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European Bank for Reconstruction and Development said it is considering an equity investment of up to USD 35 million (EUR 30.73 million) to acquire up to a 20% stake in holding company HoldCo, a vehicle to be established as a 100% owner of five operating run-of-the-river hydropower plants (HPPs) currently owned by Rönesans Enerji and partners.
The five plants have an installed capacity of 114 MW and are located in the northern part of Turkey.
EBRD said it will be making the investment alongside energy companies Edison SpA and Rönesans Enerji.
The project will increase competition and foreign direct investments in Turkey by bringing an experienced European energy company into the market, the project summary document said. The target board date is June 10.
The participation of Edison, which is considering the investment in parallel, would lead to an increase in competitive pressure and induce further efficiencies in the way the power market operates and its participants behave, the announcement said.
The project will also set standards for corporate governance and business conduct as the bank, jointly with Edison, will review the management systems and permitting procedures inclusive of the existing stakeholder engagement plans and through the implementation of an environmental and social action plan (ESAP) introduce best practice in running of the hydro facilities, EBRD said.
