invited for the contract in the forthcoming days.

Installed power of Alparslan III Dam and HEPP Project which was included in bilateral cooperation within US Protocol and undertaken by the consortium comprised of Earth Tech (USA), Harza (USA), Alstom, Yapı Merkezi, Ekinciler İnşaat, Özışık İnşaat, Su Yapı companies is 200 MW and annual average energy generation has been determined as 714 GHz.

April 12 2010-DSİ’s Asi River Dostluk Dam Construction Project

A meeting will be held in Syria during mid April with the participation of the ministers since the negotiations have been conducted by considering diplomatic matters

It has been learnt that the negotiations are being conducted in an intense way in order to start the construction of the dam project upon signing a Memorandum of Understanding between Turkey and Syria concerning construction of Asi River Dostluk (Friendship) Dam on 7 January 2010 in Ankara.

According to the information obtained by TEBA, it was decided to have a more extensive meeting in Syria upon the negotiations held between General Directorate of State Hydraulic works Administration (DSİ), trying to implement its Action Plan for the project, and Syrian technical delegation in Ankara during the first week of March. It is reported that Minister of Environment and Forestry Veysel Eroğlu and Syria Irrigation Minister Nadir El Bounni will also be present during the meetings by considering the importance of the project along with the necessity of moving the project to the construction stage in 2010.

As may be recalled, we reported you that Syrian technical delegation came to Turkey between 4- 6 March in order to meet DSİ high level officials and DSI clearly revealed during the meetings in which specifications revision requirements of the Syrian delegation were discussed that it did not take the revisions warmly (TEBANEWS#1452/ March 15, 2010).

According to TEBA inquiry, it is projected that Friendship Dam Technical Delegation comprised of 24 people will participate in the meetings to be held in Syria and the two accentuated issues along with details will be moved to the agreement stage by high-level officials. While it is noted that these accentuated issues are the dam border and stating the name of Ziyaret Village clearly since it is within the borders of Turkey, it is informed that technical specifications can be moved to the approval stage once the diplomatic issues are settled.

It is reported that project and feasibility preparations will be launched along with technical specifications if Turkey and Syria come to terms. Despite the fact that 50 %- 50 % intergovernmental share was implemented during the initial process, completion of the feasibility reports will be awaited in order to finalize the ratio. It is informed that percentage ratio will be determined in accordance with utility analysis upon the feasibilities to be conducted. It is projected that the construction tender of the project will be included in the agenda during the second half of the year.

Purpose of the Project

Asi River Friendship Dam is located 2 km from the south of Ziyaret Village where Asi River forms Turkey-Syrian border. Construction purpose of the dam has been determined as improving relations, irrigation of the lands of both countries, energy generation, eliminating floods in Asi River, development of the region, fishery, employment and recreation. While it is projected to irrigate agricultural land of 14 thousand 487 hundred acres with the construction of the Friendship Dam due to high flow rate of the water, annual energy generation of 16 million kWh is targeted to be realized.

As it is known, the Asi river rising from Lebanon mountains, passes Syrian land and reaches Turkey in Hatay’s Hacıpaşa location. The Asi River flows into the Mediterranean Sea in Hatay’s Samandağ town. 100 km of he Asi River which is 380 km long passes across Turkish land. 22 km part of the river forms the joint border of Turkey and Syria. Annual water flow of the Asi River is determined as 1.2 billion m3 per year.

As may be recalled, Minister of Environment and Forestry Veysel Eroğlu noted in his speech delivered during the Memorandum of Understanding signature ceremony of Asi River Friendship Dam held in Ankara on 7 January 2010 that 51 ea Memorandum of Understanding documents were signed within the scope of Asi River Friendship Dam and the dam would pay off itself within two years.

TCDD General Directorate has accelerated works towards launching a turnkey tender for Ankara-Sincan Railway Northern Line Project which was earlier within the coverage of Başkentray Project, however, later on excluded from the coverage of this project and included in “Track Investments Project ” in 2010 Investment Program as being an urgent line of priority.

According to information available to TEBA, having completed the specification of Ankara-Sincan Railway Northern Line Project in the days past, TCDD General Directorate will apply to Minister of Transportation Yıldırım for approval of the usage of the spending allocation in the forthcoming days.

As it might be recalled, in the most recent news story on the subject we reported that alternative efforts were being exerted by TCDD towards obtaining 10% allocation of the tender to be launched for the construction of single line of priority within the context of new Başkentray High Speed Train Project. In the same news story we further reported that the allocation that would be needed for the construction of the subject line to be completed urgently was planned to be financed from the own sources of the Administration (TEBANEWS# 1452/March 15, 2010).

