A senior loan up to EUR 10 million to Gaziantep Metropolitan Municipality to finance the construction of solar photovoltaic (PV) plants of up to 27 MW total installed capacity to supply the city's own consumption.
Turkey experienced significant population growth caused by the refugee influx since the start of the conflict in Syria. Gaziantep has a population of 2.1 million and hosts around 450,000 of Turkey's 3.7 million refugees. The refugee crisis has placed a huge strain on Gaziantep's existing infrastructure as it seeks to maintain service levels in the face of rapid unexpected population growth. It is in continuous need of investments to maintain and provide sustainable, high quality, efficient municipal services to its inhabitants.
The solar PV plants will support the city's fiscal budget through annual savings in electricity bills - one of the biggest cost items in the city's budget - without adding to greenhouse gas emissions of the sector. The electricity generated by the solar PV plants will be netted-off against the overall consumption of the city's facilities including but not limited to administrative buildings, the light rail system and water pumps and facilities.
The proposed solar PV plants will support Gaziantep's aim to become the first metropolitan municipality in Turkey which covers all of its electricity need from renewable sources.
ETI score: 75
The project is part of the Municipal Resilience Refugee Response Framework (MR3), which is designed to support the resilience of municipal infrastructure services by financing critical investments in host communities accompanied by targeted sector reform elements focusing on improving funding sustainably post investment, improving accountability through formalised performance indicators or service contracts and increasing private sector participation where feasible. The project promotes the transition objectives of the MR3 in the following ways:
Resilient: The project is expected to alleviate the stress on related infrastructure services amplified by the refugee crisis and therefore support the resilience of the sector by financing the implementation of solar PV plants with a total installed capacity of 27 MW to be self-consumed by GMM's facilities, which will result in energy savings and the supply of clean energy. This is expected to alleviate the financial burden of GMM, and increase its capacity to provide better and offer more municipal services accessible to local host communities and refugees.
Well-governed: The renewable electricity capacity installed will result in cost savings for the city, which will be committed to further infrastructure investments to alleviate the impact of refugee inflow.
MUNICIPALITY OF GAZIANTEP
EBRD Finance Summary
Total Project Cost
The additionality of the Bank is derived from the long-term nature of the financing. The Bank's involvement is also additional by helping the project and the client achieve higher standards through improved management of environmental, social and governance risks and knowledge, innovation and capacity building. The EBRD will provide expertise in energy and resource efficiency, climate mitigation financing and best international procurement standards.
Environmental and Social Summary
Categorised B (2019 ESP) and low-medium risk. Key Environmental and Social (E&S) risks and impacts to consider include both formal and informal land use, E&S capacity of the implementing agency and contractor management and performance in particularly with regard to labour and working conditions and Health & Safety (H&S). E&S due diligence will be undertaken by a consultant and will include a review of the project implementation arrangements and an assessment of the project site location(s). An Environmental and Social Action Plan will be prepared for each component of the project with elements targeted at the client, the implementing agency and the engineering, procurement and construction contractor. This project summary document will be updated when the environmental and social due diligence has been concluded.
Technical Cooperation and Grant Financing
It is envisaged that the technical cooperation (TC) support will provide assistance with the following:
TC 1 - Feasibility Study, Concept design, Tender Preparation and Advanced Procurement Support for Solar PV Project: The estimated cost of the assignment is up to EUR 437,000 which to be financed by the allocation under the CRSA of the EBRD SSF.
TC 2 - Supervision Engineer and Implementation, Environmental and Social and Health and Safety Support for Solar Project: The purpose of this assignment is to assist GMM in project supervision, and health and safety and ESAP implementation during the construction and commissioning period for the solar PV project. Estimated cost of this assignment is up to EUR 500,000, proposed to be financed by an international bilateral donor, a multi-donor fund, the SSF Turkey or the CRSA under EBRD SSF.
Company Contact Information
+90 850 207 27 27
Incilipinar mah. 4 Nolu Cadde Buyuksehir Belediyesi Binasi Sehitkamil / Gaziantep / Turkey
PSD last updated
06 Jul 2021
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