April 12 2010-Important Statements by State Minister and Deputy Prime Minister Babacan

“Medium Term Program and Medium Term Fiscal Plan will be announced on June 15, 2010 as a single document. We will probably upward revise the official growth

estimation which is 3.5% in the document. Turkey economy started to be recuperated upwards however, we cannot return to pre-crisis period yet. The most important risk

is the unemployment issue.”

STATE MINISTER and Deputy Prime Minister Ali Babacan made important statements to a media organ towards the current status of Turkey economy and made assessments towards the impacts of the global crisis in the world and in Turkey.

State Minister Ali Babacan has noted that the Medium Term Program and Medium Term Fiscal Plan would be released on June 15, 2010 as a single document and the official economic growth estimation which is 3.5%, would be upward revised in the subject document. Babacan has said that it was a positive surprise the economic shrinkage to be 4.7%, lower than expected and the economic growth to be 6% in the last quarter of 2009.

Babacan has noted that economic revitalization in Turkey has shown increase trend started from last quarter of 2009 and recuperation process would continue in 2010 and said,

“Turkey economy started to be recuperated upwards however, we did not return to pre-crisis period yet. It will take time to come to that point”.

Recuperation in the world inherent in risks as well

State Minister Babacan has announced that in mid-June when they updated the Medium Term Program, the growth rate of the economy would be announced higher than 3.5%, and went on to say,

“The economic growth estimation to be announced for 2010 will not be 3.5% but will be a higher figure. I would not say this now because I want to see the developments in the next few months. We talk about the recuperation throughout the world however, the recuperation is inherent in some risks as well”.

Babacan showed Greece as an example and noted that a reverse development in Greece would lead to serious consequences that would shake Euro zone as a whole.

Most important risk in the World and Turkey is the unemployment issue

Deputy Prime Minister Ali Babacan has said in responding to a question asked towards the economic recuperation in the World that high unemployment rate was one of the most important risks involved in US and EU economies in the forthcoming period and it was the most important risk for Turkey as well.

Noting the prevailing belief towards the economic growth trend in Turkey to be more strong in the forthcoming period, Babacan has stated that the decrease in household consumption last year was limited and this year increase trend started. He further emphasized the fact that there was no need for Turkey to make tax increase in the medium and long term however, in USA and EU the trends were contrary and they have to choose such an approach. Stressing Turkey will maintain her position to be the most advantageous country

in every respect, Babacan has said that the Institutions Tax, VAT and Income Tax would continue to be lower.

Fiscal rule will cover the Municipalities as well

State Minister Ali Babacan said in response to the question asked towards the Fiscal rule that when the State were farseeing, Private Sector operations were facilitated and when the developments were studied in the period starting from the date when they announced the would be done for 3 years, Fiscal rule would be better understood. Babacan said that Fiscal rule would cover local administrations along with the Central Government so as to cover the municipalities.

Summarizing the rules pertaining to the local administrations as “the Municipalities can incur debts in the amount equal to their annual income” Babacan went on to say, for example, if a Municipality was in need of Wastewater Treatment facility “ as a must”, the income of the subject municipality would be studied and if the subject work could not be implemented then the central government would be involved.

April 12 2010-BOTAŞ’s Tuz Gölü (Salt Lake) Underground Natural Gas Storage Project

BOTAŞ officials made studied in the site before the “Site Seeing Tour” to be organized on April 19, 2010 for the tender, expected to be participated by all firms

IT HAS BEEN learnt that the preparations of the turnkey international tender launched by BOTAŞ General Directorate for the largest capacity Natural Gas Storage Facility of Turkey to be installed in Aksaray-Sultanhanı region have continued and studies were made in the areas where the facility will be installed in the days past.

BOTAŞ General Directorate officials have visited Aksaray-Sultanhanı region first as the preparation for Site Seeing tour to be organized for the firms and made studies in the area where the facilities will be installed.

BOTAŞ is awaited to receive answers from the firms invited to Site Seeing Tour and Information Meeting whether they will participate or not, however, all of the firms are awaited to participate in the Site Seeing Tour.

As it might be recalled, we earlier reported that 8 prequalified firms or Joint Ventures were invited to bidding on June 18, 2010 (TEBANEWS#1453/March 22, 2010). In the international tender, prequalified Russian, Chinese, Indian, Austrian, German and Turkish firms were invited however, some European firms participated in important projects in Turkey have not been invited for not being prequalified.

Site Seeing Tour will be made on April 19, 2010, Information Meeting on April 20, 2010

The site Seeing Tour of the tender will be made on April 19, 2010, Information Meeting on April 20, 2010 at BOTAŞ General Directorate. According to the tender specification, it is not obligatory to attend the Site Seeing Tour or the Information Meeting.

It is known by all firms that answers to be given to the questions in the face to face meeting to be held with the relevant authorities are of great importance within the context of the pre-tender preparations. For this reason, it is observed that the firms that will participate in the

tender are usually participate in the Site Seeing Tour and Information Meeting. The firms that are not attend the meeting usually do not participate in tender or are not determined.

Eight firms or Joint ventures invited to participate in turnkey tender launched by BOTAŞ for Tuz Gölü (Salt Lake) Underground Natural Gas Storage Project are listed below,

- China Tianchen Eng. Corp. (People’s Republic of China)

- Alsim Alarko+Doğuş İnşaat A.Ş.

- Habau (Austria)+PPS Engineering (Germany)+PSE Engineering (Germany)

- Ukrnaftogazbud CSJC (Ukraine)+Türkerler+İndet İnşaat

- Çalık Enerji

- PJSC Stroytransgaz (Russia)+Güriş

- Öztaş İnşaat+Fernas İnşaat

- Punj Llyod Ltd. (India)+Attila Doğan

April 12 2010-Tekfen Group Signed Contract for New Units to be Constructed at Samir Refinery in

Morocco

Already having completed some previous projects in SAMIR Refinery, Tekfen Construction this time signed a €40.5 million contract to construct the New Crude

Distillation Unit and the New Merox-Kerosene Unit

BEING one of the pioneering Turkish companies at international crude oil pipeline projects and refinery works, Tekfen Construction and Installation Co., Inc. signed a new contract for turn-key construction of 2 new units at Samir Refinery where and for which it has already conducted some previous projects.

Tekfen will construct the New Crude Distillation Unit with a capacity of 4 million ton/year and the New Merox-Kerosene Unit with 600 thousand ton/year in Samir Refinery (Societe Anonyme Marocaine de l’Industrie du Raffinage).

For the Project Tekfen Construction signed a Euro 40.5 million (approximately US$ 53.8 million) contract with SAMIR which is one of the largest companies operating in Morocco and which owns the sole refinery of the country.

After the 2 new units to be constructed by Tekfen, the refinery’s crude oil processing capacity will increase by 55 percent. It is said that the construction drawings are mostly ready for the Project whose engineering work was awarded as a separate contract to the Spanish company Technicas Ruinidas and that Tekfen will begin construction works very soon.

It is also reported that Tekfen which recently completed Samir upgrading Project in the same region knows the region well and that mobilization of equipment and personnel are largely ready left from the previous Project.

For the construction work to be conducted by Tekfen, the expected main construction quantities are listed below:

- Excavation: 30,000 m3

- Reinforced Concrete: 8,000 m3

- Structural Steel: 650 ton

- Equipment Erection: 3,700 ton

- Piping Erection: 2,000 ton

- Electrical Cabling: 230 km

- Insulation: 40,000 m2

April 12 2010-Interview between Energy Minister Taner Yıldız and Chief of TÜSİAD Ümit Boyner

Energy and Natural Resources Minister Taner Yıldız, “Through the amendments to be made to the Natural Gas Market Law, we will achieve to create a market which will be more liberal, competitive with sustainable prices. Right now, the contract amount is

around 10% and we will make it minimum around 25%.”

ENERGY and Natural Resources Minister Taner Yıldız accepted Chief of Turkish Industrialists Ümit Boyner and Businessmen Association and its members at his office on April 9, 2010.

In the statement he made after the interview, Minister Yıldız said that they deliberated the energy issues, natural gas and electricity markets in detail. He reminded that they were working on a separate bill to this end. Minister Yıldız went on to say that all the sector representatives contributed to passing a good law and to create more productive and dynamic environment, and that they themselves voiced their views together with Energy Market Regulatory Authority (EMRA) and with the other relevant institutions and agencies.

Minister Taner Yıldız, “Through Natural Gas Market Law Amendments, we are after increasing the share of private sector to minimum 25%”

Yıldız communicated that with the amendments to be made to the Natural Gas Market Law no. 4646, they had formed a mechanism to create this market and gradual developments in this scope through a more liberal, competitive and sustainable price. He further said that, in the same way, with the amendments to be made to the Electricity Market Law no. 4628, they created mechanisms towards the distribution and investor generating companies.

Yıldız stated that they took a basic decision in principle to increase the share of private sector in their work on the Bill for Natural Gas Market Law Amendments, and that in this direction, the current rate of contract amount, which was about 10%, would be risen to

minimum 25% as projected. If this could lead to a basis to reach around 40% from 25% through the agreements made with the suppliers, they were also take this warmly. Yıldız added that for the sake of making the market liberalized to a greater extent, they would reflect private sector to exist in this market as a more powerful actor in the Bill.

Chief of TÜSİAD Ümit Boyner, “In terms of liberalization of energy, we attach importance to become freer”

Ümit Boyner noted that the issue of energy was a very significant subject for the competitive power of Turkey, that it crossed all the industry and many sectors vertically, and that energy played a very important role in terms of Turkey’s geopolitical significance and her foreign relations. Boyner added, ”Energy policies have an important parameter to make Turkey reach upper positions for competition by means of the cooperation of public and private sector. Boyner further said that in the TÜSİAD’s 2010-2011 Program, they approached to the issue of energy from 3 main points, which were: ''Liberalization of Energy Sector”, ''Pipelines Policy” “Supply Security”.

Boyner indicated that they focused on liberalization in energy and said that TÜSİAD members would be wanting to be included in the energy privatization process, as in the past. Boyner further communicated that in terms of competitive power, private sector would contribute significantly through a number of arrangements to be made, and that in this process, cooperation of private and public sector was extremely important and added, “I am in the opinion that to the extent that we develop a sound privatization plan, we can provide financing to the same extent. That’s why we focus on cooperation very much. In this process, we intend to become very active; that’s why we are here'.'

April 12 2010-BOTAŞ’s Erzincan Compressor Station Project

Bid deadline for international compressor station construction tender has been determined as 6 May 2010 as a result of postponement requests received from the

companies

General Directorate of Petroleum Pipelines Corporation (BOTAŞ) postponed the deadline for submitting offers to Erzincan Compressor Station construction tender, which is included within the scope of Republic of Turkey Gas Sector Improvement project and will be financed with a World Bank credit, to 6 May 2010 (TEBANEWS#1448/15 February 2010)

Upon request of two companies, purchasing specifications of compressor tender and expected to submit offers, submitted to BOTAŞ concerning postponement of the deadline for submitting offers, tender submission date, which was 29 April 2010, was determined as 6 May 2010 upon approval of the General Directorate due to recent postponement request for 1.5 months.

BOTAŞ Department of Engineering Studies and Contracts approved postponement of the tender submission date for 23 calendar days considering the issue of companies submitting competitive offers with appropriate offer files. Accordingly, time extension for the tender has been notified to all companies purchasing specifications of the tender.

The tender will be held at “BOTAŞ Haberleşme Müdürlüğü Bilkent Plaza 4. Cadde A-2 Blok, Zemin Kat, 06800 Bilkent-Ankara-TÜRKİYE”. Companies interested in this tender can obtain the specifications by applying in writing to the following address and by depositing $400 (VAT included). This fee is to be deposited with Vakıfbank Bilkent-Ankara Branch BOTAŞ TL Account No. 2005690 or $ Account No. 4004715 irrevocably.

Companies interested in compressor tender

According to the research conducted by TEBA at this point, it is expected that the number of companies purchasing specifications of the international tender will increase in the forthcoming days, for which approximately 15 ea companies purchased specifications as of the second week of April. It is reported that most of the companies interested in the previous tenders announced by BOTAŞ are to be also interested in this tender. Below we present you the companies interested in the tender, which we could find out:

* Gama Endüstri

* Metot

* Fernas

* Çalık

* Öztaş

* MMK

* ABB

* Akyaz

* Türkerler

* Güriş

Tender scope

Included in the scope of the tender are such items of work as having a configuration of 3+1 (three units under operation and one unit spare) that is, 4 turbine-compressor units and equipment as well as the pieces of work set in the tender documents. Erzincan Compressor Station will be installed nearby Çayırlı county, 115 km far from the city center, and its planned through this station, to pressure a flow of 1,613,000-2,040,000 Sm3/hour in the pipeline along the year.

April 12 2010-DHMİ’s Zafer (Kütahya-Afyon-Uşak) Regional Airport Project

DHMİ will make studies anew on the feasibility report of Zafer Airport Project which was not found feasible by the firms and no bids were received. The repayment period will be reduced by decreasing the investment cost of the Project will be reconsidered

UPON the directives of the Minister of Transportation Binali Yıldırım, revision works have reportedly been re-started on the feasibility survey of Zafer Airport Project which was earlier put to tender on Build-Operate-Transfer (BOT) Model for air transportation of Kütahya-Afyon-Uşak region however cancelled as no bids were submitted.

It is learnt that 8 firms which bought specifications for participating in BOT Model tender conducted on April 1, 2010 by the State Airports Administration (DHMİ) General Directorate, have not submitted bids for not considering the project feasible.

As it might be recalled, in the most recent news story on the subject we reported that as no firms submitted bids in the BOT Model tender, the tender was cancelled (TEBANEWS#1455/April 5, 2010).

Project is not found feasible in respect of the passenger guarantee and investment cost

According to TEBA’s inquiry, firms which bought specifications did not submit bids in the Tender for not founding BOT Model Project feasible in respect of the passenger guarantee and investment cost asked.

As is known, minimum investment cost is estimated in the preliminary designs on the basis of the annual passenger guarantee and investment cost given by DHMİ in the BOT Model Airport Projects launched by DHMİ as the entity in charge. The firms that will participate in the tender usually make their offers for the operation period of the airport on the basis of the two values approximately estimated.

