International manufacturer Andritz is to supply electro-mechanical equipment valued at 340 million euros (US$421 million) under a renewed contract to equip the 1,200-MW Ilisu Dam hydroelectric project on the Tigris River in Turkey.
Andritz Hydro announced June 15 the lifting of a temporary suspension of supply contracts for the controversial project. The Austria-based firm said all contractual requirements for their resumption have been met.
Andritz’ scope of supply includes six 200-MW Francis turbine-generators, additional equipment, and engineering services. The delivery time totals seven years. Andritz expects to book the order in the second quarter of 2010. (HydroWorld 6/16/10)
German, Austrian, and Swiss export credit agencies announced in July 2009 that they would withdraw financial support of Ilisu Dam, citing Turkey’s failure to submit complete evidence it is complying with World Bank environmental and heritage standards. (HydroWorld 7/7/09) However, Turkey said it would continue with the 1.2 billion euro (US$1.48 billion) project despite the loss of the export credit insurance covering European suppliers. Turkey’s environment minister reported in December that three Turkish banks would provide financing.
Prior to withdrawal of the European agencies, Turkey had signed supply and engineering contracts worth 530 million euros (US$711.4 million) with a European consortium of Andritz, Alstom, Ed. Zublin AG, Stucky, Colenco, and Maggia. Andritz said June 15 it is now part of a consortium of European and Turkish companies led by Turkish construction company Nurol.
“The Turkish government will not only comply with the extensive legal requirements, but has also officially stated that it will abide unchanged by the planned accompanying measures relating to environmental protection and to social and cultural aspects,” Andritz said.
“Together with … the hydropower plant, modern wastewater treatment plants will be built for three cities, the drinking water supply will be enhanced, and bridges and roads will be built,” the firm added.
Ilisu is part of the Southeast Anatolia Project, a US$32 billion plan to develop the country’s economically backward southeast and east. However, Ilisu will put about 80 villages and hamlets under water as well as submerge the remains of the ancient city of Hasankeyf.
The government signed a 25 million euro (US$31 million) credit to relocate the remains of the ancient city, which dates to Roman times when it was built as a bulwark against the Persians.
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