Mersinli Wind Farm

Location:

Turkey

Project number:

49199

Business sector:

Power and energy

Notice type:

Private

Environmental category:

A

Target board date:

06 Jun 2018

Status:

Concept Reviewed

PSD disclosed:

22 Mar 2018

Translated version of this PSD: Turkish

Project Description

The providision of a senior secured loan of up to USD 20 million to a special purpose vehicle fully owned by Alcazar Energy Partners to develop a 55MW wind farm, the Mersinli WPP, in Izmir, Western Turkey.

Project Objectives

The project will support the entry of a new foreign, private investor into the Turkish power sector and increase the installed renewable generation capacity in Turkey.

Transition Impact

The project will support Turkey in increasing the share of renewable energy in Turkey'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

ALCAZAR ENERGY PARTNERS

The Borrower, Yander Elektrik Muhendislik Musavirlik Insaat Turizm Ve Ticaret A.S., is a special purpose vehicle established to develop the Mersinli WPP.

Alcazar Energy, the 100 per cent owner of the Mersinli WPP, is a Dubai-based independent developer and power producer focused on renewable energy generation in the broader Middle East, Turkey and Africa. It is owned, among others, by IFC, IFC Catalyst Fund, Mubadala Infrastructure
Partners, Blu Stone Management and DASH Ventures.

EBRD Finance Summary

USD 20,000,000.00

The USD 50 million debt financing package will be provided along with the financing from Proparco, the investment arm of the French Development Agency. A commercial bank is considering to contribute to the package.

Total Project Cost

USD 85,000,000.00

Environmental and Social Summary

Categorised A (ESP 2014). The construction and operation of the 55MW greenfield wind farm in Izmir province has been categorised A as per the EBRD's Environmental and Social Policy (ESP) as it may be associated with various, potentially significant, environmental and social (E&S) impacts due to its location within a key biodiversity area, its proximity to an archaeological site, as well as stakeholders' concerns.

The project was subject to a national Environmental Impact Assessment (EIA) which received the a positive decision by the Ministry of Environment in July 2016. The project company has commissioned thereafter a new Environmental and Social Impact Assessment (ESIA) disclosure package to be undertaken as per international requirements, which was disclosed on 19 March 2018 in English and Turkish in line with the Bank's Public Information Policy. This disclosure package was subject to an independent E&S Due Diligence (ESDD) by the lenders' E&S advisors. The ESDD has confirmed that the project is structured to comply with the Bank's performance requirements and the company has the institutional capacity to fully implement the requirements. The full ESIA disclosure in English and Turkish.

In addition to the expanded scope to include considerations not required by the Turkish EIA requirements, the ESIA incorporates the latest changes in project design (e.g. the reduction in the number of turbines from 22 to 17). The ESIA identifies and assesses the E&S issues and impacts associated with the wind farm for the relevant phases of the project and considers cumulative impacts with other planned projects.

Key impacts and risks associated with the project may include impacts on biodiversity, impacts on neighbouring communities, livelihoods, cultural heritage, noise and occupational health and safety risks.

The Mersinli WPP licence area is spread across 1,620 ha of mainly forest land; 2 per cent of which represent the actual footprint of the project (i.e. turbine foundations, substation, access roads and the electrical transmission line). The company has committed to apply to the state authority to downsize the licence area in order to address the expectations of the Marmaric community with regards to exclusion of their agricultural lands and assets from the license area although they won't be affected by the construction and operation activities. 

No physical displacement is anticipated as a result of the project, nevertheless some fruit production and beekeeping activities within the area could be impacted. A livelihood restoration and compensation framework have been prepared to address any livelihood issues and will be further developed into a full-fledged plan in consultation with the affected people. A detailed stakeholder engagement plan and a complaint procedure have been developed and will be implemented throughout the lifetime of the project.  

The project is located in Boz Daglar, unofficially identified as a key biodiversity area mainly due to the Boz Dag, an important plant area, located some 50km to the east and at a much higher altitude of the project site. If not properly managed, deforestation and land clearing at the project license area could leave the most significant impacts on biodiversity features, due to loss of natural habitats, which may also affect certain species' populations. Minimum clearing of natural vegetation will be ensured, a critical habitats assessment has been conducted for the site, and a biodiversity action plan was developed describing species-specific mitigation measures to be implemented by the company and the contractors to ensure no-net-loss of habitats and species within the Project study area. 

Air quality, noise, water resources, and visual impact modelling and assessment during construction and operation have been conducted and have informed the mitigation measures described in the corresponding management plans and the environmental and social action plan (ESAP).

A set of policies, environmental and social management plans and procedures in line with international standards have been developed for the project and those will be further fine-tuned to the needs and impacts associated with the construction and operation of the Mersinli WPP. Potential impacts can all be avoided, controlled, or mitigated through the implementation of the array of procedures and plans described in the E&S Management Plan Framework, ESIA and ESAP, the implementation of which will be closely monitored by the EBRD through regular reports and field visits.

See the full disclosure package.

Technical Cooperation

None.

Company Contact Information

Jean-Christophe Combourieu
jccombourieu@alcazarenergy.com
+971 4 558 7805
www.alcazarenergy.com

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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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.