27191 - Rotor Elektrik Uretim A.S

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Environmental & Social Review Summary

Project Number

27191

Company Name

ROTOR ELEKTRIK URETIMI AS

Date ESRS Disclosed

Jul 28, 2008

Country

Turkiye

Region

Central Asia and Turkiye

Last Updated Date

Oct 14, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Apr 3, 2009
Signed : May 8, 2009
Invested : Aug 27, 2009

Sector

Wind Power - Renewable Energy Generation

Industry

Infrastructure

Department

Regional Industry INF MCT

Project Description

The proposed IFC loan will be extended to Rotor Elektrik, a subsidiary of Zorlu Enerji, one of Turkey’s largest private power companies. The proceeds of the loan will be used to finance the construction of a 135 MW, approximately EUR180 million wind farm in the province Osmaniye in Southern Turkey.

The project will significantly increase Turkey’s wind generation capacity and will be the country’s largest wind farm built to-date. It will contribute to addressing the Turkish power deficit and increase the country’s power generation from clean renewable sources while supporting the rapidly growing national economy.

Once operational, the project will:

- increase Turkey’s electricity output from wind energy;
- in doing so, displace carbon emissions, reducing pollution and contribute to the effort to reduce global warming;
- by size and nature of the transaction, influence Turkey’s ability to attract foreign investment in the renewable energy sector and position Turkey as an alternative emerging market destination for wind power investments;
- contribute to the development of merchant power operations and private sector investment in Turkey’s energy sector.

Overview of IFC's Scope of Review

Documents Reviewed

Project Introductory File (PIF)/Preliminary Environmental Impact Assessment, dated March 2008, prepared by Rotor Elektrik.
Transmission Line Environmental Impact Certficate, dated January 25, 2008 issued by the Osmaniye Environment and Forestry Directorates.
Environmental and Social Impact Assessment (ESIA), dated January 2009 prepared by Dokay Engineering and Consultancy Ltd.
Environmental and Social Management and Monitoring Plan (ESMMP) dated JANUARY 2009 prepared by Dokay Engineering and Consultancy Ltd.
Independent Ornithological Report, dated January 2009 prepared by Kerem Boyla.

Site Visits: Visits to the project site, neighboring Villages, transmission line route, existing substation, conducted by IFC staff June 2008.

Meetings and Discussions: Rotor Elektrik project team, Dokay Engineering ESIA Manager, Osmaniye Regional Environmental Directorate, Osamaniye Regional Forestry Directorate, Village Heads of Bahce and Hasan Beyli, officials of the Turkish Electricity Transmission Company, Turkish Electricity Generation Company Inc. (EUAS).

E & S Project Categorization and Applicable Standard

IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

- PS1: Social and Environmental Assessment and Management Systems
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS4: Community, Health Safety and Security

All land used for the wind farm and associated transmission line is located on forestry department and government land. No direct or indirect economic displacement will result (PS5). A small piece of land for one of the transmission towers will involve acquisition of several small plots, this will be done on a willing-seller and buyer basis at market rates consistent with IFC requirements. No sensitive areas or natural habitats are expected to be impacted as the forestry land is plantation forest and is of no ecological significance. The site is not located in a bird migration corridor nor does it contain any protected flora or fauna (PS6). There are no indigenous groups or individuals present in the project area nor are there any cultural resources or property in the area (PS7& 8).

This is a category B project according to IFC’s Environmental and Social Review Procedure because a limited number of environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The project impacts are inherently positive as the project will generate energy from a renewable resource. As the project, including the wind farm and 9km transmission line, is almost entirely located on Government plantation forestry land, socioeconomic impacts associated with land acquisition do not arise. Similarly as the forest is plantation as is under regular planting and harvesting there is existing activity and human presence in the area. In addition as the project will use existing forestry roads, it has minimal impact on any local fauna or timber resources as its physical footprint is relatively small. There is strong local support for the project amongst local community and regional and national environmental NGOs.

