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OMV, Lehman, MET to build Turkish power station

Austria’s OMV, Lehman Brothers and Turkey’s MET Group are forming a venture to build a Turkish power station with an investment of more than €500 million ($740 million), they said on Thursday.

The 890 megawatt power plant will be located in Turkey’s Black Sea region of Samsum, beside the terminal of the Blue Stream gas pipeline from Russia, the companies said in a statement under the name of the new venture Borasco.

The power plant construction is expected to begin this year, with the start-up expected in late 2010, OMV said in a separate statement. The Turkish regulator and the EU competition authority have both approved the agreement.

OMV said it had signed a share purchase agreement to buy 60% of Borasco Elektrik Uretim Sanayi. A Lehman Brothers’ subsidiary will have a 25% stake in Borasco and Metcap Enerji Yatirimlari, controlled by Turkish industrialist Celal Metin, will hold the remaining 15%.

OMV entered the Turkish market two years ago by acquiring a stake in leading filling station company Petrol Ofisi, in which its stake now amounts to 41.3%. The new plant will sell electricity on the Turkish market, which is growing around 10% a year, necessitating new power plants to meet the high demand. (Reuters)