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Washington, D.C., June 15, 2010—The World Bank’s Board of Executive Directors today approved a Second Environmental Sustainability and Energy Sector Development Policy Loan (ESES-DPL 2) for Turkey in the amount of Euro 519.6 million (US$ 700 million equivalent).
Turkey’s energy and environment program, supported by the ESES DPL 2, aims to enhance energy security by promoting private sector clean technology investments and operations; to integrate principles of environmental sustainability, including climate change considerations in key sectoral policies and programs; and to improve the effectiveness and efficiency of environmental management in the context of harmonization with the Environmental Acquis of the European Union.
The Program has three components: Pillar I supports the energy program, covering energy pricing, electricity markets, renewable energy, energy efficiency, electricity distribution and generation privatization, and gas supply security and wholesale gas market development. Pillar II supports Turkey's National Climate Change Strategy following the ratification of the Kyoto Protocol in February 2009. Pillar III supports sustainable environmental management and is focused on the transposition of the EU Environmental Acquis and sectors/sub-sectors where environmental degradation could hamper sustainable development.
“Turkey continues implementing an ambitious energy sector program with a view to meeting the country’s growing energy demand in an efficient and sustainable manner,” said Ulrich Zachau, World Bank Country Director for Turkey. “Turkey has also begun stepping up its international and domestic engagement on environmental management and climate change. These actions and programs will help sustain economic growth, create more jobs, raise incomes, and reduce poverty; and will contribute to containing emissions, protecting the environment in Turkey, and improving the quality of life and health of its citizens. We in the World Bank are proud to be Turkey’s partner as the country advances this agenda.”
The ESES DPL2 is the continuation of the Programmatic Electricity Development Policy Loan (PEDPL1) dating back to 2009 in the amount of Euro 548.4 million (US$800 million equivalent) which supported the Government’s program for energy security, energy efficiency, and clean energy. The ESES DPL2 is an IBRD Flexible Loan in Euro with an interest rate equal to 6 months LIBOR term plus a variable spread, with a final maturity of 21.5 years, including a 14 year grace period.
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