Turkey Receives Additional Financing for Renewable Energy and Energy Efficiency Program

Press Release No:2012/163/ECA.WASHINGTON, November 22, 2011.The World Bank Board of Executive Directors today approved additional financing of US$ 500 million equivalent to Türkiye Sınai Kalkınma Bankası (TSKB) and to Türkiye Kalkınma Bankası (TKB), guaranteed by the Republic of Turkey, for Turkey’s Private Sector Renewable Energy and Energy Efficiency Project. The additional financing complements an initial World Bank loan of US$ 500 million equivalent and Clean Technology Fund financing of US$ 100 million for the Project, which were approved on May 29, 2009 and became effective on August 12, 2009.

The main objective of the Private Sector Renewable Energy and Energy Efficiency Project is to help increase privately owned and operated energy production from indigenous renewable sources within the market-based framework of the Turkish Electricity Market Law, and as a result to help improve energy efficiency and curb greenhouse gas emissions.

The additional financing will finance the costs of activities to scale up the project. The Private Sector Renewable Energy and Energy Efficiency Project build on the experience of the ongoing Renewable Energy Project. It aims to tap Turkey’s significant renewable energy potential from hydro, wind, solar, biomass, geothermal, and other resources. Moreover, the project includes energy efficiency measures to help reduce waste in energy consumption.

“Turkey’s Renewable Energy and Energy Efficiency Project helps enhance energy security, support clean and efficient energy, and increase private sector involvement in energy investments and financings,” said Ulrich Zachau, Country Director for Turkey. “The Project has already established a financial mechanism through Turkish banks that assist Turkish entrepreneurs in leveraging their capital to develop renewable resources economically. We are very pleased to provide additional resources for these essential investments.”

The Private Sector Renewable Energy and Energy Efficiency Project establishes a term lending facility within the intermediary TSKB and TKB banks. The IBRD loan for TSKB is US$100 Million and EUR69.3 Million; while for TKB the allocation is US$135 Million and EUR114.3 Million.

Contacts:

In Washington: Jonathan Daly, (202) 473-2588, jdaly1@worldbank.org;

In Ankara: Tunya Celasin, (202) 123-4567, tcelasin@worldbank.org

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Turkey: AKSA Energy Efficiency

EBRD has provided US$ 50 million loan to Aksa Akrilik Kimya Sanayi A.S (“Aksa”), Turkish manufacturer of acrylic and carbon fiber, to finance the implementation of a series of operational and energy efficiency investments at the Company’s production facility in Yalova. The Project will improve the Company’s operational efficiency by optimizing production processes, thereby reducing operational costs through newly adopted in house production technologies.

The Project will represent a showcase with best energy efficiency and environmental standards nationally and internationally to other players in the domestic and world market.

Transition Impact

The Project’s main transition impacts are expected to derive from the following two sources:

• Setting standards in energy efficiency and better environmental performance
  With the implementation of the entire package of energy and operational efficiency measures the Company will reduce their net process energy requirements that will result in CO2 emission savings. The Project will utilize the highest standards of best available and innovative technologies, compliant with the EU’s IPPC Directive and the respective EU-BREF directives of the textile and polymers industry. Aksa will also achieve best international practice in plant and worker safety and risk management, by implementing particular environment & social management and performance enhancement incentives within the scope of the Project.
• Demonstration effect of innovation and operational restructuring
  The Project will drive innovation and process enhancements in order to improve productivity which will lead to higher profitability. The Project will therefore represent a show case and set a benchmark for other Turkish companies utilising similar production processes.

The Client

Aksa Akrilik Kimya Sanayi A.S (“Aksa”), incorporated in Turkey for the manufacturing of acrylic and carbon fiber, is 39.5 per cent owned by Akkok Sanayi Yatırım ve Gelistirme A.S. (“Akkok”). 41.7 per cent of shares are traded on the Istanbul Stock Exchange.
Aksa is a leading acrylic fiber supplier in the domestic market and also a major player in the important markets of Middle East, China, EU and North America.

EBRD Finance

US$ 50 million long-term loan.

Project Cost

US$ 60 million.

Environmental Impact

The Project has been Categorised B in accordance with the EBRD E&S Policy, 2008. Independent Due Diligence has confirmed that potential adverse environmental and social impacts of the Project are site specific, readily identified and addressed through mitigation measures. Overall, the proposed Project will result in a net environmental benefit through improved energy and raw material efficiency and resultant savings.

Aksa has an E&S policy, a number of environmental and social management systems and CSR programmes and adequately resourced environmental, H&S, management systems and other departments. As a result, the facility is operated in an efficient manner and regularly engages with the environmental authorities and other Aksa stakeholder groups. The primary areas for improvement relate to the management of occupational health and process safety, for which actions have been agreed in the Environment and Social Action Plan (“ESAP”) to achieve industry best practice. Aksa has committed to a number of voluntary E&S management and performance enhancement incentives to achieve best in class with regard to plant and worker safety and adaptation to climate change.

Improvements at Company operations identified during due diligence have been addressed and agreed in an ESAP to ensure that the current and future operation of the facility meets, and in some instances exceeds, relevant Turkish regulations and EBRD requirements. The Bank will monitor the Project and implementation of the ESAP.

Technical Cooperation

Energy Audit, funded by Netherlands Technical Cooperation Fund, was undertaken by Royal Haskoning.

Company Contact

Aksa Akrilik Kimya Sanayi A.S
Betul Sadıkoğlu
Finance Director
Miralay Sefik Bey Sk. Ak-Han No:15
34437 , Gumussuyu/Istanbul
Tel: +90 212 251 4500
E-mail: bbingöl@aksa.com

Business opportunities

For business opportunities or procurement, contact the client company.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Text of the PIP

Project Complaint Mechanism (PCM)

The EBRD has established the Project Complaint Mechanism (PCM) to provide an opportunity for an independent review of complaints from one or more individuals or from organisations concerning projects financed by the Bank which are alleged to have caused, or likely to cause, harm. The Rules of Procedure governing the PCM can be found at www.ebrd.com/downloads/integrity/pcmrules.pdf, the Russian version can be accessed at http://www.ebrd.com/downloads/integrity/pcmrulesr.pdf

Country:Turkey.Project number:42311.Business sector:Manufacturing and Services.Public/Private:Private.Environmental category:B. Board date: 13 Apr 2011.Status: Board approved, Pending signing. PSD disclosed: 18 Nov 2011