As in the region an airport will be constructed for the first time and no passenger evaluation is available, the estimated passenger number comes out to be low in the evaluation made on the basis of economic conditions of the region and the business potential. In return, the investment cost is estimated to be USD 100 million in the preliminary designs prepared for the investment. It is noted that financing will be difficult to obtain for such scale of investment, that credit financing cost will be high and it will be difficult to find financing because of the international crisis. Under the light of the details mentioned above, the pay back period of the Project does not seem feasible.

DHMİ will review the feasibility survey of the investment

The relevant sources report that DHMİ General Directorate may review the feasibility surveys of the investment and the project can be reconsidered in the forthcoming period. Same sources further note that the reduction of the investment cost and the shortening of the pay back period of the investment can be considered in the course of review of the investment.

The same sources further comment that it will be more appropriate to wait for the suitable environment to be matured for the Project and the Project is awaited to be reconsidered.

Which firms interested in BOT Model Tender

Actually, 8 firms bought specifications for the BOT Model Tender launched by DHMİ on April 1, 2010 for Zafer Airport investment and no bids were received although 4 firms obtained Site Visiting Document. The firms bought specifications of the BOT Model Tender are Kolin İnşaat, Limak İnşaat, IC İçtaş İnşaat, Koçoğlu İnşaat, Makyol İnşaat, Özka İnşaat, YDA İnşaat, MÖN İnşaat.

Firms obtained Site Visiting Document before the tender were Limak İnşaat, IC İçtaş İnşaat, Koçoğlu İnşaat and YDA.

April 12 2010-DSİ’s Hatay Energy Group Project

Application deadline has been set as May 8, 2010 for the HEPP project through which 35 GWh electricity is expected to be generated per annum on the average

APPLICATION deadline has been set by State Hydraulic Works (DSİ) as May 8, 2010 for Hatay Energy Group Project opened for private sector construction earlier in the scope of the Water Use Right Agreement.

According to TEBA information, DSİ has completed in work on including the Hatay Energy Group Project in “the List of Applied and Applicable HEPP Projects” and obtained authority clearance to this end. Kuzeybatı Enerji company has been the first applicant company so as to undertake this project.

As might be recalled, we informed you earlier that no application had been received for this HEPP project by 22 March 2010, included by DSİ to those projects opened for private sector applications (TEBANEWS#1454/March 29, 2010).

A great interest is expected for the project

It is reported that a great interest is expected to be shown in this HEPP project for the amount of energy to be generated (35.19 kWh) and for its installed power of 8.78 MW.

In line with the timing schedule prepared for the project, after the bids are received by May 8, 2010, bids are planned to be received in the Water Use Right Meeting in the second half of the year, the latest, and DSİ will sign a Water Use Right Agreement with that company which will submitted the highest bid per unit energy of kWh in the bid opening session of the meeting.

HEPP projects included in the scope of Energy Group

According to TEBA inquiry, the Hatay Energy Group Project is composed of 5 separate HEPP projects, which are Ağtaş, Avcılar, Kömürlük, Kuzey and Payas Regulator and HEPP.

Characteristic of the Hatay Energy Group Project

Location: Hatay Province

Installed Power (MW): 8.78

Annual Generation on the Average (kWh): 35,190,000

April 12 2010-BOTAŞ’s Tender to Control the Crude Oil Pipelines with Smart Pig Method

BOTAŞ has started preparatory work on the specifications for its international service procurement tender aiming at making the announcement in May

IT IS REPORTED that Petroleum Pipelines Corp. (BOTAŞ) plans to announce an international service procurement tender to control the crude oil pipeline with Smart Pig Method in May. This tender has been announced three times earlier.

According to TEBA information, preparatory work on the specifications has been launched some time ago. Through this tender, it is aiming to control Iraq-Turkey Crude Oil Pipeline,

Ceyhan-Kırıkkale Crude Oil Pipeline and Batman-Dörtyol Pipeline. The Administrative Specifications are being prepared by the Engineering and Contracts Department.

Bids are planned to be received in the first half of the year.

Sources close to the subject note that all the documents prepared for the tender will be presented to the Executive Board for approval in April. The same sources add that the tender announcement is planned to be made in the Public Procurement Authority’s (PPA) bulletin in May and bids be collected afterwards, and that foreign and domestic companies are expected to be interested in this tender of BOTAŞ and a nearly 40-day period is expected to be given to the companies to prepare their bids.

The specifications can be examined at the address of “BOTAŞ Genel Müdürlüğü Mühendislik ve Sözleşmeler Daire Başkanlığı Bilkent Plaza A-1 Blok Kat:6 Oda:609 Bilkent / Ankara” or can bre obtained from the same address in return for their fee.

In the past, this tender had been announced 3 times

BOTAŞ had earlier announced this tender 3 times. In the latest tender, bids were received from 3 companies by BOTAŞ on 19 December 2008, and the lowest bid of $ 1.8 million came from Lin Scan Advanced Pipeline and Tank Services. The other bidders were Weatherford Pipelines Specifications Services and Rosen Europe B.V. companies. Bids submitted to the tender varied between $ 1.8-5.2 million (TEBA:1388/ 22 December 2008).

April 12 2010-İZBAN A.Ş. Company’s Project for the Development of İzmir Commuter System

Test drives of 33 ea commuter train sets of Spanish CAF comprised of three wagons with 741 passenger capacity to be used within the scope of Egeray has

started.Minister of Transportation Binali Yıldırım, “Egeray might be opened up in two stages. First, the southern line from Cumaovası to Alsancak, will be opened up mid-

year. Remaining part will be completed during the second half of the year and the line will be fully operational”

Test drives of the train sets purchased within the scope of the contract executed with Spanish Construcciones Y. Auxiliar Defer SA (CAF) winning the tender of 33 ea Electrical Commuter Train Sets opened up by İZBAN A.Ş. company established by İzmir Metropolitan Municipality and General Directorate of Turkish State Railways Administration (TCDD) in order to run Aliaga-Cumaovasi Railroad Line conducted in Ankara Train Station on 8 April 2010 with the participation of Minister of Transportation Binali Yıldırım.

Minister Yıldırım noted that Egeray might be opened up in two stages; he said that first the southern line from Cumaovası to Alsancak, would be opened up mid-year. Remaining part will be completed during the second half of the year and the line will be fully operational. Minister Yıldırım stated that the total project cost of Egeray infrastructure of which will be realized through the cooperation of İzmir Metropolitan Municipality and General Directorate of TCDD and will be operated by İzban A.Ş was around TL 1 billion. Yıldırım reported that Egeray, which would serve more than 200 million people per year, was a project to relieve transportation between the north and the south of İzmir. 

20 ea train sets will be delivered until the end-2010

Furthermore, General Director of TCDD Süleyman Karaman, delivering a speech during the ceremony, informed that the first two train sets arrived last month, the following 4 sets would be sent to Ankara until the beginning of June, total 20 sets would be in Turkey until the end of this year and it was planned to bring remaining 13 sets to Turkey until February 2011. Karaman noted that the operation speed of train sets made up of 3 wagons with 741 passenger capacity was 140 kilometer per hour, he further informed that there were automatic sliding steps in the wagons to eliminate the space between the railway platform and the wagons and to make it easier for the passengers to get on and off the train.

General Director Karaman, stated that maximum test speed of commuter train sets was 160 km and the speed tests would be conducted on High Speed Train Line, he further noted that the trains would be taken to Izmir upon completion of speed tests and the dynamic tests would be conducted on Egeray commuter train line. Karaman, informing 22 ea stations were reconstructed in metro standards, said total 33 ea commuter train sets would serve in Egeray. (TEBANEWS#1367/14 July 2008)

April 12 2010-EÜAŞ’s Rehabilitation Projects of HEPPs

Work on the feasibility studies is underway in connection with increasing productivity in HEPPs and improvement of the subsidiary items of work. The first one of these

projects which will be put out to tender is increasing turbine productivity of Karakaya HEPP

WORK on the feasibility studies is underway in connection with the rehabilitation projects of Electricity Generation Corp. (EÜAŞ) so as to make the existing Hydroelectric Power Plant (HEPP) Projects more productive and be operated in conformity with the UCTE criteria (TEBANEWS#1448/February 1, 2010).

According to TEBA information, the subject feasibility studies are expected to be completed in the second half of the years and they will be included in the 2020 Investment Program upon approved by SPO and thereafter, an allocation spending will be reserved.

It is targeted to make a tender announcement first to increase the turbine productivity of HEPP on a priority basis

On the other hand, firstly, according to the information obtained from the sources close to the subject, a tender will be announced for the Increase of Turbine Productivity of Karakaya HEPP Project (GAP).

The same sources add that priority has been attached to the preparation of the feasibility studies towards the Increase of Turbine Productivity of HEPPs, which have been included in the 2010 Investment Program. The tenders for the Rehabilitation, Scada Project and Subsidiary Services will be taken up later.

April 12 2010-DSİ’s Tender for the Construction of Potable Water Supply Line and Treatment Plant in

TRNC

For this tender, 10 companies and/or company joint-ventures Applied for prequalification

STATE Hydraulic Works (DSİ) received applications for prequalification on April 9, 2010 for its tender announced for the construction of a potable water supply pipeline, treatment plant and consultancy services in Turkish Republic of North Cyprus (TRNC) (TEBANEWS#1453/March 22, 2010).

According to TEBA information, the following 10 companies and/or company joint-ventures applied to be prequalified. Sources close to the subject note that after the evaluation process is completed, prequalified applicant will be invited to submit their bids.

- Dolsar Mühendislik+Derya Mühendislik+Pehlivan Mühendislik+Anadolu Yer Bilimleri Mad. Mühendislik

- Piramit Mühendislik+Berkmen Mühendislik+Doruk Harita+Jemas Mühendislik

- Erbil Proje+Er-Ge Proje

- Alter Uluslararası Mühendislik

- Üçer Müşavirlik Mühendislik+Harmas Mühendislik

- Tempo Altyapı Mühendislik+Cema Mühendislik+Jeo-Tek. Coğrafi Bilgi. Tek. Mühendislik+Sial Yerbilimleri Müşavirlik

- Art Çevre Tekn. İnşaat Mühendislik+Toker Sondaj+Emay Harita+Başkent Harita

- Mavi Mühendislik+Etap İnşaat+Efol Mühendislik

- Eser Proje ve Mühendislik

- Su-Yapı Mühendislik+Artek Mühendislik+Aydınlar Harita İnşaat+Ostem Harita Mühendislik+Bülent Kiper Jeoteknik

Tender scope

From Alaköprü Dam to be constructed on the Anamur Dragon Stream in Turkey 75 hm3/year potable and utility water will be brought to Geçitköy Dağdere Dam to be installed at the Geçitköy Pond in TRNC through a pipeline to be constructed onshore and offshore. 37.76 hm3/year portion of this water will be will be transferred four projecting regions and to this end, project work will be carried out towards the main distribution supply pipelines, routes of connection lines to the existing or new main network reservoirs, new reservoirs, pumping stations and potable water treatment plant/s.

April 12 2010-Legal Infrastructure Preparation Initiative in the Parliament towards Transferring Metropolitan Municipalities’ Metro Projects to

Ministry of Transportation

Ministry of Transportation has targeted to be delegated with In-city Rail Systems construction task by a proposal to be included in the Organization and Tasks Bill

awaited to be debated over in the Parliamentary General Assembly in the days ahead. Minister of Transportation Yıldırım said that the article as “Ministry of Transportation

can implement In-city Rail Systems if required” was prepared. Thus, the legal infrastructure will reportedly be prepared towards transferring metro projects of Metropolitan Municipalities, primarily of Ankara, to the Ministry of Transportation

THE BILL towards transferring the construction of Metropolitan Municipalities’ Metro Projects to the Ministry of Transportation which was earlier taken back at the very last moment in line with the opinions of the SPO and Treasury Undersecretariats from the Parliamentary Plan-Budget Commission in 2009, is expected to be submitted to the Parliamentary General Assembly in the forthcoming period.

Minister of Transportation Binali Yıldırım has communicated in his speech delivered at the test drive ceremony of Commuter Train Sets within the context of Egeray in Ankara Central Station on April 8, 2010 that the legal initiative which was earlier made towards the construction of the Metropolitan Municipalities’ Metro Projects by the Ministry, was now to be submitted to the Parliament within the context of a Bill Arranging the Organization and Tasks of the Ministry this time.

Ministry of Transportation has noted that the new arrangement to be made was prepared as a single Article and in the forthcoming period, they were ready to assume the responsibility of constructing metro projects with a proposal to be included in the Bill which would be submitted to the Parliamentary General Assembly.

As it might be recalled, in the most recent news story on the subject we reported that the arrangement towards transferring Municipality Metro Projects to the Ministry of Transportation awaited to be included in the Blanket Law to be submitted to the Parliament in May 2009 by the Government had been taken back at the very last moment in line with the opinions of SPO and Treasury Undersecretariats (TEBANEWS#1409/May 18, 2009).

Proposal provision in the Bill to be submitted to the Parliamentary General Assembly

Transportation Minister Yıldırım has stated that the amendment article prepared by the Ministry would be included in the Organization Bill of the Ministry as “Ministry of Transportation can construct In-city Rail Systems if required”.

Having noted, “As Ministry, we brought the arrangement to this point” Minister Yıldırım said, “ By this arrangement, the legal infrastructure will be completed. It will be finalized soon, within this year. Law passed in the commission now. It is at General Assembly stage, it will take precision in line with the program of the General Assembly”.

The sources close to the subject report that in the legal arrangement prepared by Ministry of Transportation in a very simple way, In-city Rail Systems required to be constructed by the Ministry of Transportation will be defined by the upper most authority of the State, the Council of Ministers or Supreme Planning Council (SPC). However, it is observed that in the arrangement the subject statement is not included yet.

SPO and Treasury Undersecretariat granted favorable opinion towards transferring of Metro Projects to the Ministry of Transportation

As it might be recalled, for the legal initiative earlier taken to the Parliament, SPO and Treasury Undersecretariats had not granted favorable opinion towards the transfer of Metro Projects to the Ministry of Transportation. In the opinion forwarded by the SPO Undersecreatriat, it was noted that as the subject projects require immense sources, when metro projects were transferred to the Ministry of Transportation, they had to be financed from the General Budget sources.

