TEİAŞ is expected to consider the applications in May

According to information obtained from the sources close to the subject, EMRA is expected to forward the applications to TEİAŞ and TEİAŞ to evaluate them as multiple and single applications in May. The same sources further note that after returning the single applications to EMRA, licensing process will be completed soon and for the multiple applications, invitations are awaited to be made to the tenders as the result of the works to be carried by TEİAŞ and EİE.

The same sources report that the Competition Regulation which was publicized by TEİAŞ, will be published in the process and then the firms will be invited to tenders on the basis of the sub-stations. Most of the applications are awaited to be of multiple application status and the WPP projects to be subject to competition will be announced and the applicants will make offers for either medium voltage bara connectable capacity or high voltage bara connectable capacity announced for Sub-stations and they will participate in the competition for only one bara.

Noting the competitions are awaited to be announced in June, the relevant sources report that competition process is targeted to be completed until the end of year and thus, all of the WPP applications will be evaluated.

İZMİR Metropolitan Municipality has signed the contract and put it into effect in the international tender announced for the installation of the local signaling system of 80 km long Aliağa-Cumaovası Railway Line where necessary facilities will be made in 31 stations and installation of OCC systems will be conducted in Alsancak TCDD/CTC center and of local signaling system in Çiğli Depot Facilities (TEBANEWS#1432/October 26, 2009).

According to TEBA information, in the tender for which the winning company was announced as Savronik Sistem company and the last objection raised to Public Procurement Authority (PPA) was rejected. The objection application made by OAO-Baumann-Doyap Yapı Sanayi Business Partnership on February 1, 2010 was taken up by PPA Board on February 23, 2010 and it was rejected and the minutes have been forwarded to the Municipality Administration some time ago.

As might be recalled, we reported you earlier that OAO-Baumann-Doyap Yapı Sanayi Business Partnership raised an objection against the finalized tender decision of PPA and the decision of PPA had been awaited so as set the roadmap to be followed (TEBANEWS#1452/March 15, 2010).

Sources close to the subject note that the contract signing invitation has been made to Savronik Sistem company in the first quarter of March and the contract valued at Euro 7,246 million was signed in the second half of March, and site delivery has been made in the last week of March.

GENERAL Directorate of State Hydraulic Works (DSİ) continues its works in an intense way in order to move Yusufeli Dam and HEPP Project to the construction phase, which was previously included within the scope of Intergovernmental Agreements, however could not be realized by taking the amendment in the current law into consideration and opened for private sector construction.

Revision studies other than the resettlement issue towards the location where Yusufeli Dam and HEPP will be constructed, opened for private sector construction on June 15, 2009 and in which private sector did not show the expected interest, moved to a new stage. As a result of the onsite examination studies performed by DSİ technical team, location of the dam which was projected as Yansıtıcılar district was changed and determined as Çevreli. DSI high-level officials are expected to examine the studies in this regard and it is expected to seek approval from related authority who is Minister of Environment and Forestry Veysel Eroğlu.

As may be recalled, in our recent news story, we informed you that location of the dam, comprising Artvin City Yusufeli town along with several villages, was determined through a law passed in April 2008 and it was determined to use another location instead of this area where resettlement was not deemed appropriate (TEBANEWS#1453/March 22, 2010).

According to the research conducted by TEBA at this point, it is required to legislate the draft by the Parliament in order for DSI to realize the project in Çevreli district, which was set as the best location among different alternatives. Related sources asserting that the studies were prepared extensively in this regard and together with legislation of the law, DSI needs to perform expropriation again.

Sources close to the subject note that DSI is going to wait for the new legal arrangement for this project, which is an important one in terms of its installed power and the amount of energy to be generated among DSİ’s 455 ea projects opened up for private sector construction and held Water Use Right Meetings, to undertake the resettlement issue. It is still being negotiated whether DSI, projecting to conduct these studies through a Cabinet decision within the scope of the Law no. 4628, could work out this issue by depending on an article to be included in the law to be passed towards the change of location of the dam.

As it is known, it was determined that the reason why private sector was not interested in the project was the cost of resettlement and it was approved that DSI would undertake resettlement costs as the public part upon the recent negotiations.

Below are the technical characteristics of the abovementioned project:

Location: Artvin

Installed Power: 540 MW

Average Annual Generation: 1,705 GHz

TURKISH State Railways Administration (TCDD) made its awaited international tender announcement in the Public Procurement Authority’s (PPA) bulletin on April 6, 2010 for the completion of incomplete works in the scope of the A1 and A2 Groups of works on the 800 km long high-speed and conventional lines announced earlier for the maintenance and repairs as well as for the measurement and examination works.

Companies interested in this tender can study the specifications in the address of the Administration and can obtain them from “TCDD İşletmesi Genel Müdürlüğü Merkez Veznesi (Oda No:1107) Talatpaşa Bulvarı Gar/Ankara” in return for TL 1,500.

Tender scope

Maintenance work is to be carried out with machinery for a period of 24 months on the 2,900 km long conventional lines and 3,800 km long high-speed train lines, totaling 3,800 km.

