26016 - Enerjisa Enerji Uretim A.S.

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Environmental & Social Review Summary

Project Number

26016

Company Name

ENERJISA ENERJI URETIM ANONIM SIRKETI

Date ESRS Disclosed

Jan 31, 2008

Country

Turkiye

Region

Central Asia and Turkiye

Last Updated Date

May 10, 2025

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Mar 13, 2008
Signed : Jun 13, 2008
Invested : Dec 17, 2008

Sector

Large Hydro - Renewable Energy Generation

Industry

Infrastructure

Department

Gbl Infrastructure & Natural Resources

Project Description

EnerjiSA is a 50:50 joint venture formed in May 2007 by H.O. Sabanci Holding A.S. (Sabanci) from Turkey and Österreichische Elektrizitätswirtschafts-Aktiengesellschaft (Verbund) from Austria. Sabanci is one of the leading industrial and financial conglomerates in Turkey, and Verbund is the largest vertically integrated electricity group in Austria. The joint venture will develop and operate a generation portfolio of hydropower, gas, coal, and wind power plants, as well as distribution and supply and wholesale/trading. IFC’s funds would not be used for any nuclear power investments by the company.

Through its own development, EnerjiSA currently owns and operates four natural gas-fired combined cycle and combined cycle-cogeneration plants (65 to 120 MW electricity capacity), and as a result of acquisitions owns and operates four hydroelectric power plants with capacities ranging from 7 to 48.5 MW. The project is to finance the first phase of EnerjiSA’s capital investment program, covering the 2008 to 2012 period. The first phase envisions the construction of the 933 MW Bandirma natural gas fired thermal power plant in western Turkey adjacent to the Marmara Sea, and – according to current planning – ten hydroelectric power plants with total capacity of 972MW, including Cambasi (45 MW) in the Solakli River basin in northern Turkey; Kusakli (29MW), Kavsakbendi (175 MW) Yamanli II (79 MW), Kopru (120 MW), and Menge (55 MW), located in the Seyhan River basin in the south of Turkey; and Dagdelen (11MW), Kandil (214 MW), Hacininoglu (142 MW), and Sariguzel (103 MW), located in the Ceyhan River basin in the south-east of Turkey. A technical and economic optimization of the individual projects is going on. For the subsequent phases of its long-term capital investment program, EnerjiSA continues to identify additional power generation projects and is in the process of acquiring new hydropower generation licenses and studying coal reserves for coal fired thermal plants.

Overview of IFC's Scope of Review

The proposed IFC investment will extend corporate loans to EnerjiSA Enerji Üretim A.S. (EnerjiSA or the company), secured with its underlying portfolio of energy assets and contracts, to finance the first phase of EnerjiSA’s capital investment program for the 2008 to 2012 period. IFC’s proposed investment will be in parallel with financing from the Turkish commercial bank Akbank and WestLB of the UK. WestLB is an Equator Bank, and thus also follows IFC’s Performance Standards. In view of scale of the projects to be funded, in addition to assessment of corporate social and environment management capacity, a preliminary project-centered social and environment assessment was undertaken. Specific aspects of EnerjiSA’s management system evaluated include:

- Company’s corporate environmental and social management systems, management performance in its existing operations, and its extension to new projects;
- Social and environmental assessment process and documentation for the proposed project; and
- Community engagement activities (public consultation and disclosure).

IFC, Akbank, and WestLB jointly engaged the engineering consulting firm Sargent & Lundy as their Independent Engineer for the project. Sargent & Lundy conducted a technical, environmental, and social due diligence review of EnerjiSA’s existing assets and projects under development. IFC and Sargent & Lundy staff conducted visits and interviews at EnerjiSA’s headquarters, at EnerjiSA’s engineering design and environmental/social consultants, and at representative company facilities. Sargent & Lundy’s December 2007 draft report was a principal source for IFC’s staff review of the project. IFC staff also reviewed the following documents:

- EnerjiSA Hydroelectric Power Plants, presentation, June 2007;
- General Information about EnerjiSA’s Natural Gas Powerplants, presentation, June 2007; and
- EnerjiSA Thermal and Hydro Projects, presentation July 2007.

