Zorlu Enerji ia one of Turkey’s five private power companies and is listed on the Istanbul Stock Exchange. It is owned by Zorlu Holding, a well-diversified conglomerate with activities in textiles, white goods and electronics, and real estate.

Set up in 1993 and made public in 2000, the company currently produces electricity at its 6 power plants with total installed capacity of 420 MW. It also owns licenses for exploration and production of natural gas and is involved in two urban gas distribution utilities.

Zorlu Enerji aspires to becoming a global power producer and is currently developing gas-fired power plants in Russia and Israel as well as a wind park in Pakistan. In addition to these projects, it has recently won the privatization tender for 9 power plants of Ankara City with the total installed capacity 143 MW.

The total project cost is estimated to be at approximately EUR 180 million, of which IFC is expected to provide up to EUR 45 million in the form of a senior loan.

73.72 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	73.72
Equity

* These investment figures are indicative

The project will be located on Gokcedag Mountain near Sayranli, Kircalar, Karafenk, Aslanlibeltepe and Ancinar in Bahce District in the Province of Osmaniye, in the Eastern Mediterranean Region of Turkey.

Once operational, the project will:

- increase Turkey’s electricity output from wind energy;
- in doing so, displace carbon emissions, reducing pollution and contributing 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 a merchant power operations and private sector investment in Turkey’s energy sector.

IFC’s additionality to the investment comprises:

- providing financing for a large part of the project cost, with a longer average life than that available from commercial banks, during a portion of which the project will be exposed to merchant risk;

- providing comfort to co-lenders and participant banks, both through IFC’s structuring role, and in light of Turkey’s regulatory and political risk; and

- ensuring the implementation of adequate environmental and social standards in line with World Bank Group standards, which are not required under Turkish legislation.

This is a Category B project because a limited number of specific environmental and social impacts may result from construction of this green field wind power project. These impacts, including visual, noise, contractor and construction impact management, will be managed by the sponsor in close detail consistent with IFC and national requirements. An independent EIA was completed and an Environmental Management Plan (EMP) has been developed. Potential cumulative impacts associated with a second phase of the project were also assessed as part of the EIA. The project, and the proposed Phase 2, is located on Forestry Department land, all of which is plantation forest.

The EIA confirms there will be no measurable impact on sensitive fauna or flora. No resettlement or economic displacement will result from the project. Several small parcels of land will be purchased/leased from private owners for a 1km section length of the project’s transmission line; these transactions will be completed on a willing seller-market basis. Particular care will be needed during construction related to erosion control and waste management associated with road expansion; this is specifically addressed in the EMP. Formal and informal consultations conducted to date indicate strong support for the project due to the jobs and benefits it will bring to the local agrarian economy. Visual and noise impacts are minimal due to the topography and distance to nearest receptors. From an environmental and social perspective the project is very positive due to the carbon benefits it will generate. Rotor Elektrik has presented plans to address the impacts and other requirements, and will, upon implementation of specific agreed measures, comply with the IFC Performance Standards on Social and Environmental Sustainability.