Mid-Size Sustainable Energy Efficiency Financing Facility III

Location:

Turkey

Project number:

47860

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

30 Sep 2015

Status:

Board Approved

PSD disclosed:

27 Aug 2015

Sub-projects signed under this framework

Translated version of this PSD: Turkish

Project Description

The EBRD is considering a €500 million framework operation (MidSEFF III) for on-lending to several participating financial institutions’ in Turkey to finance private sector borrowers for mid-size renewable energy and resource efficiency, including energy, water and waste minimisation, investments. The EBRD launched a framework operation on 14 December 2010 (MidSEFF I) and its extension on 1 September 2011 for a total of €700 million for mid-size energy efficiency, renewable energy and waste-to-energy investments. The European Investment Bank co-financed the facility with additional €300 million. MidSEFF III builds on its predecessors’ successful experience and aims to further diversify partner banks’ portfolios towards less conventional renewable technologies, promoting resource efficiency, supporting carbon market development and enhancing local environmental and social standards for sustainable energy projects in line with EU practices.

Transition Impact

MidSEFF aims to make a significant impact in three critical areas in addressing climate change challenges in Turkey by (i) accelerating the pace of investments in renewable energy technologies, supporting a clean energy transition by reducing reliance on fossil fuels in an environmentally sustainable manner; (ii) upgrading the local environmental and social standards, including health & safety best practices, for sustainable energy projects and by (iii) increasing private sector involvement in the development and financing of mid-size sustainable energy investments by expanding market-based mechanisms such as carbon markets. 

The Client

Clients of the facility will be several financial institutions in Turkey. These clients will be selected from leading commercial banks with institutional capacity and commitment to successfully implement the MidSEFF III targets.

EBRD Finance

Up to €500 million EBRD financing in the form of senior unsecured loan/notes or capital market instruments including notes issued under candidate financial institutions’ Diversified Payment Rights (DPR) programmes, mortgage covered bonds, asset-guaranteed bonds and asset-backed securitisations (ABS).

Project Cost

Up to €500 million.

Environmental and social categorisation, impact, and mitigation

Categorised FI: All participating banks are required to implement EBRD’s Performance Requirements 2, 4 & 9, adhere to the EBRD's Environmental and Social Exclusion List and submit Annual Environmental and Social Reports to the EBRD. An independent project consultant will ensure that sub-loans comply with the national and applicable EU, environmental, health and safety and labour regulations and standards as well as the EBRD's environmental and social eligibility criteria for hydropower and wind power projects.

Technical Cooperation

MidSEFF III will be supported by a technical assistance programme. Participating financial institutions which received training under MidSEFF I & MidSEFF II will receive limited further training with a focus on mainstreaming EU environmental and social standards and carbon market development.  New financial institutions joining the facility will receive a more intense level of support and training as well as more focused assistance with sub-project assessment in order to ensure their skills in sub-project assessment would be aligned with existing partners over time. The project consultant will oversee sub-project assessment and appraisal ensuring that EBRD’s Environmental and Social Policy requirements are incorporated into the sub-project appraisal and that the EU environmental and health and safety and labour standards are being met. In addition, the consultant will help select clients in the preparation of a carbon footprint, assistance for implementing Monitoring, Reporting and Verification (MRV) and deliver carbon markets trainings at the participating financial institutions level. A carbon market consultant  is planned to be retained to provide further carbon market capacity building.

The proposed facility will be supported by technical cooperation of up to €1.9 million funded by the European Union under the action entitled: “Enhancement of Turkish Energy Sector in line with EU Energy Strategies.”

Company Contact

Oksana Pak

E-mail: pako@ebrd.com

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

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

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Text of the PIP

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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.