Environmental & Social Review Summary
Project Number
32258
Company Name
GAMA ENERJI ANONIM SIRKETI
Date ESRS Disclosed
Sep 15, 2014
Country
Turkiye
Region
Central Asia and Turkiye
Last Updated Date
Dec 1, 2016
Environmental Category
A - Significant
Status
Active
Previous Events
Approved : Nov 20, 2014
Signed : Dec 22, 2014
Invested : Jun 29, 2015
Sector
Electric Power Other (Including Holding Companies)
Industry
Infrastructure
Department
Gbl Infrastructure & Natural Resources
Project Description
IFC’s proposed investment is straight equity participation up to US$170 million for a shareholding in Gama Enerji, a power and water company with assets in Turkey (power) and Jordan (water). The company, currently equally owned by General Electric Energy Financial Services (“GE EFS”) and Gama Holding Anonim Sirketi (“Gama Holding” or the “sponsor”), will be solely owned by Gama Holding after GE EFS’ exit prior to IFC investment.
Gama Enerji, established as a separate entity from Gama Holding in 2002, primarily develops, owns and operates power generation projects, but also developed and operates a water harvesting and conveyance project. Projects are identified by the company, obtained under license from governments or acquired from previous owners at the early stage of development, such as Kırkağaç, Marmara and UWE WPPs. The Disi asset is currently controlled indirectly by Gama Holding and GE EFS, and hence not incorporated under Gama Enerji. This will be transferred under Gama Enerji prior to IFC-AMC’s investment.
The company currently has seven operational projects, consisting of three HEPs (Birecik, 672 MW, completed in 2001; Lamas, 36.4 MW, completed in 2009 and Cakirlar, 16.5 MW, completed in 2009), three WPPs (Sares, 24.75 MW, completed in 2011; Karadag, 10 MW, completed in 2012 and Gokres II, 35 MW completed in 2014), and a groundwater harvesting and conveyance project (Disi, 100 MCM/annum, completed in 2014, in Jordan). The company is currently constructing the 840 MW Ic Anadolu CCGT project (scheduled to be commissioned in August 2016) and has three wind power projects in the early stages of development (Kirkagac, 45 MW, Marmara, 10 MW and UWE Istanbul, 200 MW) in Turkey. Project construction is undertaken by specialist construction contractors. The company has majority ownership of all projects except Birecik HEP in Turkey of which it owns 20%. All projects located in Turkey supply power to spot markets, eligible clients and wholesale companies through the national grid operated by the Turkish Electricity Transmission Company (TEiAS). Each project owns the connection facilities up to the switchyard, while TEiAS owns the high voltage transmission lines (ranging from154-380 kV) from the substation onwards.
Cakirlar and Lamas HEPs are run-of-river schemes. Cakirlar HEP, located on the Murgul River in Artvin Province, northern Turkey, involves the diversion of four streams to create 450 m head to generate power. The project diversions and powerhouse are located at 1,400 m above sea level (asl) and 930 m asl, respectively, in an uninhabited area. The diversion weirs are 15-20 m high concrete structures with a sediment weir located immediately upstream, underground diversion pipelines with de-sanding basins, and an above-ground penstock and powerhouse. The project has generation capacity of 16.5 MW (maximum 4.1. m3/s) and it is the upstream HEP of a hydropower cascade.
Lamas HEP (36.4 MW) is located on the Lamas River in Mersin Province, southern Turkey. The project involves river diversion with a 5.2 m high concrete weir, 6.5 km of underground diversion tunnel/pipeline, a penstock and an above-ground powerhouse, occupying 23.8 ha. Lamas III powerhouse has a net head of 221 m and Lamas IV has a net head of 332 m, with the project powerhouses located at 413 m asl and 78 m asl respectively. The maximum capacity of the project is 7.5 m3/s. Lamas I and II, upstream of the project, have not passed concept stage.
