The European Bank for Reconstruction and Development (EBRD) said on Monday it was extending a $150 million loan to finance the reconstruction and modernization of the electricity network and the development and construction of solar power plants in Türkiye's southeastern region that was hit by devastating earthquakes two-and-a-half years ago.
The funding will be provided to Türkiye's electricity distribution, retail sales and customer solutions company, Enerjisa Enerji, for the Toroslar region, which accounts for approximately one-third of the company's total operations, the bank said in a statement.
The southeastern region is still recovering from quakes that struck 11 provinces in February 2023, claiming more than 50,000 lives and destroying hundreds of thousands of buildings and severely damaging infrastructure, including the electricity distribution network.
The EBRD had announced a two-year response package following the disaster, with support totalling 1.5 billion euros. That included credit lines for individuals and companies in the region, investment in infrastructure, assistance for small and medium-sized enterprises (SMEs) and private-sector partnerships.
"Enerjisa Enerji will use the EBRD loan to finance the rebuilding and modernization of the electricity distribution network, contributing to the overall reconstruction efforts in the Toroslar region," the bank said. The company will also install solar power plants offering sustainable energy solutions to its corporate customers, it added.
The statement said the project demonstrates the EBRD's "commitment to Türkiye's green agenda by helping to prevent distribution losses in the electricity network, as well as supporting the construction of renewable energy infrastructure – leading to significant reductions in carbon emissions."
It said the transaction also sees the launch of the Board Director Nomination Toolkit for Companies in Türkiye, an initiative led by the EBRD to promote diverse company boards, which it says helps to ensure a wealth of perspectives at management level and sustainable long-term growth for the private sector.
Accordingly, Enerjisa Enerji will be joining forces with the EBRD to raise awareness of the Toolkit.
"The Toolkit is intended as a source of information and guidance on the board nomination and appointment process, helping companies to establish effective gender-diverse boards," it noted.
Reconstruction in the Toroslar region is not a short-term task, said Matteo Patrone, the EBRD's vice president for banking.
"It requires long-term commitment, clear strategic direction and the kind of trusted partnership that we have with Enerjisa Enerji. Reliable, sustainable power is fundamental to both human well-being and economic recovery," Patrone noted.
The long-term financing worth $150 million equivalent in Turkish lira is showing that Enerjisa Enerji is able to finance its profitable growth also within a challenging environment, its CFO, Philipp Ulbrich said.
"Support from a globally respected institution like EBRD is not only a testament to our credibility but also reflects investor interest in the energy transition. The well-established partnership with EBRD is strengthening our strategic steps toward sustainable growth," Ulbrich added.
The EBRD is one of Türkiye's biggest investors, with more than 22 billion euros extended through 495 projects and trade finance limits since 2009, mainly in the private sector.
