Turkey: EIB lends EUR 135 M for hydro-power project

The European Investment Bank, the European Union’s long-term financing arm, is to lend EUR 135 million to support the construction of eight hydroelectric power plants in South East Turkey by Enerjisa Enerji Üretim A.Ş., a 50/50 joint venture between Haci Őmer Sabanci Holding A.Ş andÖsterreichische Elektrizitätswirtschafts AG.

The eight plants with an installed capacity of  955 megawatts (MW) are to be built along the Seyhan and Ceyhan rivers and comprise of run-the-river weirs as well as reservoir dam structures. They form part of a wider EUR 1.4 billion project to build 10 hydroelectric power plants and an efficient gas-fired power station in Bandirma, northern Turkey, with a combined capacity of approximately 1.9 gigawatts (GW). The EIB financing concerns only the renewable energy part of Enerjisa’s programme and complements EUR 965 million finance facilities arranged by International Finance Corporation, Akbank and WestLB.

 “We are pleased to be supporting the largest ever private sector investment in new power generating capacity in Turkey,” said Matthias Kollatz-Ahnen, EIB vice-president responsible for relations with Turkey. “Turkey’s status as an EU accession country makes it eligible for funding under the EIB’s pre-accession facility and this project will help the country meet its future energy needs in a climate-friendly way.”

Most of the project’s hydro-power plants are expected to become operational in 2011, with the remainder coming on stream in 2012.

Background Information:

The EIB was founded in 1958 and is wholly-owned by  European Union member states. Under the EU’s Pre-Accession Facility and Mandate, the EIB is one of the largest investors in Turkey, committing each year EUR 2 billion on new projects. Past infrastructure projects include financing of the Bosphorus tunnel, air traffic control systems, port modernisation, road building and the modernisation of rail and tram networks. In addition, the EIB lends to small and medium-sized companies through a network of partner banks in Turkey and has financed government science and research projects.