Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized E2065 v23 BEYOBASI SANAYI VE TICARET A.S. A.S. TICARET VE SANAYI FILE INFORMATION PROJECT OTLUCA HYDROELECTRIC POWER PLANT (Otluca 1, Otluca 2 and Boguntu Regulator and ENERJ ÜRETM ENERJ PROJECT INFORMATION FILE INFORMATION PROJECT BEYOBASI ENERJBEYOBASI OTLUCA HEPP PROJECT PROJECT HEPP OTLUCA MERSIN PROVINCE,ANAMUR DISTRICT SANAY Prepared by: Cinar Consultancy Company Company Cinar Consultancy Prepared by: November 2006 November VE T VE HEPP) HEPP) 1 CARET A. CARET ÜRET M . BEYOBASI ENERJ ÜRETM OTLUCA HEPP PROJECT SANAYI VE TICARET A.S. PROJECT INFORMATION FILE 1. PROJECT CHARACTERISTICS* *: The original Project Information File (in Turkish) is 204 pages and approved by Turkish authorities. Only sections relevant to environmental impacts and monitoring has been translated to English for Infoshop disclosure a) Work Flow Chart, Capacity, Occupied Area, Technology and the Number of the Employed Personnel pertaining to the Project Consumption of electrical energy is one of the most important indications of the financial development and social well-being. The electricity consumption and/or generation per capita in a country have great importance for reflecting the living standards in that particular country. Turkey, which is a rapidly developing and industrializing country, is in need of uninterrupted, reliable and economical energy that is of high quality. Although the gross electricity consumption per capita in Turkey has reached 2.090 kWh as of the beginning of 2004, considering that this figure is approximately 6.500 kWh/person in Europe and the world average is 2.350 kWh/person; it is observed that the electricity consumption per capita is very low in our country. For this reason, it is evident that the electricity energy supply, primarily hydroelectric energy, needs to be increased. Especially in our country, the energy need continuously is on the rise due to the development. Therefore, it is a necessity to meet that demand. While meeting this necessary need, the hydroelectric energy generation holds great importance in order to make use of our renewable energy resources at the highest level which are clean, natural and environment friendly. As a matter of fact Ninth Development Plan (2007-2013) has been prepared in the framework of a vision of Turkey that “grows with stability, shares its income in a just manner, has competition power in global scale, transforms into information society, has completed harmonization process for EU membership” and Long Term Strategy (2001-2023). Accordingly, in the plan: • Continuous, safe and most cost-effective provision of energy which is required by the financial development and social improvement is aimed as a foundation. While meeting the energy demand it is desired that the environmental hazards are kept as low as possible and the energy is utilized in the most efficient and economical way in every phase from energy generation to final consumption. • With the purpose of privatization of public generation plants and distribution system, performing in accordance with the Strategy Document that was put in force in March 2004, receiving the benefits of the privatization of distribution and generation plants as soon as possible, it is proposed that privatization process of electricity sector is accelerated. • With the purpose of increasing the security of supply, a balanced resource diversification and the country of origin differentiation have been performed on 2 BEYOBASI ENERJ ÜRETM OTLUCA HEPP PROJECT SANAYI VE TICARET A.S. PROJECT INFORMATION FILE primary energy resource basis. It is aimed that the share of domestic and renewable energy resources is maximized in the generation system. • In proportion with the public sector’s withdrawal, in order for the private sector to reinforce the appearing gap in time and start new generation investments in parallel with supply/demand projections, it is expressed that suitable environment shall be created with legislative regulations and thus, special care is paid on the issue that existing facilities are privatized and the new investment burden is not left on the public. In the framework of its regulating and inspecting role, public shall closely follow the security of supply and it is proposed that it shall be equipped to take precautions. • Investments in the electricity transmission, which will stay in public ownership, shall continue to protect the security and reliability of the electrical system. • It is taken as a principle that especially hydroelectric power plant projects, which are included in the public investment program, shall be completed in a rapid manner, with minimum cost and start contributing to the economy. For this reason, special attention shall be paid that investment costs reflects the truth, no cross financing shall be done between the sectors and rises in the costs due to delays in the projects shall be prevented. • With the purpose of increasing financial competitive power and raise the public’s level of