Galata Wind (EBRD-53753)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Turkiye
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Sep 6, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
GALATA WIND ENERJI AS
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 45.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 54.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Dec 9, 2022

Disclosed by Bank Oct 31, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

PROJECT DESCRIPTION

USD 45 million loan with 7-year tenor (the "Loan") in favour of Galata Wind Enerji A.S. (the "Company" or "Galata Wind"), a listed renewable energy company incorporated in Turkiye.

PROJECT OBJECTIVES

The proceeds of the Loan are planned to be used to finance the renewable energy investments of up to 50 MW of extension projects for Mersin WPP and Sah WPP (the "Project").

TRANSITION IMPACT

ETI score: 60

ETI score: 60

The Transition Impact arises from the Green quality: The Loan will finance the planned renewable energy investments in the next 2 years. The Project supports climate mitigation activities by displacing c. 51,000 tonnes of CO2 emission per annum from Turkish power system by producing 144 GWh of renewable electricity.

CLIENT INFORMATION

GALATA WIND ENERJI AS

Galata Wind Enerji A.S.

Galata Wind Enerji A.S. is a renewable energy company with a total installed capacity of 269 MW (235 MW Wind, 34 MW Solar). 73% shares of the Company owned by Dogan Sirketler Grubu Holding A.S. ("Dogan Holding") and the remaining shares are publicly traded.

 

ADDITIONALITY

The Bank's additionality stems from supporting a renewables market player through bridging a financing gap and providing a financing package to support diversification of the financiers in these adverse macro-economic environment.

ENVIRONMENTAL AND SOCIAL SUMMARY

Category B (2019 ESP). Independent environmental and social due diligence (ESDD) has shown that while the Project may be associated with some E&S impacts and risks these are expected to be readily addressed through mitigation measures. The Company has in place the necessary E&S management capacity. The Project is structured to meet the Bank's E&S requirements through an ESAP which has agreed with the Company.

The Mersin WPP and extension are distant to residential areas but is located just inside a Key Biodiversity Area (for flora). The Sah WPP is distant to residential areas, located in a forestry area but is located adjacent to an existing Important Bird Area (IBA) and wildlife protection area. The planned expansion will be located outside the IBA. The area of key sensitivity is ~10km east of the WPP in the Kocacay Delta.

The Company has in place various policies and ISO standard management systems and the resources for their implementation. For the extensions it will need to conduct the necessary ESIAs satisfactory to the EBRD and implement management plans. Worker provisions are generally in line with PR2 but a formal grievance mechanism will need to be implemented. Provisions will also be required for contractor workers.

It is expected that the Company will use the same turbines as currently in place. A review has not identified any significant E&S risks associated with this supplier. Nevertheless, the Company will need to conduct a risk assessment and enhance its supply chain management provisions. The Project is not expected to be associated with any significant emissions and discharges. Noise, shadow flicker and visual impact assessments will be necessary for the expansions although significant impacts are not expected. Health and safety is managed through an ISO certified management system although areas for improvement have been identified including the need for measures during construction, i.e. for community safety and transport management. No significant physical climate risks have been identified. The Mersin WPP expansion will require both private and forestry land and the Sah WPP expansion will be located on forestry land. Land acquisition will be in line with EBRD's PR5.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Ali Gurpinar
Alig@galatawind.com.tr
+90 216 556 94 24
wwww.galatawindenerji.com
Burhaniye Mah. Kisikli Cad. No:65 Uskudar/Istanbul

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

How it works

How it works