UAE firm signs deal to develop power plants and mines in Turkey

Created: Tuesday, 08 January 2013 07:10

TAQA, Turkey’s Electricity Generation Company (EUAS) and the Turkish government have signed an agreement for the development of power plants and mines in Turkey

The deal will allow UAE energy firm TAQA to develop US$12bn worth of power plants and explore coal mines in the Afsin-Elbistan region.

TAQA and EUAS have signed a MoU that will lead to the formation of a project company in which TAQA and any future partners will hold a majority share.

Under the Intergovernmental Agreement, this newly formed firm will acquire, upgrade and expand an existing 1,400MW plant, as well as develop a number of brand new facilities, including a planned 1,440MW facility.

“This agreement further strengthens the bond between Turkey and the UAE, adding an important commercial dimension to this strategic relationship,” said UAE Minister of Energy Mohamed bin Dhaen Al Hamli.

TAQA CEO Carl Sheldon said of the deal, “As a full-scale energy company, TAQA offers Turkey a durable partner to develop this strategic project enhancing Turkey’s energy security. This agreement paves the way for TAQA to enter an emerging merchant market for power, demonstrating TAQA’s increasing maturity as a developer and operator of assets through the energy value chain.”

A more detailed Host Governmental Agreement on the development is expected to be signed by all contributing parties in Q2 2013.

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