In years 2000-2001, on various instances, we visited the  Soma Thermal Power Plant together with Mr Eddie Kolodziej and other senior  engineers of CSWI  (later AEP) of USA companies for possible cooperation to run the plant in Transfer of Operational Rights (TOR) scheme. 

This is our joint report prior to our possible TOR scheme operation. This report is an independent report prepared with the available information as received at the Soma Thermal Power Plant site in year 2001,  trying to advise a frank picture of the existing situation. It is free from any public interpretation. 

This report relates to the feasibility of Transferring the Operation Rights for Soma A and Soma B Thermal Power Plants. 

The relevant units of SOMA Thermal Power Plant consisting of 2 units in Soma A and 6 units in Soma B will be hereinafter referred to as follows for ease of reference.

•           SOMA A           :           A1 (Unit 7) and A2 (Unit 8)

•           SOMA B           :           B1 (Unit 1), B2 (Unit 2), B3 (Unit 3), B4 (Unit 4), 

                                           B5 (Unit 5) and B6 (Unit 6)

SCOPE

Transfer of Operational Rights to the Company,  Joint Company operates the Power Plant, invests in the assets and sale of electricity to Turkish Electricity Generating and Transmission Company  over a 20 years period.

OVERVIEW

This bid document is prepared in line with the request of outlined bids in the official Gazette Ref. No.22819 dated 16 November 1996.

It includes the transfer of Operational Rights of “Soma A and Soma B Thermal Power Plants” to the Company for a period of 20 years within the framework of Law 3096 on authorizing organizations other than Turkish Electricity Distribution Company  and TEAS to engage in the Generation, Transmission, Distribution and Trade of Electricity, and the related Regulation 87/11488. 

The Power Plant to be transferred is a 2 x 22 MW + 6 x 165 MW unit Power Plant in Soma District of Manisa, amount of US $ 255.000.000 transfer of operations for 20 years with a total installed capacity of 1034 MW.

OPERATING DATA

a)       LOCATION OF THE POWER PLANT

Soma Thermal Power Plant is a lignite-fired production plant situated in Soma District of Manisa Province. The plant is 90 km to Manisa, and 130 km to İzmir. The nearest airport (in İzmir) is 150 km, the nearest port is (in İzmir) 130 km, and the nearest customs (in Soma) is 2 km away. Although the plant is not situated on a major highway, it is in a lively area of mild weather.

b)      HISTORY OF THE POWER PLANT

Soma A Thermal Power Plant was tendered to  ALSTHOM Company – France on March 2^nd, 1954 by the Administrative Council due to the Government decision on October 21, 1953. Date of commissioning of A1(Unit 7) and A2(Unit 8) by the leading contractor Alsthom are respectively 24.07.1957 and 28.01.1959.

The studies for the establishment of units B1 and B2 of Soma Thermal Power Plant began in the year 1967. First, the preliminary determinations of the known lignite reserves were made. Based on the results obtained, the State Supreme Planning Organization decided on the possibility of establishing in a long term a 1200 MW Plant in Soma.

Thus, the preparation of the initial studies of possible plant sites and the alternative plans began in the year 1971, with the purpose of evaluating the poor quality portions of the lignite  present in Soma and the production wastes.

Against the energy bottleneck observed starting from the year 1974, the Ministry of Energy instructed TEK (Turkish Electricity Institution) to build the 2X165 MW section to accelerate the Thermal Plant establishment in planning – project works based on the previously performed studies.

With the tender put out in the year 1976, the construction job of the 2X165 MW unit B1 (Unit 1) and B2 (Unit 2) was awarded to the three – way consortium consisting of Skodaexport (Czechoslovakia), Metex (Finland) and  their local partner company (Turkey).

The conveyor system providing coal transport from the Denis coal mine basin to the Thermal Power Plant was constructed on a turnkey basis, in accordance with the supplementary agreement between TEK and a local company, for Soma Thermal Power Plant expansion units B3 (Unit 3) and B4 (Unit 4), signed between TEK and Skodaexport – and their local partner company. Consortium partnership on November 12^th, 1980.

Within the framework of the aforementioned supplementary agreement,  local partner signed a sub- contractor agreement with German Krupp Industrie Technik GmbH (Germany) to provide the materials and service of which the supply was not possible by Krupp.

The construction of 2X165 MW expansion units B5 (Unit 5) and B6 (Unit 6) was designed to provide production of electricity from much lower calorie lignite observed in the region. In due course, with a contract signed in September 1986, the construction was initiated by Skoda (Czechoslovakia) and their local partner (Turkey) companies and completed in 1989.

c) GENERAL INFORMATION ON POWER PLANTS A AND B