Environmental and Social Mitigation Measures

- PS1: Social and Environmental Assessment and Management Systems:

The project site was selected based on research conducted by the EUAS and data contained in the Wind Map of Turkey. EUAS has mapped several regions of the country for wind availability against the potential environmental and social sensitivities of the given site. Based on these factors the Bahce area was considered a good location as there are minimal impacts with regard to land issues and natural habitats. Rather the income the Regional Directorate of Forestry will receive from the project far exceeds revenue potentially generated from forestry operations. This will enable increased planting in other areas in Osmaniye while also generating electricity from a renewable resource.

The project ESIA includes an ESMMP addressing mitigation and management actions through all phases of the project. The ESMMP defines who is responsible for implementing recommended mitigation measures and in what time frame these should happen. The company will develop a management system (through assigning formal line responsibility) to ensure all ESMMP measures are implemented in a defined and consistent manner. In addition, as the project entails a potential second phase 50 and 60 MW developments, at a later stage, the ESIA and the ESMMP addressed anticipated incremental impacts associated with land use, visual impacts, shadow flicker and noise. As this second phase will similarly be developed on Government forestry land located away from human settlements, impacts are minimal. Rather as the area has no major industry and is largely agricultural, unemployment is higher than average and local communities are in support of new job creating development. The ongoing community engagement that Rotor Elektrik is engaged in is specifically consulting communities related to the proposed second phase and it’s anticipated impacts. Furthermore this is defined in the project ESMMP, which recommends completion of an ESIA for phase two.

- PS2: Labor and Working Conditions:

Rotor Elektrik will develop, based on Zorlu’s existing HR Policy, a written HR Policy consistent with this PS and will provide all staff access to this policy. Rotor Elektrik will allow collective bargaining and will ensure all direct and non employee workers are treated in accordance with applicable requirements of this PS. When hiring, the company will give priority to local workers in all cases where their skills match available jobs. Best practice safety standards will be applied with regard to use of personal protective equipment, work procedures (for tower erection and maintenance) and equipment movement. Contractors will be required to comply with the project ESMMP and ensure all employees receive appropriate safety training and protective equipment.

- PS3: Pollution Prevention and Abatement:

The project is of course implicitly a net benefit from a pollution perspective. Nevertheless construction and maintenance will generate a limited amount of general waste (packaging, metals, plastics, filters, oils etc.) which will be disposed of in designated places by licensed contractors. The ESIA refers to the need to manage drainage and erosion during road expansion and maintenance onsite, for this specific actions and responsibilities are defined in the ESMMP.

- PS4: Community, Health Safety and Security:

The main risk to communities relates to the construction rather than operational phase of the project. During construction very large cranes and wide trucks will move on local roads. To minimize impacts noise and accidient risks associated with this traffic the sponsor intends will utilize an alternate existing road and avoid driving through the small local villages. A traffic management plan will be established by the project to ensure that traffic speeds, signs and controls are put in place and that employees and local people are made aware of these. This plan will be disclosed to the public in coordination with local authorities. Due to the topography of the area and the distance to the nearest receptor, at 1 km, visual impacts and those associated with noise and shadow flicker are minimal. Noise surveys conducted as part of the ESIA indicate background noise levels within acceptable ranges and which the project will not adversely affect.

Stakeholder Engagement

Rotor Elektrik has held numerous consultations with local Village Heads and held a formal Public Meeting June 19, 2008 in Bahce. This meeting was advertised through local radio and press. There have been several articles in local and national newspapers describing the project and the project is well known at the local level. There is strong support for the project due to the jobs it will bring and for it’s effect of diversifying the local agrarian economy. Additional consultations are planned and will be completed by Rotor Elektrik and their consultants in order to help define community projects which Rotor Elektrik intends to support in the area and in order to also further assess and advise communities of the second phase development planned.

The PIF, ESIA, ESMMP and Ornithological Report have been made available locally to the Osmaniye Regional Environmental Directorate and the Osamaniye Regional Forestry Directorate. In addition these documents are available on the following website:

http://www.zoren.com.tr/TR/COMPANIES/companies10.asp

http://www.zoren.com.tr/EN/COMPANIES/companies10.asp

For further information related to the project contact:

Sinan Ak
Deputy General Manager
sinan.ak@zorlu.com
+90 212 456 23 00
Yağmur Özdemir
Project Finance Manager
yagmur.ozdemir@zorlu.com
+90 212 456 23 00

**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).

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