Turkey Residential EEFF (TurREEFF)

Location:

Turkey

Project number:

45195

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

26 Feb 2014

Status:

Approved

PSD disclosed:

05 Apr 2013

Sub-projects signed under this framework

Translated version of this PSD: Turkish

Project Description

The EBRD is considering a framework operation of USD 350 million under which credit lines will be provided by EBRD to several commercial banks in Turkey for residential energy efficiency investments, undertaken by private residential stakeholders including individual homeowners, housing associations, condominiums, housing cooperatives, and service providers (e.g. housing management companies, ESCOs, construction companies implementing energy efficiency improvements on behalf of homeowners, etc.). Eligibility requirements will be set up beyond Turkish regulation at level compliant with EU best practice.

Sub-projects

TurREEFF will finance energy efficiency up-grade and improvements in private residential properties. Eligible measures will encompass complex energy efficiency up-grade or implementation of measures related to thermal protection of residential buildings and/or improvement of efficiency of mechanical and electrical services (space heating, domestic hot water, mechanical ventilation, air-conditioning, lighting, water supply, building integrated renewable energy installations).

Transition Impact

TurREEFF will generate transition impact by demonstrating the benefits of household energy conservation and promoting the expansion of energy efficiency investments in the otherwise difficult residential sector. Such demonstration will also be provided by promoting enhanced energy efficiency standards beyond Turkish regulations, and in line with EU best practise.

The Project will help develop and demonstrate effective financing mechanisms for residential energy efficiency projects through dedicated credit lines. TurREEFF will combine financing, technical assistance and regulatory support in an integrated solution to effectively address the existing complex market barriers.

The Facility will also contribute to strengthening the regulatory framework related to energy efficiency in buildings and housing legislation. Additionally, TurREEFF will support the creation of new market players such as bankable housing associations and/or private housing management companies. This support will encompass technical and legal assistance with regard to interpretation of housing regulations and management structure and opportunities for apartment building refurbishment.

The Client

Clients of the facility will be several commercial banks in Turkey. These clients will be selected from leading commercial banks with extensive outreach into the household and energy efficiency equipment manufacturing.

Moreover, these banks will possess the institutional capacity and commitment to successfully mainstream residential energy efficiency financing within their business units and coordinate the programme with the National Urban Transformation Initiative, launched by the Government of Turkey.

EBRD Finance

Up to USD 280 million in EBRD financing in the form of senior loans, to be complemented by additional financing from other IFIs and/or funding sources.

Project Cost

USD 350 million.

Environmental Impact

Categorised FI (2008): This project offers significant environmental opportunities as it will contribute to the reduction of greenhouse gases. All participating banks are required to comply with the requirements of EBRD’s Performance Requirement 2 (“PR”) on Labour and Working Conditions. All sub-loans under the credit lines will need to comply with the requirements of PR9.
Sub-borrowers financed through the credit lines will be required to comply with national requirements for environment, health and safety and labour standards. Reporting on sub-projects and annual environmental and social reports will be provided by the participating banks. An independent consultant will be employed to review proposals and confirm compliance with national EHSL requirements.

Technical Cooperation

The Facility will be supported by a comprehensive technical assistance programme to provide implementation support to participating banks and sub-borrowers. Up to USD 10 million funding for the TC programme will be secured from external donors.

 

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

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

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