EnerjiSA’s projects are under development, and project designs and social and environmental documentation are in preparation. As the Independent Engineer to the Lenders, Sargent & Lundy will review the design and E&S documentation for each project for consistency with IFC’s Performance Standards prior to disbursement of funds for that specific project. IFC will work with EnerjiSA and Sargent & Lundy on the first project (expected to be the Bandirma gas turbine plant, see below) to assist the company in the process.

E & S Project Categorization and Applicable Standard

While all Performance Standards (PS) are applicable to this corporate investment, IFC’s review indicates that the investment will have impacts that must be managed in a manner consistent with the following:

- PS1: Social and Environmental Assessment and Management Systems, and
- PS2: Labor and Working Conditions.

Applicability of other Performance Standards will be determined as part of the project-specific reviews, as discussed below.

The proposed project is a corporate loan to EnerjiSA, for which the funds will be used for construction of specific power plants. The key issue reviewed during appraisal involved the effectiveness of EnerjiSA’s corporate environmental and social management system and the ability of the organization to ensure compliance with Government of Turkey (GOT) regulatory requirements and IFC’s Social and Environmental Performance Standards in the various power infrastructure construction and operation activities in which the company participates. The company’s activities primarily involve natural gas fired and relatively small hydroelectric power plants, and this corporate investment is a Category B project because a limited number of specific environmental and social impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.

Environmental and Social Mitigation Measures

- PS 1: Social and Environmental Assessment and Management Systems

EnerjiSA’s planning of new facilities follows the requisite Government of Turkey requirements related to permits and environmental and social impact analysis (ESIA). However, at present these ESIAs do not take into account IFC Performance Standards or the Equator Principles, except insofar as those correspond to Turkish law and regulation. A sizable increase in EnerjiSA’s corporate environmental and social and health and safety management staff will be required to implement the large number of planned facilities in the investment program.

EnerjiSA will ensure compliance with the national laws, norms, contractual and other requirements applicable to its energy activities by putting in place a company-wide management system that integrates environment, social, health and safety, and quality performance. As part of the Action Plan agreed with the Lenders, EnerjiSA will implement the following measures:

- Social and Environmental Assessment:

EnerjiSA will develop and implement due diligence procedures that identify social and environmental risks and impacts of its projects. As appropriate, impact assessments, audits, and other studies will be prepared to evaluate projects.

- Management Program, including Organization, Training, and Monitoring:

EnerjiSA will establish a formal Environmental and Social Management System (ESMS) at the corporate level, which will be extended to both existing and new projects. For each new project, EnerjiSA will incorporate the results and findings of the environmental and social assessment into a project-specific program of mitigation and improvement measures, including operational procedures and practices. An Action Plan will be prepared for each project that describes activities necessary for compliance as well as the organizational structure and assigned responsibilities for execution.

- Reporting:

EnerjiSA will put in place a Public Consultation and Disclosure Strategy (PCDS) and procedures for engagement with affected communities, and reporting and monitoring of project performance to its senior management as well as to government agencies and lenders.

EnerjiSA will, with the assistance of the Independent Engineer, implement its management system, using the Bandirma plant as a model for going forward. It is expected that the company will need additional environmental analysis (including cumulative effects), a RAP, a community engagement plan, and a labor force management plan to meet IFC’s Performance Standards. EnerjiSA would also strengthen the local consultation and disclosure conducted to date for Bandirma. For subsequent plants, EnerjiSA would prepare each project consistent with its ESMS and the Performance Standards, to be verified by the Independent Engineer.

Regarding environmental compliance of EnerjiSA’s existing plants, the four natural gas plants are understood to be in emissions compliance, subject to a more detailed review by the Independent Engineer. Site visits to the KentSA, Adana, and Suçati plants did not disclose apparent environmental problems, such as evidence of oil spills or improper waste disposal, inadequate secondary containment on oil storage tanks, etc. As part of the Action Plan agreed with IFC, EnerjiSA will provide additional information such that the Independent Engineer can evaluate compliance with PS3: Pollution Prevention and Abatement. The Independent Engineer will review design parameters and anticipated emissions performance of new facilities to be funded by the project for consistency with good international industry practice and IFC’s PS3.