well-being, in the framework of liberalization of the electricity sector it is aimed to from a system which will generate the electricity with the least possible cost. • In parallel with the financial and social development, an average annual increase of 6.2 percent in the primary energy request is anticipated in the plan period. It is expected that the share of natural gas in energy consumption will rise from 28 percent in 2005 to 34 percent while the share of petrol products shall regress from 37 percent to 31 percent. On the other hand, in parallel with the development mainly in industrial manufacture and services sector, the electricity demand in the Ninth Development Plan shall experience an annual rise of 8.1 percent on average. The hydroelectric energy potential is very high in our country. However, when compared with the hydroelectric generation potential of Turkey, it can be said that the existing generation share is relatively low. Technical and economical hydroelectric potential of Turkey is determined to be 127,381 GWh (GDSHW 2005). The capacity of the installed hydroelectric power plants, as of the end of 2004, is 12,654 MW and this constitutes 33,8 % of the total installed energy generation capacity (37,480 MW) in Turkey. In the same year (2004) 47,614 GWh electrical energy is generated from hydraulic resources (GDSHW, 2005). As of the end of the year in question, 2004, under operation, 8 % (10,645) is under construction and the remaining 55 % is (69,122 Billion kWh) under various planning stages. 3 BEYOBASI ENERJ ÜRETM OTLUCA HEPP PROJECT SANAYI VE TICARET A.S. PROJECT INFORMATION FILE Since the generation of hydroelectric power plants is dependent on the precipitation conditions, their total contribution to the total generation varies each year. In electricity energy generation, n addition to fossil and nuclear fueled thermal and natural gas fired power plants, hydroelectric power plants have two key properties which are renewable and peak operation. In conclusion, as it is mentioned in the Ninth Development Plan, when annual average basic energy demand increase (6.2 %), development of renewable resources such as hydroelectric represents great importance in Turkey as well as all around the world. In this respect, in accordance with 4628 Numbered Electricity Market Law which came into force after its publication on 3rd of March, 2001 (4628 Numbered Electricity Market Law which came into force after its publication on 3rd of March, 2001, in order to supply electricity with high quality to the customers in a sufficient, continuous, low cost, environment friendly manner, it is aimed to form a financially strong, stable and transparent electricity energy market which will operate in a competitive environment according to special regulatory verdicts and to provide independent regulation and inspection in this market. The law specifies the rights and responsibilities of all real and legal entities which are related to the generation, transmission, distribution, wholesale and retail sale, import and export of electricity.), “Otluca HEPP Project” is going to be constructed and operated by Beyobasi Enerji Uretimi A.S. and it is aimed that it will assist in meeting the increasing energy demand of Turkey. Based upon the fact that issuing a generation license for Otluca HEPP Project generation plant is found appropriate by EMRA’s 31.10.2005 dated and 5724 numbered Commission Resolution, “Water Usage Right Agreement” has been signed by General Directorate of State Hydraulic Works (GDSHW) and Beyobasi Enerji Uretim A.S. (See Appendix-28 Official Correspondences) In the scope of Otluca HEPP project; ¾ Otluca 1 Weir and HEPP Project on Anamur Creek (Sugozu), ¾ Otluca 2 Weir and HEPP Project on Anamur Creek (Sugozu), ¾ Boguntu Weir and HEPP Project on Boguntu Brook which flow into Anamur Creek, are planned and on average 223.50 GWh total annual energy generation will be achieved with total 47.7 MW installed power, and this will contribute to the national development. 4 BEYOBASI ENERJ ÜRETM OTLUCA HEPP PROJECT SANAYI VE TICARET A.S. PROJECT INFORMATION FILE Otluca HEPP project is located on Anamur Creek, in Taseli Plateau, in the south of Turkey. Anamur Creek Basin is in the middle section of the Mediterranean Region and it is located between 36o 36’ 30’’ northern parallels and 32o 30’ 33’’ eastern longitudes. Icel province, Anamur District, in which the basin is located, extends between the ridges of Taseli plateau that exceed 1800 m. Anamur Creek is born from Western Taurus Mountains and it is recharges by resources around Sugozu and proceed in southwest direction. After its confluence with Kilic Brook close to Dibek neighborhood, this creek gains Guney Brook upstream of Alakopru and flows into the Mediterranean Sea from the west of Anamur District. Otluca HEPP project is planned on Sugozu and Boguntu Brooks as well as Anamur Creek. Project water supply and water potential calculations have been carried out by using Flow Observation Stations in the project area and its surroundings.