Birecik HEP, located on the Euphrates River 37 km upstream of the Turkey-Syria border, is a large hydropower project that relies upon releases from the very large upstream Ataturk Dam (2,400 MW) to generate power. Generation is usually dictated by the dispatch centre operated by DSİ (General Directorate of State Hydraulic Works) and TEİAŞ, and largely governed by Ataturk Dam releases and the limited storage capacity in the Birecik reservoir (operating in a range of 3 m). This project, completed in 2001, is the largest BOT hydropower facility in Turkey to date and it is due to be handed to the Government in October 2016 when the operation concession expires. The dam is 62.5 m high and the project footprint covers approximately 56.25 km2 mostly consisting of the reservoir area. The maximum capacity of the project is 1,900 m3/s, with an average annual discharge rate of around 963 m³/s. Water was briefly supplied from the reservoir to the government-operated Belkis irrigation project in 2010, but this was discontinued due to high pumping costs.
The three operational wind power projects are: Karadag (10 MW); Sares (24.75 MW); and Gokres-II (35 MW). These projects have arrays of between 4-25 wind turbine generators (WTGs), with each turbine of 2.5 MW capacity apart from those at Sares that have now been rated at 2.75 MW due to software modification. Turbines are mounted on 85-100 m high tubular steel towers, with a blade rotor diameter of 100-103 m. Each WTG has a separate transformer and is connected to other WTGs and the substation via underground interconnecting 20/34.5 kV lines. The projects’ substations are connected to the national grid via a high voltage line (154 kV) (except Karadağ WPP that uses a lower voltage). Other standard facilities include earth access roads to each tower site, a hard stand area at each tower, and a central monitoring station, maintenance workshop and stores depot. The land area utilized for each WTG is typically 2,000-3,000 m2. This levelled area incorporates the WTG foundation, crane hard stand and foundation spoil disposal area. All wind power project sites are located on Government Forest Land, with WTGs located on ridgelines on coastal and inland sites at elevations of up to 600 m asl.
The 840 MW Ic Anadolu CCGT project is a greenfield development located in an industrial area in Central District, Kirikkale Province, 50 km east of Ankara. The net electricity generating efficiency of the plant will be high at ~58%, making it one of the most energy efficient gas power plants in Turkey. The plant will have a 79 m high emissions stack. The plant occupies approximately 14 ha of land acquired by Gama Industry from private owners between 2002-08. Existing neighboring land uses include an oil refinery located 600 m southeast, a forested recreation area for refinery staff on the northern boundary, and grazing land to the west. The EPC contractor is GE Energy Products France, General Elektrik Ticaret ve Servis AS, Gama Guc Sistemleri Muhendislik ve Taahhut AS and Gama SA. Construction commenced in January 2014 and commissioning is due in August 2016. At the time of the site inspection only the bulk earthworks and most retaining walls had been completed, plus some minor initial foundation works. Associated developments include a 12.6 km long natural gas supply pipeline with an offtake from the existing Samsun-Ankara natural gas pipeline, a 10 km long water supply pipeline that will offtake from the Municipal water supply scheme, a 3.1 km long wastewater disposal pipeline connecting into the Municipal sewage system, and a 58 km long 380 kV transmission line connecting to the electricity grid.