The approval of the Minister of Transportation Yıldırım will be sufficient for TCDD General Directorate which already obtained opinion of the SPO Undersecretariat, for using the spending allocation of the tender to be launched on turnkey construction of high standard single line within the context of Ankara-Sincan Railway Northern Line Project planned to be realized urgently, in line with the Council of Ministers Decree. Thus, TCDD, having completed the surveys and specification of the project, will start the tender process subsequent to receiving the approval of Minister of Transportation Yıldırım towards the usage of spending allocation.

Thus, TCDD will reportedly make the awaited tender announcement in April after receiving the approval for the announcement to be made.

High Speed Train traffic will be eased through the urgent construction of Ankara-Sincan Northern Line

As Ankara-Sincan Railway Northern Line Project which will be called Marşandiz-Sincan will be constructed urgently as 18 km, the High Speed Train traffic will be eased, report the sources close to the subject, and the subject work should be realized even if Başkentray Project is not considered.

Reporting the High Speed Train now travel along a single line after departing from Ankara central Station and conventional and cargo trains are traveling on the same line as well, the sources close to the subject note that when the subject line is constructed on high standard, then High Speed Trains will use the line in both directions.

As is known, TCDD General Directorate has started first High Speed Train project as Sincan-Eskişehir Line. Thus, completion of the lacking projects in the Ankara-Sincan High Speed Train Line will be possible now.

Reportedly, offers are deemed appropriate to be received from experienced firms for safeguarding the completion of the work smoothly and on time in Ankara-Sincan High Standard Northern Line tender which is targeted to be completed at a very short period less than 1 year by TCDD General Directorate. For this reason, the specifications were prepared accordingly so as to give priority to the work experience of the participants, report the sources close to the subject, and similar work experience to be sought would cover the completion of electrification, signaling infrastructure and superstructure works in one project as a whole.

Thus, in the turnkey tender to be launched for Ankara-Sincan High Standard Northern Line, the offers of the big firms will be received. As the tender will be financed from own sources of the entity, big local firms that completed turnkey railway constructions are awaited to be interested in the tender and they will stand better chances.

April 12 2010-Norwegian Statkraft SA’s Kargı Dam and HEPP Project

Statkraft SA, Norwegian State Agency, which bought 95% shares of Yeşil Enerji, having license of Kargı HEPP, has received the prequalification applications from the firms for the construction of dam and tunnel. For Lot I and Lot II, 38 firms made prequalification applications. Within the context of Lot III, direct bids will be asked in May for the procurement, installation and commissioning of electromechanical equipment

NORWEGIAN Statkraft SA firm, known as the biggest renewable energy company of Europe, all of the shares of which owned by Norwegian Trade and Industry Ministry, has received the prequalification applications in the tender launched towards Kargı Dam and HEPP Power Plant Project, 95% shares of Yeşil Enerji bought from Global Yatırım Holding.

According to information obtained by TEBA, total 38 local and international firms have made prequalification applications for the construction of dam and tunnel within the context of Kargı Dam and HEPP Project on January 22 to February 22, 2010. relevant sources report that some of the applications were for Lot I and some others for Lot II and part of the applications were made for the work as a whole.

Dam and Power Plant building construction is within the context of Lot I and energy tunnel construction of 11.5 km and of 10.5 m diameter is within the context of Lot II.

As it might be recalled, in the most recent news story on the subject we reported that Norwegian firm Statkraft SA has started the investment process of Kargı Dam and HEPP Power Plant Project, one of the 7 biggest HEPP projects to be constructed in Turkey and that local firms and international firms operating in turkey were asked to make prequalification applications on January 22-February 22, 2010 period (TEBANEWS#1445/January 25, 2010).

Bids of the prequalified firms are asked for Lot I and Lot II works

According to the information obtained from the sources close to the subject, Statkraft SA has completed the evaluation process towards the prequalification applications made for Lot I and Lot II in the days past and informed 10-12 qualified firms. Prequalified firms will reportedly be forwarded the technical specifications, final designs and contract drafts in May and 60 days will be given for preparation. Firms will have chance to make site seeing tour in June.

Statkraft SA, having targeted to receive bids from the firms in July, is expected to sign the contract in the second half of 2010 and construction works start.

For the works of Lot III, direct bids of 4-5 firms will be requested in May

Relevant sources report that direct bids are envisaged to be received from the firms for the procurement, installation and commissioning of electromechanical equipment within the coverage of Lot III of the project and in May, bids of 4-5 suppliers will be requested. The firms expected to be asked to submit their bids by Statkraft SA for the works in Lot III are listed below,

- DEC (People’s Republic of China)-ABB

- Voith (Germany)

- Alstom (France)

- Va Tech (Austria)

- Rainpower (Norway)

April 12 2010-PA’s Samsun Port Privatization Project

Operation Right of the Port has been handed over to Samsunport-Samsun Uluslararası Liman İşletmeciliği A.Ş. attached to Cey Group for 36 years at the cost of USD 125 million 200 thousand

THE HAND over protocol envisaging the Transfer of Operation Right of Samsun Port for 36 years to Samsunport-Samsun Uluslararası Liman İşletmeciliği A.Ş. attached to Cey Group at the cost of USD 125 million 200 thousand by the Privatization Administration (PA) has been signed at a ceremony on April 6, 2010 in Ankara at Hotel Rixos.

