The Asian Infrastructure Investment Bank (AIIB), the European Bank for Reconstruction and Development (EBRD) and the Black Sea Trade and Development Bank (BSTDB) have co-financed the expansion of Turkey’s largest geothermal power plant.

In a joint statement, the three development banks said they are contributing to a financial package worth US$350m (€314m), an investment which adds about 100MW in capacity to the EFELER power plant.

Gürmat Elektrik will use the finance for the expansion at EFELER.

Under the financing package, Gürmat Elektrik will receive US$100m loan from the AIIB, a US$60m from the EBRD and US$20m from the BSTDB. 

Turkey’s largest commercial lender Isbank is providing US$90m loan, and the industrial development bank of Turkey TSKB and ICBC Turkey are making loans of US$50m and US$30m respectively.

DJ Pandian, AIIB’s vice president and CIO, said: “EFELER is our first non-sovereign-based financing in Turkey, our first co-financing with the EBRD and the BSTDB in the private sector, and our first foray in the geothermal space.

“This project is a visible example of AIIB’s commitment to the expansion of renewable energy projects led by the private sector in Turkey.”

Nandita Parshad, EBRD managing director for sustainable infrastructure, said: “We are pleased to build on our previous cooperation with Güriş Holding, a long-standing client of the EBRD with a strong track record of project implementation. 

“We are also proud to join forces with AIIB, BSTDB and several commercial banks and together provide a comprehensive financing package to the company.”

Hasan Demirhan, BSTDB vice president banking, said: “As a regional development bank, BSTDB seeks to considerably increase its strategic role in supporting infrastructure investments with high development impact in member countries, including creation of long-term employment and increased revenues for the state budget.

”This project is also a good example of our synergies with peer development institutions and the private-sector investors to increase the efficiency of development financing.”