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.
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").
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.
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.
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.
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