The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to $100 million (TL 3.03 billion) to Türkiye’s electricity company, Enerjisa Enerji, to support investment in the modernization and reconstruction of the distribution network in the region impacted by last year’s earthquake.
The bank announced on Wednesday it would provide Enerjisa with the financing aimed at rehabilitating the electricity network in the Toroslar region, which was adversely affected by the earthquakes.
The project to be completed is set to broaden the availability of reliable and stable energy to the more than 163,000 residents in communities affected by the Feb. 6, 2023 earthquakes, the bank said in a statement.
The powerful tremors that struck the southeastern region caused widespread damage and claimed tens of thousands of lives.
As a key private sector player in the Toroslar region, Enerjisa Enerji will work closely with the Regional Recovery and Development Center, 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 programs 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.
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.
In the weeks that followed the earthquakes, the EBRD announced a comprehensive two-year response package amounting to 1.5 billion euros (approximately $1.62 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 (SMEs) and private sector partnerships.
Aida Sitdikova, EBRD Director for Energy, Eurasia, Middle East and Africa (MENA), 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 (CFO) of Enerjisa Enerji, said: “The new loan agreement with the EBRD will be the driving force behind the re-establishment and modernization 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 that will help us rebuild the electricity infrastructure and contribute to development in the region,” he said.
The loan proceeds will also allow Enerjisa Enerji to reduce its losses, resulting in a reduction in carbon dioxide emissions of 82,000 tons a year.
To date, the EBRD has invested more than 19.1 billion euros in the Turkish economy, largely in the private sector.
