Public Disclosure Authorized BEYOBASI ENERJI URETIM A.S. OTLUCA HEPP, ANAMUR RIVER IN MERSIN PROVINCE Public Disclosure Authorized REPORTING FORM FOR LAND ACQUISITION / SOCIAL IMPACTS OF PORTFOLIO PROJECTS Public Disclosure Authorized Public Disclosure Authorized Reporting Form for Land Acquisition / Social Impacts of Portfolio Projects. Name & Location of Sub-project: Otluca HEPP, Anamur River in Mersin Province. Project Sponsor: Beyobası Enerji Üretim A.Ş. is the owner of the Otluca HEPP project. Beyobası Enerji Üretim A.Ş., established in 1999, joined Akfen Group in 2007. The company is established to generate electricity with hydroelectric power plants and carrying out Otluca HEPP investment in Mersin/Anamur, Sırma HEPP investment in Aydın, Yuvarlakçay HEPP investment in Muğla and Sekiyaka HEPP in Muğla. Project cost: The investment cost of Otluca HEPP is 48.993.770 € (VAT and interest cost are not included) Installed generation capacity (No. units X MW/unit): Otluca HEPP: a run-of-the river 44,72 MW hydropower plant. Otluca 1 uses the water of the Anamur River and is a medium head plant using a weir structure to divert river water into an intake structure with three de-sanding basins. From there, it enters a tunnel of about 3.896 m length followed by an open canal of about 500 m length and followed again by a tunnel of about 2.209 m length until the water reaches a headpond. An intake from this pond takes it through a 507 m long penstock to the powerhouse with 3 Francis turbines of about 11,9 MW each, i.e. the total capacity with 208,65 m head is 35,62 MW. Boğuntu uses the water of the Boğuntu River, a tributary of the Anamur River and is a medium head structure with the same system at Otluca 1 Project. It has, however, only one de-sanding basin, starts with 162 m long open canal and continues with a 1.552 m long headrace tunnel to a headpond. The penstock is about 94 m long and leads with a head of 67,6 m to a power plant with 3 Francis units with horizontal axis and 1,12 MW each, i.e. an output of 3,36 MW. Otluca 1 and Boğuntu Projects feed the water close together back into the Anamur River and some 500 m downstream the weir of Otluca 2 diverts the water again to an intake structure and into three settlement ponds before it enters the conveyance system consisting out of 2 tunnels and 2 canals of an overall length of 1.547 m, out of which 1.137 m are tunnel. The water arrives at a headpond and feeds through a 57 m long penstock the powerhouse with 29,41 m head and 3 Francis turbines with horizontal axis and 1,91 MW each, i.e. an installed capacity of 5,74 MW. Total Capacity of Otluca HEPP = 35,62 MW (Otluca I HEPP) + 3,36 MW (Boğuntu HEPP) + 5,74 MW (Otluca II HEPP) = 44,72 MW Key Dates of implementation : The First Public Benefit Decision has been given on March 25th, 2008 by EMRA (EPDK). The Second Public Benefit Decision has been given on April 17th, 2008 by EMRA. General Info : Beyobası A.Ş. initial approach for every project is to avoid social impacts, at any possible extent , particularly physical or economic displacement. The construction of project which is being supported by TSKB is currently underway and the land acquisition process has already finished. Otluca HEPP: For Otluca 71.284 m2 of land will be affected, of which 2.602 m2 belongs to the Forestry Department and 68.683 m2 is privately owned. The total number of people (number of share holders of real estates) affected from expropriation is 41 and 25 of them are male, 16 of them is female. According to the land list, there are not any houses which will be affected from expropriation. The bulk of affected private land is currently used for agriculture or other productive purposes. However the amount of land planned to be expropriated (68.683 m2 for Otluca HEPP) is not so much. In the majority of cases, households whose land is being acquired have land elsewhere and will also be able to replace the acquired land elsewhere in the immediate area if so desired. Thus the economic impacts of land acquisition are deemed to be limited. For the expropriation of the immovable properties needed for the implementation of the project; an expropriation decision has been taken by the Energy Market Regulatory Board, pursuant to Article 15/c of the Electricity Market Law No. 4628 and Article 7 of the Expropriation Law No. 2942. Because the expropriation decision has enabled the enforcement of the “Council of Ministers Decree on the Application of Article 27 of Expropriation Law No. 2942 in the Expropriations to be Carried Out by the Energy Market Regulatory Authority” , published in the Official Gazette no. 25599 dated 30 September 2004, the Energy Market Regulatory Authority will file urgent expropriation lawsuits with the local Court of First Instance, with a request for the seizure of the immovable properties listed in the annexed list and the