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Annual Report

Mobilizing Capital to Avoid Energy Shortages

India's Rural Women

IFC’s biggest-ever syndication deal is helping Turkey meet its growing energy needs.

Turkey’s power sector needs private investment.

 

Without it, the country’s energy supply will be less secure, and the threat of electricity shortages more intense. Over the next five years, Turkey is expected to need around $2 billion from the private sector to meet the growing demand for efficient and sustainable energy.

 

By mobilizing capital, we’re doing our part—ensuring that Turkey can expand its generation capacity and develop environmentally friendly projects, and giving the private sector comfort to deal with commercial risks and regulatory uncertainty. In FY11, we arranged our biggest syndication ever—a €700 million financing package—for Enerjisa Enerji Uretim to build a series of power plants in Turkey with total capacity of 1 gigawatt.

 

The loan package, IFC’s second with Enerjisa, underscores the value of our work with partners in the financial sector to bring capital where it is needed most. Arranged in coordination with UniCredit Corporate and Investment Banking and WestLB, the funds will support the construction of a large natural-gas–fired thermal power plant in Bandirma, two hydroelectric plants in Yamanli and Dogancay, and one wind-power plant in Mersin.

 

It’s the largest-ever capital expansion program by the private sector in the Turkish electricity sector.

 

With Turkey’s demand for electricity expected to grow by 8 percent per year over the next decade, the Enerjisa plants will provide needed relief to the country’s power sector. But the benefits will extend beyond narrowing the gap between supply and demand. The demonstration effect of the project will instill confidence in lenders and developers, supporting the government’s effort to attract private sector investment. Through its hydro and wind plants, the project will also help reduce the carbon intensity of Turkey’s power sector.

 

By working with Enerjisa, a joint venture between Turkish financial conglomerate H.O. Sabanci Holding and Austrian utility Verbund AG, IFC is supporting the government of Turkey’s effort to reform the electricity sector and ensuring the implementation of best-practice environmental and social standards.

TURKEY EXPECTS DEMAND FOR POWER TO INCREASE 8%

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