The Disi Water Conveyance Project is a Build, Operate, Transfer (BOT) scheme that draws groundwater from 55 production wells across 65 km2 of the Disi aquifer in southern Jordan and conveys the water via a 325 km of pipeline and two pumping stations to supply four major towns along the pipeline route and the greater Amman area. Project operations began in 2014 and the company has a 25 year concession period before it is handed to the Government of Jordan (GOJ). Groundwater is drawn from a depth of 500-600 m from the Disi aquifer that is shared with Saudi Arabia (where it is called the Saq-Ram aquifer system) and used for domestic supply. This aquifer covers 308,000 km2, with approximately 30% of this area in Jordan. This aquifer has a very low recharge rate of around 3-10 MCM/yr, with water mainly laid down 10,000-30,000 years ago and hence is termed a fossil aquifer, i.e. a non-renewable resource. Water abstraction from this aquifer commenced in the 1970s. Abstraction is now estimated to be occurring at around 1,000 MCM/yr in Saudi Arabia and 190 MCM/yr in Jordan, therefore the total volume of abstraction substantially exceeds the minimal recharge rate. No formal international treaty has been signed by Jordan and Saudi Arabia on the use of the aquifer, but the Jordanian Ministry of Water and Irrigation (MWI) and the Saudi Arabian Ministry of Electricity and Water signed a non-binding memorandum of understanding (MoU) in 2007. The MoU prohibits the drilling of new production wells and the expansion of agricultural activities within 10 km along both sides of the border between the Dibdib/Dubaydib and Tabuk well fields. Because of its finite volume of available fossil water, the reliance on Disi aquifer represents only a partial solution to provide reliable drinking water to the Amman area as the population continues to grow. To conserve the Disi resource for drinking water use, the GOJ is ending the use for this water for large-scale agricultural irrigation and actively pursuing several potential schemes to supplement Jordan’s potable water supplies in future, in collaboration with its neighboring countries. Project abstraction rates are determined by GOJ’s MWI, as are any initiatives to alter water abstraction and use patterns in Jordan, i.e. the company has no control over these matters of national importance.
Gama Enerji, established as a separate entity from Gama Holding in 2002, primarily develops, owns and operates power generation projects, but also developed and operates a water harvesting and conveyance project. Projects are identified by the company, obtained under license from governments or acquired from previous owners at the early stage of development, such as Kırkağaç, Marmara and UWE WPPs. The Disi asset is currently controlled indirectly by Gama Holding and GE EFS, and hence not incorporated under Gama Enerji. This will be transferred under Gama Enerji prior to IFC-AMC’s investment.
The company currently has seven operational projects, consisting of three HEPs (Birecik, 672 MW, completed in 2001; Lamas, 36.4 MW, completed in 2009 and Cakirlar, 16.5 MW, completed in 2009), three WPPs (Sares, 24.75 MW, completed in 2011; Karadag, 10 MW, completed in 2012 and Gokres II, 35 MW completed in 2014), and a groundwater harvesting and conveyance project (Disi, 100 MCM/annum, completed in 2014, in Jordan). The company is currently constructing the 840 MW Ic Anadolu CCGT project (scheduled to be commissioned in August 2016) and has three wind power projects in the early stages of development (Kirkagac, 45 MW, Marmara, 10 MW and UWE Istanbul, 200 MW) in Turkey. Project construction is undertaken by specialist construction contractors. The company has majority ownership of all projects except Birecik HEP in Turkey of which it owns 20%. All projects located in Turkey supply power to spot markets, eligible clients and wholesale companies through the national grid operated by the Turkish Electricity Transmission Company (TEiAS). Each project owns the connection facilities up to the switchyard, while TEiAS owns the high voltage transmission lines (ranging from154-380 kV) from the substation onwards.
Cakirlar and Lamas HEPs are run-of-river schemes. Cakirlar HEP, located on the Murgul River in Artvin Province, northern Turkey, involves the diversion of four streams to create 450 m head to generate power. The project diversions and powerhouse are located at 1,400 m above sea level (asl) and 930 m asl, respectively, in an uninhabited area. The diversion weirs are 15-20 m high concrete structures with a sediment weir located immediately upstream, underground diversion pipelines with de-sanding basins, and an above-ground penstock and powerhouse. The project has generation capacity of 16.5 MW (maximum 4.1. m3/s) and it is the upstream HEP of a hydropower cascade.
