Black Sea Trade and Development Bank Cooperates with YAPI KREDI to Finance the Construction of a Power Station in Türkiye

Press Release | 12-Aug-2001

The construction of a new 10.24 MW hydro-electric power station on the Arit river in North-West Türkiye will be executed by Borova - TML Enerji San. ve Tic. A.S. (Türkiye).

BSTDB will provide up to US$ 4.5 million covering 35% of the total project's costs (approx. US$ 12.7 million), to be repaid over 5 years. The balance of financing will come from equity participations of Turkish sponsors and loans from several banks, including Islamic Development Bank. YAPI KREDI will act as a guarantor for these loans.

The electricity produced by the new power station will be made available to the national Turkish Electricity Distribution Company (TEDAS). It will allow meeting the growing demand from the industrial consumers in the Black Sea area of Northern Türkiye.

The Arit Project is the BSTDB's third operation in Türkiye, after a US$ 10 million loan to support the Turkish SME affected by the earthquakes in 1999, and a US$16.25 million credit line to stimulate exports to the Black Sea counties.

The BSTDB Energy Sector Strategy puts an emphasis on renewable energy and energy efficiency projects in all the countries of operation. The Bank is working on a number of such project proposals for financing energy sector development in Romania, Bulgaria, Georgia, Albania and Azerbaijan.

YAPI KREDI is one of the three leading private banking groups in Türkiye.

Borova-TML Enerji San. ve Tic. A.S. is a joint venture company established in 1997 by two Turkish private engineering and construction groups, Borova and TML, to develop and operate the electric energy production projects in Türkiye. Borova and TML Groups are the principal sponsors of the Arit Project.