(MENAFN - Trend News Agency ) Baku, Azerbaijan, Dec. 28
By Nigar Guliyeva - Trend:
The European Bank for Reconstruction and Development (EBRD) is providing a $ 85 million loan to Türkiye Sınai Kalkınma Bankası (TSKB) to finance private mid-cap companies investing in renewable energy and resource efficiency projects in Turkey.
The EBRD reported that the financing will contribute towards a green economy by supporting solar, hydropower, wind, geothermal, waste-to-energy and energy efficiency projects as well as water-saving and waste minimisation.
Arvid Tuerkner, EBRD Managing Director for Turkey, said by providing financing to mid-cap companies to undertake green investments, the EBRD is contributing to their sustainable development and to the improvement of the overall competitiveness of the Turkish economy.
The loan comes under the EBRD's €1.6 billion Mid-size Sustainable Energy Financing Facility (MidSEFF) for Turkey. To date, nearly 60 projects have been financed under this framework through seven Turkish banks, installing over 1 GW of renewable energy capacity by private commercial and industrial companies.
The current phase of MidSEFF is supported by the European Union which has provided €2.2 million in grant funding, enabling the EBRD to deliver expert advice to partner banks and their clients. The Bank also works together with the Turkish Ministry of Energy and Natural Resources on the development of renewable energy support mechanisms as well as streamlining the licensing regime.
Promoting the use of sustainable energy and more environmentally friendly sources of energy is a priority for the EBRD in Turkey. Almost half of the Bank's projects in Turkey are in sustainable energy.
The Bank is a major investor in Turkey and to date has invested over €9.5 billion in various sectors of the country's economy, with almost all investments in the private sector.
In 2017 the EBRD expects to exceed €1.5 billion in investments.