Lamas HEP (36.4 MW) is located on the Lamas River in Mersin Province, southern Turkey. The project involves river diversion with a 5.2 m high concrete weir, 6.5 km of underground diversion tunnel/pipeline, a penstock and an above-ground powerhouse, occupying 23.8 ha. Lamas III powerhouse has a net head of 221 m and Lamas IV has a net head of 332 m, with the project powerhouses located at 413 m asl and 78 m asl respectively. The maximum capacity of the project is 7.5 m3/s. Lamas I and II, upstream of the project, have not passed concept stage.
Birecik HEP, located on the Euphrates River 37 km upstream of the Turkey-Syria border, is a large hydropower project that relies upon releases from the very large upstream Ataturk Dam (2,400 MW) to generate power. Generation is usually dictated by the dispatch centre operated by DSİ (General Directorate of State Hydraulic Works) and TEİAŞ, and largely governed by Ataturk Dam releases and the limited storage capacity in the Birecik reservoir (operating in a range of 3 m). This project, completed in 2001, is the largest BOT hydropower facility in Turkey to date and it is due to be handed to the Government in October 2016 when the operation concession expires. The dam is 62.5 m high and the project footprint covers approximately 56.25 km2 mostly consisting of the reservoir area. The maximum capacity of the project is 1,900 m3/s, with an average annual discharge rate of around 963 m³/s. Water was briefly supplied from the reservoir to the government-operated Belkis irrigation project in 2010, but this was discontinued due to high pumping costs.
The three operational wind power projects are: Karadag (10 MW); Sares (24.75 MW); and Gokres-II (35 MW). These projects have arrays of between 4-25 wind turbine generators (WTGs), with each turbine of 2.5 MW capacity apart from those at Sares that have now been rated at 2.75 MW due to software modification. Turbines are mounted on 85-100 m high tubular steel towers, with a blade rotor diameter of 100-103 m. Each WTG has a separate transformer and is connected to other WTGs and the substation via underground interconnecting 20/34.5 kV lines. The projects’ substations are connected to the national grid via a high voltage line (154 kV) (except Karadağ WPP that uses a lower voltage). Other standard facilities include earth access roads to each tower site, a hard stand area at each tower, and a central monitoring station, maintenance workshop and stores depot. The land area utilized for each WTG is typically 2,000-3,000 m2. This levelled area incorporates the WTG foundation, crane hard stand and foundation spoil disposal area. All wind power project sites are located on Government Forest Land, with WTGs located on ridgelines on coastal and inland sites at elevations of up to 600 m asl.
The 840 MW Ic Anadolu CCGT project is a greenfield development located in an industrial area in Central District, Kirikkale Province, 50 km east of Ankara. The net electricity generating efficiency of the plant will be high at ~58%, making it one of the most energy efficient gas power plants in Turkey. The plant will have a 79 m high emissions stack. The plant occupies approximately 14 ha of land acquired by Gama Industry from private owners between 2002-08. Existing neighboring land uses include an oil refinery located 600 m southeast, a forested recreation area for refinery staff on the northern boundary, and grazing land to the west. The EPC contractor is GE Energy Products France, General Elektrik Ticaret ve Servis AS, Gama Guc Sistemleri Muhendislik ve Taahhut AS and Gama SA. Construction commenced in January 2014 and commissioning is due in August 2016. At the time of the site inspection only the bulk earthworks and most retaining walls had been completed, plus some minor initial foundation works. Associated developments include a 12.6 km long natural gas supply pipeline with an offtake from the existing Samsun-Ankara natural gas pipeline, a 10 km long water supply pipeline that will offtake from the Municipal water supply scheme, a 3.1 km long wastewater disposal pipeline connecting into the Municipal sewage system, and a 58 km long 380 kV transmission line connecting to the electricity grid.