Meanwhile, Treasury Undersecretariat had noted that the issues such as the turnover of the debt stocks of ongoing metro projects of the Municipalities, discussions to be made with the relevant creditors and inclusion of subject debts into the central debt stock would cause problems. It was stated that turn over of the existing debts would lead to increase the borrowing limit of the Treasury Undersecretariat. However, at this stage, it is not known whether subject entities have changed their approaches to the issue as the result of some arrangements.

April 12 2010-DHMİ’s BOT Model Atatürk Airport Cargo Terminal Project

Awaited SPC approval is granted for the investment to be realized on BOT Model after completion of additional works in the revised feasibility of Cargo Terminal Project to

be conducted in Atatürk Airport

DHMİ starts additional feasibility works and specification preparations as to cover the features such as the location, cost of the investment, tonnage guarantees to be given

on the basis of goods and the method of bidding

IT HAS BEEN learnt that a new stage has been reached in new Cargo Terminal Project to be realized on BOT Model by State Airports Management (DHMİ) General Directorate at İstanbul Atatürk Airport where the largest passenger traffic of Turkey prevailed and the awaited approval of Supreme Planning Council (SPC) has been granted in the days past for BOT Model investment under scrutiny for some time.

The sources close to the subject comment that tender stage can be started in respect of BOT Model Atatürk Airport Cargo Terminal Project as the awaited approval of SPC is granted however, some additional works are still required to be conducted in respect of the feasibility and after completion the subject works, the specification preparations will be started of BOT Model tender and the tender can be launched only in the send of the year.

As it might be recalled, in the most recent news story on the subject we reported that SPO Undersecretariat has granted favorable opinion for feasibility report of BOT Model construction and SPC approval has been applied. We further reported that SPO Undersecretariat’s approach to the investment from sectorial perspective was favorable however, some additional works in the revised feasibility should be further clarified (TEBANEWS#1451/March 8, 2010).

DHMİ to start additional works towards revised feasibility report and specification preparation

The sources close to the subject report that SPO has granted favorable opinion in line with the sectorial comments towards the construction of cargo terminal building to render international services at Atatürk Airport which has the most intensive passenger traffic, however, some important features in respect of the investment in the revised feasibility are asked to be clarified through additional works.

In the approval granted by SPC towards BOT Model investment which conducted scrutiny in lien with the comments of the SPO, the additional works towards revised feasibility are envisaged to be carried out as soon as possible. For this reason, additional works towards the revised feasibility report of DHMİ General Directorate which already obtained approval of SPC for investment are expected to be started soon. In the course of subject works, first the

total cost of the investment will take precision and most important of all the location of the Cargo Terminal at Atatürk Airport will be defined.

As is known, DHMİ General Directorate has earlier informed SPO Undersecretariat that the investment cost of BOT Model project might be about € 120 million on the basis of the preliminary survey investment and SPO has deemed the investment feasible on the basis of the subject figures.

The same sources further report that after the clarification of the location of the investment, the total investment cost will take precision, and in the process the already defined cost in the preliminary survey may decrease.

Tonnage guarantees to be given on the basis of goods and the method of bidding will be clarified

The same sources further note that another important study awaited to be conducted within the context of the additional works to the feasibility report will be towards the tonnage guarantees to be given on the basis of the goods. They stress that in DHMİ’s BOT Model Airport Projects, passenger guarantee is taken as the base however, as the cargo terminal construction will be put to tender for the first time, tonnage guarantees on the basis of goods will be taken as the base this time.

While the specifications of the Cargo Terminal Project BOT Model tender is prepared, the current laws pertaining to the custom procedures will be considered unlike other airport projects, note the sources close to the subject, for this reason different criteria will be considered in the specification works.

One of the most important aspect of the preparation of BOT Model tender specification will be the clarification of feature to be subject to competition in Cargo Terminal Project to be put to tender for the first time. Within this context, the approach to be pursued in BOT Model tender will be studied so as whether the offers will be asked on the basis of the operation period or giving share to DHMİ on the cost of goods.

April 12 2010-TCDD’s Electrical Locomotives Procurement Project

TCDD to make the announcement of the international tender awaited to be subject to a heated competition. Bidding deadline of the tender to be financed with IDB credit is

set to be June 24, 2010

It has been learnt that the awaited announcement of the international tender consisting of procurement of 80 locomotives and spare parts of 5%, training simulator and the technology transfer to be made on the FIDIC procedures to be financed with the Islamic development bank (IDB) credit would be made by the TCDD General Directorate soon.

According to information available to TEBA, final arrangement has finally been made towards the tender awaited to be considered by the General Directorate Office and approval has been granted for bringing the tender to announcement stage.

As it might be recalled, in the most recent news story on the subject we reported that final approval of General Directorate Office was awaited for the tender and subsequent to approval of Director General Süleyman Karaman was granted, the announcement of the international tender would be made (TEBANEWS# 1450/March 1, 2010).

Bidding deadline of the tender is set to be June 24, 2010

Subsequent to TCDD General Directorate’s Office approval is obtained, action started for publishing the tender announcement in the Official Gazette. The bidding deadline of the tender which is awaited to be published in the Official Gazette dated April 13, 2010 considering the offer preparation period of minimum 2.5 months on the basis of FIDIC procedures, is set to be June 24, 2010.

The sources close to the subject report that in case 1 to 2 days delay occur in the publishing date of the tender announcement in the Official Gazette, bidding deadline will be moved 1 to 2 days as well .

Locomotives to be manufactured under license in TÜLOMSAŞ factory to be sold to Moslem countries

Electrical Locomotives to be manufactured under the license to be obtained through the international tender to be financed with a credit of USD 153 million to be granted by IDB in TCDD’s TÜLOMSAŞ Factory in Eskişehir, will be sold to Moslem countries.

In the international tender to be launched for meeting the future Electrical Locomotive requirement of Turkey and Moslem countries markets to be targeted for selling the locomotives, there reportedly will be a heated competition among French Alstom, German Siemens, Spanish CAF, Canadian Bombardier and South Korean Rotem. General Directorate Office has reportedly made final arrangements in the license section of the specification of the tender for creating fair conditions and the announcement stage has achieved.

As we earlier reported, no prequalification process will be involved in the international tender and the bids will directly be opened before the representative of the companies and press by the Tender Commission. Later on, in the course of evaluation work to be carried out by the Tender Commission, the companies whose technical offer is not appropriate will be disqualified and the tender result will be announced on the basis of the prices offered by the technically qualified companies.

Reportedly, in the Locomotive tender launched by TCDD, the participants will be asked to make their offers on one single monetary unit in the specification for not having difficulty in parity estimations of Euro and USD because of the international crisis. The offers to be made for the locomotive manufacturing for which European standards are sought, are envisaged to be on Euro.

Subsequent to signing of the contract and letter of guarantee starts to work, the contractor will be extended 48 months for delivery and within the context of international tender first 10 locomotives will be completed manufactured in abroad and delivered in TCDD’s Haydarpaşa Port, remaining 70 locomotives are targeted to be manufactured in TÜLOMSAŞ facilities by increasing the local manufacture ratio gradually.

April 12 2010-EÜAŞ’s Rehabilitation Projects for Kangal and Yeniköy Thermal Power Plants

In the Boiler Rehabilitation and Combustion Optimization Project for Kangal Thermal Power Plant, all the temporary acceptance procedures are expected to be completed by June. In the Boiler Rehabilitation Project towards the 2nd unit of Yeniköy Thermal Power Plant, temporary acceptance procedures will be launched in the end-month

WORK continues in the scope of the Rehabilitation Project for Thermal Power Plants aiming at increasing electricity generation in the lignite-fired thermal power plants of Electricity Generation Corp. (EÜAŞ).

According to TEBA information, in the Kangal Thermal Power Plant Boiler Rehabilitation and Combustion Optimization Project being executed by Hungarian Transelectro and German Siemens companies through the original equipment manufacturer contract, the temporary acceptance procedures are expected to be completed for both units by June. Relevant sources note that upon completion of these procedures, guarantee tests will follow and thereafter, final acceptance process will start by the end-year.

As might be recalled, we informed you earlier that the ongoing rehabilitation works in the 2nd unit of the plant had been expected to be completed in February and trail operation would follow, and that the rehabilitation works within the scope of trial operation in the 1st unit of the plant had been completed and thus, temporary acceptance stage had been reached. The total investment cost of the project was set in the amount of TL 130 million and the allocation reserved for 2010 had been TL 18 million (TEBANEWS#1447/January 8, 2010).

Temporary acceptance procedures are about to start for the 2nd unit of Yeniköy Thermal Power Plant

On the other hand, according to the information obtained from the relevant sources, in the Boiler Rehabilitation in 1st and 2nd units and Combustion Optimization Project for Yeniköy Thermal Power Plant being executed by Polish Rafako company, the temporary acceptance team will launch work on the 2nd unit of the plant as from April 22. After completion of the temporary acceptance procedures, guarantee tests will be started in the plant. The same sources add that the ongoing rehabilitation works in the 1st unit of the plant are planned to be completed in June and trial operation will follow. It is targeted to fulfill the final acceptance work for both units of the plant in 2010 and to commission the units officially.

As known, we reported you earlier that trial operation practice had been about to be completed in the 2. unit and if this practice proved to be successful, then temporary acceptance procedures would be started. We further said that the ongoing rehabilitation works in the 1.unit had been expected to be completed in May, that an allocation spending of TL 30 million would be made in 2010, and that the total investment for the project had been envisaged to cost TL 125 million (TEBANEWS#1447/January 8, 2010).

Each of the boilers, manufactured by Rafako company, has a steam pressure of 660 ton/hour for which OB-660 type lignite coal is burned. This company had signed a contract valued at Euro 57.5 million for the subject project.

April 12 2010-İZSU’s Tender for the Construction of Sludge Decaying and Drying Facility in Çiğli

Wastewater Treatment Plant

Prequalification applications were received in the tender announced for the construction of a Sludge Drying and Decaying Facility. 19 companies and/or company

joint-ventures have applied for prequalification

İZMİR Water and Sewerage Administration (İZSU) attached to İzmir Metropolitan Municipality received the prequalification applications on April 7, 2010 in the tender announced for the construction of Sludge Decaying and Drying Facility in Çiğli Wastewater Treatment Plant (TEBANEWS#1451/March 8, 2010).

According to TEBA information, the following 19 companies and/or company joint-ventures applied for prequalification. Sources close to the subject note that evaluation work on the applications will be completed asap and the prequalified applicants will be invited to submit their bids.

- UEM Inc.

- Alsim Alarko Sanayi ve Ticaret A.Ş.

- Alke İnşaat+PWT Wasser

- Aker İnşaat+Passvant Roediger

- Stulz. Planaqua

- Kuzu Toplu Konut

- Aktor+Arbiogaz

- Mapa+Emit Vomm

- Makro-Tel İletişim

- OTV-İzka İnşaat

- MPE Mühendislik

- Strabaga AG

- Yapı Proje Merkezi+TME

- Va Tech Wabag GmbH

-. Lidya Yapı Sanayi ve Ticaret A.Ş.

- Ataç İnşaat

- STC Sistemas

- Kaya İnşaat+Woratec

- BWI+Mass

Tender scope

Projecting the necessary sludge decaying and drying facility, its construction and operation in order for decaying of the sludge which contains 2500m³/day 6% solid substance and drying 800 ton/day sludge which contains 25% solid substance.

April 12 2010-EÜD’s Hydroelectricity Investment Opportunities Meeting in Georgia

MENR Deputy Undersecretary Çimen, “New transmission line of 650 MW-400 kV between Turkey and Georgia will be put into service in 2012. It is about time for

private companies active in Turkish energy industry to pass their experiences to other countries”...

Georgian Deputy Minister of Energy Valishli “It is important to improve the relations between the two countries in terms of energy. Feasibilities of 80 ea new small scale

HEPP projects have been prepared in Georgia”.

Electricity Producers Association (EÜD) held its meeting titled “Hydroelectricity Investment Opportunities in Georgia” on 7 April 2010 at Ankara Hilton Hotel.

Deputy Undersecretary of Ministry of Energy and Natural Resources Selahattin Çimen, delivering a speech during the opening, reported that business volume between Georgia and Turkey was increasing and it was targeted to reach this trend in the field of energy. He further noted that the capacity of the electricity transmission line through which electricity between the two countries is transmitted would be increased. Çimen, informing the capacity of the line would be increased to 650 MW and 400 kV, pointed out that the new line would be put into service until 2012 and highlighted the importance of this in terms of developing relations between the two countries. Çimen said Turkish private sector came of age and in 2009 approximately 2,800 MW private sector power plants were commissioned. He continued that these investments realized by the private sector without purchase guarantee were an indicator of their confidence in them and in the sector. Çimen stated, “It is about time for private sector companies active in Turkish energy industry to pass their experiences to other countries”.

Georgian Deputy Minister of Energy Valishli “We will contribute to energy security with the construction of new HEPPs”

Moreover, Georgian Deputy Minister of Energy Marika Valishli informing about the investment opportunities in Georgia pointed out that as the government they concentrated on improving relations with Turkey and noted the importance of improving relations between the two countries. Valishli recorded as a transit country, Georgia had strategic partners such as Turkey, Azerbaijan and added that the new transmission line to be constructed with Turkey would cost half a million dollars and increase up to the capacity of 1,000 MW.

Valishli, stating that they developed policies concerning diverse energy sources and use of local sources after 2006 gas crisis occurred in the country, noted the importance of developing HEPP potential of Turkey and Georgia in terms of improving the welfare of the countries. Valishli, informing increase in demand will continue shortly, said that energy security was synonymous with state security. Valishli, reporting construction of HEPPs will contribute to energy security, noted existing infrastructure would also be rehabilitated and new infrastructure projects would be prepared.

Feasibilities of 80 ea new small-scale HEPP projects have been prepared

Valishli stated there were 20 ea ongoing HEPP projects in the country among which Turkish Consortiums were included and feasibilities of 80 ea new small-scale HEPP projects had been prepared. Valishli continued that arrangements were made in the projects to be realized with Build-Operate model in favor of the investors. Valishli indicated that efforts were

being spent and liberal policies were implemented in order to make Georgian energy sector attractive for the investors and added that generation and distribution sectors were completely privatized, tariff and network fees were eliminated for new HEPP projects for encouragement purposes. Valishli reported that only construction license was sought for these projects which was provided to the companies within 60 days, Valishli went on to say that long-term transmission agreements could be made, guaranteed purchase opportunities were provided and license procedures for projects greater than 13 MW would be made easier.

