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KTM Group Launches $75 Million AKHAN Hydropower Investment

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KTM Group Launches $75 Million AKHAN Hydropower Investment

KTM Group began drilling work for the planned AKHAN 1 and AKHAN 2 hydroelectric power plants in Çamlıyayla.

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Hydroelectric Energy Investment

KTM Group has commenced drilling operations for its $75 million AKHAN HEPP investment.

KTM Group has commenced site surveys and drilling operations for the AKHAN-1 and AKHAN-2 Hydroelectric Power Plant projects planned for the Çamlıyayla district of Mersin. With a combined planned installed capacity of 47 MW, the two power plants are expected to generate approximately 160 million kWh of electricity annually.

The AKHAN HEPP projects, representing a total planned investment of $75 million, are expected to be completed in phases within 48 months. During operation, the investment is projected to contribute approximately $14 million annually to the Turkish economy while creating employment for around 500 people during construction.

Investment Scope

An integrated investment and implementation plan for AKHAN-1 and AKHAN-2

The AKHAN HEPP investment, being developed near Fakılar village in Çamlıyayla, is progressing through an integrated project development approach encompassing site investigations, engineering studies, financing, construction and electricity generation.

AKHAN-1 Hydroelectric Power Plant

AKHAN-1 is planned to generate approximately 70 million kWh of electricity annually. The project is intended to be implemented as the second phase of the investment programme following the completion of AKHAN-2.

AKHAN-2 Hydroelectric Power Plant

AKHAN-2, where drilling and site investigations have commenced, is planned to generate approximately 90 million kWh of electricity annually and be completed during the initial 24-month investment period.

47 MW Total Installed Capacity

The complementary AKHAN-1 and AKHAN-2 projects are expected to reach a combined installed capacity of 47 MW and efficiently utilize the region’s hydroelectric energy potential.

$75 Million Investment

The total cost of the AKHAN HEPP investment is estimated at $75 million. The financing structure is planned to be established primarily through the Development Bank, with support from participation banks.

Generation and Economic Contribution

The two power plants are expected to generate approximately 160 million kWh of electricity annually and contribute around $14 million per year to the national economy.

Employment and Regional Development

AKHAN-1 and AKHAN-2 are expected to provide employment for approximately 500 people during construction and contribute to economic activity in Çamlıyayla, Tarsus and the surrounding region.

$75 Million total investment planned for AKHAN-1 and AKHAN-2
47 MW combined installed capacity of the two hydroelectric power plants
160 Million kWh targeted total annual electricity generation
48 Months planned total duration of the two-phase investment

Investment Programme

The AKHAN HEPP investment is planned to be completed in two phases.

Under the AKHAN HEPP investment programme, AKHAN-2, where drilling operations are currently underway, is planned to be constructed first, followed by the completion of AKHAN-1. With a projected 24-month implementation period for each project, both investments are expected to become operational within a total of 48 months.

The investment is expected to be financed primarily through resources provided by the Development Bank, while Albaraka Türk and Türkiye Finans Participation Bank are anticipated to provide letters of guarantee. Following the completion of credit preparations, the site, engineering and implementation processes are intended to advance in a coordinated manner.

  • Completion of AKHAN-2 drilling operations and site investigations
  • Integration of technical data into the engineering designs
  • Completion of AKHAN-2 construction during the initial 24-month period
  • Implementation of the AKHAN-1 investment during the subsequent 24-month period
  • Construction of the regulator, transmission line and power plant structures
  • Installation of turbines, generators and control systems
  • Execution of grid connection and power transmission works
  • Completion of testing, commissioning and transition to operation

Energy Investments

Power generation experience extending from GÖK HEPP to AKHAN HEPP

GÖK HEPP, one of the principal examples of KTM Group’s experience in hydroelectric energy investments, commenced electricity generation in July 2010 in the Karageçit area of Kadıncık Stream near Boğazpınar village in Tarsus.

The power plant, developed through an investment of approximately $17 million and with an installed capacity of 10 MW, reportedly supplies around 44 million kWh of electricity to the national grid annually and provided employment for 250–300 people during construction. The engineering and implementation experience gained through GÖK HEPP is intended to be transferred to the AKHAN projects.

  • 10 MW installed capacity of GÖK HEPP
  • Approximately 44 million kWh of annual electricity generation
  • Approximately $17 million power plant investment
  • Employment for 250–300 people during construction
  • Experience in hydroelectric project development and implementation
  • Renewable energy contribution to the national electricity grid

Environmental Approach

Energy generation is addressed alongside the conservation of natural resources.

KTM Group states that it evaluates hydroelectric investments not only in terms of generation capacity but also within the framework of the sustainable use of water resources, ecosystem conservation and the compatibility of project sites with their natural environment.

According to a statement by the Group, approximately 5,000 trees were planted at the GÖK HEPP site, small-scale improvements were made along the riverbed to support wildlife and water resources were managed with consideration for ecosystem requirements. Similar environmental sensitivities are intended to form an integral part of the engineering and implementation processes for the AKHAN projects.

  • Consideration of the sustainable use of water resources
  • Protection of the river ecosystem and wildlife
  • Assessment of environmental impacts from the outset of the project
  • Planning project sites in harmony with the natural topography
  • Implementation of afforestation and landscape improvement works
  • Protection of environmental flow requirements and natural flow continuity
  • Application of engineering measures to mitigate construction impacts
  • Monitoring of long-term environmental performance in renewable energy investments