Kuwaiti firm mulls $3 billion investment

Kuwaiti firm mulls $3 billion investment

A Kuwaiti group’s subsidiary in Turkey has decided to acquire a Turkish consultancy firm that has been developing a 1,060 mega-watt (MW) natural gas cycle power plant in the Black Sea province of Amasya, and to invest $1.2 billion in the project.

As the first step after the completion of the licensing process for the plant, A&S Enerji Istanbul GCC, the Turkish subsidiary of Kuwaiti Aswar National Group, will establish a 530-MW natural gas cycle power plant at the organized industrial site of Amasya, A&A Enerji Board Member Cemalettin Özdemir told Reuters June 20.

“A $600 million investment is planned for the first stage. The second 530 MW part will be completed if the necessary conditions are developed and the total capacity of the power plant will be raised to
1,060 MW,” Özdemir said, adding that the first stage of the project is planned to be finished within three years. The biggest problem in front of the project was financing, but the total amount of the investment will be funded by the Quawaiti Aswar National Group, he stated.

According to Özdemir’s remarks, Aswar plans to use its own equity for 30 percent of the $1.2 billion total investment and is looking for providing loans from gulf – particularly Kuwaiti and Saudi – banks for the remaining 70 percent.

The power plant will operate with 60 percent efficiency, he said, also expressing confidence over the technical details.

Aswar Group is currently operating in the Turkish real estate market with investments and is seeking to become an important energy player within five years.

“Aswar plans $3 billion worth of investments over the next five years. However, it won’t be alone in these investments. Some Saudi Arabian groups will also get involved in the process. A joint venture structure will be established in the upcoming period. The main investor will be Kuwait, but supporting actors will be Saudi Arabian investors. There are private funds among them, but no state investors at the moment,” Özdemir said, explaining the plans of the group.