The contact was inked between Abu Dhabi-based TAQA and Turkey’s state-run EUAS power company on Thursday. It marks the largest Arab investment in Turkey’s energy sector.
Turkey’s Energy Minister Taner Yildiz said at the signing ceremony in the Turkish capital, Ankara, “This is a very serious investment, a significant investment.”
“This is the second-biggest investment made in Turkey after the two nuclear power plant projects.”
The Turkish government intends to construct three nuclear power plants in an effort to prevent a possible energy shortage and reduce dependence on foreign energy supplies.
Turkey signed a deal with Russia in 2010 to build its first power plant at Akkuyu in the southern province of Mersin. Ankara is officially negotiating with China, Japan, South Korea and Canada to construct the second nuclear reactor.
A TAQA official said, “This agreement gives our company an exclusive right to negotiate with the Turkish government on this project for the next six months.”
He added that the negotiations will bring about the signing of a “host government agreement” in the second quarter of 2013.
Turkey places priority on the development of its lignite in a bid to cut its dependence on natural gas imports. The country, which produces a large amount of its electricity from natural gas, sharply depends on imported energy.
