Turkey - Sixth Adaptable Program Lending for the Energy Community of South East Europe Project

Page 1 INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC4842 Date ISDS Prepared/Updated: 03/10/2010 I. BASIC INFORMATION A. Basic Project Data Country: Turkey Project ID: P110841 Project Name: Energy Community of South East Europe APL6 Project - Turkey Task Team Leader: Sameer Shukla Estimated Appraisal Date: May 14, 2010 Estimated Board Date: July 1, 2010 Managing Unit: ECSSD Lending Instrument: Adaptable Program Loan Sector: Power (100%) Theme: Infrastructure services for private sector development (67%);Regional integration (33%) IBRD Amount (US$m.): 250.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: Borrower 50.00 50.00 B. Project Objectives [from section 2 of PCN] Increase the reliability and capacity of the transmission system in Turkey and improve its ability to integrate renewable energy capacity. The achievement of the project objective will be measured based on the following key indicators: (a) Addition to transmission capacity of the system for energy (TWh), (b) Addition to transmission capacity of the system for peak power (MW), (c) Electricity Sold on the market as % of electricity transmitted, (d) Additional wind capacity connected to the system (MW), (e) Other suitable indicators from ECSEE APL2 and APL3 relating to reliability and efficiency. C. Project Description [from section 3 of PCN] The projects to be financed under this new loan include the rehabilitation and upgrade of 380 kV and 154 kV air and gas insulated substations, the development of new 380 kV transmission lines and the electrical connection of 380 kV and 154 kV underground cables. Page 2 This proposed project, like the other ongoing loans to TEIAS, covers a time slice of the investments required for the expansion and modernization of the grid. The investments that the Project will finance can, as witnessed under APL2 and APL3, change over time based on the changing priorities of the grid # based on changes in demand growth in various areas and on new generation plants licensed and built in different parts of the country. This initial set of investments has been tentatively identified, based on discussions between the Bank, TEIAS, State Planning Organization (SPO) and Treasury. Key preparatory actions such as preparation of feasibility studies and environmental and land acquisition related documentation for the initial set of investments are under way, and are expected to be completed in time. Safeguards framework documents, currently under use for APLs 2 and 3 will also be used for the new project, updated for recent changes in policy or regulations as necessary. Clean Technology Fund (CTF): The CTF investment plan endorsed by the CTF Trust Fund Committee in January 2009 includes a component to assist with modernizing the grid, through a #smart grid# solution, in order to enable the integration of the rapid growth in wind capacity. Initially, the proposal was to combine this CTF component with the proposed APL project. However, preparation of the CTF component has taken longer than anticipated. An ESMAP- financed activity is currently assisting TEIAS in defining the investments and system modernization needed. Once the investment needs are identified, it is likely that the CTF component, along with additional IBRD financing if necessary, may be requested by Government/TEIAS, either in addition to the proposed APL or as a separate new loan. The CTF component is expected to be finalized by early-2011. Tentative list of investments 380 kV substations Hatay Van Yeni Bosna GIS Maltepe GIS Kartal GIS 380 kV cables Davutpa#a -Yeni Bosna Lapseki-Gelibolu Maltepe-Kartal 154 kV substations Kad#koy