Municipal Renewable Energy Transition Program (ADB-59212-001)

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
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
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."
Borrower
Government of Turkiye
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 220.00 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.
Loan Amount (USD)
$ 220.00 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.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jan 19, 2026

Disclosed by Bank Nov 18, 2025


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

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.

As stated by the ADB, the proposed RBL program aims to increase the use of RE through self-generation by municipalities in public facilities. 0ller Bankas1 Anonim ^irketi (0LBANK), a government body responsible for overseeing and providing funds to municipalities for government-approved development projects, has approached ADB for financial assistance to expedite and facilitate municipalities in contributing to the successful implementation of Turkiye's National Energy Plan 2022 as well as Turkiye's Energy Transition Plan of enhancing energy security by increasing the RE share to 120 GWs by 2035 and transition to a carbon-neutral economy by 2053.

The rationale of the proposed program stems from Turkiye's commitment to energy security, fiscal sustainability, and climate action especially in the wake of economic shocks, rising energy prices, and the 2023 earthquakes. Turkiye's energy policy is centered on ensuring affordable energy, enhancing energy security, and liberalizing the energy market. Turkiye's energy sector is at a critical juncture, characterized by rapid growth in energy demand, heavy reliance on imported energy, ambitious targets for renewable energy (RE) adoption, and ongoing efforts to enhance energy security and independence. Rapid economic and population growth in Turkiye over the past 2 decades have not only driven strong growth in energy demand, but also an associated increase in import dependency. As a result, Turkiye has pursued a restructuring of its energy system with the aim of rationalizing energy demand growth, lowering energy prices and slowing the pace of import growth. These reforms have included measures targeted at network modernization, liberalization, increased domestic production capacity, and considerable diversification of its energy mix. Despite Turkiye's strong RE potential and policy commitment, the uptake of distributed RE particularly in the public sector remains limited due to grid constraints, financing gaps, and institutional capacity challenges. The 2023 earthquakes and rising energy prices have further underscored the need for resilient, decentralized, and sustainable energy systems.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The ADB categorized the project E&S risks as follows:

Environment - B
Involuntary Resettlement - B
Indigenous Peoples - C

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.
<div class="description__d0544c8a94">As stated by Bloomberg, Iller Bankasi A.S. [is a State-owned financial institution that] operates as an investment bank. The Bank offers investment banking, loan facilities, technical consulting, insurance, and auditing services. Iller Bankasi serves customers in Turkey.</div>

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.

ADB Team Leader:

Adnan Tareen
Email: atareen@adb.org 

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

How it works

How it works