Local company wins Black Sea plant for $351 million

Local company wins Black Sea plant for $351 million

Local company wins Black Sea plant for $351 million

Workers and families had protested the privatization of the plant. DHA Photo

A local mining and energy company, Demir Madencilik has won the Çatalağzı Power Plant in the Black Sea city of Zonguldak by placing the highest bid of $351 million in the privatization tender held on April 29.

The company, which is also based in Zonguldak, has outstripped its rivals, which include some of Turkey’s largest energy and construction companies in the auction for the 300-megawatt capacity plant that was organized by the Privatization Administration.

One of the contractors of the third Istanbul airport Limak, the contractor of the third Istanbul bridge IC İçtaş, energy generator Elsan Elektrik and energy contracting firm Alsim Alarko were the other bidders for the plant.

Demir Madencilik Chairman Salih Demir said the company is confident over funding, despite the tender price being beyond their expectations.

“The price emerged at the tender was way above our and other companies’ expectations. However we have preliminary studies and we think there won’t be any problem with securing 20 percent equity and receiving a loan,” he said.

Demir said they will found a new company with the participation of around 15 different mining firms that have “royalty in the region.”

“Our greatest joy is that the tender has been won by a Zonguldak local,” he stated.

Demir, who is also the head of the Zonguldak Chamber of Commerce, said the company will assess rehabilitation and investment potentials at the plant later.

The pit coal-fired power plant currently feeds around 1.5 percent of Turkey’s energy need.