Akfen Wind Power

Location:

Turkey

Project number:

49733

Business sector:

Power and energy

Notice type:

Private

Environmental category:

B

Target board date:

20 Jun 2018

Status:

Passed Final Review, Pending Board Approval

PSD disclosed:

08 May 2018

Translated version of this PSD: Turkish

Project Description

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.

Project Objectives

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.

Transition Impact

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.

Client Information

AKFEN YENILENEBILIR ENERJI 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

USD 65,000,000.00

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

USD 370,000,000.00

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:

UcpinarEnglish | 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

None.

Company Contact Information

Ozgur Uzunoglu
ouzunoglu@akfen.com.tr
+90 (212) 319 8700
+90 (212) 319 8730
www.akfenren.com.tr
Ilkbahar Mahallesi Turan Gunes Bulvari Galip Erdem Cad. No: 3 06550 Cankaya Ankara

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.