The Project is sponsored by ACWA Power (the “Sponsor”). The Project will be developed by ACWA Guc, which is currently owned 99% by ACWA Power. The Engineering Procurement Construction (“EPC”) contractor for the Project, Samsung C&T, may also take a 10% stake in the Project.

ACWA Power is a developer, investor, co-owner and operator of a portfolio of plants with a capacity to generate 15,290 MW of power and produce 2.4 million m3/day of desalinated water, which has an investment value in excess of USD 22 billion. ACWA Power was born out of the policy decision by the Kingdom of Saudi Arabia to increase private sector involvement in the power generation and desalinated water production sectors to include ownership and operation of assets. ACWA Power has now grown to be an investor, developer and operator of power generation and desalinated water producing plants in which it has a meaningful economic interest and exercises management control. The company was incorporated in the Kingdom of Saudi Arabia and has a paid-up capital of approx. USD 1.4 billion.

The total project cost is estimated at about USD1.0 billion. 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 50km 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 to develop a new large scale natural gas fired combined cycle power plant, with an installed capacity up to about 928 MW (net), in an unused meadow land about 50 km east of Ankara and an associated 119km 380 kV transmission line. Due to the potential significant adverse E&S impacts and risks, this project is a category A project according to IFC’s Policy on Environmental and Social Sustainability.



Key E&S issues include NOx emission control and ambient air quality impacts, water intake from Kizilirmak River through caisson wells and effluent discharge, noise control measures, selection of cooling system, E&S impacts of the associated high-voltage transmission line, labor and working conditions management during construction phase, energy efficiency and greenhouse gas emissions, and land acquisition and compensation.



PS6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources) is not considered to be applicable to this proposed investment because the power plant site is in a modified habitat with limited project’s impacts on biodiversity values and the transmission line route will not affect any ecologically sensitive areas. PS7 (Indigenous Peoples) is not considered applicable because the project will not affect any indigenous peoples. PS8 (Cultural Heritage) is not considered applicable because the ESIA reports show that there are no items of cultural heritage affected by the project.



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 project is expected to be designed and operated in accordance with Performance Standards objectives.

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.