Project Description
The proposed project involves an up to US$94 million debt financing package for Kremna Elektrik Uretim A.S. (the “Kremna” or the “Company”). Kremna is a special purpose vehicle owned 100% by Gama Enerji Anonim Sirketi (“Gama Enerji” or the “Sponsor”), an IFC equity investee company.
Gama Enerji was the winning bidder at the privatization tender held on November 9, 2015, for Karacaoren-1 (32MW) and Karacaoren-2 (46.4MW) dam and hydroelectric power plants (total of 78.4MW), which have been operational for the last 23 years. The privatization is in the form of Transfer-of-Operating-Rights for 49 years.
The Project purpose of the Project is to finance: (i) acquisition consideration of TL515 million (~US$177 million); (ii) replacement and rehabilitation capital expenditures; and (iii) development, financing costs, and a 12-month DSRA.