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Cablegate: First Turkish Power to Iraq On Schedule For

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS ANKARA 005647

SIPDIS


SENSITIVE


STATE FOR E, EB/CBED, EUR/SE
NSC FOR QUANRUD AND BRYZA


E.O. 12958: N/A
TAGS: ENRG PGOV PREL TU IZ
SUBJECT: FIRST TURKISH POWER TO IRAQ ON SCHEDULE FOR
SEPTEMBER 15 - ACTION REQUEST PARA 6

1. With the strong support of the GOT, Turkish power company
Karadeniz Energy is preparing to export 50 megawatts of power
from Turkey into the Iraqi power grid. The 2-year deal was
signed with the Coalition Provisional Authority in Baghdad on
August 26, with power scheduled to begin flowing September
15. Payments will be a combinmation of cash and bartered
petroleum.


2. Karadeniz Energy operates a mobile power plant with
generating capacity of 75 megawatts in Silopi, Turkey, very
near the Iraqi border town of Zakhu. Initially, the contract
calls for Karadeniz to deliver 50 megawatts. However,
Karadeniz General manager Dogan Karadeniz told us that the
contract allows for larger shipments. He hopes to increase
deliveries to about 120 megawatts in 3-4 months, and
eventually to 200 megawatts - the maximum capacity of the
connecting power line.


3. Karadeniz was confident that the company would meet the
September 15 target date but admitted that it could slip a
day or two. He explained that the connecting line between
Turkey and Iraq is in place, and Turkish and Iraqi
technicians were already in Silopi to work out any remaining
technical difficulties. He noted that the Turkish Energy
Ministry had been very supportive and had sent some officials
to Silopi as well.


4. Karadeniz already received the needed production
licenses. The remaining obstacle is an export license.
Karadeniz explained that there was no problem. He could not
initiate the application until the contract was signed on
August 26. Nevertheless he expected the license to be
approved by September 12. MFA DEputy GD for Energy Hakki
Akil told us September 4-5 that he expected the Energy Market
Regulatory Authority to approve the export license in a few
days.


5. Comment: From the Turkish side, it appears that
everything is in place to begin power deliveries -- just
weeks after signing the contract. The deal adds to a slowly
growing list of Turkish initiatives to aid the CPA
reconstruction efforts in Iraq. It also demonstrates another
tangible benefit for Turkey and Turksih businesses. End
Comment.


6. Action Request: Akil suggested Turkish companies might
be able to provide additional electricity to Iraq if they
used their grid interconnector with Syria. While stressing
this was not a formal proposal, he asked how th USG would
view such an approach. Embassy would appreciate Washington
guidance. End Action Request.
EDELMAN

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