Announcement of World Bank Supports Hydropower Project in Turkey on February 27, 1986

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. INTERllAT!O!iP.L MC'.:C:TA.RY FUND JOl:-IT LI~.~:'.I:'f I:··, \: 1 BANK NEWS RELEASE 86/54 February 27, 1986 WORLD BANK SUPPORTS HYDROPOWER PROJECT IN TURKEY Turkey is investing $716.4 million in a hydroelectric power project that will generate annually about 990 GWh of electric energy. Since 1971, the supply of electricity has not been able to meet the demand, which has been growing at an average rate of 9 percent a year. The project supports the government's strategy of developing the country's indigenous energy resources. Hydroelectric power now accounts for half of the electricity produced in Turkey. The project will be located at Kayraktepe on the Goksu River in South Central Turkey. It will feature a dam with a capacity of 17 million cubic •meters, to be built some 15 kilometers upstream of the Silifke plain. A power plant, located immediately downstream of the dam, will be equipped with two 200 MW main generating units and one 20 MW unit, which will use water released for irrigation when the main units are shut down. The project will also provide flood protection for the rich Silifke plain and the city of Silifke. And it will provide technical assistance to the State Hydraulic Authority and the Ministry of Energy and National Resources for a review of all hydroelectric projects in Turkey. The review will play a major role in the government's planning for the development of the hydropower subsector. The government is providing $166.4 million towards the cost of the project. It is also arranging a B-loan (cofinancing with commercial sources) of $350 million. The World Bank will take a participation of $50 million in the B-loan. The World Bank loan of $200 million is for 17 years, including four years of grace, with a variable interest rate, currently 8.5 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.