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Turkey - Mid-Size Sustainable Energy Financing Facility (EBRD-41955)

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
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
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
Dec 14, 2010
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.
Investment Amount (USD)
Not Disclosed
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.
Other Related Projects
Primary Source

Original disclosure @ EBRD website

Disclosed by Bank Nov 4, 2010


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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 The EBRD launched a framework operation on 14 December 2010, valued at up to EUR 400 million, under which the Bank provides funding to at least four commercial banks in Turkey for on-lending to private sector borrowers for mid-size energy efficiency, renewable energy and waste-to-energy investments (MidSEFF).This MidSEFF framework operation includes EUR 300 million senior loans/DPR programmes and EUR 100 million of EBRD direct risk participation in select sub-projects. An additional EUR 300 million of co-financing is anticipated from other multilateral or bilateral financing institutions.Following the successful co-operation with the first three commercial banks under the Mid-SEFF, the EBRD will launch an extension framework operation (MidSEFF II) of EUR 300 million under which financing will be provided by EBRD to up to three commercial banks in Turkey, for on-lending to private sector borrowers for mid-size renewable energy (RE), waste-to-energy (WtE) and industrial energy efficiency (EE) investments. This extension is sought in order to increase the scale and market impact of current operations and further encourage partner banks and project sponsors to comply with higher standards of environmental preparedness of mid-size renewable energy investments (maximum individual Sub-loans up to EUR 40 million). TRANSITION IMPACT The Project generates transition impact by promoting the acceleration and scale-up of sustainable energy investments, including diversification of technologies in Turkey. THE CLIENT Clients of the facility will be up to 7 commercial banks in Turkey. Clients are selected from leading commercial banks with the institutional capacity and commitment to successfully expand a business line in sustainable energy investments as one of their priority areas. As of December 31th 2011, four agreements have been signed with Garanti Bank, Vakifbank, Deniz Bank and AkBank for EUR 525 million. YKB was the first bank under the extended Facility with IsBank and FinansBank expected to be included as additional banks in MidSEFF II during 2012. EBRD FINANCE The original Framework consisted of EUR 300 million in unsecured senior loans or loans secured by current and future remittances, to be accompanied by EUR 100 million of direct Risk Participation agreements.Under the extended framework EUR 225 million will be provided as EBRD exposure to commercial banks (either through unsecured senior loans or securitised DPRs programmes and will be complemented by EUR 75 million of EBRD direct risk participation in selected sub-projects. Direct participation will be administered under Risk Participation Agreements (RPAs) with the same commercial banks. PROJECT COST MidSEFF I EUR 400 million.Extension (MidSEFF II) EUR 300 million. ENVIRONMENTAL IMPACT Categorised FI (2008). All participating banks are required to comply with the EBRD's Performance Requirements for FIs (specifically, PR2 and 9) and adhere to the EBRD's Environmental and Social Exclusion and Referral Lists and submit Annual Environmental and Social Reports to the EBRD. An independent Project Consultant is in place to ensure that sub-loans comply with the national environmental, health and safety legislation requirements and the EBRD's eligibility criteria for hydropower and wind power projects. TECHNICAL COOPERATION The Facility is currently supported by a comprehensive technical assistance programme to provide implementation support to participating banks and project sponsors. Funding for the TC programme is provided under the current EC IPA 2009 funding allocation to EBRD EE (TurSEFF and MidSEFF) operations (up to EUR 3.967 million of EUR 7.7 million EE window allocation). COMPANY CONTACT Oksana PakE-mail:pako@ebrd.com
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.
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, 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.

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