The bid deadline of the subject tender has been set as 14.00 hours May 17, 2010 and it will be held at “TCDD İşletmesi Genel Müdürlüğü, Malzeme Dairesi Başkanlığı, Talatpaşa Bulvarı, Gar-Ankara 1118 Numaralı Toplantı Salonu”. Bids can be delivered to TCDD Malzeme Dairesi Başkanlığı, Yol Sipariş Şubesi 1103 Numaralı Oda Talatpaşa Bulvarı-Gar/Ankara” in person or be forwarded by registered mail.

Duration of work for A1, A2 and A3 Groups will be 24 months as of the site delivery. The acceptable similar work component in this tender will be to have carried out high-speed or conventional lines or metro superstructure construction and maintenance works.

Companies can submit partial bids and bids are to be offered on the basis of each item of work in line with the unit prices. At the end of the tender, a unit price contact will be signed. Bids of consortia will not be accepted. Validity of the bids will be 120 calendar days as from the tender date.

Price evaluation work will be conducted towards the bids together since the contents of the A2 and A3 group machinery are the same. The lowest and most appropriate bid offered for the A2 and A3 groups will be awarded with the contracts for the machinery.

As might be recalled, we informed you earlier that the maintenance & repair service had been put out to tender again since “no appropriate bid” had been received, which was approved by the Executive Board on March 18, 2010 and the bid deadline would be published in the PPA’s bulletin as May 17, 2010 (TEBANEWS#1455/April 2, 2010).

AUTHORITY clearance has been obtained so as to hold the Water Use Right meetings by State Hydraulic Works (DSİ) for 12 Hydroelectric Power Plant (HEPP) projects in May 2010.

According to TEBA information, DSİ held a Water Use Right meeting for Yiğit HEPP project on 25 February 2010 for the last time and has taken a decision to hold meetings for 12 HEPPs in May. It is reported that dates for the Water Use Right meetings towards the Multiple HEPP projects have been decided to be held in the first and second week of May, and the bidder companies will offer their bids for 12 HEPPs in the list on 4, 5, 6, 11, 12 and 13 May 2010.

The total installed power of these HEPP projects is 83.2 MW through which 255 million kWh electricity will be generated.

According to TEBA inquiry, DSİ has received applications from nearly 30 private sector companies for the 12 HEPP projects. The most of the applications have been made for Şenyayla Regulator and HEPP. 2 applications have been received for Karakaya HEPP, Martı Reg. and HEPP, Çiçekli I-II Reg. and HEPP, Kardelen HEPP, Sakaltutan Reg. and HEPP, Demirci Reg. and HEPP, Kara Reg. and HEPP, and Maltepe Reg. and HEPP, 3 applications for Ardanuç-9 Reg. and HEPP, and Geçit HEPP, 4 applications for Hayat HEPP. For Şenyayla Reg. and HEPP, 5 applications have been received.

REPORTEDLY, Member Country Partnership Strategy (MCPS) signed for the first time in Ankara on March 25, 2010 between Treasury Undersecretariat and Islamic Development Bank (IDB), is the Preliminary Protocol of Intention yet towards the credit for project financing of Public and Private Sector establishments.

The sources close to the subject report that for signing the Credit Agreements, first of all the rules of the credit agreements should be defined and IDB and Treasury will come together to this effect for clarifying the conditions of the credit agreement from their own perspectives.

As it might be recalled, in the most recent news story on the subject we reported that Treasury and IDB had signed Member Country Partnership Strategy towards the project credit of USD 1.5-2 billion in 2010-2013 in Ankara as the result of negotiations. In the same news story we further reported that project credit agreements were expected to be finalized in June (TEBANEWS#1454/March 29, 2010).

The sources close to the subject note that credit agreements seem difficult to be finalized in June and it will be highly difficult for the Public establishments to define the principles involved in the credit agreement with the IDB in such a short time, until June.

The sources close to the subject report that negotiation process will be started on the credit principles by the entities to obtain the credit after the scrutiny of IDB credit procedures in the process and the entities to enjoy the credit are expected to demand the credit to be untied as it was the case in earlier credits extended by the IDB.

As is known, credit agreements have been previously signed by IDB and Treasury Undersecretariat for financing two individual projects of the TCDD General Directorate within the context of the Memorandum of Understanding signed. Treasury and IDB had targeted to reach a credit agreement totaling to USD 800 million for 3 year period in 2008-2010 under the Memorandum of Understanding signed in August 2008. In the subject Memorandum of Understanding, the project credits were envisaged to be 18 year term with a grace period of 3 years on the annual interest rate of 55% + libor (TEBANEWS#1372/August 18, 2008). However, 7 months after signing the Memorandum of Understanding, TCDD General Directorate had signed first credit agreement for 125 thousand ton rail import on March 19, 2009 (TEBANEWS#1401/March 23, 2009).

Reporting the Ministry of Energy and Natural Resources (MENR) seems to get interested in IDB credit for financing the Renewable Energy Sources Projects of the Private Sector licensed by the Energy Market Regulatory Authority (EMRA), the sources close to the subject note that IDB credit can be used for Private Sector HEPP projects having licensed particularly on the basis of the Intergovernmental Protocols.