TEİAŞ Deputy General Director Alış, “Turkey’s connection to European Electricity System will start latest in June via triple test connection”

Furthermore TEİAŞ Deputy General Director Halil Alış communicated in his speech that Turkey’s connection to European Electricity System would start latest in June via triple test connection and added agreements were signed with Greece and Bulgaria last month and net transfer capacity would reach 1500 MW after one year. Alış informed that the transfer with Georgia increased to 140 MW, the route was changed in order to transfer electricity to be obtained from 400 kV 160 km line to inner regions and Turkey part of 135 km would be completed in June 2012. Alış said attraction decreased due to falling electricity prices stemming from excess supply in Turkey and added that Turkey would face supply security problem in 2012 if 3,000-3,500 MW project was not put into service each year/

Upper Mtkvari HEPP Project

Econ Poyry Project Manager Bjorn Brandtzaeg, Georgia Government’s HEPP consultant company, said there was an important HEPP potential in Georgia and the sector was developed in the country because of new policies. Brandtzaeg informed about Upper Mtkvari HEPP Project, tender of which was announced recently, stated that a pumping project close to Turkish border was opened to prequalification applications and applications could be submitted until 28 April 2010. Brandtzaeg stated that 135 km tunnel, 32 km pumping storage would be implemented in the project and it was projected to have generation capacity of 700 GW. Valishli said that the company to submit their offers in the way to release the maximum electricity in Georgia would have the opportunity to win the project which would cost between $ 410 million and $ 604 million according to the alternatives. Brandtzaeg said that together with the project electricity export could be made with Turkey and Gama company from Turkey informed them that that it was interested in electricity purchasing.

April 12 2010-Progress in the Applications of Private Sector made to EMRA

Five auto-producer and 5 wholesale license applications have been started to be studied and evaluated by EMRA

LICENSING work continues in connection with the recent private sector applications made to Energy Market Regulatory Authority (EMRA) in the scope of the liberalization process of electricity market.

According to TEBA information, EMRA has started to study and evaluate the 5 auto-producer and 5 wholesale license applications made. It is noted that some of the applications opened for objections have reached the level of appropriateness, EMRA will continue to take up all the applications made gradually so as to put them to the same level.

Subsequent to the companies realize the necessary procedures, the abovementioned licenses are expected to be issued: Applicant companies for wholesale license are: CS Uluslararası Toptan Elektrik Sanayi ve Ticaret A.Ş., AGE Elektrik Enerjisi Toptan Satış A.Ş., Özaltın Makro Elektrik Enerjisi Toptan Satış A.Ş. and Anadolu Grup Elektrik Enerjisi Toptan Satış A.Ş. company which has 2 applications.

Names of the companies which have applied for auto-producer license:

Legal Entity Location Type of the Plant Installed Power (MWm)

Durum Gıda Sanayi ve Ticaret Mersin Thermal-co-generation-natural gas

6.42

Işıl Sağlık Hizmetleri A.Ş. Ankara Natural Gas-thermal-co-generation

0.8

Ne-Sa İnşaat ve Madencilik Adana Natural gas 1.584

Keskinoğlu Tav. Dam. İşlet. Manisa Natural gas 3.624

Canan Tekstil Sanayi Ticaret A.Ş. Gaziantep Thermal-co-generation-natural gas

4

April 12 2010-Treasury Issued Incentive Certificates for Investments Amounting to TL 1,955 Billion in

February

Completely new investments rank first with incentive certificates valued at TL 1,219 billion by sectors followed by expansion investments with TL 292 million

UNDERSECRETARIAT of Treasury issued incentive certificates for 295 investment projects in the amount of TL 1,955,884 billion. Foreign exchange usage of these investments has become $519,416 million.

In the incentive certificates issued for investments in February, Completely New Investments rank first with 184 certificates valued at TL 1,219,979 billion, followed by Expansion Investments amounting to TL 292 million with 57 certificates. The other certificates issued in February are as follows: Expansion-Modernization Investments amounting to TL 213,461 million with 10 certificates, Modernization Investments totaling TL 163,052 million with 29 certificates, and Modernization-Shipment Investments valued at TL 21,794 million with 1 certificate.

While, by sectors, Manufacturing Industry ranks first with the incentive certificates amounting to TL 874,625 million, it is followed by Electricity-Gas-Water Sector with certificates totaling TL 264,200 million. Mining-Quarry Sector ranks third with the certificates amounting to TL 172 million.

Breakdown of the investment certificates by sectors in February 2010

Sectors Number of Certificates

Fixed Investment (TL)

F/X Usage ($1,000 )

- Fishery 1 1,670,444 252,000

- Other Social and Personal Services 2 5,559,114 1,988,556

- Educational Services 7 32,697,648 -

- Electricity, Gas and Water 7 264,200,000 96,127,993

- Immovable, Leasing and Business Activities 3 2,673,675 -

- Manufacturing Industry 161 874,625,723 251,928,613

- Public Administration and Defense, Obligatory Social Security

16 58,867,771 -

- Mining and Quarry Business 27 172,038,000 42,065,556

- Hotels and Restaurants 27 162,711,229 2,553,235

- Health Affairs and Social Services 11 106,156,746 12,486,512

- Agriculture, Hunting and Forestry 19 165,031,227 51,276,662

- Transportation, Communication and Storage Services 14 109,652,621 60,737,197

T o t a l 295 1,955,884,198 519,416,324

April 12 2010-World Bank Outlook for Energy in Eastern Europe and Central Asia

World Bank Turkey Country Director Zachau: “Turkey’s position is good compared with many countries of Eastern Europe and Central Asia. As World Bank, we support

the national energy strategy of Turkey.”

According to the World Bank Report, without the required energy investments amounting to $3 trillion made, Eastern Europe and Central Asia will face a serious

energy bottleneck

WORLD BANK Turkey introduced its report titled “Lights Out? The Outlook for Energy in Eastern Europe and Central Asia” at the meeting held by Economic Policy Research Foundation of Turkey (TEPAV) on April 7, 2010.

Making an opening speech at the meeting, World Bank Turkey Country Director Ulrich Zachau said that energy was a strategic issue for the whole world and that its importance would increase in the years ahead. Noting that the countries in Eastern Europe and Central Asia would face a bottleneck in energy supply unless the required energy investments would be realized, Zachau said “The upcoming days seems not to be bright”.

Stating that the energy efficiency and renewable energy resources need to be improved, Director Zachau also emphasized that the greenhouse emissions required to be reduced. Commenting Turkey recently took important steps especially in her energy policies and energy investments, Zachau said “Turkey’s position is good compared with the many countries of Eastern Europe and Central Asia. As World Bank, we support the national energy strategy of Turkey”.

“Also private sector must take part in required investments”

The Manager at Infrastructure and Energy Sector Department of World Bank Europe and Central Asia (ECA) Region, Kari Nyman noted in his informative speech on World Bank’s outlook report that the huge future investments required in the region could not be provided by the public sector alone and that private sector should also take part in these investments. Nyman pointed that also the electricity infrastructure was required to be renewed in addition to the natural gas infrastructure in the region. Stating that Russia is an important natural gas supplier for the countries of the subject regions, Nyman noted that Russia and Gazprom needed $20 million capital investment in order to meet the potential increase in energy demand of the regions. He added that the World Bank might support the countries for the energy investments along with the carbon financing.

According to the Report, an investment of $3 trillion is to be made in the coming 20-year period

According to the Report prepared by the World Bank, if an investment of $3 trillion were not made in the next 20-year period, an energy bottleneck will be experienced in Europe and Central Asia. It is further pointed out in the Report that due to the economic crisis appeared in 2008, a temporary a problem-free period was lived but afterwards, upon rising the growth rates again, energy consumption seems to increase, and that between the years 2010-2030, an investment of $1.2 trillion is to be made in primary energy resources. In addition, an additional investment of $1.5 trillion is to be made in the infrastructure of electricity sector within the coming 20-25 year period apart from an investment of $500 million in the regional heating requirements.

In the Report, it has further been emphasized that countries are to act speedily as much as possible to provide financing support, when the needed magnitude and length of the periods in energy sector towards the implementation of the projects are taken into consideration. It is also communicated in the Report that failure to create an appropriate medium to support the investments will lead limiting the economic activities plus 10% deficit in energy supply will lead a 1% decrease in economic growth.

In connection with this issue, the World Bank European and Central Asia Region Sustainable Development Director Peter Thomson has said that in the region, the demand for primary energy is expected to increase by 50% and the demand for electricity by 90% by 2030. Thomson has also indicated that the financial crisis has created an opportunity for the countries to eliminate the energy bottleneck to a certain extent, and that this opportunity will last only for 5-6 years and measures are to be taken for both supply and demand. Lastly, he has added that in case no measure were taken, the region will become a net importer leaving behind its net exporter position.

April 12 2010-TCDD’s New Ankara High Speed Train Central Station Construction Project

SPO will reportedly grant approval conditionally to New Ankara High Speed Train Central Station Project in line with BOT Law no. 3996. BOT Model construction of the

project is awaited to be submitted to the SPC in the forthcoming days

IT IS REPORTED that the scrutiny conducted by SPO Undersecretariat for some time towards New Ankara High Speed Train Central Station Project planned to be realized on Build-Operate-Transfer (BOT) Model by TCDD General Directorate is about to be completed and expected to be submitted to the Supreme Planning Council (SPC) for approval.

The sources close to the subject report that as the result of the scrutiny conducted by SPO Undersecretariat until now, BOT Model Project was considered to be given approval conditionally and SPO opinion to this effect is expected to be completed in the days ahead.

As it might be recalled, we earlier reported that Ankara Metropolitan Municipality has forwarded favorable opinion to TCDD towards the in-city connections of the project which was given importance by SPO Undersecretariat (TEBANEWS#1453/March 22, 2010).

TCDD has to assume the construction of metro connections of the project together with Ankara Metropolitan Municipality

The sources close to the subject report that SPO may express the condition of assuming the construction of metro connections of the project on BOT Model by TCDD together with Ankara Metropolitan Municipality. Accordingly, construction of both Atatürk Culture Center (AKM) and Metropolitan Municipality Metro Station connections of New Ankara Central Station Project will be committed by TCDD and Ankara Metropolitan Municipality together.

The same sources further note that SPO Undersecretariat has found some lacking points in the answer given by Ankara Metropolitan Municipality towards metro connections of BOT Model Project and for this reason deemed it appropriate to present such a condition to be fulfilled. As a matter of fact, in the answer given by Ankara Metropolitan Municipality, the financing aspect of the metro connections were not included. Furthermore, it was not clear by whom the financing of the metro connections would be assumed.

It is reported that the importance of clarification of the investment to be required for subject connections and by whom the subject investment to be assumed are placed emphasis by SPO Undersecretariat in its scrutiny.

New Ankara Central Station Project

Within the context of new Ankara Central Station Project, there will be 6 lines, 3 home, 3 out and 3 platforms. The construction area of the New Central Station totals to 175 thousand m2, the area of construction is 70 thousand m2. Within the context of Project, there will be a 4 star hotel, 5 thousand m2 office area, 2 thousand m2 shopping area, 7 thousand m2 food hall and other halls.

According to the revised feasibility report, in case own sources are used by 50% in the project, the cost effectiveness ratio will be 2%. Only the internal equipments and manufacturing are planned to be made on BOT Model. The tracks, signaling and telecommunication systems and platforms in the Central Station will be installed by TCDD within the context of Başkentray Project.

April 12 2010-Global Crisis Contribution Credit of USD 1.3 Billion by International Reconstruction and

Development Bank for Turkey’s Balance of Payments

The agreement towards the credit of €931 million provided on March 24, 2010 by International Reconstruction and Development Bank, main agency of World Bank,

Mart 24, 2010, has taken effect on April 7, 2010. Turkish Government has committed to report its long term debts to the Treasury Undersecretariat from now on

THE AGREEMENT towards the credit of €931 million (approximately USD 1.3 billion) provided by the International Reconstruction and Development Bank (IBRD), main agency of the World Bank for financing the cash deficit of the Treasury Undersecretariat has been published in the Official Gazette dated April 7, 2010 and has taken effect.

Credit extended under the title of Restoring Equitable Growth and Employment Programmatic Development Policy Loan–REGE DPL is expected to be used by the Treasury Undersecretariat in April at one draw in its balance of payments program.

By the subject credit, maintaining the social programs at sustainable costs, improving the public fiscal management, providing employment and social protection in the Global Crisis period and in post- Global Crisis period, supporting the reforms implemented towards increasing the employment of Private Sector origin are targeted.

Conditions and Payment of the Credit

Treasury Undersecretariat will pay preliminary commission fee for the credit, in the amount of 0.25% of the credit. Treasury Undersecretariat is envisaged to pay subject fee within 60 days as from April 7, 2010 which is the effectiveness date of the credit. In the repayment of the Credit, the interest to be paid for each Interest Period will be equal to libor ratio+Variable Margin applied to monetary unit of the Credit.

Repayment of the Credit will be completed in 19.5 years with a grace period of 16 years. The principal payment of the Credit will be started on August 15, 2026 as to be made on each February15 and August 15 along the period starting from August 15, 2026 up to February 15, 2029. Along this period, in each payment, 14.29% of the principal will be paid back. Furthermore, on August 15, 2029, the amount corresponding to 14.26% of the principal will be paid.

April 12 2010-EÜAŞ’s Afşin-Elbistan C, D and E Coal Fields Projects

Since Supreme Council of Immovable Monuments and Antiquities will stop the tender for finding an “Historical monument” in a specific area of D Field, exclusion of D Field

from the coverage of the specification is considered. The remaining fields can be added into C and E fields

REPORTEDLY, a new stage has been reached in the works carried out towards the evaluation of C, D and E Coal fields in Afşin-Elbistan region by EÜAŞ General Directorate to be operated on royalty model on the condition of installing power plant in line with the target set by the Ministry of Energy and Natural Resources (MENR) to get benefit of the indigenous lignite.

It has been learnt that for an “Historical Monument” has been found out in a specific area in D Field in the course of evaluation of the drilling works conducted by the Mineral Research and Exploration Institute (MTA) General Directorate and scrutiny on the final drilling reports towards the fields, EÜAŞ General Directorate has re-considered the investment plans towards the field.

