World Bank giving $250m for geothermal project in TurkeyStaff Writer | November 3, 2016
The World Bank board approved an IBRD loan of $250 million and a Clean Technology Fund Grant of $39.8 million for Geothermal Development Project in Turkey which will help create renewable energy by tapping heat sources deep in the ground.
Renewables Tapping heat sources deep in the ground
Turkish citizens, will benefit from new economic and employment opportunities created by increased geothermal development. The global community will also benefit from the lessons learned through use of the risk sharing facility in designing similar mechanisms to stimulate geothermal exploration in other markets.
The project includes: Establishment of a Risk Sharing Mechanism for Resource Validation, to support the exploration and test drilling stages; and Setting up of a Loan Facility for Resource Development that will support the power plant development phase.
Türkiye Kalkinma Bankasi A.Ş (TKB) (Development Bank of Turkey) and Türkiye Sinai Kalkinma Bankasi A.Ş (TSKB) (Industrial Development Bank of Turkey) will be the two financial intermediaries (FI) implementing the project.
These banks will benefit from two IBRD loans ($100 million to TKB and $150 million to TSKB), which will be co-financed with their own resources.
Financing with a long maturity period and capacity building for the participating financial intermediaries is expected to incentivize them to take more risk at earlier development stages than under usual market conditions. ■