The Disi Water Conveyance Project is a Build, Operate, Transfer (BOT) scheme that draws groundwater from 55 production wells across 65 km2 of the Disi aquifer in southern Jordan and conveys the water via a 325 km of pipeline and two pumping stations to supply four major towns along the pipeline route and the greater Amman area. Project operations began in 2014 and the company has a 25 year concession period before it is handed to the Government of Jordan (GOJ). Groundwater is drawn from a depth of 500-600 m from the Disi aquifer that is shared with Saudi Arabia (where it is called the Saq-Ram aquifer system) and used for domestic supply. This aquifer covers 308,000 km2, with approximately 30% of this area in Jordan. This aquifer has a very low recharge rate of around 3-10 MCM/yr, with water mainly laid down 10,000-30,000 years ago and hence is termed a fossil aquifer, i.e. a non-renewable resource. Water abstraction from this aquifer commenced in the 1970s. Abstraction is now estimated to be occurring at around 1,000 MCM/yr in Saudi Arabia and 190 MCM/yr in Jordan, therefore the total volume of abstraction substantially exceeds the minimal recharge rate. No formal international treaty has been signed by Jordan and Saudi Arabia on the use of the aquifer, but the Jordanian Ministry of Water and Irrigation (MWI) and the Saudi Arabian Ministry of Electricity and Water signed a non-binding memorandum of understanding (MoU) in 2007. The MoU prohibits the drilling of new production wells and the expansion of agricultural activities within 10 km along both sides of the border between the Dibdib/Dubaydib and Tabuk well fields. Because of its finite volume of available fossil water, the reliance on Disi aquifer represents only a partial solution to provide reliable drinking water to the Amman area as the population continues to grow. To conserve the Disi resource for drinking water use, the GOJ is ending the use for this water for large-scale agricultural irrigation and actively pursuing several potential schemes to supplement Jordan’s potable water supplies in future, in collaboration with its neighboring countries. Project abstraction rates are determined by GOJ’s MWI, as are any initiatives to alter water abstraction and use patterns in Jordan, i.e. the company has no control over these matters of national importance.
Overview of IFC's Scope of Review
IFC’s review involved the assessment of Gama Enerji Anonim Sirketi’s (“Gama Enerji” or “the company”) Environmental and Social (E&S) policies, procedures, and practice against IFC’s Performance Standards (PS). The scope of IFC’s review comprised the following activities: (i) discussions with company management at head office in Ankara on 4 August 2014; (ii) review of project planning documentation prepared for project approvals/permits, primarily consisting of Environmental Impact Assessments (EIAs) for three existing wind power projects, two existing hydropower projects, Ic Anadolu combined cycle gas turbine (CCGT) project and Disi groundwater extraction and conveyance project; (iii) review of project monitoring reports; and (iv) field appraisal of four operational projects and two projects under construction in Turkey between 5-11 August 2014, including on-site discussions with project staff. Field-appraised projects included two operational hydro-electric power projects (HEPs), two operational wind power projects (WPP)s, and a CCGT under construction. Key Gama Enerji management met during the head office meeting and field appraisal included the Assistant Managing Director - Execution and Operation, Assistant Managing Director - Hydro and Renewal Energy, Execution Manager - Execution and Operations Department, and Business Development Specialist.
IFC’s appraisal considered environmental and social management plans for the project and gaps between these plans and IFC requirements. Where necessary, corrective measures intended to close these gaps within a reasonable period of time are summarized in the paragraphs that follow and in the agreed Environmental and Social Action Plan (ESAP) disclosed in this review summary. Through implementation of these management plans and the ESAP, the company’s assets are expected to be designed and operated in accordance with PS objectives.
IFC’s appraisal considered environmental and social management plans for the project and gaps between these plans and IFC requirements. Where necessary, corrective measures intended to close these gaps within a reasonable period of time are summarized in the paragraphs that follow and in the agreed Environmental and Social Action Plan (ESAP) disclosed in this review summary. Through implementation of these management plans and the ESAP, the company’s assets are expected to be designed and operated in accordance with PS objectives.
E & S Project Categorization and Applicable Standard
Environmental and Social Mitigation Measures
Stakeholder Engagement
Broad Community Support
Environmental & Social Action Plan
Related SII
