WASHINGTON, November 22, 2011 - The World Bank Board of Executive Directors today approved additional financing of US$ 500 million equivalent to Türkiye Sınai Kalkınma Bankası (TSKB) and to Türkiye Kalkınma Bankası (TKB), guaranteed by the Republic of Turkey, for Turkey’s Private Sector Renewable Energy and Energy Efficiency Project. The additional financing complements an initial World Bank loan of US$ 500 million equivalent and Clean Technology Fund financing of US$ 100 million for the Project, which were approved on May 29, 2009 and became effective on August 12, 2009.
The main objective of the Private Sector Renewable Energy and Energy Efficiency Project is to help increase privately owned and operated energy production from indigenous renewable sources within the market-based framework of the Turkish Electricity Market Law, and as a result to help improve energy efficiency and curb greenhouse gas emissions.
The additional financing will finance the costs of activities to scale up the project. The Private Sector Renewable Energy and Energy Efficiency Project build on the experience of the ongoing Renewable Energy Project. It aims to tap Turkey’s significant renewable energy potential from hydro, wind, solar, biomass, geothermal, and other resources. Moreover, the project includes energy efficiency measures to help reduce waste in energy consumption.
“Turkey’s Renewable Energy and Energy Efficiency Project helps enhance energy security, support clean and efficient energy, and increase private sector involvement in energy investments and financings,” said Ulrich Zachau, Country Director for Turkey. “The Project has already established a financial mechanism through Turkish banks that assist Turkish entrepreneurs in leveraging their capital to develop renewable resources economically. We are very pleased to provide additional resources for these essential investments.”
The Private Sector Renewable Energy and Energy Efficiency Project establishes a term lending facility within the intermediary TSKB and TKB banks. The IBRD loan for TSKB is US$100 Million and EUR69.3 Million; while for TKB the allocation is US$135 Million and EUR114.3 Million.