GEFF - Turkey

Location:

Turkey

Project number:

52781

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

24 Nov 2021

Status:

Approved

PSD disclosed:

28 Sep 2021

Project Description

EBRD financing up to EUR 500 million combined with Clean Technology Fund ("CTF") concessional co-financing of c. EUR 20 million (only in respect of the Corporate Climate Governance Programme) to be provided in the form of loans or capital market instruments to partner financial institutions ("PFI") for financing corporate, public and residential sectors under the Bank's Green Economy Transition ("GET") Approach in Turkey.

Project Objectives

The project aims to support green economy investments including among others energy efficiency, renewable energy and climate resilience measures. Funds may also be on-lent to vendors and producers of eligible material and equipment covered by the Green Technology Selector for Turkey. The loans will be supported by Technical Cooperation ("TC") and by incentive payments, as envisaged by the Green Economy Financing Facility ("GEFF") Framework. Concessional financing will also be available to support the Turkish corporate and financial sectors to integrate climate change into their corporate governance approach. 

Transition Impact

The Green Direct Track is chosen as this concerns a GEFF. All of the funding allocated to PFIs under this Framework will have to be used in respect of projects that qualify for 100% GET.

Client Information

Approximately 10 PFIs (both existing and new) are expected to be privately owned banks and/or leasing companies in Turkey.

 

EBRD Finance Summary

EUR 500,000,000.00

Total Project Cost

EUR 520,000,000.00

Including c. EUR 20 million concessional co-financing.

Additionality

The proposed framework should enable PFIs to access longer-term (above one year) financing which is not available from commercial sources, to finance green investments. Corporate climate governance will be promoted into PFIs' lending strategies, processes and practices for the first time in the country, alongside climate mitigation investments to further advance the transition to an environmentally sustainable, low-carbon and climate-resilient economy.

Environmental and Social Summary

Categorised: FI (ESP 2019). It is anticipated that the PFIs under this Framework which are existing clients of the Bank will already be familiar with EBRD's environmental and social ("E&S") requirements applicable to FIs. Any new PFIs that might participate under this Framework will have to complete the E&S Due Diligence questionnaire to be returned to ESD for review. Beneficiaries financed under this facility will be required to comply with national requirements for environment, health and safety and labour standards and the E&S eligibility criteria for Renewable Energy projects, where applicable, as well as other GET eligibility criteria as per the GET Policy Statement. This will be confirmed to PFIs by a Facility Consultant engaged by the EBRD. All PFIs under the Framework will be required to comply with EBRD's Performance Requirements 2, 4 and 9, adopt and implement the EBRD's E&S Risk Management Procedures for Micro, SME and Corporate Lending and submit Annual Environmental and Social Reports to the Bank, including reporting on sub-projects and their GET benefits.

EBRD funding will not be used for financing solar PV technologies produced by manufacturers with evident links to forced labour allegations.

Technical Cooperation and Grant Financing

Approximately EUR 7.1 million for technical cooperation ("TC").

Company Contact Information

Emir Moran
morane@ebrd.com
+905497248089
www.ebrd.com

PSD last updated

28 Sep 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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