SOURCE: Turkpower

February 02, 2011 08:03 ET

TurkPower Corporation Announces Project Update

NEW YORK, NY--(Marketwire - February 2, 2011) -  TurkPower Corporation (OTCBB: TRKP) (the "Company") is pleased to announce the following updates on previously announced projects.

Solar Applications

After completing a first round of solar license applications on behalf of a consortium of Turkish energy companies for a total capacity of 410 megawatts ("MW") in 2010, the Company decided to put further talks with investors on halt until Turkish parliament would pass the long awaited new renewable law setting the feed-in tariff for solar electricity in Turkey. The law was finally passed in December 2010 setting the feed in-tariff for solar electricity at $0.133 per kWh. Based on the outcome of the new law, the Company decided to resume negotiations with potential solar energy investors. The Company is optimistic to close agreements for another 300 - 500MW no later than Q2 2011. As in the first round of applications the Company will be paid 50% of its consulting fee at signing of the agreement and the balance is to be paid upon the start of the actual application process expected for Q4 2011. The Company is also rewarded a success fee in form of participation of the client's solar licenses, if granted.

HEPP -- Hydro Electric Power Plants

After signing its first large mandate for a portfolio of HEPP projects with a total production capacity of 162MW in November 2011, the Company prepared in-depth documentation for the portfolio of projects and started presenting the projects to potential investors in January 2011. The Company is optimistic to win investors for these highly profitably pre-construction phase projects in Q2 2011 and will inform its investors on the progress on an ongoing and regular basis. All HEPP projects are in development or pre-construction phase, with commencement of construction ready as early as 2011.

WEPP -- Wind Electric Power Plants

The Company commenced work on the WEPP mandate signed January 12, 2011. According to past experience of the Company's technical staff, the Company plans to start presenting the project to qualified investors as early as April 2011. After the passing of the new renewable law by the Turkish parliament in December 2010, the Company believes structuring and receiving debt financing for such projects will be easier than in the past, resulting in higher attractiveness for investors.

The Company would like to caution its investors that while it is very excited and optimistic about all its mandates and large project, there remain uncertainties and the Company will not be compensated for its efforts until a binding agreement with a purchaser or investor has been signed.

About TurkPower Corporation

TurkPower Corporation is a Turkish-American consulting and service operations firm with a strong focus on the booming Turkish energy market. TurkPower offers its domestic and international clients consulting services and acts as a full service operator for wind, hydro, solar, coal and geothermal energy parks in Turkey. In addition to its energy business, TurkPower aims at becoming a large player in the Turkish mining industry by acquiring and consolidating operational mines with proven reserves, utilizing economies of scale to increase returns.

Safe Harbor Statement
The statements by our officers, and other statements regarding optimism related to the business, consulting, service operations, expanding exploration and development activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business and subject to successful financing. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many risk factors that affect the industry the Company operates in and other risk factors listed from time to time in the Company's Securities and Exchange Commission (SEC) filings under "risk factors" and elsewhere.

Contact Information

  • Contact:

    TurkPower Corporation
    100 Park Avenue
    New York, New York 10017
    T 212-984-0628
    F 212-880-6499