Translated version of this PSD: Turkish
A senior loan of up to USD 100 million to a special purpose vehicle, fully owned by Entek Elektrik Uretimi A.S., for the acquisition from the Privatization Administration of Turkey of the operating rights for two hydro power plants (HPPs): Menzelet with 124 MW capacity and Kılavuzlu with 54 MW. The financing package of about 1.5 billion Turkish lira (TL) (equivalent of USD 375 million) will be provided partly in TL and partly in USD by the EBRD and commercial banks.
Ongoing privatisation of state-owned assets, including hydropower plants is a key part of the Turkish government's strategy to liberalise the country’s energy sector. The project is an important step towards the future goal of all electricity being generated by private suppliers.
The project targets the “competitive” and “well-governed” transition qualities. It will lead to increased private ownership in the generation sector in Turkey, where state-owned electricity generation company Elektrik Üretim A.Ş, still accounts for 25 per cent of installed capacity. In addition, most of the project's production will be sold on the wholesale market with no long-term public offtake commitment, contributing to liquidity in the market. The EBRD will also explore the potential for Entek to adopt and apply best international standards.
Entek, a subsidiary of the country's largest diversified conglomerate Koc Holding, is an electricity generation company with a total installed capacity of 244 MW, consisting of six hydroelectric power plants (87 MW) and one gas fired power plant (157 MW).
EBRD Finance Summary
The financing package of TL 1.5 billion ( equivalent of approximately USD 375 million, depending on the TL/USD exchange rate) will be provided partly in TL and partly in USD by the EBRD and commercial banks.
Total Project Cost
About TL 1,540,000,000.00
About USD 375,000,000.00
Environmental and Social Summary
Category B. Environmental and social issues associated with the financing of a privatization of two existing hydro power plants are site-specific and can be readily assessed and mitigation actions can be developed based on an Environmental and Social Due Diligence (ESDD). The sites have been recently visited by ESD and the visit confirmed that the sites are well run and maintained. As part of this Project an independent ESDD has been undertaken of the two HPPs inclusive of dam safety and cumulative environmental impacts to ascertain environmental and social risks in line with best practice and EBRD’s guidelines on hydropower projects.
The ESDD has confirmed that the two HPPs are well managed and maintained and the Company has the institutional capacity to implement the EBRD’s performance requirements regarding the HPPs. The privatization will not be associated with significant changes to current operations.
Based on the ESDD an environmental and social action plan, a stakeholder engagement plan, and non-technical summary have been developed.
Stakeholder engagement plan
This project summary document will be updated after the EBRD’s review process.
The EBRD will monitor the implementation of the environmental and social action plan.
Company Contact Information
H. Volkan Yener, Business Development Manager
Tel: (+90) 216 217 11 52
Address: Camlica Is Merkezi Unalan Mahallesi, Ayazma Caddesi B1 Blok No 11, 34700 Uskudar / Istanbul - Turkey
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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