ECONOMY

A-TEC, Mitsubishi chosen

ISTANBUL (Reuters) – Turkish energy company Enerjisa has chosen Austria’s A-TEC and Mitsubishi Heavy Industries as preferred bidders to build a -450 million power plant in Turkey, A-TEC said yesterday. Enerjisa, which is owned by Turkish conglomerate Sabanci Holding and Austria’s largest utility Verbund, said yesterday it had applied for a license for the 919-megawatt gas-fired plant to be located in northwest Turkey. Austria’s A-TEC said in its statement the whole order would be worth around -450 million and that its share would make up -315 million. A-TEC said it and Mitsubishi Heavy Industries were in exclusive negotiations with Enerjisa. «The mutual aim of these negotiations is that A-TEC will receive this order by August next year,» A-TEC said. A-TEC said it would provide engineering, delivery and construction services as well as the startup of the power plant, while Mitsubishi Heavy Industries would provide two gas turbines and a 300 MW steam turbine facility. Turkey, which is likely to see an imminent hike in electricity prices, is expected to attract foreign investment in its energy industry, especially as the government plans to privatize 20 power grids. Demand for electricity in Turkey grew 9.8 percent year-on-year in the first seven months of this year, Enerjisa said. The firm said it aimed to increase its capacity to 5,000 MW by 2015 from a current capacity of 455.5 MW. The company’s chief executive has previously said it will invest $2.7 billion to boost electricity production.