EBRD, AIIB and BSTDB co-finance expansion of Turkey’s largest geothermal power plant
The European Bank for Reconstruction and Development (EBRD), the Asian Infrastructure InvestmentBank (AIIB) and the Black Sea Trade and DevelopmentBank (BSTDB) are contributing to a financial packageworth US$ 350 million for three new units at the plant.
EFELER is located in western Turkey, in the region of the Büyük MenderesGraben basin, the area in Turkey with the greatest potential for geothermalenergy.
Gürmat Elektrik, a renewable energy subsidiary of Güriş Holding, isusing the finance for the expansion at EFELER that will tap into locallyavailable geothermal resources.
Of the three new units, EFE-6 with 22.6 MW capacity and EFE-7 with 25 MWare already operational. EFE-8 with a capacity of 50 MW is still underconstruction.
When fully completed next year, the plant’s eight units will have atotal installed capacity of 260 MW.
Under the financing package, Gürmat Elektrik will receive US$ 100million loan from the AIIB, a US$ 60 million loan from the EBRD and US$ 20million loan from the BSTDB.
In parallel, Turkey’s largest commercial lender Isbank is providing US$90 million loan, and the Industrial Development Bank of Turkey TSKB and ICBCTurkey are making loans of US$ 50 million and US$ 30 million, respectively.
The financing is part of the effort to help Turkey develop localrenewable energy sources and encourage private sector investment in the energysector. Güriş Holding has also committed to providing more career opportunitiesfor women in this traditionally male-dominated sector.
Nandita Parshad, EBRD Managing Director for Sustainable Infrastructure,said: «We are pleased to build on our previous cooperation with Güriş Holding,a long-standing client of the EBRD with a strong track record of projectimplementation. We are also proud to join forces with AIIB, BSTDB andseveral commercial banks and together provide a comprehensive financing packageto the company. The EBRD is committed to helping Turkey develop anddiversify its energy mix.»
«This project represents a number of firsts for AIIB: EFELER is ourfirst non-sovereign-based financing in Turkey, our first co-financing with theEBRD and the BSTDB in the private sector, and our first foray in the geothermalspace,» says AIIB’s Vice President and Chief Investment Officer D.J. Pandian.«This project is a visible example of AIIB’s commitment to the expansion ofrenewable energy projects led by the private sector in Turkey. We are very gladto partner with Güriş Holding and our co-financiers in this importanttransaction.»
«As a regional development bank, BSTDB seeks to considerably increaseits strategic role in supporting infrastructure investments with highdevelopment impact in member countries, including creation of long-termemployment and increased revenues for the state budget. This project is also agood example of our synergies with peer development institutions and theprivate-sector investors to increase the efficiency of development financing,»said Hasan Demirhan, BSTDB Vice President Banking.