The conflict between Kurdish separatists and the Turkish government has forced Statkraft to temporarily abandon the construction of a major hydroelectric power project.
The 517 MW Cetin power plant on Botan River, a tributary of the Tigris River, was to be Statkraft’s largest hydropower plant outside Norway, but armed conflict in the vicinity of the development had forced a re-think.
“We had to suspend the project as the end to the ceasefire between the PKK and the Turkish authorities resulted in armed incidents in the region, close to our site,” Statkraft’s Chief Executive Christian Rynning-Toennesen told Reuters.
“We took the full write down on the assets, in case the plant is never built,” he added, referring to a charge of $245.5m due to the suspension of the project.
The state-owned utility reported a full-year net loss of 2.4 billion crowns for 2015 compared with a net profit of 3.9 billion crowns the previous year, partly due to the write down.
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