As the Supreme Council of Immovable Monuments and Antiquities will cancel the tender for finding an historical monument in D Field. EÜAŞ General Directorate has submitted the offer of excluding the problematic area in D Field from the coverage of the investment plan to the authorities involved.

As it might be recalled, we earlier reported that EÜAŞ had started the preliminary preparations towards the tender to be launched for making use of C, D and E Fields for launching royalty tenders anew (TEBANEWS#1448/February 15, 2010).

As is known, Minister of Energy and Natural Resources Taner Yıldız has dwelt upon the importance of Afşin-Elbistan lignite within the context of making utmost use of indigenous sources in the electricity generation, in his press conference held on March 23, 2010 and said that a power plant potential of 7-8 thousand MW existed in C, D and E Fields in Elbistan (TEBANEWS#1454/March 29, 2010).

Remaining parts of D Field can be added into C and E Fields

The sources close to the subject report that the areas out of the specific point where Historical monument was found in D Field is considered to be made use of and the subject areas will be added into C and E Fields.

Under the circumstances, subsequent to the approval of authority of EÜAŞ General Directorate is obtained, the coal maps have to be prepared for C, D and E Fields anew. Thus, D Field will be excluded from the coverage of royalty model tenders, and in return C and E Fields will be enlarged.

In MTA General Directorate’s final drilling reports prepared for Afşin-Elbistan E Field, the existence of coal reserves of 1 billion 375 million tons, sufficient to operate a Thermal Power Plant of minimum 1000 MW in E Field was defined (TEBANEWS#1448/February 15, 2010).

In the most recent news story on the subject we reported that EÜAŞ would launch an international consultancy tender first for the evaluation of the new coal fields in Afşin-Elbistan and the regulation would be clarified in the project, the financing model would be defined and international introduction of the project would be made by the consultant to be delegated (TEBANEWS#1454/March 29, 2010).

April 12 2010-PA’s Project for the Privatization of TCDD’s Harbors

The tender for the transfer of operating right (TOR) of İskenderun Harbor for 36 years is expected to be announced in the coming days. A grace period by the end-May has been given to Çelebi Joint-Venture Group for Bandırma Harbor. Transfer process is

underway for İzmir Harbor and the land use issue of Derince Harbor continues

WORK goes on being carried out for the privatization procedures in connection with the transfer of operating rights towards the harbors owned by Turkish State Railways Administration (TCDD).

According to TEBA information, The tender for the transfer of operating right of İskenderun Harbor for 36 years is expected to be announced in the coming days. Relevant sources note that for the tender announcement, approval of the Prime Ministry is awaited. It is expected to make the announcement soon for the tender, whose information document, specifications and calculations for cost have been completed earlier.

For the transfer of Bandırma Harbor, a grace period by end-May has been extended

It is reported that a grace period by end-May has been extended to Çelebi Joint-Venture Group, which won the tender for the transfer of operating right of Bandırma Harbor for 36 years. Relevant sources communicate that if this group made an application to sign the contract valued at $175,500 million, it can be signed by end-May.

The same sources add that the transfer period will expire on April 22, 2010 in connection with İzmir Harbor, the contract for which is to be signed with Çelebi Holding but so far no application has been made to this end by this holding.

As might be recalled, we informed you earlier that State of the Council had approved the Concession Contracts towards the TOR procedures for Bandırma and Samsun Harbors, and that invitations had been made to the companies for contract signing (TEBANEWS#1451/March 8, 2010). As known, Privatization Administration (PA) approved the transfer of Bandırma Harbor to Çelebi Joint-Venture Groups in return for $175,500 million (TEBANEWS#1378/September 29, 2008).

Land Use Issue continues in Derince Harbor

According to the information obtained from the circles close to the subject, the land use issue continues in Derince Harbor, for which State of the Council-Department-1 approved the Concession Contracts. It is reported that PA tries to solve this land use issue and if a positive view is extended for this by State of the Council, PA is to invite Türkerler Joint-Venture for contract signing.

As known, PA approved transfer of Derince Harbor to Türkerler Joint-Venture Group in return for $195,250 million (TEBANEWS#1335/November 26, 2007).

April 12 2010-Alparslan II Enerji Üretim A.Ş. Company’s Alpaslan II Dam and HEPP Project

DSİ examining feasibility reports of the project approved implementation of gravity irrigation in the project. It is targeted that DSİ, expected to approve the feasibilities

these days, will sign the Water Use Right Agreement in April

IT HAS BEEN learnt that the studies have been accelerated in order to carry Alpaslan II Dam and HEPP Project within USA Protocol to the construction stage, which emerges as one of the most important steps in achieving the realization of HEPP projects, by exercising the assignment right of Alparslan II Enerji Üretim A.Ş. company while putting into use new investments in order to provide future supply security of Turkey.

Upon approval of granting a license to Alparslan II Enerji Üretim A.Ş. company for the construction of Alpaslan II Dam and HEPP Project, feasibility studies of the project have been taken into examination by DSİ Department of Feasibility and Planning. Related sources, reporting most of the examination studies were completed by the first week of April,

inform that DSİ approved implementation of gravity irrigation in the project. DSİ is expected to approve the feasibilities these days.

As may be recalled, in our recent news story, we informed you that the feasibilities on determining how much gravity irrigation would be used for the project were completed and company delivered all its studies to General Directorate of DSİ as of the third week of March (TEBANEWS#1453/March 22, 2010).

The amount of energy to be generated will decrease to a small extent due to usage of gravity irrigation

According to the research conducted by TEBA at this point, irrigation model to be implemented in Alparslan II Dam and HEPP Project will affect the energy to be generated. It is reported that gravity irrigation should be used in this project due to location of the project, demands of the people living in the region and project is addressing to social purposes. Furthermore, it is also stated that the amount of energy to be generated in HEPP will decrease to a small extent due to usage of gravity irrigation

While it is expected that Alparslan II Enerji Üretim A.Ş. company to undertake the project will have detailed negotiations with DSİ regarding decrease in the amount of energy to be produced. It is projected that DSİ will emphasize the necessity of using gravity irrigation in the project. Related sources inform that decrease in the amount of energy can result in revision of the project; and that Alparslan II Enerji Üretim A.Ş. company will undertake the revision studies in this case.

It is targeted to sign the Water Use Right Agreement by the end of April

Sources close to the subject report that DSİ’s project calendar is to sign the Water Usage Right Agreement in April with Alparslan II Enerji Üretim A.Ş. company by the end of April. Accordingly, it is asserted that the company might be invited for the contract in the forthcoming days.

Installed power of Alparslan III Dam and HEPP Project which was included in bilateral cooperation within US Protocol and undertaken by the consortium comprised of Earth Tech (USA), Harza (USA), Alstom, Yapı Merkezi, Ekinciler İnşaat, Özışık İnşaat, Su Yapı companies is 200 MW and annual average energy generation has been determined as 714 GHz.

April 12 2010-DSİ’s Asi River Dostluk Dam Construction Project

A meeting will be held in Syria during mid April with the participation of the ministers since the negotiations have been conducted by considering diplomatic matters

It has been learnt that the negotiations are being conducted in an intense way in order to start the construction of the dam project upon signing a Memorandum of Understanding between Turkey and Syria concerning construction of Asi River Dostluk (Friendship) Dam on 7 January 2010 in Ankara.

According to the information obtained by TEBA, it was decided to have a more extensive meeting in Syria upon the negotiations held between General Directorate of State Hydraulic works Administration (DSİ), trying to implement its Action Plan for the project, and Syrian technical delegation in Ankara during the first week of March. It is reported that Minister of

Environment and Forestry Veysel Eroğlu and Syria Irrigation Minister Nadir El Bounni will also be present during the meetings by considering the importance of the project along with the necessity of moving the project to the construction stage in 2010.

As may be recalled, we reported you that Syrian technical delegation came to Turkey between 4- 6 March in order to meet DSİ high level officials and DSI clearly revealed during the meetings in which specifications revision requirements of the Syrian delegation were discussed that it did not take the revisions warmly (TEBANEWS#1452/ March 15, 2010).

It is especially important to reach consensus on two issues during the meetings

According to TEBA inquiry, it is projected that Friendship Dam Technical Delegation comprised of 24 people will participate in the meetings to be held in Syria and the two accentuated issues along with details will be moved to the agreement stage by high-level officials. While it is noted that these accentuated issues are the dam border and stating the name of Ziyaret Village clearly since it is within the borders of Turkey, it is informed that technical specifications can be moved to the approval stage once the diplomatic issues are settled.

It is reported that project and feasibility preparations will be launched along with technical specifications if Turkey and Syria come to terms. Despite the fact that 50 %- 50 % intergovernmental share was implemented during the initial process, completion of the feasibility reports will be awaited in order to finalize the ratio. It is informed that percentage ratio will be determined in accordance with utility analysis upon the feasibilities to be conducted. It is projected that the construction tender of the project will be included in the agenda during the second half of the year.

Purpose of the Project

Asi River Friendship Dam is located 2 km from the south of Ziyaret Village where Asi River forms Turkey-Syrian border. Construction purpose of the dam has been determined as improving relations, irrigation of the lands of both countries, energy generation, eliminating floods in Asi River, development of the region, fishery, employment and recreation. While it is projected to irrigate agricultural land of 14 thousand 487 hundred acres with the construction of the Friendship Dam due to high flow rate of the water, annual energy generation of 16 million kWh is targeted to be realized.

As it is known, the Asi river rising from Lebanon mountains, passes Syrian land and reaches Turkey in Hatay’s Hacıpaşa location. The Asi River flows into the Mediterranean Sea in Hatay’s Samandağ town. 100 km of he Asi River which is 380 km long passes across Turkish land. 22 km part of the river forms the joint border of Turkey and Syria. Annual water flow of the Asi River is determined as 1.2 billion m3 per year.

As may be recalled, Minister of Environment and Forestry Veysel Eroğlu noted in his speech delivered during the Memorandum of Understanding signature ceremony of Asi River Friendship Dam held in Ankara on 7 January 2010 that 51 ea Memorandum of Understanding documents were signed within the scope of Asi River Friendship Dam and the dam would pay off itself within two years.

April 12 2010-TCDD’s Ankara-Sincan Railway Northern Line Project

TCDD will launch the awaited tender for the turnkey construction of Ankara-Sincan Railway Northern Line Project which was previously within the context of Başkentray

Project, for which spending allocation will be used under the title of “Track Investments Project” under the approval of the Minister of Transportation

TCDD General Directorate has accelerated works towards launching a turnkey tender for Ankara-Sincan Railway Northern Line Project which was earlier within the coverage of Başkentray Project, however, later on excluded from the coverage of this project and included in “Track Investments Project ” in 2010 Investment Program as being an urgent line of priority.

According to information available to TEBA, having completed the specification of Ankara-Sincan Railway Northern Line Project in the days past, TCDD General Directorate will apply to Minister of Transportation Yıldırım for approval of the usage of the spending allocation in the forthcoming days.

As it might be recalled, in the most recent news story on the subject we reported that alternative efforts were being exerted by TCDD towards obtaining 10% allocation of the tender to be launched for the construction of single line of priority within the context of new Başkentray High Speed Train Project. In the same news story we further reported that the allocation that would be needed for the construction of the subject line to be completed urgently was planned to be financed from the own sources of the Administration (TEBANEWS# 1452/March 15, 2010).

Spending allocation to be used in the tender to be launched under the approval of the Minister of Transportation Yıldırım

The approval of the Minister of Transportation Yıldırım will be sufficient for TCDD General Directorate which already obtained opinion of the SPO Undersecretariat, for using the spending allocation of the tender to be launched on turnkey construction of high standard single line within the context of Ankara-Sincan Railway Northern Line Project planned to be realized urgently, in line with the Council of Ministers Decree. Thus, TCDD, having completed the surveys and specification of the project, will start the tender process subsequent to receiving the approval of Minister of Transportation Yıldırım towards the usage of spending allocation.

Thus, TCDD will reportedly make the awaited tender announcement in April after receiving the approval for the announcement to be made.

High Speed Train traffic will be eased through the urgent construction of Ankara-Sincan Northern Line

As Ankara-Sincan Railway Northern Line Project which will be called Marşandiz-Sincan will be constructed urgently as 18 km, the High Speed Train traffic will be eased, report the sources close to the subject, and the subject work should be realized even if Başkentray Project is not considered.

Reporting the High Speed Train now travel along a single line after departing from Ankara central Station and conventional and cargo trains are traveling on the same line as well, the sources close to the subject note that when the subject line is constructed on high standard, then High Speed Trains will use the line in both directions.

As is known, TCDD General Directorate has started first High Speed Train project as Sincan-Eskişehir Line. Thus, completion of the lacking projects in the Ankara-Sincan High Speed Train Line will be possible now.

Offers of big firms to be received in the turnkey work to be completed in a very short time

Reportedly, offers are deemed appropriate to be received from experienced firms for safeguarding the completion of the work smoothly and on time in Ankara-Sincan High Standard Northern Line tender which is targeted to be completed at a very short period less than 1 year by TCDD General Directorate. For this reason, the specifications were prepared accordingly so as to give priority to the work experience of the participants, report the sources close to the subject, and similar work experience to be sought would cover the completion of electrification, signaling infrastructure and superstructure works in one project as a whole.

Thus, in the turnkey tender to be launched for Ankara-Sincan High Standard Northern Line, the offers of the big firms will be received. As the tender will be financed from own sources of the entity, big local firms that completed turnkey railway constructions are awaited to be interested in the tender and they will stand better chances.

April 12 2010-Norwegian Statkraft SA’s Kargı Dam and HEPP Project

Statkraft SA, Norwegian State Agency, which bought 95% shares of Yeşil Enerji, having license of Kargı HEPP, has received the prequalification applications from the

firms for the construction of dam and tunnel. For Lot I and Lot II, 38 firms made prequalification applications. Within the context of Lot III, direct bids will be asked in

May for the procurement, installation and commissioning of electromechanical equipment

NORWEGIAN Statkraft SA firm, known as the biggest renewable energy company of Europe, all of the shares of which owned by Norwegian Trade and Industry Ministry, has received the prequalification applications in the tender launched towards Kargı Dam and HEPP Power Plant Project, 95% shares of Yeşil Enerji bought from Global Yatırım Holding.

According to information obtained by TEBA, total 38 local and international firms have made prequalification applications for the construction of dam and tunnel within the context of Kargı Dam and HEPP Project on January 22 to February 22, 2010. relevant sources report that some of the applications were for Lot I and some others for Lot II and part of the applications were made for the work as a whole.

