Norwegian energy group Statkraft, Europe's largest hydropower producer, decided to sell its one-third built Cetin hydropower plant in Turkey, located on the Botan River, a tributary of the Tigris River in the southeastern Anatolian region, an official from the company said on Monday.
The official told Anadolu Agency that the company launched the process to sell the plant this week and the deadline for submitting purchase offers is set at Aug.1.
The official added that the anticipated financial close of the sale is set for the end of this year.
Turkey's Garanti Securities, a subsidiary of Garanti Bank, was chosen as the financial advisor for the sale of the hydropower plant which is currently under construction and approximately 33 percent complete.
The hydropower plant was planned to have a capacity of 517 megawatts (MW), however due to security concerns, the Norwegian company halted the construction in February.
The hydropower project is fully owned by Statkraft and has a 49 year license for 517 MW with 1.4 terrawatt (TWh) annual production, eligible for favorable feed-in-tariffs for new renewable energy in Turkey.
Statkraft entered the Turkish market in 2009 through the acquisition of 95 percent of Yesil Enerji and its portfolio of hydro power projects. In 2010 the remaining 5 percent was acquired and Yesil Enerji was renamed Statkraft Enerji.
In the first quarter of 2016, Statkraft achieved an underlying operating profit before depreciation (EBITDA) of NOK 4.25 billion ($515 million), an increase of NOK 289 million ($35 million) compared with the corresponding period in 2015.
(1 Norwegian krone = 0.121182 U.S. dollars)
By Murat Temizer