Türkiye – a Mega Project under the umbrella of an Inter-Governmental Agreement

Context

In April 2012, Tom Teerlynck was appointed by TAQA (Abu Dhabi National Energy Company) to identify an attractive investment opportunity in Türkiye. The aim was to invest in one or more existing power generation plants and explore further development prospects.

At the time, TAQA had no presence in Türkiye. Tom quickly assembled a team of experts to manage origination, acquisition, and development, with additional support from TAQA’s headquarters in Abu Dhabi.

Through initial market screenings and discussions with both private sector players and government institutions, Tom identified an opportunity to develop pithead lignite power plants in the Afşin-Elbistan region. The Turkish government aimed to develop up to 8,000 MW of additional power generation capacity in this region. At that point, large Chinese and Korean companies were already in advanced talks with the Turkish government regarding these projects.

When it became clear that no joint venture would be formed with these companies, Tom accelerated discussions directly with the Turkish Ministry of Energy.

In October 2012, a Joint Declaration between the Governments of Türkiye and Abu Dhabi was signed to cooperate on the Afşin-Elbistan power plants. This set the stage for an Inter-Governmental Agreement (IGA) between Türkiye and the United Arab Emirates to cover the entire project. Tom took the lead in negotiating the IGA, which was signed on January 3, 2013. The agreement, valued at nearly USD 12 billion, covered the acquisition, modernization, and expansion of the existing 1,400 MW Plant B in the Afşin-Elbistan region, as well as the development of up to 7,000 MW of new power plants and associated coal mines.

Following the IGA's signing, Tom led intense negotiations to finalize the detailed project agreements. He also managed due diligence for the existing plant and guided the development of the next 1,400 MW power plant. The negotiations involved multiple parties, including the Ministry of Energy and the national generation company, EÜAŞ. Initially slow, negotiations began to stall as parties dug into their positions.

To address this, Tom proposed a streamlined approach: limiting negotiations to a core group of four — Tom and external counsel from TAQA, and the Ministry’s lead negotiator with their outside counsel. Each negotiator kept open lines with their wider teams to secure input and alignment as needed. With full authority from their respective leaderships, this compact team worked intensively over several weeks, often meeting in informal settings to encourage focus and collaboration. By May 2013, the key agreements were finalized.

Despite overcoming numerous hurdles throughout the year, the deal ultimately stalled due to an unforeseen external factor, unrelated to the transaction itself. While frustrating, this experience underscored Tom's core message to teams and counterparts: 'Every day in a project can bring a new obstacle — one that may put the entire effort at risk. Staying on top of the process, with diligence and day-to-day focus, is at the heart of successful development.'

Approach

Tom's approach was characterized by deep engagement and unwavering persistence:

Strong Personal Involvement: Ensured constant and proactive leadership throughout the process.
Navigated Political Terrain: Built high-trust relationships across ministries, authorities, and national utilities.
Value Proposition: Clearly articulated TAQA's value and vision for the project, ensuring alignment with stakeholders.
Process Discipline: Managed proposal turnarounds, clarifications, and agreements with speed and precision.
Flexible Strategy: Adapted the negotiation process as events unfolded and new challenges emerged.
Long-Term Focus: Prioritized building trust and credibility over securing immediate wins.
Reputation & Credibility: Built a strong institutional and personal reputation based on professionalism and respect.
Determination & Persistence: Demonstrated a relentless drive to push through roadblocks.
High Ownership: Took full responsibility for the success of the project, remaining available and committed at all times.