Dam and Power Plant building construction is within the context of Lot I and energy tunnel construction of 11.5 km and of 10.5 m diameter is within the context of Lot II.

As it might be recalled, in the most recent news story on the subject we reported that Norwegian firm Statkraft SA has started the investment process of Kargı Dam and HEPP Power Plant Project, one of the 7 biggest HEPP projects to be constructed in Turkey and that local firms and international firms operating in turkey were asked to make prequalification applications on January 22-February 22, 2010 period (TEBANEWS#1445/January 25, 2010).

Bids of the prequalified firms are asked for Lot I and Lot II works

According to the information obtained from the sources close to the subject, Statkraft SA has completed the evaluation process towards the prequalification applications made for Lot I and Lot II in the days past and informed 10-12 qualified firms. Prequalified firms will reportedly be forwarded the technical specifications, final designs and contract drafts in May and 60 days will be given for preparation. Firms will have chance to make site seeing tour in June.

Statkraft SA, having targeted to receive bids from the firms in July, is expected to sign the contract in the second half of 2010 and construction works start.

For the works of Lot III, direct bids of 4-5 firms will be requested in May

Relevant sources report that direct bids are envisaged to be received from the firms for the procurement, installation and commissioning of electromechanical equipment within the coverage of Lot III of the project and in May, bids of 4-5 suppliers will be requested. The firms expected to be asked to submit their bids by Statkraft SA for the works in Lot III are listed below,

- DEC (People’s Republic of China)-ABB

- Voith (Germany)

- Alstom (France)

- Va Tech (Austria)

- Rainpower (Norway)

April 12 2010-PA’s Samsun Port Privatization Project

Operation Right of the Port has been handed over to Samsunport-Samsun Uluslararası Liman İşletmeciliği A.Ş. attached to Cey Group for 36 years at the cost of

USD 125 million 200 thousand

THE HAND over protocol envisaging the Transfer of Operation Right of Samsun Port for 36 years to Samsunport-Samsun Uluslararası Liman İşletmeciliği A.Ş. attached to Cey Group at the cost of USD 125 million 200 thousand by the Privatization Administration (PA) has been signed at a ceremony on April 6, 2010 in Ankara at Hotel Rixos.

As it might be recalled, in the most recent news story on the subject we reported that favorable opinion of the State Council has been granted for the Concession Contract towards Transfer of Operation Right of Samsun Port and 45 days were given to Ceynak Lojistik ve Ticaret A.Ş which offered the highest price, for signing the contract of USD 125 million 200 thousand (TEBANEWS#1451/March 8, 2010). As is known, the consultancy services of the privatization auction were carried out by Türkiye Sınai Kalkınma Bank (TSKB) and İşmen Hukuk Bürosu.

Cey Group which took over Samsun Port’s Operation Right first started to work as Ceyhan Transportation Company and became one of the most important logistic firms of Turkey with its transportation Fleet, depots and warehouses throughout the country.

Finance Minister Şimşek, “Implementation of big Transportation projects of the Public by the Private Sector is our basic target”

Having delivered a speech in the ceremony, Finance Minister Mehmet Şimşek has noted that delays experienced in the transfers incurred big costs to Public and difficulties have been experienced in the transfer procedures because of the change of financing conditions of the firms and went on to say, ''I hope from now on such transfers are implemented as quick as possible''.

Noting the Public resources are limited, Minister Şimşek said that form now on their major target was to delegate the Private Sector to implement big Transportation projects of the Public. Şimşek further stated that in such projects, the financing capacities and the flexibility of the Private Sector were required to be used. Noting the Privatizations are the structural reforms, Minister Şimşek has said that privatization played major role in efficiency increase, service quality improvement and cost decrease.

Transportation Minister Yıldırım, “Transfer cost handed over to the Transportation Ministry”

Transportation Minister Binali Yıldırım has said that the ownership of the ports were hold by the State however, through the transfer of operation right, the ports were transferred to the Private Sector which makes investments, in other word making the economy win additional value. Noting in Mersin Port big increases have been experienced in respect of the container, cargo capacity and employees as from the transfer made in 2007 despite the global crisis, Minister Yıldırım has stated that same improvement was also expected to be experienced in Samsun Port. Minister Yıldırım has said that Samsun Port was a port most suitable to be improved, and combines transportation agreement was signed with Russia enabling Samsun to get involved in combined transportation to be made to Russia. He further noted that revenue obtained from the port was transferred to the Transportation Ministry to be used in the construction of highways and railways and said that through the investments to be made in the Port, the port will contribute to not only the region but to all country.

PA Acting President Ahmet Aksu, “We target to realize the investments increasing the competition capacity of Turkey in Port Sector”

PA Acting President Ahmet Aksu has said in his speech that 13 ports were privatized until 2003 within the context of Port Privatizations started in 1997, ports owned by TCDD were included in Privatization Program in 2004 and until today only Mersin Port’s transfer could be made. Noting their basic objective in Privatizations is to increase the investment enhancing the competition capacity of Turkey in Port sector, Aksu has stated that for this reason, realization of the investments required in the ports was the main point in the specifications.

Cey Group Executive Board Chairman Ali Avcı has noted that a new era has started in Samsun with Samsunport and logistic terminals have been founded by the firms started to be operated in 1969 in the regions where the foreign trade is intensive. Chairman Avcı has also noted that their target was to revise the Port, improve the infrastructure, develop the trade volume and create employment and make the Port the access center of the Black Sea. An investment of USD 32 million is targeted to be made in the Port at the first stage.

April 12 2010-Current Status of Private Sector Wind Power Plant Applications Made to EMRA

Many firms have reiterated their WPP applications to EMRA on the basis of the sub-stations capacities announced by TEİAŞ. EMRA will forward the multiple applications

to TEİAŞ within 2 weeks after the scrutiny

IN LINE with the decision taken within the context of the licensing the Wind Power Plant (WPP) applications of November 1, 2007 and earlier, made by the Private Sector to the Energy Market Regulatory Authority (EMRA), the applicants have made applications anew.

According to information available to TEBA, on the basis of the capacities of sub-stations announced by TEİAŞ on March 19, 2010, many firms have renewed their applications which were made on November 1, 2007 totaling to 683 and earlier made applications totaling to 47 within 10 working days. Relevant sources report that the applications were considered by EMRA and the former applications of the applicants made no application now will be turned down by the decision of the Board.

As is known, the firms could change the connection point and voltage level and the relevant information of the system envisaged in their applications, and could decrease the total installed capacity of the facility down to the voltage level of the sub-station without changing the location of the turbines.

As it might be recalled, in the most recent news story on the subject we reported that TEİAŞ has published the total WPP connectable capacity in Turkey on March 19, 2010 in its web site in line with the decision reached by the Board, on February 18, 2010, and the applicants were awaited to make their applications within 10 days on the basis of subject capacities (TEBANEWS#1454/March 29, 2010).

TEİAŞ is expected to consider the applications in May

According to information obtained from the sources close to the subject, EMRA is expected to forward the applications to TEİAŞ and TEİAŞ to evaluate them as multiple and single applications in May. The same sources further note that after returning the single applications to EMRA, licensing process will be completed soon and for the multiple applications, invitations are awaited to be made to the tenders as the result of the works to be carried by TEİAŞ and EİE.

The same sources report that the Competition Regulation which was publicized by TEİAŞ, will be published in the process and then the firms will be invited to tenders on the basis of the sub-stations. Most of the applications are awaited to be of multiple application status and the WPP projects to be subject to competition will be announced and the applicants will make offers for either medium voltage bara connectable capacity or high voltage bara connectable capacity announced for Sub-stations and they will participate in the competition for only one bara.

Noting the competitions are awaited to be announced in June, the relevant sources report that competition process is targeted to be completed until the end of year and thus, all of the WPP applications will be evaluated.

April 12 2010-İzmir Metropolitan Municipality’s Project for the Development of İzmir Commuter

System

A contract has been signed with Savronik Sistem company, the winner of the international tender announced for the installation of the local signaling system of

Aliağa-Cumaovası Railway Line and the site delivery has been made in the last week of March

İZMİR Metropolitan Municipality has signed the contract and put it into effect in the international tender announced for the installation of the local signaling system of 80 km long Aliağa-Cumaovası Railway Line where necessary facilities will be made in 31 stations and installation of OCC systems will be conducted in Alsancak TCDD/CTC center and of local signaling system in Çiğli Depot Facilities (TEBANEWS#1432/October 26, 2009).

According to TEBA information, in the tender for which the winning company was announced as Savronik Sistem company and the last objection raised to Public Procurement Authority (PPA) was rejected. The objection application made by OAO-Baumann-Doyap Yapı Sanayi Business Partnership on February 1, 2010 was taken up by PPA Board on February 23, 2010 and it was rejected and the minutes have been forwarded to the Municipality Administration some time ago.

As might be recalled, we reported you earlier that OAO-Baumann-Doyap Yapı Sanayi Business Partnership raised an objection against the finalized tender decision of PPA and the decision of PPA had been awaited so as set the roadmap to be followed (TEBANEWS#1452/March 15, 2010).

Site deliver has been made to Savronik Sistem company in the last week of March

Sources close to the subject note that the contract signing invitation has been made to Savronik Sistem company in the first quarter of March and the contract valued at Euro 7,246 million was signed in the second half of March, and site delivery has been made in the last week of March.

April 12 2010-HEPP Projects Opened for Private Sector Construction Within the Scope of DSİ’s Water

Use Right

It is projected that the location of Yusufeli Dam and HEPP Project will be Çevreli district. Studies of DSİ concerning the draft law will be examined by high-level officers

these days

GENERAL Directorate of State Hydraulic Works (DSİ) continues its works in an intense way in order to move Yusufeli Dam and HEPP Project to the construction phase, which was previously included within the scope of Intergovernmental Agreements, however could not be realized by taking the amendment in the current law into consideration and opened for private sector construction.

Revision studies other than the resettlement issue towards the location where Yusufeli Dam and HEPP will be constructed, opened for private sector construction on June 15, 2009 and in which private sector did not show the expected interest, moved to a new stage. As a result of the onsite examination studies performed by DSİ technical team, location of the dam which was projected as Yansıtıcılar district was changed and determined as Çevreli. DSI high-level officials are expected to examine the studies in this regard and it is expected to seek approval from related authority who is Minister of Environment and Forestry Veysel Eroğlu.

As may be recalled, in our recent news story, we informed you that location of the dam, comprising Artvin City Yusufeli town along with several villages, was determined through a

law passed in April 2008 and it was determined to use another location instead of this area where resettlement was not deemed appropriate (TEBANEWS#1453/March 22, 2010).

DSİ will conduct expropriation works at the location where the dam is going to be constructed

According to the research conducted by TEBA at this point, it is required to legislate the draft by the Parliament in order for DSI to realize the project in Çevreli district, which was set as the best location among different alternatives. Related sources asserting that the studies were prepared extensively in this regard and together with legislation of the law, DSI needs to perform expropriation again.

DSI might need to wait for the legal arrangements in connection with resettlement

Sources close to the subject note that DSI is going to wait for the new legal arrangement for this project, which is an important one in terms of its installed power and the amount of energy to be generated among DSİ’s 455 ea projects opened up for private sector construction and held Water Use Right Meetings, to undertake the resettlement issue. It is still being negotiated whether DSI, projecting to conduct these studies through a Cabinet decision within the scope of the Law no. 4628, could work out this issue by depending on an article to be included in the law to be passed towards the change of location of the dam.

As it is known, it was determined that the reason why private sector was not interested in the project was the cost of resettlement and it was approved that DSI would undertake resettlement costs as the public part upon the recent negotiations.

Below are the technical characteristics of the abovementioned project:

Yusufeli Dam and HEPP Project:

Location: Artvin

Installed Power: 540 MW

Average Annual Generation: 1,705 GHz

April 12 2010-TCDD’s Project for the Maintenance and Repairs of the Railway Lines

The awaited announcement was made for the international service procurement tender. The bid deadline has been set as May 17, 2010

TURKISH State Railways Administration (TCDD) made its awaited international tender announcement in the Public Procurement Authority’s (PPA) bulletin on April 6, 2010 for the completion of incomplete works in the scope of the A1 and A2 Groups of works on the 800 km long high-speed and conventional lines announced earlier for the maintenance and repairs as well as for the measurement and examination works.

Companies interested in this tender can study the specifications in the address of the Administration and can obtain them from “TCDD İşletmesi Genel Müdürlüğü Merkez Veznesi (Oda No:1107) Talatpaşa Bulvarı Gar/Ankara” in return for TL 1,500.

Tender scope

Maintenance work is to be carried out with machinery for a period of 24 months on the 2,900 km long conventional lines and 3,800 km long high-speed train lines, totaling 3,800 km.

Bid deadline has been set as May 17, 2010

The bid deadline of the subject tender has been set as 14.00 hours May 17, 2010 and it will be held at “TCDD İşletmesi Genel Müdürlüğü, Malzeme Dairesi Başkanlığı, Talatpaşa Bulvarı, Gar-Ankara 1118 Numaralı Toplantı Salonu”. Bids can be delivered to TCDD Malzeme Dairesi Başkanlığı, Yol Sipariş Şubesi 1103 Numaralı Oda Talatpaşa Bulvarı-Gar/Ankara” in person or be forwarded by registered mail.

Duration of work for A1, A2 and A3 Groups will be 24 months as of the site delivery. The acceptable similar work component in this tender will be to have carried out high-speed or conventional lines or metro superstructure construction and maintenance works.

Companies can submit partial bids and bids are to be offered on the basis of each item of work in line with the unit prices. At the end of the tender, a unit price contact will be signed. Bids of consortia will not be accepted. Validity of the bids will be 120 calendar days as from the tender date.

Price evaluation work will be conducted towards the bids together since the contents of the A2 and A3 group machinery are the same. The lowest and most appropriate bid offered for the A2 and A3 groups will be awarded with the contracts for the machinery.

As might be recalled, we informed you earlier that the maintenance & repair service had been put out to tender again since “no appropriate bid” had been received, which was approved by the Executive Board on March 18, 2010 and the bid deadline would be published in the PPA’s bulletin as May 17, 2010 (TEBANEWS#1455/April 2, 2010).

