The World Bank has approved two loans worth $300 million for the Geothermal Development Project in Turkey. The loans are additional financing to two initial loans worth $250 million.
These loans are complemented by a $39.8 million grant from the Clean Technology Fund (CTF) as well as a $350 000 grant from the Energy Sector Management Assistance Programme (ESMAP).
The World Bank financing package, combining loans and grants, allows the Geothermal Development Project to scale up private sector investment in geothermal energy development in Turkey by reducing risks for investors through a Risk Sharing Mechanism (RSM) and by providing access to long-term financing through the Loan Facility for Resource Development.
Auguste Kouame, World Bank Country Director for Turkey, said: “The World Bank is pleased to be a partner of the Government of Turkey in the energy transition effort and the scaling up of geothermal capacity in particular. Increasing renewable energy generation capacity is critical to achieving energy security and climate change mitigation on Turkey. In addition, attracting climate-friendly investment is crucial in Turkey’s energy transition.”