Financed ProjectsGurmat Geothermal Power Plant expansion

Identification Code:

OP/18/0065

Total Operation Cost:

0

Maturity:

138 months

Operation Status:

Description and Purpose of the Operation:

Provision of a long term debt facility to the company Gurmat Elektrik Uretim A.S. for the purpose of financing costs and expenses, related to the construction and operation of an up to 97 MW geothermal power project that consists of three new geothermal power plans ("Gurmat Expansion") located in the region of Aydin, Western part of Turkey.

Countries of Operation:

Türkiye (100,00 %)

Financial Product:

Loans

Sector:

Utilities

Domain:

Private

Borrower/Client:

Gurmat Elektrik Uretim A.S.

Co-Financiers/Participants:

EBRD, AIIB, Isbank, TSKB and ICBC Turkey

Guarantors/Sponsors:

Guris Holding A.S., Guris Insaat ve Muhendislik A.S. and Mogan Enerji Yatirim Holding A.S.

Developmental and Regional Cooperation Impact:

The Project contributes to the development of the renewable energy sector in Turkey, improves competitiveness in the sector and creates employment opportunities in the country. The purpose of the operation of is to contribute to the Turkish economy by generating electrical energy in anticipation of a further growth of population, national economy (GDP) and the energy consumption. The project shall also contribute to the reduction of Turkey’s current account deficit via the replacement of the conventional energy sources with the renewable energy.

Environmental Classification and Impact (summary):

Category A operation. The environmental and social (E&S) information was disclosed by the Bank on Jan 8, 2019, thus exceeding the minimal timeframe of 30 calendar day disclosure before the operation may be considered by BoD. The E&S due diligence has confirmed that the Company has been implementing an EHS management system at the existing geothermal power plant sites in line with the national legislations and have had good experience with addressing EHS issues. However, additional areas for improvement have been identified during the ESDD study and an updated Environmental and Social action plan (ESAP) has been developed to ensure that that the Project and current operations are in compliance with the lender’s requirements. Measures to mitigate environmental impacts during construction, operation, and in case of incidents such as leakage of geothermal fluids, are included in the design of the Project and relevant E&S documentation. A participatory stakeholder engagement will be established to oversee the project impacts. The Company will collaborate with the other Geothermal developers to manage any impacts in the long run as part of the Technical Cooperation Project being implemented in cooperation with Ministry of Environment and Urbanization and the Lenders.

Operation Leader:

Energy & Infrastructure

E-mail:

ei@bstdb.org