April 12 2010-DSİ’s Multiple HEPP Projects (II)

The Water Use Right meetings of 12 HEPPs with a total installed power of 83.2 MW will be held on 4, 5, 6, 11, 12 and 13 May 2010

AUTHORITY clearance has been obtained so as to hold the Water Use Right meetings by State Hydraulic Works (DSİ) for 12 Hydroelectric Power Plant (HEPP) projects in May 2010.

According to TEBA information, DSİ held a Water Use Right meeting for Yiğit HEPP project on 25 February 2010 for the last time and has taken a decision to hold meetings for 12 HEPPs in May. It is reported that dates for the Water Use Right meetings towards the Multiple HEPP projects have been decided to be held in the first and second week of May, and the bidder companies will offer their bids for 12 HEPPs in the list on 4, 5, 6, 11, 12 and 13 May 2010.

The total installed power of these HEPP projects is 83.2 MW through which 255 million kWh electricity will be generated.

More information is presented in the following on the Hydroelectric Resource Share Meetings for which will be held of the 12 HEPPs:

Name of the project Province Installed Power (MW)

Energy to be generated on the average (kWh)

Date of the meeting

Hour

Karakaya HEPP Karabük 4.30 12,000,000 04.05.2010 09:30

Martı Reg. and HEPP Giresun 5.00 22,000,000 04.05.2010 11:00

Çiçekli I-II Reg. and HEPP Artvin 5.00 20,000,000 05.05.2010 09:30

Ardanuç-9 Reg. and HEPP Erzurum 7.00 16,000,000 05.05.2010 11:00

Kardelen HEPP Ordu 6.00 20,000,000 06.05.2010 09:30

Şenyayla Reg. and HEPP Diyarbakır 15.00 40,000,000 06.05.2010 11:00

Sakaltutan Reg. and HEPP Diyarbakır 2.00 5,000,000 11.05.2010 09:30

Demirci Reg. and HEPP Artvin 18.00 52,000,000 11.05.2010 11:00

Kara Reg. and HEPP Artvin 4.50 20,000,000 12.05.2010 09:30

Geçit HEPP Diyarbakır 7.00 18,000,000 12.05.2010 11:00

Hayat HEPP Rize 4.40 16,000,000 13.05.2010 09:30

Maltepe Reg. and HEPP Trabzon 5.00 14,000,000 13.05.2010 11:00

As might be recalled, we informed you earlier that we had presented the list of 6 HEPPs for which the Water Use Right meetings would be held on 23, 24, and 25 February 2010 (TEBA:1447/8 February 2010).

Applications have been received nearly from 30 companies

According to TEBA inquiry, DSİ has received applications from nearly 30 private sector companies for the 12 HEPP projects. The most of the applications have been made for Şenyayla Regulator and HEPP. 2 applications have been received for Karakaya HEPP, Martı Reg. and HEPP, Çiçekli I-II Reg. and HEPP, Kardelen HEPP, Sakaltutan Reg. and HEPP, Demirci Reg. and HEPP, Kara Reg. and HEPP, and Maltepe Reg. and HEPP, 3 applications for Ardanuç-9 Reg. and HEPP, and Geçit HEPP, 4 applications for Hayat HEPP. For Şenyayla Reg. and HEPP, 5 applications have been received.

April 12 2010-Project Financing to be Granted by IDB is on Preliminary Protocol of Intention Stage Yet

Reportedly, Treasury will start discussions towards the credit agreements after IDB and Public institutions agreed upon the principles of the credit agreement

REPORTEDLY, Member Country Partnership Strategy (MCPS) signed for the first time in Ankara on March 25, 2010 between Treasury Undersecretariat and Islamic Development Bank (IDB), is the Preliminary Protocol of Intention yet towards the credit for project financing of Public and Private Sector establishments.

The sources close to the subject report that for signing the Credit Agreements, first of all the rules of the credit agreements should be defined and IDB and Treasury will come together to this effect for clarifying the conditions of the credit agreement from their own perspectives.

As it might be recalled, in the most recent news story on the subject we reported that Treasury and IDB had signed Member Country Partnership Strategy towards the project credit of USD 1.5-2 billion in 2010-2013 in Ankara as the result of negotiations. In the same news story we further reported that project credit agreements were expected to be finalized in June (TEBANEWS#1454/March 29, 2010).

Credit agreements seem difficult to be finalized in June

The sources close to the subject note that credit agreements seem difficult to be finalized in June and it will be highly difficult for the Public establishments to define the principles involved in the credit agreement with the IDB in such a short time, until June.

The sources close to the subject report that negotiation process will be started on the credit principles by the entities to obtain the credit after the scrutiny of IDB credit procedures in the process and the entities to enjoy the credit are expected to demand the credit to be untied as it was the case in earlier credits extended by the IDB.

As is known, credit agreements have been previously signed by IDB and Treasury Undersecretariat for financing two individual projects of the TCDD General Directorate within the context of the Memorandum of Understanding signed. Treasury and IDB had targeted to reach a credit agreement totaling to USD 800 million for 3 year period in 2008-2010 under the Memorandum of Understanding signed in August 2008. In the subject Memorandum of Understanding, the project credits were envisaged to be 18 year term with a grace period of 3 years on the annual interest rate of 55% + libor (TEBANEWS#1372/August 18, 2008). However, 7 months after signing the Memorandum of Understanding, TCDD General Directorate had signed first credit agreement for 125 thousand ton rail import on March 19, 2009 (TEBANEWS#1401/March 23, 2009).

MENR seems very much interested in IDB credit for renewable Energy Projects

Reporting the Ministry of Energy and Natural Resources (MENR) seems to get interested in IDB credit for financing the Renewable Energy Sources Projects of the Private Sector licensed by the Energy Market Regulatory Authority (EMRA), the sources close to the subject note that IDB credit can be used for Private Sector HEPP projects having licensed particularly on the basis of the Intergovernmental Protocols.

Reportedly, the bureaucratic procedures still continue pertaining to the Private Sector Wind Energy Power Plant (WPP) and Solar Energy Power Plant Projects, project financing may be required in the second stage of the works.

Noting other public institutions engaged in negotiations for IDB project credits are DLH Construction General Directorate, TCDD General Directorate, Ministry of National Education (MEB), the relevant sources report that IDB delegation has come together with Halkbank, Türk Eximbank, Turkish Union of Chambers and Stock Exchanges (TOBB), Turkish Contractors Association (TMB) in Ankara as well.

April 12 2010-EÜAŞ’s Afşin-Elbistan C, D and E Coal Fields Thermal Power Plant Projects

Bidding deadline of Afşin-Elbistan Coal Basin Air Quality Modeling Work and Evaluation Consultancy Service Procurement tender has been set as April 14, 2010

EÜAŞ General Directorate which engaged in specification works for some time has announced Afşin-Elbistan Coal Basin Air Quality Modeling Work and Evaluation Consultancy Services tender towards defining the new thermal power plant investments to be made in Afşin-Elbistan C, D and E Coal Fields, upon the directives of the Ministry of Energy and Natural Resources (MENR) on April 5, 2010.

Firms interested in the tender may obtain or see the Tender documents in EÜAŞ General Directorate Material Management and Trade Department İnönü Bulvarı No:27 Floor:13 Room No:18 06490 Bahçelievler/Ankara, in return of TL 236 or €110 (VAT included).

The firms will submit their bids until 14.00 hours on April 14, 2010 to EÜAŞ General Directorate Material Management and Trade Department İnönü Bulvarı No:27 Floor: C Room No:C1 06490 Bahçelievler/Ankara. The firms will submit bid bond, minimum 3% of the offer and the validity of the bids will be minimum 90 calendar days as from the tender date.

As it might be recalled, in the most recent news story on the subject we reported that EÜAŞ General Directorate would launch two individual international consultancy tenders for defining the Thermal Power Plant investments to be made in the Basin. In the same news story we further noted that the consultancy tender to be launched by EÜAŞ first would be towards the definition of the capacities of the coal power plants on the basis of the environmental conditions prevailed in Afşin-Elbistan C, D and E Fields and the Tender was expected to be announced in April (TEBANEWS3 1454/March 29, 2010).

Scope of work

The scope of the Tender is set to be the air quality estimations to be made on the basis of the air pollution dispersion modeling and reporting for generating electricity within the context of the specification work completed on the basis of the sectors as a whole and on sectorial basis in harmony with the environment in the coal sectors of EÜAŞ having the license in Afşin-Elbistan Coal Basin. The work to be conducted within this context should be interpreted under the Turkish Environment regulation, European Union’s no. 2001/80/EC “Limitation Directive of the Pollution Emissions Originating from the Big Burning Facilities (LCP)”. The duration of the work within the context of the specification is set to be 105 calendar days as from the signing date of the contract.

Furthermore, within the context of the subject work, it will be defined how many thermal power plants at what MW capacity can be installed in Afşin-Elbistan Coal Basin for securing the usage of 4.4 billion ton coal in harmony with the environment in respect of air quality after deducting the coal amount to be used in operating Afşin Elbistan A and Afşin Elbistan B Thermal Power Plants and how many power plants of minimum 1000 MW capacity can be installed. Within this context, works will be carried out on 6 scenarios prepared in the specification for defining the capacity to be planned on the basis of the cumulative effect to be emerged after the inclusion of the existing air quality values.

Conditions involved in the Tender

The firms to participate in the Tender will have to include in its offer the “Qualification Document” issued by the Ministry of Environment within the context of the EIA Regulation. The bidding firms will have to buy services from the firms meeting the requirements for calibration listed above in case they do not have authorized to make the required calibration by the Ministry of Environment and Forestry to produce data towards the works subject to tender or has not been accredited internationally to this effect.

The dust values in Afşin-Elbistan Coal Basin (PM10), SO2, will be measured as of NOx (NO2 value), the measurement points will be delivered to the firm on the basis of meteorological conditions prevailed and the regions and relevant topographical characteristics where the pollution level will the highest. In the calibrations, the air quality calibration/analysis methods approved by the Ministry of Environment and Forestry will be used and the owner of the offer will define the Air Quality Modeling Method to be used in the calculation of the Air Quality in the Basin.

As is known, according to the Ministry of Environment and Forestry’s Air Control Regulation pertaining to the Industrial Facilities, the sulphure dioxide emission in the solid fuel burning facilities over 300 MW cannot exceed 1,000 mg/Nm3 in flue gas.

April 12 2010-TCDD’s New Başkentray High Speed Train Project

Having studied the revised feasibility survey, SPO asked some of the works to be re-made. The number of passengers is expected to be reconsidered.

It has been learnt that TCDD General Directorate would re-scrutinize new Başkentray High Speed Train Project feasibility survey which is included in 2010 investment program as a new project and considered to be an integrated investment of High Speed Train lines.

In the course of initial study of the revised surveys of the New Başkentray High Speed Train Project, SPO Undersecretariat has reportedly asked some additional works to be conducted on the issues subject to revision. For this reason, TCDD General Directorate will further conduct revision works towards new Başkentray High Speed Train Project feasibility surveys.

As it might be recalled, in the most recent news story on the subject we reported that TCDD General Directorate has submitted the revised feasibility surveys prepared for Başkentray High Speed Train Project to the SPO Undersecretariat for scrutiny in March (TEBANEWS#1454/March 29, 2010).

Passenger number awaited to be re-studied

Meanwhile, along with the revision on the feasibility survey of new Başkentray High Speed Train Project, defining the future number of passengers clearly will be of importance for the project. The sources close to the subject report that the project will be designed on the basis of the future passenger capacity of the Project, for this reason, the future passenger capacities should be based on concrete reasons.

As is known, we earlier reported that the future passenger capacity of capital Ankara could be taken as 80 million per annum on the basis of the former transportation plans of TCDD. When surveys conducted towards the number of Passengers, the number of passengers travel with commuter system in capital Ankara.

The same sources further report that it seem improbable to reach such number of passengers even when the current number of passengers and future highest demand projections are considered. Thus, the railway passenger demand comes out to be a matter to be re-considered. The major values in the feasibility survey such a the repayment period and feasibility of the project will be understood when the passenger number is taken into account.

In Başkentray Project investment program, Kayaş-Ankara and Ankara-Sincan sections are included

New Başkentray High Speed Train Project planned to be constructed by TCDD General Directorate for High Speed Train Lines is included in 2010 investment program as total 36 km, as Kayaş-Ankara (12 km), Ankara-Sincan (24 km) sections.

SPO Undersecretariat has already approved the project to be included in 2010 investment program conditionally and the in footnote. It is stated that 2010 allocations can only be made available when the requested revisions are accepted to be made in the feasibility survey. In TCDD’s 2010 investment program, expenditure allocations of TL 21.6 million is made for Kayaş-Ankara section of the project and TL 27.9 million for Ankara-Sincan section.

In New Başkentray High Speed Train Project, it is envisaged to construct 6 new lines between Ankara-Behiçbey and 5 individual lines between Behiçbey-Sincan.

April 12 2010-TCDD’s Ankara-İstanbul High-Speed Train Project (3rd Stage)

Applications for prequalification will be received on May 3, 2010 for tender launched by CFCU for supervision services towards rehabilitation & reconstruction of Köseköy-Gebze 3rd Stage

INTERNATIONAL tender to be launched by Central Finance & Contracts Unit (CFCU) were announced for supervision services towards the rehabilitation and reconstruction of Köseköy-Gebze section of Ankara-İstanbul High-Speed Train Project which we have been covering as the most important railway investment of the General Directorate of Turkish State Railways Company (TCDD). The deadline for prequalification applications were announced on the website of CFCU in the days past.

On website, it is announced that interested companies are expected to apply for prequalification no later than May 3, 2010 at 17:00, with the necessary documents which are prepared in English, at the address “Eskişehir Yolu 4.km 2.Cad. (Halkbank Kampüsü) No:63 C-Blok, Söğütözü Ankara”. It is noted that CFCU Chairman Muhsin Altun is to be called for more information through the number 0312 295 49 00.

Scope of the tender

The contract winner will assume the supervision services for the rehabilitation and reconstruction of Köseköy-Gebze section of Ankara-İstanbul High-Speed Train Project. For the project which will be implemented as per FDIC conditions, the works to be done by the consultant for the supervision contract includes; design-built electromechanical works, design review, supervision services in full compliance with the terms and conditions of the works contract documents including drawings, technical specifications, etc., consultancy to the contracting authority regarding the contract management, supervision and approval of tasks during the taking over/final acceptance and provision of technical assistance and consultancy to the contracting authority and end recipient for proper

implementation of the works.

