AIIB, EBRD and BSTDB co-finance Turkey geothermal plant expansion


The Asian Infrastructure Investment Bank (AIIB), the European Bank for Reconstruction and Development (EBRD) and the Black Sea Trade and Development Bank (BSTDB) are co-financing a financial package worth $350m (£280m) for three new units at EFELER, the largest geothermal power plant in Turkey.

The three development banks and three other lenders are assisting Turkey in diversifying its energy mix. The investment will add 100MW capacity to the EFELER geothermal power plant.

EFELER is located in the region of the Büyük Menderes Graben basin in western Turkey, an area with the highest potential for geothermal energy.

Güriş Holding’s renewable energy subsidiary Gürmat Elektrik will use the funding for the expansion at EFELER.

Under the package, Gürmat Elektrik will receive a $100m loan from the AIIB, $60m from the EBRD and $20m from the BSTDB.

In addition, Turkish commercial lender Isbank will provide $90m loan, the Industrial Development Bank of Turkey (TSKB) $50m and ICBC Turkey $30m.

Out of the three new units, EFE-6 with 22.6MW capacity and EFE-7 with 25MW have already become operational, and EFE-8, with a capacity of 50MW, is under construction.

The eight units at the plant will have a total installed capacity of 260MW after completion in 2020.

The financing is intended to help Turkey develop local renewable energy sources and to encourage private sector investment in the energy sector.

Güriş Holding said that it would provide more career opportunities for women in this sector.

AIIB vice president and chief investment officer DJ Pandian said: “This project represents a number of firsts for AIIB: EFELER is our first non-sovereign-based financing in Turkey, our first co-financing with the EBRD and the BSTDB in the private sector, and our first foray in the geothermal space.

“This project is a visible example of AIIB’s commitment to the expansion of renewable energy projects led by the private sector in Turkey. We are very glad to partner with Güriş Holding and our co-financiers in this important transaction.”


Image: AIIB, EBRD and BSTDB co-finance Turkey geothermal plant expansion. Photo: Courtesy of European Bank for Reconstruction and Development.

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