Translated version of this PSD: Turkish
An equity investment, in the form of capital increase, in Ictas Yenilenebilir Enerji Uretim ve Ticaret A.S. , an existing renewable energy entity with a portfolio of operational renewable power generation assets only. The portfolio of the investee company consists of circa 400MW of operational hydro power plants and numerous renewable projects in the pipeline. The investee company will be controlled and majority-owned by its parent company, IC Ictas Enerji Yatirim Holding.
Support the development and construction of new renewable power generation projects located across several regions of Turkey.
The project will target the "green" quality of an open market economy by supporting the investee company in the development and diversification of its portfolio of power plants, currently made up of around 400MW of hydro power plants, notably by adding assets with dispatchable capacity and intermittent renewable electricity generation capacity. In addition, the project will contribute to the "well-governed" quality by improving standards for corporate governance and business conduct through the review of current board practices and management systems and by helping implement best practices in the investee company via a shareholders' agreement.
ICTAS YENILENEBILIR ENERJI URETIM VE TICARET AS
Ictas Yenilenebilir Enerji Uretim ve Ticaret A.S. founded in 1998, is fully-owned by IC Ictas Enerji Yatirim Holding which is indirectly fully owned by the Cecen family. The investee along with its parent company and IC Elektrik - an existing client of the Bank - consolidate the Cecen family's activities in the energy sector, which are integrated across the whole electricity energy value chain. It includes electricity generation with total installed capacity of 1,450MW spread across 10 HPPs (via Ictas Yenilenebilir Enerji) and two thermal plants acquired from the Privatisation Administration in 2014 (via IC Ictas Enerji Yatirim Holding); electricity wholesale; electricity distribution; and electricity retail (incumbent for the Thrace region).
Environmental and Social Summary
The project has been Categorised B in accordance with the EBRD's 2014 Environmental and Social Policy. The risks and impacts associated with the proposed transaction have been identified and mitigated by way of independent E&S Due Diligence (ESDD) and preparation of an Environmental and Social Action Plan (ESAP). ESDD included a review of the Company's corporate E&S capacity, policies and procedures as well as an assessment of E&S performance of Company's existing portfolio (10 hydropower plants) against the EBRD's ESP, Hydropower Guidance Note and other relevant industry standards and requirements.
The Company intends to expand and diversify in the future by developing additional renewable energy generation assets (wind farms and solar plants), by acquiring both existing operational assets and greenfield concessions. Any future projects that have the potential to trigger Category A requirements would be treated at such during project development / acquisition cycle by the Company in consultation with the EBRD. A Corporate Procedure has been developed to allow the Company to screen and categorise all future projects and to follow an ESDD process in line with the EBRD's Performance Requirements (PRs). Since the pipeline of projects is not yet confirmed, this does not affect the overall categorisation of the current EBRD transaction.
The results of the ESDD indicated that the Company is well managed, and has the internal capacity to operate in line with the Performance Requirements although certain operational and organisational issues were identified that require improvements which have been included in the ESAP. The ESAP has been agreed in principle with the client ahead of board consideration.
IC Energy, the parent company of IC Renewable Energy, has published E&S policies and operates environmental and health and safety management systems, and holds certifications demonstrating that it meets international standards for these systems (ISO 14001 and OHSAS 18001) at its head office and at five of its ten current hydropower plants. At the time of their recruitment, employees are informed about the IC Ethical Code of Conduct and employees' rights. Employee relations appear to be of a good standard, as confirmed by annual employee satisfaction surveys. Although it appears that IC Renewable Energy has good relations with local communities at all sites, IC does not currently have a Corporate Stakeholder Engagement Plan (SEP). In addition, there is no formal community grievance mechanism currently in place. As a consequence, a Corporate SEP has been developed and the goal of this plan is to set up a general stakeholder engagement framework for the Company and guide the development of the project-specific SEPs as required.
The ESAP includes measures to improve the E&S performance of the current operations as well as to ensure that all future projects are developed in line with the PRs. The ESAP requires reinforcement of E&S team capacity, additional monitoring of the supply chain, extension of environmental and health and safety management systems certifications to all of IC Renewable Energy's current and future facilities, public disclosure of the ecological flow, and publication of an annual Sustainable Development report on the IC Renewable Energy website. In addition, the ESAP commits the company to implementing the E&S procedure for all new projects in the pipeline.
The Bank will monitor implementation of the ESAP through review of annual Environmental and Social Reports (AESR) and communications with the Company and site visits as necessary. The project is consistent with the GET approach, and the GET share is 100%.
For business opportunities or procurement, contact the client company.
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