Turkish Business Club

Turkish Business Club

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  • Rabia Rahimbayeva
    Rabia Rahimbayeva    Group moderator   Ambassador
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    SEFF Provides Source for Energy Sustainability
    Türkiye’s Sustainable Energy Financing Facility, or TurSEFF, was launched in Istanbul last week with a credit line of $200 million pledged to promote energy efficiency and renewable energy projects in Türkiye. The project is a partnership between the European Bank for Reconstruction and Development, or EBRD, and four Turkish Banks: Akbank, Denizbank, Garanti and Vakıfbank.
    “A huge amount of energy is wasted through outdated technology, renewable and energy efficient technology is under utilized,” said Ian Smith Manager of energy efficiency and climate change for the EBRD. “This results in the degradation of our environment.”

    The aim of the partnership is to “promote lending for renewable and energy efficiency to small and medium sized projects in Türkiye,” said Jan Fortmann, project manager for TurSEFF. “We want to kick off energy efficiency in Türkiye.”

    Within the scope of the project, the four Turkish banks will borrow money from the EBRD at commercial rates and lend only to projects that promote renewable and energy efficiency. The banks will be able to lend up to $5 million to the borrower for larger scale commercial projects. The borrowers will be subjected to the normal credit worthiness check of the individual bank. Each credit line will be supported by a team offering technical assistance and borrowing advice to potential borrowers and partner banks free of charge.

    With TurSEFF, Türkiye is the 12th country to receive a Sustainable Energy Financing Facility, or SEFF through the EBRD. To date, more than $1.3 billion has been allocated to supporting $700 million in countries such as Russia, Georgia, Romania, Ukraine and Bulgaria.

    Fortmann exemplified a bakery in another country that borrowed $500,000 for buying a new energy efficient oven. The investment saved 300,000m³ of gas per year, doubling production capacity resulting in annual savings of $100,000, Fortmann said.

    “This is a small fund for us, just $60 million, but we will use it to help residential energy efficient projects,” said Ferda Besli, Executive Vice President for Akbank.

    “This facility will help the competitiveness of Turkish business, helping them reduce their energy requirement and cut costs,” said Michael Davey Country Director of Türkiye for the EBRD.

    “We are delighted to be part of this framework and to finance sustainable energy investments and energy efficiency projects,” said Denizbank Board Member Wouter Van Roste. “This loan agreement with the EBRD is also reinforcing Denizbank’s strong position in the international arena.”

    “We will be looking to add more money to the credit line by the end of the financial year depending on initial success,” said Smith.

    Source: Turkish Daily News
    • 18 Jul 2010, 11:28 pm