The European Bank for Reconstruction and Development (EBRD) has approved $134.75M in financing for electricity companies operating in north-western Turkey.
The funding will be offered to the Trakya Electricity Distribution Company (TREDAS), Trakya Electricity Retail Company (TREPAS), and their parent IC İçtaş Elektrik (ICEL). In order to enable the companies to manage the foreign exchange risk, $82.25M of the loan amount will be converted to Turkish lira at the time of each disbursement.
The companies will be able to implement capital investment plans for 2016-20, including the expansion and upgrading of the network, improvements to metering systems, network efficiency, and environmental, health and safety upgrades.
EBRD director for power and energy Nandita Parshad said: “This project is a great example of how the EBRD can support the modernisation of power networks following their privatisation.
“Our financing, alongside the loans from four local banks, will help our client implement the necessary measures to remain one of the most efficient electricity companies in Turkey.”
The loan forms part of a $700M dual-currency financing package that also includes parallel loans from Garanti Bank, Isbank, Vakifbank and TSKB.
* Data provided by Timetric's Construction Intelligence Center.