Istanbul, Turkey, December 9, 2014 - IFC, a member of the World Bank Group, is providing a syndicated loan of $170 million to ACWA Power, an independent Saudi Arabian developer of power projects, for the construction of the new natural gas-fired power plant in Turkey.
With a capacity of 950 MW, the $1 billion plant, near the city of Kirikkale in Central Anatolia, 50 km east of Turkey’s capital, Ankara, will help meet Turkey's growing demand for reliable, sustainable energy.
The long-term financing to ACWA Power is expected to replace more carbon-intensive energy generation in Turkey and result in an annual CO2 emissions reduction of over 1,825,000 tons. IFC is securing this long-term financing by arranging a syndicated loan of $170 million: $125 million from IFC's own account and $45 million syndicated to the Korea Development Bank.
"The Kirikkale power project, which when completed will be a highly competitive electricity generator, is the company's first investment in Turkey,” said Paddy Padmanathan, President and CEO of ACWA Power International. “It is a solid foundation for the multi-fuel power-generation portfolio we seek to establish in this thriving economy."
The project’s financing brings together international financial institutions and commercial banks. European Bank for Reconstruction and Development (EBRD) is also providing a syndicated loan of $250 million to support the project.
“IFC continues to support projects that will help meet Turkey’s growing energy demand in a sustainable way,” said Wiebke Schloemer, Regional Industry Head, Infrastructure, EMENA. “Such projects in the energy sector are also significant as they represent good examples of cooperation among international financial and development institutions.”
IFC has been supporting private sector development in Turkey for the past 50 years. With a $4.3 billion outstanding portfolio, Turkey is the second largest country in IFC’s global portfolio. In line with the Turkey Country Partnership Strategy for fiscal years 2012-2015, IFC invested a record $2.8 billion in private sector projects in Turkey. In Turkey, infrastructure investments make up to 24 percent of IFC’s portfolio.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
www.ifc.org
.
Stay Connected