determination of expropriation fees. The estimated expropriation fees to be determined as a result of the on-site examination to be performed by the court expert witnesses as a result of these lawsuits will be listed by indicating the owners and shareholders of the immovable properties to be expropriated, and they will be deposited with the bank as ready for payment. The related persons may withdraw the expropriation fees from the mentioned bank branches, by presenting the ID cards, certificate of inheritance or power of attorney. For the finalization of these expropriation fees, the Energy Market Regulatory Authority Valuation Commission will also conduct a valuation work and conciliation meetings will be held on site through notices to be sent to the owners of properties. In order to judge the impacts of land acquisition the following points are considered; compliance with legal legislation (official document listing existing water usage rights in that region, public benefit decision for expropriation- appropriation), any evidence related to the public opposition, amount of expropriation area, land usage type (agricultural, pasture, forestry, arid), number of affected persons, and investing company’s intention for voluntary sale. Furthermore progress report of the project owner is followed, which informs the actual expropriation state. Inventory of Land & Assets Acquired from Private Owners : The table is given in attached excel file, because the table has too many columns so that, it doesn’t fit into word format. Inventory of Public, Community, or State Land Acquired : The table is given in attached excel file, because the table has too many columns so that, it doesn’t fit into word format. Public Awareness, Consultations, and Communication : In accordance with the EIA requirements in Turkey, Beyobası Enerji Üretim A.Ş ., has held public hearing sessions for affected communities at its hydropower project sites. A Public Participation Meeting was held on April 30, 2010 in Boğuntu Village of Anamur Town. Invitations were announced in local and regional newspapers in advance. At the public opinion hearing sessions, available information about the project including the social and economic impact of the project were provided to the public. So too were environmental concerns and mitigation measures, technology proposed and detailed explanation of the applicable regulations was provided. The meetings were followed by a site visit. Key issues raised by stakeholders at these meetings included requests for maximizing local employment, requests for further information regarding the land acquisition procedure, whether local people would benefit from power produced by the projects and whether water from the impoundments might be used for irrigation purposes. In response to these questions, the company has hired local people wherever possible (roughly half the construction labour force comes from surrounding villages), has provided additional information on the land acquisition process and has indicated that it will discuss with Government the possibility of providing additional access across the Anamur River and whether water could in future be used for irrigation purposes. The construction of plant will have limited effects on the demographic conditions since the number of workers in the construction phase will be 650 people. A total of 20 people will be employed during the operation phase of the project. The personnel to be employed during the construction and operation phase will create employment for people in the project region which will contribute to income and livelihood of the local population. The Project activities will not be causing any physical damages such as destroying of land of economical value (agricultural land, fruit gardens, shopping area) and/or public land such as forest area , land of cultural value or land housing infrastructure that would negatively affect the socio-economic environment in the Project region. There are no residential units within the project sites hence no re-settlement action will be required for the project activity. The project will not cause any changes in the current transportation system in the region. Some points have been emphasized by the stakeholders such as the roads near the Project regions and employment of local people for the Project. The questions regarding employment were answered by the project participant. The PP stated that during the construction process, employees will be provided from local people. However, since the single computerized system requires certain skills, much qualified people will be necessary at the operation process. The Project team ensured that all relevant national legislation will be respected and complied during the Project activities. The environmental and social aspects were discussed by the stakeholders and clarifications were sought.