The European Bank for Reconstruction and Development (EBRD), International Finance (IFC), and the Dutch Development Bank FMO have agreed to provide financial assistance for improving the electricity distribution network in Turkey’s Osmangazi region in western Anatolia.
The financial institutions have agreed to provide a package of $330m to Osmangazi Elektrik Dagitim (OEDAS), the electricity company of the Osmangazi region, which distributes power to five provinces including Afyonkarahisar, Bilecik, Eskisehir, Kutahya and Usak.
As part of the financing, EBRD has agreed to provide $110m, while IFC is extending a loan worth $80m and FMO is contributing $65m.
The financing will be used by the electricity company to increase solar power capacity and hopefully reduce at least 40,000 tonnes of CO2 emissions per year, and will also focus on reducing electricity losses.
Additionally, the investment will be used by the company to enhance environmental and safety standards, as well as improve the efficiency and reliability of supply.
The investments are said to be part of a capital expenditure programme required by Turkey’s Energy Market Regulatory Authority for a regulatory period of five-years between 2016 and 2020.
The financing is expected to benefit 2.7 million people in five Turkish provinces.
EBRD is reported to be one of the major investors in the country, and since 2009 has invested €10bn in various sectors of the Turkish economy.
The World Bank Group is said to have been extending its support consistently and financed over 5GW of capacity generation by investing or mobilising more than $3bn in the Turkish power sector.
The Dutch Development Bank FMO has also been maintaining long-term relations with several key players in the Turkish industrial and financial sectors.