September 9, 2008 / 7:04 AM / 11 years ago

UPDATE 1-Turkey to cancel power plant tender -EUAS

(Changes sourcing)

ISTANBUL, Sept 9 (Reuters) - Turkey’s electricity production corporation EUAS will cancel a tender in which two companies bid for rights to construct and operate a coal-fired unit at one of Turkey’s biggest power plants, the general manager of EUAS said on Tuesday.

Park Teknik and Akfen Insaat-Akfen Enerji entered bids in a tender in late June to build and operate the new coal-fired C unit at the power plant, while Akfen Insaat-Akfen Enerji was the sole bidder for the plant’s D unit.

Park Teknik is part of Turkey’s unlisted Ciner group.

“New tenders ... will be reopened in the shortest time possible. We’ve already started working on the conditions of the new tender,” said EUAS General Manager Sefer Butun.

Building the Afsin Elbistan C and D units requires nearly $5 billion of investment.

EUAS decided to cancel the tender after it considered the price the bidders wanted for electricity produced from the plant was too high, said a senior level official at EUAS .

Park Teknik and Akfen Insaat-Akfen Enerji said they would sell power from the plant at between $0.15 and $0.18 per kilowatt hour for a period of 15 years, he said.

No foreign investors bid in the tender, held during increasingly turbulent global conditions.

Each of the new units will have capacity of 1,200 megawatts (MW), ramping up production capability at the power station in central Turkey, which currently has a total capacity of 2,800 MW. (Reporting by Thomas Grove; Editing by Quentin Bryar)

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