The EBRD is providing a long-term loan of up to €115 million (or US$ equivalent) to Eregli Demir ve Celik Fabrikalari T.A.S. ('Erdemir' or 'the Group') and Iskenderun Demir ve Celik A.S. ('Isdemir' - together with Erdemir, the 'borrowers').
The proceeds of the EBRD loan will be used to support Erdemir and Isdemir to implement a series of energy efficiency measures at their production facilities located in Eregli, in the Black Sea region, and Iskenderun, in the country's south east. The improvements are part of the borrowers' investment programme which will lead to significant savings in terms of greenhouse gas emissions and energy costs (the 'project').
The expected transition impact of the project will be achieved through: (i) the demonstration effect on other Turkish steel producers and industrial players of Erdemiris integrated approach to energy and resource efficiency as a key source of industrial competitiveness, and (ii) the contribution of Erdemir in defining strategic priorities for energy efficiency in the Turkish iron and steel sector, as part of a wider policy effort that EBRD is leading together with the Turkish Ministry of Energy and Natural Resources for the development of a National Energy Efficiency Action Plan.
EREGLI DEMIR VE CELIK FABRIKALARI TAS
Eregli Demir ve Celik Fabrikalari T.A.S. ('Erdemir' or 'the group') is the largest integrated steel producer in Turkey. With a total production of 8.5m tonnes of crude steel in 2014, Erdemir accounted for approximately 25 per cent of Turkey's crude steel production.The group was incorporated in Turkey in 1960 and runs steel production facilities in Eregli and Iskenderun. The subsidiary Iskenderun Demir ve Celik A.S. ('Isdemir') is 95.07 per cent owned by Erdemir.
EBRD Finance Summary
Up to €115 million (or US$ equivalent) long-term senior loan.
Total Project Cost
Environmental and Social Summary
Categorised B. The planned investments in energy and resource efficiency will result in significant environmental benefits. Reductions in fuel and external electricity consumption will lead directly to lower emissions of greenhouse gases and other air pollutants.
Environmental and social due diligence has included a site visit to the Eregli plant and discussions with the company's environment, health and safety (EHS) staff undertaken by the EBRD's Environment and Sustainability Department (ESD), and audits of both of the integrated steel mills by independent environmental and social consultants. The consultants have reviewed the proposed investment plans and carried out a high-level assessment of Erdemir's operation against Turkish and EU best available technologies. The consultants found that both plants are operating to good EHS standards.
The company has environmental and health and safety management systems that are certified to the ISO 14001 and OSHAS 18001. Erdemir management have a proactive and forward-looking approach to environmental and safety performance, as evidenced by the investment programme for this project. The due diligence has produced some best practice recommendations related to labour management, data collection and reporting. Erdemir will provide the Bank with annual environmental and social reports and ESD will undertake occasional monitoring visits to review project implementation.
Technical Cooperation and Grant Financing
Company Contact Information
Erdemir Group Credit Department
+90-216-578 80 61
With the support of EBRD's financing, Erdemir and its subsidiary Isdemir are on course to have implemented a series of resource, energy and operational efficiency measures at their production facilities in Eregli and Iskenderun located in the Black Sea region and the Southeast region of Turkey, respectively. For Erdemir and Isdemir operating in an energy-intensive sector, energy and resource efficiency are strategic priorities.
The Project has contributed to (i) the demonstration of Erdemir's integrated approach to energy and resource efficiency as a key source of industrial competitiveness; and (ii) the participation of Erdemir in the definition of strategic priorities in terms of energy efficiency in the Turkish iron and steel sector through policy dialogue activities.
PSD last updated
21 Mar 2022
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
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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.
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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.
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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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.