Turkish construction giant Limak placed the highest offer to buy the Hamitabat electricity generation plant with $105 million, promising to invest $1.2 billion in the plant to make it more efficient.

During the final bargaining negotiations of the Hamitabat Electricity Production company privatization tender on March 6, Limak's natural gas and electricity production firm proposed the highest bid of $105 million.

"Limak would make a $1.2 billion investment in Hamitabat power plant," Limak Energy Coordinator _smail Ergne_ told the press, adding that the Hamitabat plant is vital for the supply security of both Istanbul and Thrace.

He said the company aims to elevate the plant's efficiency and competiveness with these investments. "In a competitive market, a natural gas plant that has about 40 percent efficiency cannot operate. It could only operate within limited hours, which decreases productivity. So this plant does not have much of a chance to operate in the current competitive market," Ergne_ said.

Systems in Europe and Turkey synchronized

Ergne_ also said the electricity transmission systems of Turkey and Europe are operating synchronically, and the Hamitabat plant has a crucial role in this synchronization. Turkey's electricity reform is ongoing and this reform mainly aims at creating a competitive market, he added.The Privatization Administration's long-term work to privatize Hamitabat was not able to obtain a final result due to defects in the plant's cost structure.

The low efficiency average - around 45 percent - discouraged potential buyers, but the sale of assets like a power plant facility or land attracted investors, according to sector officials.