Announcement of Turkey to Upgrade Power Facilities With World Bank Loan on July 5, 1985

FOR IMMEDIATE RELEASE World Bank j (i l_ I,. 1818 H Street, N.W_, Washington, D.C. 20433, U.S.A.• Telephone: (202) 477~·11':U·' " l ,_.. ., BANK NEWS RELEASE NO. 86/5 Contact: Fawzi Rihane July 5, 1985 ( 202) 4 77-5325 TURKEY TO UPGRADE POWER FACILTIES WITH WORLD BANK LOAN Over the next five years, Turkey will implement a project to upgrade the efficiency of its power generation plants and improve the reliability of its electric transmission and distribution systems. The World Bank will provide financing of $140 million for the project and the remainder of the financing, $22 million, will come from the Government of Turkey and the Turkish Electricity Authority. The project will support the government's goal to improve the efficiency of energy production and consumption. The major portion of the World Bank loan will finance the supply of tools, transport equipment, spare parts, and materials for upgrading and repair of thermal and hydroelectric power plants and electric transmission and distribution systems. Techniques for prompt restoration of service in case of power interruption will be developed. Staff of the Electricity Authority will be trained in hotline maintenance procedures and techniques. Special equipment will be installed to reduce distribution system losses and to help control peak power demand by means of modern load management techniques in the cities of Istanbul, Ankara, and Izmir. Studies will be carried out to improve the efficiency of older hydroelectric power plants. The World Bank loan is for 17 years, including four years of grace, with a variable interest rate, currently 8.82 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances. NOTE: Money figures are expressed in U.S. dollar equivalents.