Turkey : Electricity Distribution
WORLD BANK’S LOAN OF $600 MILLION FOR RES PROJECTS WILL BE SUBMITTED TO EXECUTIVE BOARD FOR APPROVAL
World Bank’s Loan of $600 Million for RES Projects will be Submitted to Executive Board for Approval
Negotiations held for the $600 million loan in Ankara in March in connection with the Renewable Energy Projects have resulted positively. Approval will be likely obtained from the World Bank Administration within this month and commencement of spending the loan is planned in May.
Negotiations held in Ankara in March resulted positively in connection with the World Bank’s loan package of $600 million to be spent by private sector for Renewable Energy Resource (RES) Projects, which have been prioritized by the Government.
Agreement was reached in the negotiations held on 30-31 March 2009 for the loan in question between the World Bank officials and Treasury Undersecretariat, Ministry of Energy and Natural Resources (MENR), Energy Market Regulatory Authority (EMRA) and Turkish Electricity Transmission Corp. (TEIAS).
As might be recalled, we earlier informed you that in case negotiations towards the $600 million RES loan concluded positively, a proposal for this loan would be forwarded to the World Bank Administration for approval.
Approval is expected to be obtained by end-April
Sources close to the subject have noted that the World Bank decided to support Turkey’s initiatives towards renewable energy and her targets to this end and a positive report will be prepared to be submitted to the Executive Board of the World Bank. This loan package of $600 million is composed of $500 million World Bank loan and $100 million loan obtained from the Clean Technology Fund (CTF). Approval of the World Bank is expected to be issued within April. As known, Turkey which is a quite rich country in terms of variety of renewable energy resources and potential, has revised her projections and developed new targets.
In this second stage of loan slice of the Renewable Energy Project, financed by the World Bank earlier, apart from electricity generation, energy productivity projects will also be supported financially and technically; this will also cover financing of the manufacturing industry which achieves energy productivity and saving from the loan.
Using the loan may commence in May
In case the loan is approved by the World Bank, using the loan might start within May. Relevant sources contend that with the World Bank loan amounting to $600 million, RES power plants of the private sector to have a total of 2,000 MW installed power can be financed, and that in this process Turkish Industrial Development Bank (TSKB) and Turkish Development Bank (TKB) will be intermediary institutions.
Contacts — In Ankara: Tunya Celasin, (+90-312) 459-8300
Tcelasin@worldbank.org
In Washington: Miriam Van Dyck, (+1-202) 458-2931
Mvandyck@worldbank.or