Translted vbersion of this PSD: Turkish
The EBRD is considering an equity investment of up to US$35 million to acquire up to a 20 per cent stake in a holding company (HoldCo), a vehicle to be established as a 100 per cent owner of five operating run-of-the-river hydro power plants (HPPs) currently owned by Ronesans Enerji and partners. The five HPPs have an installed capacity of 114MW and are located in the northern part of Turkey. EBRD will be making the investment alongside energy companies Edison SpA (“Edison”) and Ronesans Enerji.
The project will increase competition and foreign direct investments in Turkey by bringing an experienced European energy company into the Turkish power market. The participation of Edison, which is considering the investment in parallel, would lead to an increase in competitive pressure and induce further efficiencies in the way the power market operates and its participants behave.
The project will also set standards for corporate governance and business conduct as the Bank, jointly with Edison, will review the management systems and permitting procedures inclusive of the existing stakeholder engagement plans and through the implementation of an Environmental and Social Action Plan (ESAP) introduce best practice in running of the HPPs.
The Bank’s equity investment will be alongside Edison, a European energy company with operations in electric power and hydrocarbons exploration and production, owned by Electricité de France (“EDF”); and Ronesans Enerji, Turkish energy company, owned by Ronesans Holding, a diversified conglomerate with activities in construction, real estate development and energy.
An equity investment of up to US$35 million to acquire a 20 per cent stake in a HoldCo owning five operating HPPs in Turkey, with an installed capacity of 114MW.
Environmental and social categorisation, impact, and mitigation
The project is categorised B under EBRD Environmental and Social Policy 2008. The environmental and social risks associated with equity investment in five existing hydropower plants were subject to an Environmental and Social Due Diligence (ESDD). All sites were visited and meetings were held with representatives of the neighbouring population. The ESDD addressed the past liabilities and present risks associated with the HPPs, with a focus on (i) the social acceptance of the HPPs, (ii) past social and environmental liabilities and impacts (iii) the present impacts and risks they present for people and the environment, and (iv) occupational health and safety. The ESDD confirmed that the environmental and social issues associated with the project are site specific and can be readily identified and mitigated through appropriate mitigation measures. The measures required to bring the HPPs and their operation in compliance with EBRD performance requirements were included in an ESAP that was agreed with the project parties. The implementation of the ESAP will be subject to annual reporting and will be monitored by external auditors.
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