Eastern Mediterranean and TRNC, Water and Electricity Policy and Projects and Energy

On May 31st, 1990, a Technical Cooperation Agreement was signed between the Turkish Electricity Authority and the TRNC Electricity Authority. Both authorities are responsible for the provision of electricity in their respective countries. This agreement included everything and was carried out on several different fronts simultaneously. It is possible to relocate the Teknecik Power Plant to its existing position, in which case TEK would be responsible for the building of the Oil Power Plant. Another pact, which was signed on July 21, 1990, is noteworthy and significant. The consortium consisting of Transelektro (Hungary), Simens (Austria), Kutlutaş (Turkey), and Simko (Turkey) won the contract for the building of the power plant. The consortium was directed by SGP-VA (Austria), which is in Austria. Businesses in both Hungary and Austria have shown an interest in taking advantage of the prospects that are presented by the offer. However, when the Austrian businessman made a bid for the power plant in the South, the mention of the power plant constructed in the TRNC ignited serious political issues in Southern Cyprus. This was because the Austrian businessman was interested in purchasing the power plant. In the 13th Term Protocol of the Joint Economic Commission of the Republic of Turkey, it was required that the 2X60 MW Teknecik Power Plant should be ready for operation and that it should be an independent and dependable energy solution to the difficulty that the TRNC is having with its energy supply. In 1996, the first electricity generation unit of the Teknecik power plant, which had been wholly funded by Turkey and had a total cost of 125 million dollars, was put into operation. The distribution of electricity was ceased by the Greek Cypriots in March 1996, when the power plant located on Greek Cypriot territory became operational.