Turkey: Osmangazi Electricity Distribution Network Modernization and Expansion Project

approved

The Project involves the provision of a senior loan in Turkish lira (TRY) to support the capex program of Osmangzi Elektrik Dagitim A.S (OEDAŞ), the incumbent operator of the medium-/low-voltage network in the Osmangazi region. OEDAŞ operates the network in accordance with the terms and conditions set out in the Transfer of Operating Rights Agreement (TORA) signed between OEDAŞ and Turkish Electricity Distribution Company (TEDAŞ) on July 24, 2006, and the Distribution License received on September 1, 2006. Since 2017, OEDAŞ is owned by Zorlu Enerji Elektrik Uretimi A.S. (Zorlu Enerji) through Zorlu Osmangazi Enerji Sanayi ve Ticaret A.S. (Zorlu Osmangazi). OEDAŞ serves around 2.79 million consumers in across 191 urban centers and 1,596 villageswithin a landlocked 49,344 km2 area located in western Anatolia that encompasses the provinces of Afyonkarahisar, Bilecik, Eskisehir, Kutahya and Usak. The company has circa 50,787 km of distribution lines and 7,855MVA of transformer capacity installed. The capex program covers the investments required under the Turkey's Fourth Tariff Implementation Period (TIP-4) for the years 2021-2025, as approved by the Energy Market Regulatory Authority (EMRA) and TEDAŞ and amounts to approximately USD400 million, subject to the realization of capex efficiency during the implementation. The Project will contribute to the expansion, rehabilitation, and improved efficiency of the Osmangazi electricity distribution network. The Project activities will include the procurement, construction, and operation of medium- and low-voltage overhead lines, underground lines, transmission connection lines and transformers. The Project will contribute to the reduction of theft and losses (T&L), enhancement of environmental and safety standards, improve the efficiency and reliability of the network and contribute to the digitalization of the network.