TurkPower Corporation (OTCBB: GBIK) updated the status of its exclusive agreement with Enerpro International SA. The Company and Enerpro entered agreements in November 2009 to participate in Enerpro's arrangement with Horizon Enerji Dagitim ve Elektrik Uretim A.S. to consult Horizon in the development, construction and financing of its 1,320MW capacity coal power plant in the Ceyhan area of Turkey.
Horizon now holds all necessary licenses to construct and operate the plant. Total investment necessary to fund the project is approximately $2 billion, of which 30 percent is to be in the form of equity. Pursuant to the agreement, the Company shall receive consulting fees upon closing of the Horizon TPP project for its consulting and financing services. In addition the Company shall receive a 0.5 percent success fee upon completion of an electricity distribution deal for Horizon and a 2 percent success fee upon completion of an electric production deal for Horizon.
Ryan E. Hart, the Company's Chairman commented: "The Horizon project represents a huge opportunity for TurkPower and we are very pleased to be consulting this project on an exclusive basis. Turkey was the second fastest growing economy in Q1 and Q2 of 2010, and also home of the second fastest growing energy market in the world. The daily growing power demand can only be satisfied with large investments in the Turkish energy sector. The Company's management is working on signing other similar projects."
The Company would like to caution its investors that while it is very excited and optimistic about the Horizon mandate and other similar large projects, there remain uncertainties and the Company will not be compensated for its efforts until a binding agreement with a purchaser or investor for the Horizon project has been signed.
TurkPower Corporation is a Turkish-American consulting and service operations firm with a strong focus on the Turkish energy market. TurkPower offers its domestic and international clients consulting services and acts as a full service operator for wind, hydro, solar, coal and geothermal energy parks in Turkey. In addition to its energy business, TurkPower aims at becoming a large player in the Turkish mining industry by acquiring and consolidating operational mines with proven reserves, utilizing economies of scale to increase returns.
TurkPower 1,320MW coal power plant project in Turkey moves ahead