The Asian Infrastructure Investment Bank (AIIB), the European Bank for Reconstruction and Development (EBRD) and the Black Sea Trade and Development Bank (BSTDB) are set to provide financing for Gürmat Elektrik’s EFELER geothermal plant expansion.

The three banks have agreed to provide a financial package of $350m for three new units at the EFELER plant.

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 EBRD and BSTDB in the private sector, and our first investment in the geothermal space.

“It is also a visible example of AIIB’s commitment to the expansion of renewable energy projects led by the private sector in Turkey.”

Out of the three new units, EFE-6 (22.6MW) and EFE-7 (25MW) have already commenced their operations, while EFE-8 with a capacity of 50MW is still under construction.

Gürmat Elektrik, a renewable energy subsidiary of Güris Holding, will receive $100m loan from the AIIB, while a $60m loan will be provided by EBRD and $20m loan by the BSTDB.

Additionally, Turkey’s commercial lender Isbank is providing $90m loan, and the Industrial Development Bank of Turkey TSKB and ICBC Turkey are offering $50m and $30m respectively.

EBRD Sustainable Infrastructure managing director Nandita Parshad said: “We are pleased to build on our previous cooperation with Guris Holding, a long-standing client of the EBRD with a strong track record of project implementation.

“We are also proud to join forces with AIIB, BSTDB and commercial banks and together provide a comprehensive financing package to the company.”

The expansion will see the addition of nearly 100MW to the power plant, and help Turkey diversify its energy mix. The plant’s eight units will have a total installed capacity of 260MW when they are completed in 2020.