Reportedly, the bureaucratic procedures still continue pertaining to the Private Sector Wind Energy Power Plant (WPP) and Solar Energy Power Plant Projects, project financing may be required in the second stage of the works.

Noting other public institutions engaged in negotiations for IDB project credits are DLH Construction General Directorate, TCDD General Directorate, Ministry of National Education (MEB), the relevant sources report that IDB delegation has come together with Halkbank, Türk Eximbank, Turkish Union of Chambers and Stock Exchanges (TOBB), Turkish Contractors Association (TMB) in Ankara as well.

EÜAŞ General Directorate which engaged in specification works for some time has announced Afşin-Elbistan Coal Basin Air Quality Modeling Work and Evaluation Consultancy Services tender towards defining the new thermal power plant investments to be made in Afşin-Elbistan C, D and E Coal Fields, upon the directives of the Ministry of Energy and Natural Resources (MENR) on April 5, 2010.

Firms interested in the tender may obtain or see the Tender documents in EÜAŞ General Directorate Material Management and Trade Department İnönü Bulvarı No:27 Floor:13 Room No:18 06490 Bahçelievler/Ankara, in return of TL 236 or €110 (VAT included).

The firms will submit their bids until 14.00 hours on April 14, 2010 to EÜAŞ General Directorate Material Management and Trade Department İnönü Bulvarı No:27 Floor: C Room No:C1 06490 Bahçelievler/Ankara. The firms will submit bid bond, minimum 3% of the offer and the validity of the bids will be minimum 90 calendar days as from the tender date.

As it might be recalled, in the most recent news story on the subject we reported that EÜAŞ General Directorate would launch two individual international consultancy tenders for defining the Thermal Power Plant investments to be made in the Basin. In the same news story we further noted that the consultancy tender to be launched by EÜAŞ first would be towards the definition of the capacities of the coal power plants on the basis of the environmental conditions prevailed in Afşin-Elbistan C, D and E Fields and the Tender was expected to be announced in April (TEBANEWS3 1454/March 29, 2010).

Scope of work

The scope of the Tender is set to be the air quality estimations to be made on the basis of the air pollution dispersion modeling and reporting for generating electricity within the context of the specification work completed on the basis of the sectors as a whole and on sectorial basis in harmony with the environment in the coal sectors of EÜAŞ having the license in Afşin-Elbistan Coal Basin. The work to be conducted within this context should be interpreted under the Turkish Environment regulation, European Union’s no. 2001/80/EC “Limitation Directive of the Pollution Emissions Originating from the Big Burning Facilities (LCP)”. The duration of the work within the context of the specification is set to be 105 calendar days as from the signing date of the contract.

Furthermore, within the context of the subject work, it will be defined how many thermal power plants at what MW capacity can be installed in Afşin-Elbistan Coal Basin for securing the usage of 4.4 billion ton coal in harmony with the environment in respect of air quality after deducting the coal amount to be used in operating Afşin Elbistan A and Afşin Elbistan B Thermal Power Plants and how many power plants of minimum 1000 MW capacity can be installed. Within this context, works will be carried out on 6 scenarios prepared in the specification for defining the capacity to be planned on the basis of the cumulative effect to be emerged after the inclusion of the existing air quality values.

Conditions involved in the Tender

The firms to participate in the Tender will have to include in its offer the “Qualification Document” issued by the Ministry of Environment within the context of the EIA Regulation. The bidding firms will have to buy services from the firms meeting the requirements for calibration listed above in case they do not have authorized to make the required calibration by the Ministry of Environment and Forestry to produce data towards the works subject to tender or has not been accredited internationally to this effect.

The dust values in Afşin-Elbistan Coal Basin (PM10), SO2, will be measured as of NOx (NO2 value), the measurement points will be delivered to the firm on the basis of meteorological conditions prevailed and the regions and relevant topographical characteristics where the pollution level will the highest. In the calibrations, the air quality calibration/analysis methods approved by the Ministry of Environment and Forestry will be used and the owner of the offer will define the Air Quality Modeling Method to be used in the calculation of the Air Quality in the Basin.

As is known, according to the Ministry of Environment and Forestry’s Air Control Regulation pertaining to the Industrial Facilities, the sulphure dioxide emission in the solid fuel burning facilities over 300 MW cannot exceed 1,000 mg/Nm³ in flue gas.

It has been learnt that TCDD General Directorate would re-scrutinize new Başkentray High Speed Train Project feasibility survey which is included in 2010 investment program as a new project and considered to be an integrated investment of High Speed Train lines.

In the course of initial study of the revised surveys of the New Başkentray High Speed Train Project, SPO Undersecretariat has reportedly asked some additional works to be conducted on the issues subject to revision. For this reason, TCDD General Directorate will further conduct revision works towards new Başkentray High Speed Train Project feasibility surveys.

As it might be recalled, in the most recent news story on the subject we reported that TCDD General Directorate has submitted the revised feasibility surveys prepared for Başkentray High Speed Train Project to the SPO Undersecretariat for scrutiny in March (TEBANEWS#1454/March 29, 2010).