TURKEY said again that some private power projects must renegotiate their contracts to sell electricity.

TURKEY said again that some private power projects must renegotiate their contracts to sell electricity.

February 01, 2003
TURKEY said again that some private power projects must renegotiate their contracts to sell electricity.

The prime minister, Abdullah Gul, said on January 16 that talks are underway to revise contracts held by five power projects that were built under the “build-operate-transfer” or “BOT” model.  BOTs are “obliged to reduce their prices” and their power contracts may be “annulled,” the prime minister said.  He did not address whether these projects risk losing their licenses to operate if they refuse to reduce prices.  Such licenses are required under new rules issued last August.  A number of BOTs are challenging the new rules in a lawsuit filed in the constitutional court of Turkey last October.  A decision in the case is expected in February.

Keith Martin