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Home › Dodgy Deals ›
Dodgy Deal
Çayırhan-B coal power plantTurkey

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack & CAN Europe
Contact:

climate@banktrack.org

Last update: 2022-03-15 00:00:00
Çayirhan coal power plant. Photo: Wikimapia open source (CC BY SA 4.0)

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack & CAN Europe
Contact:

climate@banktrack.org

Last update: 2022-03-15 00:00:00
Why this profile?

Why this profile?

The planned extension of the Çayırhan coal power plant will have adverse impacts on both people and the planet. The power plant will emit more than 4 million tonnes of CO2 into the air, worsening climate change and negatively impacting public health.

What must happen

The Paris Climate Agreement goals require a managed decline of fossil fuel production. The construction of new coal power plants is not compatible with this goal. Banks must immediately stop financing new coal power plant developments anywhere in the world. As such, banks should steer clear of financing this project.

About
Sectors Coal Electric Power Generation
Location
Status
Cancelled
Design
Agreement
Construction
Operation
Closure
Decommission
Website http://www.parktermik.com/

The Çayırhan-B coal power plant is a planned 800MW extension to the existing 620MW Çayırhan coal power plant. Like the existing plant, it would be fueled by the Çayırhan II lignite mine. It is expected to cost USD 1.1 billion.

As of October 2021, however, the construction of the power plant has been cancelled due to insufficient invester follow through.

Impacts

Social and human rights impacts

Effects on farm land According to the EIA report, the Çayırhan B coal plant will be constructed on 740 hectares of land, of which 65% is productive farming land. Since the plant area has no overground water supply available, it will have to use 40 tonnes of underground water per day. Use of this water resource is expected to have devastating effects on farming.


Environmental and climate impacts

Climate and air pollution impacts Electricity demand in Turkey is rapidly increasing, and the power industry is the largest source of greenhouse gas emissions. The Çayırhan-B coal power plant is expected to produce 4 million tonnes of CO2 each year, increasing the negative effects on the environment and climate change. The plant will produce 1 million tonnes of ash per year, and because of the winds in the area, this ash will be spread over a wide area. The Çayırhan plant, which has been in existence since 1978, has a track record of polluting the water and soil with heavy metals.

Local bird sanctuary under threat The Çayırhan coal power plant is only 5.9 kilometres away from a bird sanctuary at Davutoğlan in the Nallıhan district. This sanctuary has more than 200 bird species, and is located in a bird migratory route. This area falls under the Ramsar Agreement, an international treaty on the protection of wetlands. The sanctuary is protected under two different statuses: one is 'natural preserve', given in 1994, and the second is 'wildlife cultivation area', given in 2005.


Other impacts

Cumulative health effects For decades, coal power plants in Turkey have fuelled climate change and polluted the air. This has created an unacceptable health burden, leading to people dying early and causing and worsening of diseases such as asthma, chronic bronchitis or heart disease.

Financiers

Garanti BBVA may become involved in financing the Çayırhan-B coal power plant as it listed the project as an investment opportunity in its January 2017 Outlook.

As of 26 March 2021, however, the bank reaffirmed its commitment against climate change and accounced to stop financing coal-related activities by 2040.

Institution type
Finance type
Year
Companies

Following the July 2019 withdrawal of Çelikler Holding from the project, Kolin and Kalyon Group are the remaining project developers.

Harbin Electric

China
Website
Construction

Kalyon Group

Turkey
Website
Seized $100 million collateral

Kolin

Turkey
Website
Seized $100 million collateral

Çelikler Holding

Turkey
Website
Withdrew in July 2019
No companies
Governance
Norms & standards

Applicable norms and standards

Ramsar Convention
News
BankTrack
Partners
Blog
External
BankTrack news BankTrack blog Partner news Partner blog

Turkey reluctant to commit to coal phase out plan

Turkey’s pledge to reach net zero carbon emissions by 2053 has come into question after a major climate meeting ended without a coal phaseout plan
2022-03-04 | AL-Monitor
BankTrack news BankTrack blog Partner news Partner blog

