Provision of long-term senior debt financing of up to USD 65 million (approximately EUR 53 million equivalent) to finance the construction of a 242 MW wind farm portfolio owned and controlled by Akfen Yenilenebilir Enerji A.S. in Turkey. The portfolio comprises three wind farms located in the province of Canakkale and one wind farm located in the province of Denizli.
The project will be developed under the Renewables Energy Resources Support Mechanism (YEKDEM) implemented by the Turkish government offering feed-in tariffs to projects to stimulate private investment in wind generating power assets. It will support Turkey's move to a more environmentally sustainable and diverse electricity sector by exploiting the country's vast renewable energy potential.
It is expected to improve the environmental characteristics of Turkey's power sector by reducing emissions of local pollutants and CO2, as well as to increase private ownership of generation capacity.
ETI score: 60
The project will support Turkey in increasing the share of renewable energy in the country's energy mix, decreasing reliance on imported gas and it will contribute to the realisation of the Turkish government's target of installing circa 27GW of non-hydro renewable generation capacity by 2023, 20GW of which is expected to be wind.
DERBENT ENERJI URETIM PAZARLAMA ITHALAT VE IHRACAT AS
The Borrowers will be four special purpose vehicles incorporated in Turkey for the sole purpose of developing, constructing and operating the wind farms. The borrowers are ultimately owned and controlled by Akfen Yenilenebilir Enerji A.S.
Akfen Yenilenebilir Enerji is owned by Akfen Holding A.S., Turkey (73.4%), EBRD (13.3%) and IFC (13.3%).
EBRD Finance Summary
A senior secured loan of up to USD 65 million (approximately EUR 53 million equivalent). The financing package will be complemented by approximately USD 205 million export credit agency (ECA) - covered loan provided by a commercial lender. The ECA-covered loan will be guaranteed by four commercial Turkish banks.
Total Project Cost
Approximately EUR 308,000,000 equivalent.
Environmental and Social Summary
Category B (2014 ESP). Environmental and social risk and impacts associated with the development of four wind power plants can readily be mitigated through the implementation of the management and mitigation measures included in the Environmental and Social Action Plan (ESAP). The wind plants under development are: Ucpinar (99MWe), Kocalar (26 MWe) and Hasanoba (51 MWe) in Canakkale province and Denizli (66MWe) in Denizli Province. All projects have been permitted in line with local requirements.
The Bank, together with the IFC, have an existing equity in the company and the new wind projects are being developed in line with the existing corporate Environmental and Social Action Plan (ESAP). As part of current financing, an independent consultant was retained to undertake additional Environmental and Social Due Diligence (ESDD) of the wind portfolio under development.
The ESDD has confirmed that the company is satisfactorily implementing the existing ESAP and has the capacity to implement the Bank's Performance Requirements (PRs) and that the wind portfolio is structured to comply with the Bank's PRs. The ESDD also included a review of the sponsor's capacity to construct and operate the projects in accordance with the Bank's PRs, particularly with regard to having sufficient environmental and social capacity in place to satisfactorily perform the proposed measures for contractor management and project implementation.
The ESDD confirmed that none of the sites are in a sensitive area in terms of human receptors, birds or bats. The development of the wind projects will also not be associated with the resettlement. In terms of the Hasanoba site, the ESDD identified that this site is located near to an existing wind farm and close to a bird migratory route. Therefore additional ornithological reviews and cumulative assessments are being undertaken and additional mitigation measures in terms of an active turbine management plan are being developed in line with best practices.
Non-Technical Summaries (NTS) have been developed for the Project and can be downloaded below and are available on the Company web site:
- Ucpinar English / Turkish,
- Kocalar English/Turkish
- Hasanoba English /Turkish
- Denizli English /Turkish.
An ESAP has been developed for the site specific projects, which builds on the existing corporate ESAP.
The Bank will monitor the development of the Project.
Technical Cooperation and Grant Financing
Company Contact Information
+90 (212) 319 8700
+90 (212) 319 8730
Ilkbahar Mahallesi Turan Gunes Bulvari Galip Erdem Cad. No: 3 06550 Cankaya Ankara
The Project financed the construction and operation of four wind farms ("WPPs") with an installed capacity of 269 MW in the Canakkale and Denizli regions of Turkey, managed by Akfen Renewables. Construction of the wind farms was completed in October 2019 and the Project is operational since. Production level of the Project is above expectations contributing to the reduction of CO2 emissions and supporting green transition.
The agreed Environmental and Social Action Plan ("ESAP") is being implemented by the Borrowers and was designed to mitigate potential adverse environmental and social aspects associated with the construction and operation of the WPPs.
PSD last updated
28 Sep 2022
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Independent Project Accountability Mechanism (IPAM)
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