EBRD Provides $100 Million Loan to Enerjisa for Earthquake-Hit Electricity Network Reconstruction in Turkey

EBRD Provides $100 Million Loan to Enerjisa for Earthquake-Hit Electricity Network Reconstruction in Turkey

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) is extending a loan of up to $100 million to Enerjisa Enerji A.S. in Turkey to support the modernization and reconstruction of the electricity distribution network in the earthquake-affected Toroslar region. The project aims to provide reliable energy access to over 163,000 residents impacted by last year’s earthquakes, contributing to regional recovery and sustainable economic development. Enerjisa Enerji, a key player in the region, will collaborate with the Regional Recovery and Development Centre to implement initiatives focusing on livelihood generation, green skills training, and energy efficiency in agriculture, among others. The loan will also help reduce CO2 emissions by 82,000 tonnes annually and support the company’s long-term commitment to a sustainable energy future in the region.

(PRESS RELEASE) LONDON, 1-Feb-2024 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to $100 million to Enerjisa Enerji A.S. in Türkiye to support investments in the modernisation and reconstruction of the electricity distribution network in the Toroslar region, which was adversely affected by the earthquakes that hit the country last year.

The project will broaden the availability of reliable and stable energy to the more than 163,000 residents in communities affected by the earthquakes on 6 February. The quakes caused widespread damage and claimed tens of thousands of lives, including those who were living in temporary accommodation.

Enerjisa Enerji is an electricity distribution and retail company in Türkiye and currently serves more than 21 million people, or around a quarter of the country’s population.

As a key private sector player in the Toroslar region, Enerjisa Enerji will work closely with the Regional Recovery and Development Centre, established by the Toroslar regional chambers, which aims to support the strategic planning of human capital, income generation and sustainable economic development initiatives.

In collaboration with the EBRD, these initiatives will include programmes focusing on livelihood generation for the affected communities, training modules on green skills and energy efficiency in agriculture, projects and schemes for workforce preservation, and job placement.

In the weeks that followed the earthquakes, the EBRD announced a comprehensive two-year response package of €1.5 billion. The package includes credit lines to individuals and companies affected by the earthquakes, as well as infrastructure investments and support for small and medium-sized enterprises and private sector partnerships.

Aida Sitdikova, EBRD Director for Energy, Eurasia, Middle East and Africa, welcomed the transaction, saying: “Since the earthquakes, we have been working closely with our clients to move towards recovery and reconstruction in the area. Our partnership with Enerjisa will ensure uninterrupted electricity distribution in the affected cities, and support a stronger and more sustainable reconstruction of the region.”

Philipp Ulbrich, Chief Financial Officer of Enerjisa Enerji, said: “The new loan agreement with the EBRD will be the driving force behind the re-establishment and modernisation of our cities’ electrical infrastructure, which was damaged in the earthquakes in February.

We are aware of our responsibility to our communities, and this loan agreement is part of our commitment to a long-term, sustainable energy future; it will help us to rebuild the electricity infrastructure and will contribute to development in the region.

The EBRD’s support and willingness to cooperate on this project is a positive step for both our company and the local people. In addition to thanking the EBRD, we express our gratitude to our colleagues at Enerjisa, who work hard in the field to provide reliable and sustainable solutions that meet the energy needs of our societies – they play a major role in the success of this project.”

The proceeds of the loan will also allow Enerjisa Enerji to reduce its losses, leading in turn to a reduction in CO2 emissions of 82,000 tonnes per year.

To date, the EBRD has invested more than €19.1 billion in the Turkish economy, largely in the private sector.

Media Contact:

Tel: +44 207 338 7805
Email: press@ebrd.com

SOURCE: EBRD