Garanti BBVA and IIF discuss the post-COP26 sustainable agenda

Following Glasgow’s 26th Climate Change Conference (COP26), BBVA’s Turkish unit and the Institute of International Finance (IIF) recently held a workshop to discuss the prospects of climate financing and sustainability efforts in developing nations.
2021-12-02 | BBVA
BankTrack news BankTrack blog Partner news Partner blog

Kalyon-Kolin'e 100 milyon dolar teminatı iade edildi

(Article in Turkish - $100 million collateral returned to Kalyon-Kolin)
2021-10-05 | ICT Media
BankTrack news BankTrack blog Partner news Partner blog

Çevrecilerin karşı çıktığı proje için 'acele kamulaştırma' kararı

(article in Turkish - Urgent expropriation decision for the project that environmentalists oppose)
2019-04-16 | Gazete Duvar
BankTrack news BankTrack blog Partner news Partner blog

CHP'den Çayırhan-B Termik Santrali İçin Araştırma İstemi

(article in Turkish - Research Request from CHP for Çayırhan-B Thermal Power Plant)
2017-02-15 | Haberler.com
BankTrack news BankTrack blog Partner news Partner blog

Çayırhan-B Plan İtiraz Dilekçesi

(article in Turkish - Çayırhan-B Plan Appeal Petition)
2017-02-04 | 350ankara.org
Resources
Documents
Links
2022-03-15 00:00:00

Turkey 2021 Energy Policy Review

Annual report
2022-03-15 00:00:00 | International Energy Agency
2022-03-15 00:00:00

NATIONAL CLIMATE CHANGE ACTION PLAN

2011 - 2023
Other document
2022-03-15 00:00:00 | Republic of Turkey - Ministry of Environment, Urbanization and Climate Change
2022-03-15 00:00:00

Chronic coal pollution Turkey: Cumulative health effects

Other document
2022-03-15 00:00:00 | Health and Environment Alliance
2016-04-30 00:00:00

Coal report - Turkey's coal policies related to climate change, economy and health

Other document
2016-04-30 00:00:00 | Istanbul Policy Center
2017-01-31 00:00:00

Capital Projects and Infrastructure Spending in Turkey

Other bank document
2017-01-31 00:00:00 | Garanti BBVA, PricewaterhouseCoopers
2019-03-31 00:00:00

Environmental Impact Assessment - 2018

Other document
2019-03-31 00:00:00 | Envy.com.tr

New report: The Roadmap for Paris-Compatible Turkish coal exit

Turkey can be coal free by 2030 if fossil fuel companies are made financially responsible for their externalities in line with the ‘polluter pays’ principle, and the government ends subsidies for coal, according to a new report published by Europe Beyond Coal, Climate Action Network (CAN) Europe, Sustainable Economics and Finance Research Association (SEFiA), WWF-Turkey (World Wildlife Fund), Greenpeace Mediterranean, 350.org and Climate Change Policy and Research Association. 

Turkey and coal

Overview of Turkey and coal, by Global Energy Monitor.

Updates

2021

2021-10-05 00:00:00 | $100 million collateral returned to Kaylon-Kolin

The Kaylon-Kolin partnership, who oversaw the project development of the Çayirhan-B Coal Power Plant, could not honour their commitment and the guarantee of 100 million dollars for the project was returned.

After Çelikler Holding -  an energy conglomerate - withdrawed from the project, further negotiations with Chinese investors did not yield any results. Thus, no progress has been made over several years and the construction phase of the coal power plant could not be reached.

2021-03-12 00:00:00 | Electricity Market Regulatory Authority cancels license of Cayirhan B project

The Turkish Electricity Market Regulatory Authority (EMRA) has cancelled the license of Cayirhan B project. It was the first project to be privatised under a new law aimed at offering developers off-the-shelf sites, a strategy that places responsibility for securing permits and vital checks and balances, such as environmental impact assessments, land expropriation, and building permissions in the hands of state-owned company EÜAŞ, before offering them up to tender at private auctions (Europe Beyond Coal).

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