Jan 24 2011
TurkPower has inked a consulting and trade mandate for a Wind Electrical Power Plant (WEPP). The firm will provide consulting services and propose the 40 MW project to potential investors.
The WEPP project requires an investment of about $38 million of which 25 to 30% will be raised in the form of equity. According to the deal, TurkPower would obtain success fees of 5% of the total project cost for its consulting and funding services on closing of the WEPP project.
Ryan E. Hart, Chairman of TurkPower, stated that the company has signed its first WEPP mandate in the fast growing Turkish wind power market and is hopeful to ink more WEPP mandates in the coming years. He further said that the Turkish Parliament has recently approved the latest energy bill that raises feed-in-tariffs or guaranteed purchase price per kWh/MW of electricity from €5.5/MW to €7.3/MW. As a result, the projected returns for investors have been raised and obtaining debt financing has become easier, he said.
TurkPower also warns its investors about uncertainties even though it is very hopeful about the WEPP project. The company will not be paid for its services until a binding deal with the investor or purchaser for the WEPP project has been inked.