Iskenderun Power Plant, Turkey

Evonik financed around one quarter of the US$1.5 billion from its own resources. Another 75 percent has been furnished by a banking syndicate lead by KfW, Dresdner Bank, and WestLB. To protect the invested capital and the bank loans, the government of the Federal Republic of Germany has furnished a guarantee; credit insurance has been furnished by credit insurance agencies of Germany, Austria and South Africa.

The basis of the project is a 16-year power purchase agreement with TETAS, the government-owned Turkish utility company. Electricity will be paid for in US dollar equivalents, payments are backed up by a Turkish government guarantee. Fixed price agreements have been concluded with the suppliers and insurance has been taken out to round off the deal.

A supply contract for three million tons of hard coal equivalent annually has been concluded with Evonik Trading GmbH and Rheinbraun Brennstoff for the entire duration of the power purchase agreement. The coal is procured on the world market. Two to three times a month, coal is delivered by sea to the Bay of Iskenderun on currently 170,000 t, in future max. 240,000 t bulk carriers with a length of up to 320 m. There, a floating transshipment facility (transshipper) transfers the coal from the bulk carriers to smaller barges which are then used to land the coal.