Hasan Köktaş, the Head of the Energy Market Supervisory Board, gave the Electricity Generation License for 49 years that was accepted for the Dam and the Hydro-Electric Power Plant which Eriç Enerji Üretim ve Ticaret A.Ş. wants to establish on Karasu Stream in Kemah, Erzincan to Doğanay Samuray, the Chairman of the Executive Board with the ceremony held in the EPDK Building today. Eriç Enerji Üretim ve Ticaret A.Ş. signed a Water Usage Right Agreement with the General Directorate of DSI in January 2010, hereafter obtained an Environmental Impact Assessment “Positive” Report from the Ministry of Environment.
Eriç Dam and HES Project was included in the Turkish-USA Energy Protocol within the scope of the Inter-Governmental Agreements that had been previously signed by the Council of Ministers on condition of the procurement of 100 % credit. HES Black & Veatch (ABD), Clark (USA), Voest Alpine, Bayındır Inşaat (Construction), Limak Inşaat (Construction) and Temelsu Mühendislik (Engineering) were included in the consortium that had been previously founded for the HES Project.
According to the agreement signed by the Turkish and the USA Governments, the investor of the Project would be DSI (State Hydraulic Affairs), supported by the Treasury Guarantee, and the contracting of the Project would be undertaken by the American and Turkish companies; however, this Project was stopped because a Treasury Guarantee could not be procured.
The law numbered 5625 that was put into force in the last week of April in 2007 had given the right of being included in the project as investors to the prime contractors within the scope of the structure of DSI for all the HES projects included in the scope of the Bilateral Cooperation Protocol. Palmet Enerji had constituted Eriç Enerji Üretim ve Yatırım A.Ş. after making an agreement with the firms previously included in the consortium, and with this partnership, it had made an application to EPDK for the Electricity Generation License, and at the same time, to DSI for Water Usage Rights.
The Project consists of the Dam and the Hydro-Electric Power Plant that will be situated on the Karasu Tributary of the Euphrates River. While it is foreseen that the Project will not cause a negative impact in terms of the 5.5-km2 lake area and the environment, it is aimed for it to assist in meeting the electricity need of Turkey from a reliable source with its 170-MW installed power and 702-GWh annual energy generation. It is considered that the Project whose cost has been explained to be approximately 450 Million (USD), will also be one of the most extensive investments of the area with its 20-km water tunnel and the 19-km.-railroad displacement. In the Project for which detailed engineering works have been started by obtaining the license, the construction of the project is targeted to have been started by 2012.
Palmet Energy authorities state that apart from the hydroelectric, the Electricity Generation investments will continue with Natural Gas Cycle Plants and Wind Farms.