Coal

Steag sells stake in Iskenderun power plant to Turkish pension fund

13 May 2004 – Representatives of Turkey’s largest private pension fund, Oyak, and the Steag management board now signed the contract to seal the sale of a stake by Steag in the Turkish coal fired plant at Iskendurun. This contract secures Oyak a 24 per cent share in the project company Isken. Another 25 per cent is held by RWE Power AG while Steag, holding 51 per cent, remains the majority shareholder.

“With Oyak, we have a financially strong partner on our side,” said Dr. Jochen Melchior, Steag’s CEO. The President and CEO of Oyak, Dr. Coskun Ulusoy, reaffirmed the financial commitment of the military pension fund which administers total funds of 4 billion US dollar and holds stakes in more than 40 international companies: “Among many other power plants which we observed, Isken has always been our partner of choice,” he said, adding that the power plant had a leading edge especially in technology.

Worth $1.5bn, the hard coal-fired power plant located in the bay of Iskenderun on the Mediterranean coast is the biggest German single investment in Turkey. After just 39 months of construction, the power plant was dedicated on 24 February 2004 by Chancellor Gerhard Schröder and the Turkish Prime Minister, Recep Tayyip Erdogan.

The 1210 MW plant in Southern Turkey went into commercial operation as early as in November 2003, and since then has been producing electricity, especially to cover the needs of the city of Adana which counts a population of 2 million. Viewed in the national context, the power plant can cover as much as 8 percent of Turkey’s current power demand. Every year, the two generating units of the plant convert 3.3 million tons of hard coal into electricity.