The Project is sponsored by International Company for Water and Power Projects (“ACWA Power”) and Eser Holding Anonim Sirketi ("Eser Holding") (together the “Sponsors”). The Project will be developed by Farcan Enerji Uretim Anonim Sirketi (“Farcan Enerji”), which is currently owned 70% by ACWA Power, and 30% by Eser Holding.

Founded in Saudi Arabia in 2004, ACWA Power is the largest independent power producer (“IPP”) developer in the Middle East and North Africa (“MENA”) and one of the fastest growing companies in Saudi Arabia. The ACWA Power focuses on power generation and desalinated water production in the region. ACWA Power holds both majority and minority equity ownership in a portfolio of contracted assets comprising 8,000 MW of power plants, of which 3,170 MW is composed of CCGTs, and 2.3 million m3/day of desalinated water production plants, with a total investment value of over USD 12 billion.

Eser Holding is a local construction company operating in Turkey and the near region. Eser Holding is a private company. Eser Holding completed numerous projects in Saudi Arabia, Sudan, Afghanistan, and other countries in Central Asia, Eastern Europe, Middle East and Africa. Eser Holding has experience in all stages of construction and project cycles, with know-how from design to construction and commissioning to operation. Eser Holding has a power generation pipeline of nine hydro power plants with an estimated total installed capacity of 102MW.

The total project cost is estimated at about USD900 million. The proposed investment is an A Loan of up to USD125 million and a B Loan of up to USD75 million.

125.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	125.0
Equity

* These investment figures are indicative

The Project will be located in Kirikkale, which is 50 km east of Ankara in Central Anatolia. The greenfield project site is located in a rural area.

Turkey Country Partnership Strategy FY2012-2015 outlines strategic objectives for fast, sustainable, equitable and inclusive growth that respects the environment. In line with this strategy, the World Bank Group aims to contribute to improved supply of reliable and efficient energy, increased use of renewable energy and climate actions under implementation.

The Project will have a significant development impact as it will: (i) increase Turkey's electricity output and help meet the country's growing energy demand and provide power supply security; (ii) in doing so, reduce Turkey's reliance on coal and lignite, thereby reduce carbon emissions in electricity generation; (iii) support power sector reform by increasing the share of private generation in Turkey's overall electricity generation in order to move towards possible EU accession and the creation of a regional energy market; and (vi) by size and nature of the transaction, influence Turkey's ability to continue to attract foreign investment in the energy sector. Through the above, the Project will positively impact the fiscal and macroeconomic stability of Turkey.

The Sponsors are seeking to raise project finance on a limited recourse basis from the local and international financial markets when there is (i) reduced funding availability due to the spillover from the European Debt Crisis and (ii) higher risk perception related to the Turkish merchant power market that is still in transition into a fully competitive market model.

IFC's role and additionality in this Project will include: (i) supporting a reputable regional investor entering to Turkey's power generation market, which is in transition and in strong need of private sector investment given the looming power deficit in generation (South-South investment); (ii) providing long term financing that commercial banks currently cannot provide at sufficient scale without IFC B loan umbrella; (iii) sharing IFC's extensive know-how of deregulated power markets; (iv) advising on contractual and financial structuring issues considering the merchant risk embedded in the Project; (v) IFC's comfort to participants under its B-loan umbrella and other parallel lenders in a major energy financing with merchant risk in the transitioning electricity market in Turkey; and (vi) ensuring the implementation of adequate environmental and social standards in line with World Bank Group standards, which are not required under Turkish legislation.

The Project is a development of a new greenfield large scale gas-fired combined cycle gas turbine plant and is a category A project due to its potential significant adverse environmental and social risks and impacts.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.