The approximate cost for the tender is Euro 6.5 million

Regarding the tender, CFCU set the approximate cost of the supervision services as Euro 6.5 million. Since Ankara-İstanbul High Speed Train Project is among the most important railway projects in Turkey, experienced international companies are expected to participate in the tender. On the basis of the applications received, at least 4 and at most 8 candidates will be invited to submit offer to the supervision services tender. In case the number of eligible candidates meeting the selection criteria is less than the minimum of 4, the contracting authority may invite the candidates who satisfy the criteria to submit offer.

All eligible real and legal entities or grouping of such persons and consortia may apply for prequalification. All members of a consortium are jointly and severally liable to the contracting authority.

The Project

As known, recently we reported that the financing agreement for Ankara-İstanbul High-Speed Train Project-Köseköy-Gebze Section Rehabilitation & Restructuring Project, had been signed on March 17, 2010 between the Ministry of Transportation and the EU Turkey Delegation at TCDD Ankara Railway Station. The Transportation Minister Binali Yıldırım said that the financing agreement signed for Köseköy-Gebze stage was very important for Turkey’s negotiation process with the EU, and that the EU has extended support from the Instrument for Pre-Accession Assistance (IPA) of the EU for Ankara-İstanbul High-Speed Train Project, undertaking to finance 85% of the construction works of Köseköy-Gebze stage (TEBANEWS#1453/March 22, 2010).

April 12 2010-EÜAŞ’s Project for the Rehabilitation of Electro-filters in Yatağan Thermal Power Plant

Work on the specifications has been completed for the tender towards the rehabilitation of the electro-filoters in the 1., 2. and 3. units of the power plant

WORK continues intensively on the rehabilitation tenders towards the electro-filters to be carried out in the thermal power plants of Electricity Generation Corp. (EÜAŞ).

According to TEBA information, joint work on the specifications conducted for this rehabilitation tender has been completed with the participation of YEAŞ General Directorate recently.

Relevant sources note that the specifications will be forwarded to EÜAŞ Material Management and Trade Department, to be finalized and thereafter, authority clearance will be obtained to announce the tender in April as planned. Furthermore, it is reported that nearly a 45-day grace period will be given to the companies to prepare their bids.

As might be recalled, we informed you earlier that work on the tender specifications had continued on the tenders for the electro-filters in the 1., 2. and 3. units of Yatağan Thermal Power Plant and of the 1., and 2. units of Çatalağzı Thermal Power Plant (TEBANEWS#1451/March 8, 2010).

2010 allocation of the tender is TL 15 million

It is reported that total investment cost of the tender has been calculated in the amount of TL 35 million as it appears in the 2010 Investment Program, and the allocation for the year 2010 is TL 15 million.

April 12 2010-TCDD’s Ankara-İstanbul High-Speed Train Project

İneco+UBM Joint-Venture ranks first in the evaluation report for the tender towards Consultancy and Supervision services covering the 2nd stage works of İnönü-

Köseköy-Gebze section. The subject report has been presented to EIB

IT HAS BEEN learned that the evaluation report has been presented to European Investment Bank (EIB) to be examined for the tender of Turkish State Railways Administration (TCDD) in connection with the Consultancy and Supervision services covering the 2nd stage works of İnönü-Gebze section of Ankara-İstanbul High-Speed Train Project.

According to TEBA information, in the international EIB funded tender, whose financial bids were opened on February 11, 2010, evaluation work has been completed in the days past. In the evaluation report, İneco+UBM JV ranks first, with its lowest bid of Euro 6.4 million, which has been regarded appropriate by the Administration.

Source close to the subject note that the evaluation report prepared by the Commission has been submitted to EIB to be approved. After the approval, the tender result will have been finalized.

Bids offered to the tender

Seven (7) company-joint ventures offered bids to the tender and they were invited to the opening of the financial bids which varied between Euro 6.4-13.2 million. Apart from İneco-UBM JV, the following also offered bids to the tender: Getinsa Ingenieria-Auxitec-Botek, Bernard-Pöyry-IC Consult-Denge, Altınok-İdomTransurbTecnirail, Eptisa-Ardanuy Fichtner-Eptisa Türk-Su-Yapı Fichtner Türk, Mescioğlu-Italfer and SWS-Penta-Pegaso (TEBANEWS#1448/February 15, 2010).

April 12 2010-Total Debt Stock of the Central Administration was Realized as TL 452.6 Billion in

February 2010

In February 2010, Central Administration’s internal debt stock was realized as TL 339.4 billion, external debt stock was realized as TL 113.2 billion

February 2010 Central Administration’s debt stock data were announced by Undersecretariat of Treasury in the first week of April.

Accordingly, total debt stock of the Central Administration reached TL 452 billion 662 million in February 2010. It is observed that the total debt stock, which was TL 441 billion 507 million by the end of 2009 increased approximately TL 11 billion within two months.

In this period, TL 325 billion 234 million of the total debt stock was realized in TL currency and amount corresponding to 127 billion 429 million TL was foreign currency.

Central Administration’s internal debt stock in February 2010 amounted to the same, as was realized as TL 339 billion 434 million, external debt stock reached as TL 113 billion 228 million. In this period, it is observed that internal debt stock increased around TL 9 billion and external debt stock increased around TL 2 billion when compared to the end of 2009.

Public Net Debt Stock

Undersecretariat of Treasury also announced the public net debt stock data of 2009-year end. Accordingly, as of the end of 2009, public net debt stock increased to TL 309 billion 740 million. During this period, the ratio of public net debt stock to Gross National Product (GNP) was 32.5 %.

It is observed that public debt stock which was TL 267 billion 990 million by the end of 2008 increased TL 41 billion 750 million within one year period. In 2008, the ratio of public net debt stock to Gross National Product (GNP) appeared at the rate of 28 %.

While internal debt amount within total public debt stock was TL 347 billion 192 million by the end of 2009, the amount of external debt stock was TL 118 billion 325 million. In internal debts TL 330 billion was recorded as Central Administration’s debt and TL 17 billion was formed by other public debts. In external debts, Central Administration’s debt was recorded as TL 111.5 billion and TL 6.8 billion was formed by other public debts.

As of the end of 2009, net internal public debt stock reached TL 284 billion. This figure was TL 248.3 billion by the end of 2008. Accordingly, net internal public debt stock increased TL 35.7 billion within one year. Net external foreign debt stock was realized as TL 25.8 billion by the end of 2009. This figure was TL 19.6 billion by the end of 2008. Accordingly, net external public debt stock increased TL 6.2 billion.

April 12 2010-Electricity Generation and Consumption Figures Increased by 6.7% in March

2010 Compared to the Last Year

Electricity consumption in March 2010 increased by 6.7 % and realized as 17 billion 27 million kWh. During the first three months of 2010, 5 % increase in electricity

consumption occurred and electricity consumption was recorded as 50 billion 141 million kWh. In March 2010, electricity consumption was realized as 17 billion 68

million kWh with an increase of 6.7%

ELECTRICITY consumption figures, displaying significant change due to reflection of the global economic crisis on industrial production, continued the tendency to increase in March 2010 as it was the trend during the recent moths.

In accordance with the monthly Operational Activity Reports of Turkish Electricity Transmission Inc. (TEİAŞ), electricity consumption which was 15 billion 953 million kWh in March 2009 was realized as17 billion 27 million kWh in March 2010 with an increase of 6.7%. While planned consumption figure in March 2010 was 19 billion 841 million kWh, Turkish electricity consumption provided 85 % realization in accordance with the program.

Foreign sale amount of Turkey in March 2010 was realized as 122 GHz; 24.7 GHz of this amount was sold to Syria, 97.4 GHz to Iraq. Therefore, it was determined that an increase of 17.7% was recorded in foreign sale ratio in March 2010 compared to the same month of last year.

When quarterly electricity consumption figures in 2010 are examined, it is observed that electricity consumption of 50 billion 141 million kWh was realized in Turkey’s total electricity consumption within the first three months and an increase of 5% occurred compared to the year 2009 when the consumption for the first three months was 47 million 764 million kWh.

Electricity generation figures increased by 6.7% in March

Furthermore, in accordance with TEİAŞ report, 2010 March electricity generation was realized as 17 billion 68 million kWh with an increase of 6.7%. While it was set that electricity generation of 15 billion 997 million kWh was realized in the same month of the previous year, it was observed that 85% realization occurred in 2010 March program which was 20 billion 91 million kWh. Total electricity purchase of 81.6 million kWh from Iran, Georgia and Azerbaijan was realized in March 2010.

On the basis of the quarterly figures, electricity generation, which was 47 billion 887 million kWh during the first three months of 2009, was recorded as 50 billion 314 million kWh with an increase of 5.1%. The generation program for the first three months of 2010 was 59 billion 552 million kWh, it is reported that realization of 84.5% was provided.

When generation figures are examined, it is observed that EÜAŞ, realizing generation of 6 billion kWh in the same month of the previous year, recorded an increase of 98%, and that as EÜAŞ’s subsidiaries recorded generation of 1 billion 57 million kWh with decrease of 42.9% compared to the same month of the previous year. Moreover, in March, Transfer of Operating Right plants (TOR) recorded generation of 391 million kWh with a decrease of 1.6%, Build Operate Plants (BO) recorded generation of 3 billion 975 million kWh with a decrease of 27.5%, Build-Operate-Transfer (BOT) plants recorded electricity generation of 1.211 million kWh with an increase of 0.4%, free generation companies recorded generation of 2 billion 781 million kWh with an increase of 2%, auto producers recorded electricity generation of 1 billion 60 million kWh with decrease of 15%.

April 12 2010-DSİ’s Multiple HEPP Projects (I)

Water Usage Right meetings will be held on 27th, 28th and 29th of April for the 6 HEPP Projects which are included in the multiple HEPP group of April 2010

State Hydraulic Works (DSİ) General Directorate received the authority approval in order to hold Water Usage Right meetings in April for the 6 of the Hydroelectric Power Plant (HEPP) projects which private sector are recently interested in.

According to the information obtained by TEBA, DSI which held the last Water Usage Right meeting for Yiğit HEPP project on February 25, 2010 will arrange that kind of meetings on for 6 ea HEPP projects in April. It is noted that Water Use Right meetings will be held in the last week of April and that companies will submit their bids on 27th, 28th and 29th of April for these 6 multiple HEPP projects.

The above-mentioned 6 HEPPs have a total installed capacity of 29,5 MW and the HEPP project of Köprüçay Enerji Grubu attracts the most attention with its highest installed capacity among the HEPPs. The 6 HEPPs have a total generation capacity of 102 million kWh.

Detailed information on the 6 HEPPS is given in the table below.

HEPP Province Installed capacity (MW)

Average Generation (kWh)

Date of the Meeting

Hour of the Meeting

Esendurak II HEPP Erzurum 1,96 7.350.000 27.04.2010 09:30

Hasanabdal Reg. and HEPP Van 2,37 9.920.000 27.04.2010 11:00

Aydın Reg. and HEPP Artvin 1,50 5.150.000 28.04.2010 09:30

Kılcan Reg. and HEPP Muğla 0,89 4.300.000 28.04.2010 11:00

Köprüçay Enerji Group Isparta 21,61 70.100.000 29.04.2010 09:30

Sorgun Reg. and HEPP Bilecik 1,16 5.460.000 29.04.2010 11:00

As it might be remembered, recently we reported that the Water Use Right meeting would be held for (another) 6 HEPPs in February and there would be the meetings on 23rd, 24th and 25th of February (TEBANEWS#1447/ 8 February 2010).

Nearly 30 companies applied for the HEPPS

According to the inquiry made by TEBA, DSİ were applied by nearly 30 companies for the 6 HEPPS and among those HEPPS, Köprüçay Enerji Grubu has been the project which was mostly applied for. 4 applications were made for each of Esendurak II HEPP and Hasanabdal Reg. and HEPP; 3 applications were made for Aydın Reg. And HEPP and 5 companies were applied for Kılcan Reg. And HEPP.

6 applications were made to DSI for the Köprüçay HEPP which is expected to have an average annual generation amount of 70 million kWh. These are the companies who applied for the Köprüçay HEPP: Çatalkaya Enerji, Selge Enerji , Dedegöl Enerji, Permak Enerji, Ded Enerji and Aydaş Enerji. As known, Köprüçay Enerji Grubu Project includes two different HEPP projects of Başak Dam and HEPP and Bora Reg. And HEPP.

Since all of the applicant companies are expected to submit bids, a competitive climate is envisaged for the meetings.

April 12 2010-TÜİK Announces March Inflation Rates

In March 2010, CPI increased by 0.58% and PPI by 1.94%. As of March, CPI has risen at the rate of 9.56% and PPI at the rate of 8.58%

STATE Statistical Institute (TÜİK) announced March 2010 Consumer Prices Index (CPI) and Producer Prices Index (PPI) on 5 April 2010.

According to TÜİK information, in March CPI increased by 0.58% and PPI by 1.94% in March. Three-month inflation became 3.93% in CPI and 4.24% in PPI. In March, annual inflation rose at the rate of 9.56% in CPI and 8.58% in PPI. In the same month of the previous year, it appeared as 7.89% in CPI and as 3.46% in PPI. Hence, in March, annual

inflation realized over 1.67 points in CPI and over 5.12 points in CPI. By 12 month averages, annual inflation became 6.53% in CPI and 1.63% in PPI.

As might be recalled, in February, CPI increased by 1.45% and PPI by 1.66% and the annual inflation rose to 2-digit figures for the first time for years and it showed an increase of 10.13% in CPI and of 6.82% (TEBA: 1451/8 March 2010).

As of the main spending groups, the highest rate of increase is seen in the Communication Group at the rate of 3.14% compared to the previous month

On the other hand, as of the main spending groups, the highest rate of increase took place in CPI in the Communication Group at the rate of 3.14% compared to the previous month. In March, an increased was observed in the following: at restaurants and hotels 0.98%, at transportation 0.73%, at various commodities and services 0.70%, at clothing and shoes 0.69%, at entertainment and culture 0.69%, at food and non-alcoholic drinks 0.62%, at education 0.36%, at housing 0.20%, at health 0.04%, at alcoholic drinks and tobacco 0.01%. At household good a drop was experienced at the rate of –0.45%.