As it might be recalled, in the most recent news story on the subject we reported that favorable opinion of the State Council has been granted for the Concession Contract towards Transfer of Operation Right of Samsun Port and 45 days were given to Ceynak Lojistik ve Ticaret A.Ş which offered the highest price, for signing the contract of USD 125 million 200 thousand (TEBANEWS#1451/March 8, 2010). As is known, the consultancy services of the privatization auction were carried out by Türkiye Sınai Kalkınma Bank (TSKB) and İşmen Hukuk Bürosu.

Cey Group which took over Samsun Port’s Operation Right first started to work as Ceyhan Transportation Company and became one of the most important logistic firms of Turkey with its transportation Fleet, depots and warehouses throughout the country.

Having delivered a speech in the ceremony, Finance Minister Mehmet Şimşek has noted that delays experienced in the transfers incurred big costs to Public and difficulties have been experienced in the transfer procedures because of the change of financing conditions of the firms and went on to say, ''I hope from now on such transfers are implemented as quick as possible''.

Noting the Public resources are limited, Minister Şimşek said that form now on their major target was to delegate the Private Sector to implement big Transportation projects of the Public. Şimşek further stated that in such projects, the financing capacities and the flexibility of the Private Sector were required to be used. Noting the Privatizations are the structural reforms, Minister Şimşek has said that privatization played major role in efficiency increase, service quality improvement and cost decrease.

Transportation Minister Yıldırım, “Transfer cost handed over to the Transportation Ministry”

Transportation Minister Binali Yıldırım has said that the ownership of the ports were hold by the State however, through the transfer of operation right, the ports were transferred to the Private Sector which makes investments, in other word making the economy win additional value. Noting in Mersin Port big increases have been experienced in respect of the container, cargo capacity and employees as from the transfer made in 2007 despite the global crisis, Minister Yıldırım has stated that same improvement was also expected to be experienced in Samsun Port. Minister Yıldırım has said that Samsun Port was a port most suitable to be improved, and combines transportation agreement was signed with Russia enabling Samsun to get involved in combined transportation to be made to Russia. He further noted that revenue obtained from the port was transferred to the Transportation Ministry to be used in the construction of highways and railways and said that through the investments to be made in the Port, the port will contribute to not only the region but to all country.

PA Acting President Ahmet Aksu has said in his speech that 13 ports were privatized until 2003 within the context of Port Privatizations started in 1997, ports owned by TCDD were included in Privatization Program in 2004 and until today only Mersin Port’s transfer could be made. Noting their basic objective in Privatizations is to increase the investment enhancing the competition capacity of Turkey in Port sector, Aksu has stated that for this reason, realization of the investments required in the ports was the main point in the specifications.

Cey Group Executive Board Chairman Ali Avcı has noted that a new era has started in Samsun with Samsunport and logistic terminals have been founded by the firms started to be operated in 1969 in the regions where the foreign trade is intensive. Chairman Avcı has also noted that their target was to revise the Port, improve the infrastructure, develop the trade volume and create employment and make the Port the access center of the Black Sea. An investment of USD 32 million is targeted to be made in the Port at the first stage.

April 12 2010-Current Status of Private Sector Wind Power Plant Applications Made to EMRA

Many firms have reiterated their WPP applications to EMRA on the basis of the sub-stations capacities announced by TEİAŞ. EMRA will forward the multiple applications to TEİAŞ within 2 weeks after the scrutiny

IN LINE with the decision taken within the context of the licensing the Wind Power Plant (WPP) applications of November 1, 2007 and earlier, made by the Private Sector to the Energy Market Regulatory Authority (EMRA), the applicants have made applications anew.

According to information available to TEBA, on the basis of the capacities of sub-stations announced by TEİAŞ on March 19, 2010, many firms have renewed their applications which were made on November 1, 2007 totaling to 683 and earlier made applications totaling to 47 within 10 working days. Relevant sources report that the applications were considered by EMRA and the former applications of the applicants made no application now will be turned down by the decision of the Board.

As is known, the firms could change the connection point and voltage level and the relevant information of the system envisaged in their applications, and could decrease the total installed capacity of the facility down to the voltage level of the sub-station without changing the location of the turbines.

As it might be recalled, in the most recent news story on the subject we reported that TEİAŞ has published the total WPP connectable capacity in Turkey on March 19, 2010 in its web site in line with the decision reached by the Board, on February 18, 2010, and the applicants were awaited to make their applications within 10 days on the basis of subject capacities (TEBANEWS#1454/March 29, 2010).