Turkish state-run electricity producer Elektrik Uretim AS, or EUAS canceled a tender in which two companies had bid for the rights of the construction and operation of the C and D units at the Afsin-Elbistan coal-fired power plant, according to Turkish daily newspaper Sabah, the Ihlas news agency, or IHA, reports Tuesday.
Late June, Turkish coal-mining firm Park Teknik and a joint venture of Turkish construction company Akfen Insaat and energy firm Akfen Enerji submitted two bids for the plant's C unit. The Akfen Insaat-Akfen Enerji joint venture also submitted a bid for the D unit.
Ankara planned to award a 15-year electricity-purchasing guarantee to the winner.
EUAS decided to cancel the tender as it considered the price that the two bidders wanted for the electricity produced at the plant was too high, according to the daily.
The bidders said for a period of 15 years, the price of the electricity that produced at the plants would be between $0.15 and $0.18 per kilowatt hour, the daily reported.
EUAS General Manager Sefer Butun said the tender would be held again as soon as possible after making some changes on the conditions.
The C and D stations of the Afsin-Elbistan coal power plant would each have a production capacity of 1,200 megawatts.
The estimated cost of the construction the C and D units is around $5 billion.
EUAS canceled an earlier tender last year in the absence of any bids.