Turkey Gets $17 Million Top Bid for Hydroelectric Power Plant, Agency Says

Turkey got a top offer of $17.41 million in an auction of a hydroelectric power plant in Kutahya in the northwest of the country, the state asset sales agency said.

The bid was from Nema Kimya-Espe Ortak Girisim Grubu, a joint venture between two water treatment and infrastructure companies, said Ahmet Aksu, head of the state agency. The sale was for 49 years of operating rights at the 2.6-megawatt plant.

The power station is one of 52 similar generators being auctioned over the next two weeks. The first sale on May 4 drew $6.6 million. Turkey needs more investment in power plants to help meet demand that’s rising at about 8 percent a year. The industry may need as much as $310 billion in financing for acquisitions and investment over the next 20 years, according to the energy market regulator.

After eliminating 80 bidders, none of the remaining eight companies made a final offer in the auction in Ankara yesterday. The government will choose between the top three highest bids in earlier rounds, Aksu said.

Baticim Enerji Elektrik Uretim AS, a unit of cement-maker Baticim Bati Anadolu cimento Sanayii AS, offered $17.4 million, and NZN Madencilik Enerji Uretim Otomitiv Gida Insaat Sanayi & Ticaret AS bid $17.3 million.

To contact the reporters on this story: Steve Bryant in Ankara at sbryant5@bloomberg.net; To contact the reporter on this story: Ali Berat Meric in Ankara at americ@bloomberg.net.

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