Financed ProjectsGurmat Geothermal Power Plant

Identification Code:

OP/14/0034

Total Operation Cost:

970.000.000

Maturity:

180 months

Operation Status:

Description and Purpose of the Operation:

Provision of a project finance facility to the company Gurmat Elektrik Uretim A.S. (the "Borrower") for the purpose of financing construction and operation of the 170 MW geothermal power plant project that consists of 123.3 MW geothermal power plant EFELER GPP and 47.5 MW geothermal power plant Germencik GPP, located in the region of Aydin, the 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:

Turkiye Is Bankasi A.S. ("IS Bank") Turkiye Sinai Kalkinma Bankasi A.S. ("TSKB") European Bank for Reconstruction and Development ("EBRD")

Guarantors/Sponsors:

Guris Holding A.S. Guris Insaat ve Muhendislik A.S. 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.

Environmental Classification and Impact (summary):

Gurmat Geothermal Power Plant is a "green-field" Category A project. It was subject to EIA process according to the national environmental law and the Company has received the appropriate positive EIA certificate. The E&S information relevant to the project has been disclosed by BSTDB on its website on Oct 2014 and met the 30 calendar days disclosure requirement before the BoD approval. The Company had received all the permits, approvals and licenses required by the national law and the project has been structured to meet the good E&S practices applied by the geothermal industry, as well as EBRD PRs and BSTDB minimum E&S compliance requirements. The main environmental impact during the operation stage has been identified as air emissions of the geothermal non-condensable gases, mainly carbon dioxide, which is due to the hydrogeochemical properties of the Germencik geothermal reservoir. In this respect the Project will be carbon intensive, however the technical Consultant estimates that the release of non-condensable emissions will decrease steadily over the lifetime of the project. The Client jointly with the Consultant are considering ways of utilizing the carbon dioxide, including for industrial use, as well as in food and beverage industry. The Project will generate employment opportunities totaling at 450 new jobs, 350 temporary during construction, and 100 permanent during operation. The Company committed to employ the workforce and procure the materials to the extent possible from the local market. At the same time there will be some economic displacement due to removal of land from agricultural use, and the Client committed in this respect to implement a Livelihood Restoration Plan. All the critical E&S issues associated with construction and operation of the Project are addressed in the ESAP and its implementation by the Client is the main E&S condition of the BSTDB and EBRD financing.

Operation Leader:

Energy & Infrastructure

E-mail:

ei@bstdb.org