The European Bank for Reconstruction and Development (EBRD) is mulling an equity investment of up to US$35 million to acquire up to a 20 % stake in HoldCo.
HoldCo is a vehicle to be established as a 100 per cent owner of five operating run-of-the-river hydro power plants (HPPs) currently owned by Ronesans Enerji and partners. The five HPPs have an installed capacity of 114 MW and are located in the northern part of Turkey.
The Bank’s equity investment will be alongside Edison, an European energy company with operations in electric power and hydrocarbons exploration and production, owned by Electricité de France (EDF); and Ronesans Enerji, Turkish energy company, owned by Ronesans Holding, a diversified conglomerate with activities in construction, real estate development and energy.
The project will increase competition and foreign direct investments in Turkey by bringing an experienced European energy company into the Turkish power market. 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 project will also set standards for corporate governance and business conduct as the EBRD, 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 HPPs.