EnerjiSA’s engineering design consultants have all adopted design criteria used by the General Directorate of State Hydraulic Works (DSI), which was empowered by the Turkish government to plan, design, construct and operate dams, hydroelectric power plants, domestic water and irrigation schemes. Because DSI has adopted the US Bureau of Reclamation (USBR) criteria, EnerjiSA’s hydroelectric plants are expected to conform to the safety requirements of PS 4. IFC’s Independent Engineer will review each project prior to funding for consistency with good international industry practice for hydroelectric projects and the IFC’s Performance Standard 4: Community Health, Safety and Security.

EnerjiSA’s hydroelectric power plants will be located in relatively remote areas that have not been subject to civil unrest or other activities that would require heightened security measures. Site security will initially be the responsibility of the contractor, and revert to EnerjiSA during facility operation. Normal security levels for a facility of this type will be used, e.g., unarmed, uniformed guards. Access to construction work areas will be controlled, with provisions made for the needs of the local population.

EnerjiSA’s planned hydroelectric projects will be located in sparsely populated, relatively remote areas with mountainous topography and narrow valleys, thus reducing effects to local populations from dam construction and reservoir filling. Preliminary information indicates that five of the hydro projects have reservoirs that would reportedly require the resettlement of a total of 150 households. Five to six villages would be affected with two villages significantly affected due to the inundation of Seyhan and Ceyhan River valley lands from reservoirs. Other land acquisition that does not require physical resettlement will also be needed. Under Turkish requirements, EnerjiSA is not obliged to prepare Resettlement Action Plans or provide assistance for people who will be displaced (other than paying them for their land and other losses). As part of its Action Plan agreed with IFC, EnerjiSA will prepare Resettlement Action Plans and provide assistance to affected people as required by PS5: Land Acquisition and Involuntary Resettlement.

Flora and fauna surveys conducted to date for project ESIAs found no endangered, threatened, or rare species that would be affected. The Cambasi project includes two proposed diversion weirs; a weir location on the Haldizen River is within the boundaries of the Uzongol National Park. EnerjiSA is currently in negotiations for the small modifications to the boundaries of the National Park in order to allow construction of the weir to proceed. Several buildings (including residences, stores, and mosques) are located within the National Park boundaries near the weir location, so the area is not pristine. The Yamanli II project includes two proposed diversion weirs and a power plant located on the Goksu River. The upstream weir location reportedly encroaches on an area that is being managed for the habitat of wild goats. EnerjiSA is coordinating with the GOT regarding the management plan for this area, and will incorporate necessary mitigation into the ESIA. The Independent Engineer will review the outcomes of these negotiations for consistency with PS 6: Biodiversity Conservation and Sustainable Natural Resource Management, prior to any project-specific funding by Lenders.

Preliminary information indicates that no Indigenous Peoples as defined in PS7 are expected to be affected by the project. Also, no significant sites of cultural heritage are expected to be affected. EnerjiSA will have in place a chance finds procedure, consistent with PS8: Cultural Heritage, to be implemented if required.

- PS2: Labor and Working Conditions

EnerjiSA will update its human resources policy and procedures as well as occupational health and safety policy and procedures, currently based on GOT requirements, to conform to Lenders’ and other requirements, including IFC’s PS2. The company will, through its contracts, require its contractors to apply the same standards. EnerjiSA has committed to submit updated Human Resource Policy and procedures and details of its health and safety program for review and approval by IFC before project-specific disbursement of funds.

Stakeholder Engagement

EnerjiSA’s dialogue and communication with affected communities will be accomplished as part of its Public Consultation and Disclosure Strategy (PCDS), which will be designed to meet established GOT legal requirements and IFC’s Performance Standards 1 and 5. For each project, public consultation and disclosure of the social and environmental impact assessment will occur through the procedures established as part of the strategy. EnerjiSA will also develop a procedure within its ESMS that addresses communication with external parties, including the handling of complaints.

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Identified Applicable Performance Standards

Environmental and Social Categorization and Rationale

Environmental and Social Mitigation Measures

Environmental and Social Mitigation Measures

Stakeholder Engagement

Stakeholder Engagement

Local Access of Project Documentation

Press-Release

Related SII

Similar Projects

Information on E&S Complaints and Grievance Mechanisms

Disclaimer