EBRD mulls loan for 70-MW geothermal project in Turkey

The European Bank for Reconstruction and Development (EBRD) may provide a senior loan of up to USD 70 million (EUR 66m) for the construction of a 70-MW geothermal power facility in Turkey.

The funds are to be used by Zorlu Dogal Elektrik Uretimi AS for the construction of unit 2 of the Kizildere III geothermal power plant in West Anatolia. The extension will increase the plant's capacity from 100 MW to 165 MW. Kizildere III unit 1 is currently under construction.

The bank said last week that Zorlu Dogal has presented the environmental and social impact assessment (ESIA) package for the project on December 8. The company is a renewable energy-focused unit of power producer Zorlu Enerji Elektrik Uretimi AS (IST:ZOREN), which is part of Turkish conglomerate Zorlu Holding Ai.

After the ESIA disclosure, there will be a 60-day public review and comment period, with the EBRD board expected to decide on the loan on February 22, 2017.

Other participants in the project financing package of up to USD 270 million include Akbank, IsBank and TSKB.

In September, Japanese conglomerate Toshiba Corp (TYO:6502) announced an order for a 50.7-MW flash steam turbine system and generator (STG) for unit 2 of the Kizildere III plant. The project will also integrate an approximately 19.3-MW binary cycle power generation system that uses flash turbine exhaust steam.

(USD 1.0 = EUR 0.945)

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