EIB lends EUR 135 mln to Turkey for hydro-power project

The European Investment Bank, the European Unions long-term financing arm, is to lend EUR 135 mln to support the construction of eight hydroelectric power plants in south east Turkey by Enerjisa Enerji Üretim A.S., a 50/50 joint venture between Haci Omer Sabanci Holding A.S and Österreichische 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 bln project to build 10 hydroelectric power plants and an efficient gas-fired power station in Bandirma, northern Turkey, with a combined capacity of 1.9 gigawatts (GW). The EIB financing concerns only the renewable energy part of Enerjisas programme and complements EUR 965 mln finance facilities arranged by International Finance Corporation, Akbank and WestLB.
Turkey’s status as an EU accession country makes it eligible for funding under the EIBs pre-accession facility and this project will help the country meet its future energy needs in a climate-friendly way, the EIB noted in an announcement.
Most of the project’s hydro-power plants are expected to become operational in 2011, with the remainder coming on stream in 2012.
Under the EUs 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.