VZCZCXRO3422
PP RUEHDA
DE RUEHIT #1064 3511224
ZNR UUUUU ZZH
P 171224Z DEC 07
FM AMCONSUL ISTANBUL
TO RUEHAK/AMEMBASSY ANKARA PRIORITY 7336
RUEHDA/AMCONSUL ADANA PRIORITY 2332
RUEHC/SECSTATE WASHDC PRIORITY 7757

UNCLAS ISTANBUL 001064 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ENRG TU
SUBJECT: NEW INVESTMENT IN ENERGY PROJECTS 
 
¶1. (U) In a deal that will add nearly 3,000 megawatts of 
electrical generation in Turkey, GE Energy Financial Services 
is acquiring 50 percent of Gama Energy.  Currently Gama 
Energy, a subsidiary of Gama Holdings, owns 1,150 megawatts 
generation capacity in Turkey and the partnership with GE 
will bring that number to 4,000 megawatts by 2011.  Gama is 
expected to spend USD 3 billion to build hydroelectric, 
thermal, and wind generation plants in Turkey. 
 
¶2. (U) At a press conference celebrating this partnership on 
December 10, James Burgoyne, GE Financial Services Managing 
Director, stated that Turkey,s current electrical 
consumption is growing at 8 percent a year, requiring an 
additional 4,000 megawatts annually.  Energy Secretary Guler 
noted Turkey will need USD 100 billion in investments in the 
energy sector by 2020 or else the country will face severe 
shortages. 
 
¶3.  (U) At an AmCham dinner on December 11, State Minister 
Mehmet Simsek underscored the need to ensure an adequate 
supply of electricity.  He argued there was no alternative to 
privatization.  Simsek conceded the pace to date had been 
"dismal," but indicated the situation had now reached a stage 
where the Government of Turkey must revive and accelerate the 
process.  In response to Simsek's comments, GE Regional 
Executive for Southwest Asia Kursat Ozkan indicated that the 
Gama investment was likely to be the first of several GE 
investments in power generation in Turkey. 
¶4.  (U) Comment:  New investment in Turkey's energy sector is 
good news; however electricity shortages are likely to occur 
before these new projects come to fruition.  We have heard 
from EMRA (Energy Market Regulatory Authority) that Turkey 
may be short as much as 2,000 megawatts as early as summer 
¶2008. 
WIENER